SHIPPING FIRMS’ TRIALS

Sun (Auckland), Volume 1, Issue 24, 20 April 1927, Page 2

SHIPPING FIRMS’ TRIALS

SIGNS OF BETTER TIMES The abnormal conditions prevailing last year and their effect on the shipping trade are referred to in the annual report of the Imperial Merchant Service Guild. Authoritative figures show, says the report, the average dividend in the liner shipping companies was 5.5 per cent., very largely made up out of finance reserves set by during former years of unexampled prosperity. Without such past reserves, most of these companies would have been in a parlous state. From figures published in respect of some 80 firms owning cargo steamers, the average is 3.56 or the lowest for 16 years. Here again, financial reserves were in some cases responsible for the dividends paid. In the case of 46 of these firms no dividend was paid. Emphasis is laid on the need for economy. Any proposition which entails the expenditure of even an additional half-penny stands little or no chance of success from the outset. In regard to the outlook, the report says that in the trades and industries collateral with shipbuilding, there are signs of considerable improvement, and the fact that so many ships are building is indicative of confidence in the financial results which will accrue when they are put into commission.