The rapid upward trend in the costs of shipbuilding is creating general concern throughout the industry. "The price of new tonnage is now about 50 per cent. higher than 18 months ago. Shipbuilders have virtually no control over the cost of the major components of their industry—materials and labour—and although efficiency in the yards has been substantially improved in recent years it does not offset the great increase in raw material costs.
Leade® of the industry have pub-liely expressed the fear that rising costs which they cannot control will check the demand for tonnage and cause a diminution in the volume of shipping contracted for by shipowners.
In certain instances this has already occurred and there is reason to believe that the case of the British India Steam Navigation Company is not isólated. Lord Inchcape recently stated that 18 months ago the com-"pany decided. upon an extensive building programme which has had to be drastically reduced. because of mounting costs of new construction.
Text read from the printed page and cleaned; old type leaves the occasional error.