The following Circular has been handed to us for publication Liverpool, 14th July, 1887. shippers an interest in the prosperity have been asked why I will not. Ocean Steam Ship Ca., by adoption, is known in China as the "Mut ciple." ive the what prin My reply has been that I do not believe the system is capable of general adaptation to shipowning, because the extra profits of good years are absolutely necessary to com-Ean quantity, depreciation in value, thro'
te for bad years and to cover that un-
wear and tear and scientific improvements. To promise shippers participation in profits after provision for a defined divide, but an roudefined amount for depreciation and boiler fund, as some have done, is illusory, and must give rise to endless disputes between shipowners and shippers as to the point at which the claim of the latter to a return commences. The interest of the former would be to cub down the profits of good years by a liberal expenditure, out of income, on repairs that otherwise would go to the debit of depreciation account. In my opinion the only companies that can give practical effect to the "Mutual principle" are the few which, in better times, wrote down the book cost of their fleets to a nominal sum, and can therefore be content with a nominal depreciation.
tunately, the O.S.S. Ca. is in this position, and, to meet the wishes of some of its supporters, I will give the principle a fair trial, and under a system that cannot admit of any disputes about accounts.
Commencing with the Palamed, which left Liverpool for the East on the 9th July, and ending with the last O. S. S. Co.'s steamer that leaves Liverpool, London or the Continent for the same destination in June 1888, a period of twelve months, I will divide three fourths of the gross receipts of O. S. S. Co.'s steamers (subject only to the deductions named below) from all cargo, whether through or intermediate, over and above an average of ten thousand pounds sterling per round trip, amongst the shippers to or from Europe, or to other countries vid Europe, in proportion to the amount of freight contributed by them during the above named period, Out of the said ten thousand pounds, the 0. S. S. Ca. will bear all expenses and risk attaching under bill of lading to carrier of the cargo—of 1m: the fleet at home and abroad—of its insurance—repairs—and depreciation, and the only deductions from gross freights received, shall be the following A. On through Cargo. The freights actually paid other carriers to or from the port of departure and arrival of the 0.S.S. steamers.
From the Straits I work a few small steamers to outports and to prevent any question as to the amount due them, Gross receipts" from the cargo they bring to the main line shall be calculated at the highest 0.8.8. Co.'s rates current for the various goods, from the port at which they were shipped by the Ocean steamer, to the port at which she delivered them.
Comparatively, the amount involved in this question is unimportant.
B. "Returns" on freight paid to shippers and supporters.
The freight contributed," entitled to rank for participation in profits, shall be the amount actually paid, without any deductions whatever.
Any steamer that is unable through accident, to complete her round trip," shall not be taken into the calculations on either side, Claims must be made by the firm named in the Bill of Lading as shippers of the and be presented at my office, 1, india Buildings, Liverpool.
They must be made on forms to be obtained there or of any of the Company's Agents, and in the case of freights paid abroad, they must be accompanied by receipts for the amount.
Accounts will' be made up immediately after 3ist December, 1888, and any claim not presented before that date cannot be entertained.
Shippers will only be interested in verifying the figures of the gross freights received by the O. S. S. Ca., less the deduetions specified; and they may appoint an Accountant, at the end of twelve months, to audit the same, should a body. representing a majority of the freight contributed, desire to do so.
By taking the published accounts, elucidated by statistics given at the Annual Meetings, of any regular line trading to China and Japan, and calculating what is debited for the expenses of the voyage, and for insurance and depreciation, it will rea-duy be seen how moderate ten thousand pounds sterling is, to cover those items, and how fair is the chance, under my offer, of a substantial return on freights contri buted.
Aurrep Hot, Manager of the Ocean Steam Ship Company.
Text read from the printed page and cleaned; old type leaves the occasional error.