ABSTRACT
The complicated cross-shareholdings and over-indebtedness were most certainly contributory factors all against a background of totally changed post-war trading patterns and severe competition in shipping. The passenger service to South America from Southampton was resumed with the benefit of some of the refitted A-ships, one of which was withdrawn to resume a cruising programme. The First World War shattered not only the international balance of power but also the established global trade and payments patterns. Moss and Green attribute some of the longer-term problems of the shipping industry to the effects of the Chairman Kylsant case and the losses suffered by investors. Despite moves to tighten accounting and audit procedures, investors remained cautious of shipping stock. Royal Mail's shareholdings in each and noting that reserve funds totalled 8,950,000. A number of writers have researched in detail the background and the circumstances that contributed to Royal Mail's collapse. In the circumstances it was the wrong course of action.
