• . FINANCIAL NOTES.. .
There haYe not been Wanting indieations during the last week'iii-twO that the number and extent of capital issues has: occasioned some financial indigestion. The complaint vis no unusual one at this period of the year. The moritfi§ of August and SepteMbef represent more or less a closed season so far as capital appeals to the investor are concerned, arid: consequently there is often a rush to make these appeals as holiday-time approaches. But although of late the response on the paft of the investor has been somewhat uncertain, the success which has attended even some of the more recent issues shows that there is no real drying up of investors' resources. More- over, I fancy that even within the next few days there may be one or two issues of an exceptionally good charac- ter, the response to which may easily demonstrate that the demand for good securities giving a fairly high yield is not exhausted.
An exceptionally interesting Insurance development has become known during the past week in the shape of a conditional offer made by the-Royal Exchange Assurance to the shareholders of the State Assurance Company of Liverpool. The high standing and prestige of the Royal Exchange Assurance is so well known that I need say little with regard to the absorbing company. The State Assurance Company, however, in spite of some vicissitudes in its earlier days, is also a concern of high standing, the -head office being in Liverpool. The company was established in 1897 and it suffered some severe losses at the time of the great San Francisco disaster. So severe, indeed, were the losses that a call had to be made upon the shareholders and the price of the shares gave way heavily for- a while. A recovery in prosperity, -however, came quickly, and for the last two years dividends have been paid at the rate of 40 per cent., while, even previous to the absorption rumours, the price of the shares touched 82. As a result, however, of rumours circulated during the past few days, • the shares rose to Over 11, and the advance is now explained by the fact that the conditional offer by the Royal Exchange is on the basis of £11 for each 'sbare of the State Assurance Company, payable as to £1 in capital stock of the Royal Exchange Company, and as to £5 12s. in cash.
* * * There are few chairmen of our Oversea enterprises who at the annual meetings give a fuller and more instructive account of their stewardship than Mr. Andrew Williamson, ,the chairman of the Australian Estates and Mortgage ,Company, Limited. At the meeting of that company on 'Wednesday the chairman was able to show that in spite of the exceptionally severe drought in Queensland and New South Wales, a reduction in profits had been largely 'offset by reduced expenditure, and the directors were able to announce a dividend of 6 per cent. Of especial interest, ; however, to all with financial interests in Queensland was the reference which Mr. Williamson found himself able to make to the recent settlement of the dispute -between the Queensland Government and the pastoral lessees of that colony, a dispute which, it will be remem- bered, for the time impaired Queensland. credit. Speak- ing on behalf of one of the most important of the com- panies affected, Mr. Williamson was able to testify to the spirit in which the Queensland Premier on the occasion of his recent visit conducted the negotiations which led to a settlement. " The supreme value of the settlement," paid Mr. Williamson, " consists in the full mutual recog- ' nition of the sanctity of contract, in the clearing away of -misunderstanding and the establishment of good will and mutual respect." And later in his speech, Mr. William- son gave emphasis to his statement by informing the :shareholders that his company had recently acquired large leasehold pastoral property in Queensland. '
A. W. K. '
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