ROYAL MAIL AFFAIRS.
Without entering into the points of controversy raised by Lord St. Davids in connexion with his circular to shareholders, suggesting that he should be relieved of his duties as trustee for the Second Debenture holders of the Royal Mail Steam Packet Company, it may be said that the event served to accentuate the disquietude which has been felt for some time past in the City with regard to the precise financial position of the Royal Mail Company, an anxiety whiA was stimulated some little time back by the issue of the Annual Report, in which the auditors called attention to questions of the deprecia- tion allowed on the ships and the values of the investments in the allied shipping company. At the Annual Meeting itself, Lord Kylsant, the chairman, made replies to the auditor's statements which were generally regarded as of a satisfactory character. Nevertheless, anxiety has not been entirely relieved, and has, of course, been revived by the recent action of Lord St. Davids. It is possible that this anxiety may have been over-
done, and may even be unfounded, and during the next few months it may be hoped that opportunity will be taken to dispel any disquietude by a statement by the company mak- ing its financial position a little clearer. No one sug- gests that the obscurity is at all intentional, it is rather the result of the enormous ramifications of the company's under- takings, the manner in which interests overlap at many points. Something over £70,000,000 in capital is represented by the various undertakings with which the company is connected, and the whole 'matter is summed up very well by the City Editor of the Times, when he describes recent events as affording proof, " if such were needed, that the Companies Acts should make compulsory the publication of a consolidated balance sheet showing the assets and liabilities of every combination." Experience has shown that in these colossal undertakings the presentment of a thoroughly clear, intelligent and consolidated balance sheet is no easy matter; but if a classic instance of such clarity was wanted, it would be found in the balance sheets published by Nobel Industries, Ltd., for some year or two before that concern was fused with Imperial Chemicals, and there is little doubt that the celebrated statistician, Sir Josiah Stamp, had much to do with the preparation of what was generally regarded as a model of a clear balance sheet.
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