RISE IN CUNARD SHARES.
The rise in the shares of the Cunard Steamship Company continue to be accompanied by all kind of rumours of fusion or absorption, and in view of the fact that the shares this year have come up from about 18s. to nearly 28s., it is not perhaps surprising thatthere should have been a disposition to give such rumours at least a partial credence. All the same, and as the result of inquiries in many quarters, I cannot discover any ground for the report. It is not difficult, how- ever, from the last Report and the figures of the accounts generally to believe that sound and prudent management and a wise rearrangement of some of the loan arrangements, followed, it may be hoped, by some improvement in shipping activity itself, warrant expectations of a steady improve- ment in earnings. It must not be forgotten that it is not so long ago that the company was paying its 10 per cent. dividends, and that it is only in the last few years that there was a fall to 71 per cent. and then to 5 per cent. Last year earnings improved greatly, and the dividend was increased to 6 per cent., while it was evident then that owing to savings in interest on prior charge stocks, the company would benefit materially during the coming year, and it is not forgotten that there is only one more repayment to be made to the Govern- ment in connexion with advances made some years ago for building what were then the two largest liners in the world, the ' Mauretania ' and the Lusitama.' At the last meeting the chairman referred to economies in progress, and altogether I do not find it difficult, even when disregarding the fusion rumours I have mentioned, to discover justification for the rise which has taken place in the shares.
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