GIANT CUNARDER

Hokitika Guardian, 20 September 1932, Page 8

GIANT CUNARDER

! v POSSIBLE - RESUMPTION OF WORK. '; i : LONDON, September 17. The decision of the Cunard Company tp suspend construction of the giant ship,. which was to have beer Elizabeth, was. a dir astbdus blow to the shipbuilding inon the Clyde. In thisir circular to shareholders ,giving Reasons for their decision to .suspend work on the new ship, the directors; of the Cunard Company point ■ ’ out that ,to enable a- company with financial responsibility to build ships. ' it must at least eatm depreciation or the ol4 ; ships, and that this thie com pany had not been able, to do in 1931 ■ fbr the first time for very many years ■The depreciation on ships. chargeaVl-' for last year under customary Cunard practice was, it was stated., ,£675,000 The board said it was “now dear that whOn depreciation is brought in t-her\ , Wi!ll be an adverse balance, on tlv profit ;a-nd loss account for the year r consequently there will not be a net | profit out of which to pay the second half-yeiar’s dividend on- the preference shares or a dividend on the ordinary shares,.”

In the second circular issued, at .the end of , January the directors stated that were as firmly convin fieri then as. whdn. the order for the vessel ifas that she was ■: the, right ship to build in the interests of the company, ns well as in those of the country; They said that they had “never' lost ifaith in the company’s ability to, ooerate her, either with existing; ships or later with a future sister in. such a manner as. will en-

, able her to pay her way. ; ,; ‘<With regard to the standard of , Hei* passenger accommodation, whrb' ji the opportunity will naturally -be hake" Itb in corporate the most modern improvements, she will be designed., tr suit all classes. . The cost of. tV. decoration, of the passenger accommodation of such a ship is a verv smldill percentage of her total cost, and | it is estimated that the greatest savjip g which could be (effected as. bet wee n ;the bare necessities and the best modtqrb accommodation would amopnt .tc less than l 5 netr cent, of the total cost of the ship.” , ResUjnption, of-w«Kk on the -gnels.t din will re-emnloy 3000 men in John Brown and Oompany’s Clydebank yard, where- she-is jheing built, M well a.? 'much-', greater number,-in. indusiVi'W .eng/iged .in. •providing much of her /equipment• in-. many parts of Britain.