Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1916-01-25
AT
RECORD FIGURES
High Mark for Ship Quotations Is Set
In Past Year on Foreign
Exchanges.


of the Associated Press. THE year
1915 will be remembered in shipping
circles as year during which sales
Of steamers reached record levels.
The strong tone which prevailed in
shipping sales markets during the lat
ter part of the preceding year gained
still further strength in 1915.
In January six of the German steam
ers captured by British and condemn
ed by prize court we're offered for sale
on the Baltic Mercantile and Shipping
Exchange and no less than 142275
pounds was realized-a figure which
surpassed even the most sanguine ex-
pectations of the auctioneers. These
sales only served to test the strength
of the market and except for a brief
period, during which the budget was
under discussion in the house of COM
mons, and fears were entertained as
to excessive taxation upon shipping,
there was no indication of any weak
ening.
The withdrawal of the Austrian and
German steamers from trade, losses
sustained by the British mercantile
marine from submarine attacks and
the requisitioning of something like 25
per cent of the British mercantile ton
mage by the government, has had the
effect Of placing high value upon all
boats and owners Of craft which they
have regarded as useless have found
themselves possessed of highly priced
assets. More than one ship company
which was on the verge of bankrupt
cy has been placed in a fourishing
condition. One company which for
several years had been unable to pay
a dividend last year disbursed 20 per
cent to the shareholders. Another
company, possessing half a dozen
steamers which had been laid up for
two years, found ready purchasers
for the old boats at prices undreamed
of.
Vessels of the tramp and coasting
classes have been. more particularly
affected by. the rapid rise in values
Very few liners have changed hands,
and while there has been a marked
appreciation of the values, the increase
has not been so great as in the cases
of steamers built only for cargo In
some cases as much as 100 and 125
per cent upon the actual building cost
of the vessel has been paid for tramp
steamers.
British shipping men are now ser
iously considering the situation which
has been created by the present lack
Of tonnage. The seriousness of the
position of British owners is accentu-
ated in cases where an enormously
enhanced price has been paid for a
boat, which almost upon purchase has
been requistioned by the British ad-
miralty
Quite recently a boat built 10 years
ago at cost of 10000 pounds sold for
$4,000 pound 1t was estimated that
at the existing high freight rates a
substantial profit would be realized
which warranted the heavy expendi-
ture which would more than counter
balance the depreciation in values
which is bound to come.
Immediately the vessel was trans
ferred to her new owners and impor-
ant charters were fixed, notice Of
requisition was served, and the pur
chasers of the boat found themselves
saddled with heavily increased cap
ital expenditure and only the assur-
ance of bare margin of profit on their
expenditures. Ship owners are assur-
ed that vessels will be released as
soon as possible, but at the moment
there seems very little prospect of any
substantial number of vessels being
released On the other hand, day by
day more steamers are being required
by the admiralty.
British owners in consequence do
not view the future with any degree
of comfort They have been urged to
make every effort to capture German
trade, but owing to the impossibility
Of obtaining delivery of ships which
have been building since the outbreak
of the war; inability Of shipbuilders
to contract for new vessels, and the
decided shortage of tonnage which Mr.
Runciman, the president of the Brit
ish Board of Trade, admitted by say
ing there are not enough ships to go
round" they contend that neutral
ship owners are in a better position
than are the British to capture trade
Of Germany and Austria.
While this shortage exists, and work
ing costs have enormously increased,
neutral ship owners are able to 1ep
in and obtain the trade which the
British owner had planned to capture.
Notwithstanding such setbacks, how
ever, there is no evidence of any weak
ening in values, and sales of vessels
which have been transacted during the
last few weeks Of 1915 prove the mar