SUEZ CANAL

Hokitika Guardian, 21 July 1932, Page 3

SUEZ CANAL

RECEIPTS FOR THE YEAR

A CONSERVATIVE POLICY

LONDON, July 19,

At the annual meeting -of the Suez Canal Company in Paris, the Marquis de Vogue, who presided, 'referred to the inevitable result of the. world trade depression on 'the activities of th e company, which, after an. improvement .during rhe/fiyst sjx,- month?, showed a decline from July! onwards.- The figuivs. for t,he full year exhibited a ,'fall in.,.tonnage of 5 per cent., as against 1930, and of 10 per cent, as against 1929. This diminution in the volume of tonnage. ■ ifihould- be . considered' 'as quite moderate in the •.riycumrtances-, and was, ■in fact, distinctly favourable, having in mind the decreased -activity throughout the. world. Their coinpany was particularly well placed when compared with others whose profits wer e directly •rlepemlent, on the volume of goods carried.

As a. measure of relief to the shipping companies, barcl hit by the crisis, the directors had made * certain - temporary reductions in the transit charges as from November 'lsth last. The traffic receipts had, therefore, felt .in 1931 the double /•effect of the decline in traffic and of decreased rates. They were, happily 1 able to reap the benefit of the efforts made during , years of prosperity for the improvement of'the canal, and could not considerably reduce their efforts without in aiiy way compromising the ease and safety of navigation. Already in 1931 expenditure on this account showed a noticeable redaction. In view, -of the - circumstances which had caused the decrease in profits, they felt fully justified in taking from the extraordinary reserve, built up during the years when tile franc was depreciated, the sum of 50,000,000 francs, which would allow them to fix the gross revenue, of frs. 605 per capital share. Further, the statutory reserve would remain intact at 200,000,000 francs, a sum, very considerably in cxc°sh of the amount fixed, by the statutes of the company. , •

The total .receipts for th e ' y°ar amounted to 979,877,486 francs, this being 118,670,032 francs less than in the previous year. The expenditure amounted to 295,438,818 francs, th n reduction of 18,543,884 francs being mainly due to economies in the maintenance of the canal. The traffic through the canal in 1931 totalled 30,027,966 tons net, a reduction of 1,610,793 tons, or 5.2 per cent., compared with the previous year. The total weight of goods carried through the canal was on’y 25,332,000 tons, this being 11 per cent, less than in 1930 and 26| p-r cent, less than in 1929.

Tile results for the year 1932 do not. up to the present. "6Kbw any signs of improvement, and Hie’’traffic for the first four months was 10 per cent, less, than in the corresponding period of last year.