3 FEBRUARY 1939, Page 40

RHODESIAN RAILWAY POSITION

One other very important interest of the " Chartered " Com- pany's is its majority holding in Rhodesia Railways Trust which, in turn, holds all the ordinary shares of Rhodesia Rail- ways. The Railways Trust has continued, so far, to pay its regular 5 per cent. ordinary dividend. The Railway company itself has not paid an ordinary dividend, but has continued to strengthen its reserves. Gross traffics rose from £3,637,179 in 1936 to £4,709,069 in 1937 and £5,030,636 in 1938. In 1938, however, there was a sharp rise in working costs, so that the net revenue, which rose from £1,117,408 in 1936 to £1,932,662 in 1937, fell back to £1,880,373 in 1938.

Dividends of the railway company are governed by the size of the reserve and by the approval of the Railway Commission. Subject to that approval ktoo,000 will be placed to dividend account in respect of the year ended September 30th, 1938. Moreover, since the reserve now amounts to more than twice the annual debenture service, the company will be allowed to distribute in respect of 1939 a maximum amount, if earned, of £125,000.