, 1915-06-19
ROYAL MAIL STEAM PACKET co.

MAY Is Sir Owen Phillips laid the Report
before the directors, from which the follow
ing extracts are taken:-
As you know, the company's principal
home port - Southampton, where wo La7o
a large office with 100 clerks, also large en-
cheering works, steam laundry NC, with a
total shore staff Of no less than 1,400, aud
where we have built up u valuable shipping
coonexion without any break III It's continuity
for over 70 years. Shortly after the com.
mencement of the war the Government found
it necessary in the national interests to close
the port OF southampton to merchant ship
ping. We, of course, do not complain OF this
action, because to win the war must be the
first consideration of all, bat | wish to ex-
plain our position for your Information.
THE coMpANYs FLEET AND INVESTMENTS.
The policy OF the court of directors has
sometimes been criticized, and 1 think, there
fore, gentlemen, that now the time Of trial
has come, YOU will be interested to know
how the policy adopted by the court has
stood tie test. Would the company have
been in a better position to-day if we had
adopted a less progressive policy? L say,
without fear of contradiction, that the an
swer is in the negative. AT the present time
we have rather over 10 millions invested in
shipping, Of which nearly G1 millions are
invested in our own fleet, and Ii millions III
allied steamship companies. The amount
invested in the allied companies at the end
of the year was almost exactly equal to the
amount of our debenturo stock.
REvERsEs AND DEPRECIATION.
We have also been criticized IN the past
for having devoted q large proportion OF the
earnings to writing down our fleet AMI build
INC up our funds. l consider this is answer
1 II d. Fat shat ~ ,lovr ON. p o1arva1 bo Va
stood the company in good stead, as, not
withstanding he ordeal which the Company
passed through, the feet Stands in the books
to day at q very moderate figure. We had
q very bad year in 1914, but the court Of
directors decided to carry on the sound
policy of wiring off full depreciation as
usual.
THE PASSENGER TRADE.
In addition to the great increase IN expen-
di,ure, we had last year to face m enormous
falling off in our revenue from passenger
traffic Of all descriptions, the total decrease
being over G400, 600, so that, even if the ex-
peuses of running the steamers had remained
the same, this one item Of receipts from pas
senger traffic would almost have accounted
for the unsatisfactory results of last years
trading. The depression Of trade IN South
America had q disastrous effect on emigra-
tl0n. comparing the year 1914 with tuat
OF 1913. taking ell passenger lines trading
between the Atlantic ports Of Europe and
South America, the outward storage traffic
showed a decrease of nearly 81 per cent.
The proprietors will see that this represents a
general but serious loss of revenue of which
THIS old-established company, in o period Of
war, had to bear more than its full share.
Although the passenger traffic does not
show any Improvement, it is q satisfaction
to be able to report that since the cessation
of the smiling Of tho German lines a compre-
hensive agreement has been made with all
the other northern aud Mediterranean lines
for maintaining fair rates of passage money
(saloon aud steerage) which the Germans had
done so much to vitiate. (Hear, hear)
THE ARGENTINE AND BRAZIL.
| mentioned to you last year that things
were very far from bright in the Argentine,
and that that progressive country was pass
ing through a financial crisis. The outbreak
of war and the c~urtailment of financial facili-
ties in Europe greatly accentuated the posi-
ton, and the actual decrease in import trade
to the Argentine during 1914 amounted to
20 millions sterling.e falling of of over IS per
cent. from the figures Of the previous year,
the total trade with the Argentine having