It is true that the total earnings were about £roo,000 greater than in the previous year, but this was mainly due to higher dividends from subsidiaries and to miscellaneous revenue, which included a special non-recurring item of £170,000. Recognising the special character of this item, the Directors placed £150,000 to Reserve for Contingencies, in addition to the usual setting aside of £88o,000 for general Depreciation of Steamers. When it comes to the actual net receipts from voyages, there was a falling off to note of £169,000. The Directors explain in their Report that the Voyage Accounts : being made up to June 30th last, they do not reflect the improve- ment in freight rates, but, on the other hand, lest shareholders, perhaps, should be too hopeful with regard to results in the current year, a reminder is given that working costs are rising rapidly and, indeed, in the matterof oil alone it looks as though the bill in the future would be a heavy one. Altogether, the Report is one whith not Only justifies the warnings of Lord Craigmyle but also amply justifies the. conservative policy of the Directors in keeping the dividend on the Deferred Stock for the moment at 4 per cent.