BREWERY PROSPERITY.
Interest in Brewery shares has shown signs of increasing latterly, and most shares have recovered substantially from the levels to which they fell on the appointment of the Govern- ment's Liquor Commission, for, if we may judge from the variety and amount of evidence which is being taken, the Commission may justify the views of certain sceptics who, on its appointment, considered that it was set up to provide an opportunity for shelving the pre-Election promises. Now the same people are saying that the Commission's Report may not even be ready during the lifetime of the present Govern- rnent.
Meanwhile, brewery earnings seem practically immure from
the effects of trade depression. Mitchells and Butlers, one of the biggest Midland brewing companies, has just published its report, showing substantially higher profits, and its fifteen per cent. dividend, free of tax, is covered by a margin which permits of the addition of £100,000 to General Reserve and £25,000 to Contingencies Reserve. These Funds together now stand at nearly £2,000,000. In the past the company has distributed share bonuses from time to time out of accumu- lated reserves, and it has followed a most advanced policy with regard to the reconstruction and reform of licensed houses, the real value of which is doubtless substantially higher than appears in the balance sheet.
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