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‘ European Shipping at New Low Point Passenger Travel Affected—Royal Mail Reorganized—Reduction in Fares—Empress of Britain Nearly Ready—Progress on New Cunarder—Continent Not as Hard Hit shipping or shipbuilding nowadays has ceased even to talk about the probability that the situation has reached rock bottom, because it can- not conceivably get worse; every quar- ter seems to bring forward new possi- bilities of depression. There must be an end to the slump some day, of course, just as there has been an end to every slump that has preceded it, but it is imposible to prophesy when it will come about; all the prophecies of the last eight years have been so regu- larly contradicted by the facts. If any European shipping company T HE man connected with European ' can prosper, it must be the Cunard company, with its huge connection, magnificent material and high reputa- tion; yet even that concern has been forced to pass its dividend for the first time since 1908, and the figures that were published when the decision was made are startling. The gross profits for 1930 are £2,662,396, as against £3,628,905 for 1929, while the net prof- it has decreased from £809,639 to £18,601. The preference shareholders have received their full dividend, and the balance remaining to be carried forward is reduced from nearly £400,- 000 to £278,867. Every branch of the company’s activities has been affected by modern conditions. The first class on the Western ocean is naturally affected by the conditions in the United States. Australia’s position has hit the Com- monwealth and Dominion branch of the business very hard indeed, and the third class is only a shadow of its former self, particularly to Canada, where emigration is practically non- existent. Therefore, it is careful fin- ance to pass the dividend, however disappointing it may be to the share- holders, but, on the other hand, the real position of the company is, un- doubtedly, extraordinarily strong. Its old connection with the Ameri- pt. ct. Se By Frank C. Bowen can-Levant line has been broken, and all its shareholding in that concern has been sold to the managers. On the other hand, it has taken over the smart little fleet of small steamers, with which it will maintain its traditional service to the Mediterranean, and in the meanwhile the American-Levant company has sold the majority of its other ships to Italians. The troubles of the Kylsant group culminated in a very stormy meeting of the White Star shareholders and Royal Mail Steam Packet Co. deben- ture holders, at which a moratorium was granted after a number of star- tling revelations had been made as to the true position and recent actions of the group. Matters are not by any means settled yet, and the committee which is trying to put things on a sound basis, under the guidance of Walter Runciman, is acknowledged to have its hands very full and to be faced with an appallingly difficult task. It will probably be some consid- erable time before its investigations are complete, and what will then hap- pen can scarcely be predicted. Owing to doubts as to the limited liability of the Royal Mail Steam Packet Co.’s shareholders, its stock was for a short time selling at 10s per £100 face value, but it has since recovered from that price. Many other companies have had to pass their dividends, particularly those which are keenly interested in the grain business, which has slumped so badly. After the first year’s working under the pooling agreement between the Hamburg American and the North German Lloyd lines, both companies have decided to pay 6 per cent, as against 7 per cent and 8 per cent re- spectively last year. This, however, has only been made possible by the large sums received from the United States government in compensation for tonnage seized during the war. In the . Re eens eo © » ow 2 Pad & goa RBS EFS S28 ss eS sesse< foes eRe ee See aee case of both companies the profit is very considerably down, but they agree that it would be worse still were it not for the pooling agreement. European companies, by the way, have still to see the result of the similar pooling agreement made between the Nippon Yusen Kaisha and the Osaka Shosen Kaisha. Most of the Atlantic companies have to reduce their fares materially and to make great concessions in the matter of return facilities in order to attract any passengers at all. In the marked degree to which the second class is fall- ing into disfavor continues, even the Cunard MAURETANIA having all her old second-class accommodation converted to tourist third, leaving the old second- class patronage to the cabin ships, which get by far the greater part of it anyhow. In such circumstances it is not sur- prising that very few first-class ships are being ordered or laid down, al- though one or two very interesting ones are in course of construction. At the time of writing, the new Canadian Pacific EMPRESS OF BRITAIN is prac- tically complete, and her advent on the St. Lawrence trade will make a huge difference. It is realizing one of Can- ada’s oldest and fondest dreams, but it cannot be pretended that the under- writer is particularly pleased with the idea of such a size and speed on the St. Lawrence run. The Furness Withy turboelectric liner for the Bermuda service also has taken the water, her name being decided upon as MonarcH or BermupA, after several changes of idea. She and the two 20,000-ton turboelectric liners STRATHNAVER and and STRATHAIRD, which are under con- struction for the P. and O. company’s Australian service have naturally at- tracted great attention to this system of propulsion, but it will probably be a long time before it is as popular in Europe as it is in the United States, ° Seas bt | ege8 2208s Saas Saas Pht al aneee S2868 et | pee MARINE REVIEwW—May, 1931 ory ar Bee met eae Berae: 29