MERCANTILE TRUST.
The Directors of the Mercantile Investment and General Trust merit congratulations for the manner in which the Company has come through last year's unprecedented de- preciation of Stock Exchange values and lower dividends in so many industrial concerns. There was a substantial reduction in the revenue, but it was partly due to the heavier rate of Income Tax deduction on dividends, and, while pursuing the conservative policy of reducing the dividend on the Ordinary Stock of the Trust by 2i per cent., the dividend now paid is as high as 14 per cent., while it leaves a good margin of undistributed income. Indeed, the surplus undistributed is equal to approximately a further 21 per cent. gross upon the Ordinary Stock. A further sum of £30,000 is added to the General Reserve, and the Company's total reserves now stand at £1,080,000, while the Investments stand in the books at £7,626,400, their market value being £7,166,970. It will be seen, therefore, that the depreciation in book value is con- siderably more than covered by the reserves.
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