SHIPPING SLUMP

Rotorua Morning Post, Volume 2, Issue 401, 9 December 1932, Page 5

SHIPPING SLUMP

(Pros.s. Assn.-

P. AND O. CCMPANY DEFER.S PAYMENT • OF DIVIDEND MANY SHIPS LAII) UP

— By Ti'legrai.h — Cc-p.v righti.

Londom, Deeember 7. At. the annual meeting of the Peni lsula and Qriental Company the chairman (Hon. Alexander Shaw) said the payment of dividends had I-een deferred, and had only been possihle for some years by conservative Finance in the past. Ile was conlulent, in view uf the calamitous state of shipping, tliat; the shareholders would approye oi' the decision to pass the dividend tliis year and husband the company's resourecs. The hook \alue of the company's investments .i l subsidiary concerns, ,£10,588,655, \;as very conservative, and the present, reduced ineome therefrom was i.ot retiected in inherent \alue. Shipping was still in the trough of the most. profound and prolonged depression in history. Mr. Shaw added that 5,000,000 tons oi" shipping was laid up in 1 030 ; in 1031 the total was 10,500,000 tons and this year (1032) 15,000,000 tons, or one-fifth of the ■'voild's shipping was idle. By salary cuts and other economies the company had succeeded in leducing expenuiLure by £255,000 a year. The chairman revealed that all l ihips diverted to holiday cruises had shown a modest })rofit instead of heavy losses as on their ordinary runs during the summer.