16 FEBRUARY 1934, Page 36


The 5 per cent. Mortgage Debenture stock of the Cunard Steamship Company, of which there is £4,000,000 out- standing, has scarcely moved in price since the announcement was made of the provisional financial agreement with the Treasury which, of course, vitally affects the future of the company. And yet, carefully considered, the position would seem to have been improved notwithstanding the fact that the scheme embodies proposals for transferring ships, on which these Mortgage Debenture stockholders had special mortgage rights, to a new Merger Company, which transference means the loss of these special mortgage rights by the Debenture stockholders. The consent of the Debenture stockholders is requisite for carrying through the scheme, for needless to say it is not proposed for a moment to override these rights in any- arbitrary fashion. On the other hand, it seems to be one of those cases where the Debenture stockholders themselves will probably perceive that their interests lie along the lines of acquiescence with the scheme.