The Royal Mail Story: The Kylsant years

The Kylsant years

Lord Kylsant in the 1920s.

One of the new directors elected in 1903 was Owen Philipps, a young shipping man of 39 who was probably little known even among many of his shipping contemporaries. Astonishingly, within three months he had been elected chairman.
From then until 1931 he was at the helm of RMSP. First he returned the company to profitability, then set about an enormous programme of expansion. New cargo ships, many chartered ships and, importantly, the start of a series of ever-larger mail liners all came on the scene within a few years.
The mail liners were for the Brazil and River Plate trade. They carried many hundreds of passengers, with first class accommodation of exquisite design and artistry. In addition, they were designed to carry large amounts of refrigerated cargoes. This combination was enormously successful and boosted RMSP's profits.
World War I was a paradox. It was a period when enormous profits were made, but peppered among the earnings were many ship losses and a great loss of life. Economically, though, the Company emerged from the war strongly, and consolidated that until 1920.
At that point, the periodic trade cycle saw a downturn in trade. However, the normal resurgance a few years later didn't happen. Instead, the world began its slide into the Great Depression.
By this time Owen Philipps had cemented his place as a business leader. He had gained a knighthood, and in the early 1920s was created Lord Kylsant. Confident in the regular nature of the trade cycle, he continued his programme of expansion in the 1920s, buying companies and purchasing major shareholdings in others. In 1923 he opened an ambitious new passenger service to New York. In 1924 he ordered two passenger and mail liners, the company's largest, with some of the finest décor afloat and, at the time of their building, the two largest diesel-powered ships in the world.
Then in 1927 he purchased Oceanic SN Co (White Star Line), at which point RMSP became the largest shipping group in the world. Not content with White Star on its own, Lord Kylsant set about further expansion on behalf of White Star which doubled the purchase cost of the company. By now RMSP benefitted from services by a wide range of Group companies trading to every corner of the globe.
All of that was going on as the 1920s progressed, but RMSP was making losses each year, with no sign of the expected revival in trade. Outwardly, RMSP seemed to continue to trade well, for it was able to transfer reserves it had built up for a number of reasons during and after World War I.
It was that situation which led the Government to step in and investigate the Company's affairs in 1930. As a result, in 1931 Lord Kylsant was charged on three counts under the Larceny Act - broadly, the charges claimed that RMSP's balance sheet and other material indicated a better position than was actually the case, and that shareholders and potential shareholders were entitled to know that. Kylsant was found guilty on one of the charges and was sentenced to 12 months in prison.

One of the first postcards issued by RMSP was this Charles Dixon painting of Trent (III), used on the West Indies mail service from 1899.

Postcard of Araguaya's first class smokeroom, issued before 1910.

The last moments of Aragon (I), torpedoed with heavy loss of life off Alexandria in 1917.

Captain J Pope, possibly photographed in the wheelhouse of Arlanza (I) before World War I.

Postcard of Asturias (II) from the 1930s, leaving Capetown in a particularly striking painting from Kenneth Shoesmith.

The Georgian-style first class Social Hall in Asturias (II), perhaps the finest of all the breathtaking rooms in this ship.

Genesis

Early years

Unhappy years

Kylsant years

RML

Final years

Milestones

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Lord Kylsant in the 1920s. One of the new directors elected in 1903 was Owen Philipps, a young shipping man of 39 who was probably little known even among many of his shipping contemporaries. Astonishingly, within three months he had been elected chairman. From then until 1931 he was at the helm of RMSP. First he returned the company to profitability, then set about an enormous programme of expansion. New cargo ships, many chartered ships and, importantly, the start of a series of ever-larger mail liners all came on the scene within a few years. The mail liners were for the Brazil and River Plate trade. They carried many hundreds of passengers, with first class accommodation of exquisite design and artistry. In addition, they were designed to carry large amounts of refrigerated cargoes. This combination was enormously successful and boosted RMSP's profits. World War I was a paradox. It was a period when enormous profits were made, but peppered among the earnings were many ship losses and a great loss of life. Economically, though, the Company emerged from the war strongly, and consolidated that until 1920. At that point, the periodic trade cycle saw a downturn in trade. However, the normal resurgance a few years later didn't happen. Instead, the world began its slide into the Great Depression. By this time Owen Philipps had cemented his place as a business leader. He had gained a knighthood, and in the early 1920s was created Lord Kylsant. Confident in the regular nature of the trade cycle, he continued his programme of expansion in the 1920s, buying companies and purchasing major shareholdings in others. In 1923 he opened an ambitious new passenger service to New York. In 1924 he ordered two passenger and mail liners, the company's largest, with some of the finest décor afloat and, at the time of their building, the two largest diesel-powered ships in the world. Then in 1927 he purchased Oceanic SN Co (White Star Line), at which point RMSP became the largest shipping group in the world. Not content with White Star on its own, Lord Kylsant set about further expansion on behalf of White Star which doubled the purchase cost of the company. By now RMSP benefitted from services by a wide range of Group companies trading to every corner of the globe. All of that was going on as the 1920s progressed, but RMSP was making losses each year, with no sign of the expected revival in trade. Outwardly, RMSP seemed to continue to trade well, for it was able to transfer reserves it had built up for a number of reasons during and after World War I. It was that situation which led the Government to step in and investigate the Company's affairs in 1930. As a result, in 1931 Lord Kylsant was charged on three counts under the Larceny Act - broadly, the charges claimed that RMSP's balance sheet and other material indicated a better position than was actually the case, and that shareholders and potential shareholders were entitled to know that. Kylsant was found guilty on one of the charges and was sentenced to 12 months in prison.				One of the first postcards issued by RMSP was this Charles Dixon painting of Trent (III), used on the West Indies mail service from 1899. Postcard of Araguaya's first class smokeroom, issued before 1910. The last moments of Aragon (I), torpedoed with heavy loss of life off Alexandria in 1917. Captain J Pope, possibly photographed in the wheelhouse of Arlanza (I) before World War I. Postcard of Asturias (II) from the 1930s, leaving Capetown in a particularly striking painting from Kenneth Shoesmith.

The Georgian-style first class Social Hall in Asturias (II), perhaps the finest of all the breathtaking rooms in this ship.