SHIPPING INSURANCE

Hokitika Guardian, 13 December 1929, Page 3

SHIPPING INSURANCE

[United Press Association.—By Electric Tel eg ra ph.—Copy right. j LONDON, Dec. 11. The Directors of the Royal Mail Steamer Packet Coy. have decided not to nay the half yearly preference dividends or interim ordinary dividend. Lord Kylsant’s explanatory statement says the . attacks made upon the Company resulted in a heavy fall of the market value of its shares and debentures. Price Waterhouse Company was instructed /to examine the position,' oi : the Shipping Coys, of which Lord Kylsant is Chairman. The detailed figures show the profits of those companies in 1928, after paying debentures and other interests (but before providing for depreciation of the fleets and preference dividends) amounted to over £3,400,000. It is expected the results of the group for the present year are very similar. Provision for depreciation, in fact, has been made sufficient to write down the combined fleets to a value which is £6,750,000 below the aggregate value at which it would ha,vo stood had provision for depreciation been made on the basis allowed for income tax purposes. The addition to this excess provision for depreciation of the company’s total reserves considerably exceed £7,000,000 and the trade facilities loan of £2,550,000 to t<- Royal Mail Steam Packet meat transports, which is guaranteed by the Royal Mail falls due for repayment in 1930. As public attacks on tbe Royal Mail render it impracticable at present to make a public issue, an application has been made for an extension of the period of payment.