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VOL. XXXII ANNUAL MEETING CUNARD COMPANY. The annual meeting of the Cunard company's shareholders was held at Liverpool on Thursday, April 19, presided over by Mr. William Watson, chairman of the company. In moving the adoption of the balance sheet and report of the directors, the chairman alluded to the great loss which the untimely death of Lord Inverclyde, the late chair- man, had caused to his family, his friends, and to the com- pany. His energy, courage, and readiness at all times were devoted to the Cunard company, and he had no other interest. greater than that of making the company a success. They could not yet realize all that he did for them, but the day would come when they would acknowledge it. The present board were endeavoring to carry on the policy of the com- pany as he inaugurated it, and with which he might say they were all in full accord. In dealing with the accounts, the chairman remarked that the directors were glad that they were able after setting aside $200,000 to the reserve fund, to recommend the payment of a four per cent dividend. The income, $7,093,072, was the largest in the company's history. The increase over 1904 was $1,138,032. This increase was due largely to the restoration of normal rates of passage money, but to some extent to other causes, including the better homeward freights, which prevailed during the last few months of the year. The running expenses of the ships, coals, wages, provisions, etc. were increased by $159,940, owing to the larger number of voyages made, and also to the advent of larger ships. Office and agency expenses also showed a slight increase, due to extensions of office premises, and to heavier work in connection with the larger business done. The repairs and renewals of the fleet have cost less than last: year by $58,765. To summarize the whole we might say that the income had been increased by $1,422,540, and the expenses by $189,570, showing a net improvement of revenue of $1,232,970. The only noteworthy item in the profit and loss account was the amount set aside for de- preciation, which is $210,850 more than last year, due to the increasing value of the fleet. It would be seen that after paying the dividend, they carried forward to 1906 practically the same credit balance between $35,000 and $40,000, that was brought forward last year. In the general balance sheet, the most important items were the large addition to. tie book value of the fleet, and of course a corresponding aug- mentation of the company's liabilities. The great feature of existing passenger traffic is that it is being carried in larger and more expensive ships, and the directors did not hesitate to place the company. in a position to attract business and meet competition. To build the Caronia and the Carmania, and to incur this large liability illustrated in a striking way the courageous policy of their late chairman, which he was glad to think was being justified by the event. The Caronia and Carmania were two of the finest vessels afloat, and had CLEVELAND, MAY 24, 1906. NOw 2, already acquired a popularity which would prove a material factor in the earnings of the company. It was a little too early to compare the merits of the turbine and 'the reciprocat- ing engine, but he might say that the turbine -had proved its efficiency, and he had not the least doubt himself that in a a short time it would be applied to all fast ocean-going ves- sels. The important question was, of course, the relation of speed to coal consumption. In this they were still experi- menting. Of course they were working under entirely new conditions, and in order to obtain the most effective results, some patience and many trials might be required, but so far as they had gone they were quite satisfied of the wisdom of the step which they had taken. They had commenced to pay off the acceptances, and hoped to make a sensible re- duction of them during the present year. The New York- Mediterranean business had shown a real improvement, al- though the disturbed condition of political matters in Hun- gary had somewhat impeded its full development. The two new fast ships which were building under agreement with the British government were making good progress. Messrs. John Brown & Co. expect: to launch the Lusitania in June of this year, and Messrs. Swan & Hunter and Wigham Rich- ardson, Ltd., the Mauritania in September, and before the end of the next year they hope to have them in commission. The time seemed long, but the vessels were of such an ex- ceptional character that the directors hold that it would not be wise to hurry the builders in their work. The position of the company in relation to its competitors, remained very much the same as described by the late Lord Inverclyde at the last annual meeting. The Cunard company was still working independently, and was not bound by agreements of any kind. But although there had been no formal ar- rangements all lines found it to their interest to maintain rates at the level to which they had been raised by the con- ditional agreements, and that position still continued. No line could expect any advantage at present by reducing rates, and it seemed quite likely, therefore, that although 'there were no binding documents, the existing rates would re- main undisturbed. As the late chairman stated last year, the company were bound to take the step they did in with- drawing from such agreements, and the outcome had proved that this action was wise. The report and statement of ac- counts were adopted without debate, and the dividend of 4 per cent declared. The shareholders evidently have con- fidence in the present policy of the board, for no questions were asked, and the meeting was over in less than fifteen minutes. The Penberthy Injector Co., Detroit, Mich., is about to let contract for a large addition to its present plant, in- creasing its capacity 50 per cent. A new office building will also be constructed.