FINANCIAL NOTES

DIAMOND PROFITS.

NOT the least interesting feature in the Mining Market, and one which has imparted special strength to Diamond shares, was the announcement that the directors of De Beers Consoli- dated Mines have decided to pay off all arrears of Preference dividend and also to make payment of the dividend for the current half-year on the company's 4o per cent. Cumulative Preference shares of £2 los. each. These payments will amount in all to £2 per share, and are to be made on June 30th next. At the recent meeting in Kimberley, the Chairman, Sir Ernest Oppenheimer, stated that diamond sales had come up to expectations and had not been adversely affected by the recent share market difficulties.

BANKING LOANS UP.

A good feature of the recent monthly returns of the joint stock banks was the further growth shown in banking advances. For some years the continued trade depression was reflected in a severe contraction in bankers' Loans, but during the last two years a considerable change has taken place. For the month of April Loans and Advances by the clearing banks rose by nearly £13,000,000, but over the past year the expansion has been much greater; the total for April, for example, of £947,00o,000 compares with only £864,000,000 for the same

month of last year. * * * * SELECTION TRUST RESULTS.

The Report of the Selection Trust Limited makes almost a sensational showing in the matter of its profits for 1936. These amounted to £434,389 compared with 19,052 for the previous year. The company has holdings in American Metal Company, in addition to interests in Rhodesian and European Base Metal Producers, and the greater part of the revenue in the past year was derived from profit on investment realisations, while Consolidated African Selection Trust and Trepca Mines contributed most of the dividend income.

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THE SHIPPING REVIVAL.

Evidence both of the general revival in shipping and also of the sound and prudent policy which has characterised the management of the Union Castle Mail Steamship Company was afforded in the recent Annual Report, and also in the remarks of the Chairman, Mr. Robertson Gibb, at the Annual Meeting held last week. Undoubtedly, the shareholders owe much to the skilful control of the Company's affairs by Mr. Gibb during a most difficult period, and one of the many interesting statements he was able to make at the recent meeting had relation to the settlement reached last year with regard to the Preference shareholders' voting rights. It will be recalled that, as part of the terms of settlement, the repre- sentatives of the Ordinary stockholders had undertaken to arrange for the Company's Ordinary stock to be widely dis- tributed among the general public, agreeing at the same time that every holder of Preference shares or Ordinary stock should henceforth have one vote for every £i of nominal capital. The greater part of the Ordinary stock is still held by the R.M. & E.D. Realisation Companies, but while cir- cumstances have not yet permitted its distribution, Mr. Gibb stated that it would not be long before such distribution takes place in accordance with the terms of settlement. " As soon," tke said, " as that is done, the efforts of your directors to ensure so far as practicable that the control of the Company should not once again pass into the hands of one individual or group will have reached their successful conclusion."

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THE NEW PROFITS TAx.

Referring to the. effect of the N.D.C. tax on the shipping industry, Mr. Gibb remarked that it would be most regrettable

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FINANCIAL NOTES (Continued from page 924.) if the incidence of this new tax should fall harshly upon industries just emerging from the effects of a long period of depression. " I trust," he said, " that the proposals may ultimately be so modified as not to prove injurious to an industry like ours, which is so vital to the preservation and well-being of the British Commonwealth." The Union Castle Company is continuing to show enterprise in the number and character of its new ships.

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LONDON AND GLOBE RESULTS.

The latest Annual Report of the Liverpool and London and Globe Insurance Company shows that this important undertaking continues to progress. Fire premiums and profits during the year were a little lower but the decline was amply compensated for by conditions in the Accident account, where the profit was £230,000 against £134,000 in the previous year. The premiums in that department increased by over £330,000 to the high total of £4,627,000, and the underwriting profit rose from £133,809 to £230,178, representing 4.98 per cent. against 3.11 per cent., while two years ago the ratio was only 1.03 per cent. The life business continues to expand , the net new business for last year was £3,211,000.

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BEECHAMS PILLS.

Not the least interesting point in the proceedings at the recent Annual Meeting of Beechams Pills Limited, was the statement by the Chairman, Mr. Philip Hill, of the possibility of the formation of an Oversea Company to deal with the development of their oversea business. It was too early, said Mr. Hill, to talk of revenues from this source, but should the Oversea Company be formed, shareholders would be given the opportunity of providing any new capital which might be required. Certainly the past progress of Beechams Pills Limited offers distinct encouragement for any developments under present control, the results for the past year showing an increase in profits to a record total of £541,000. Increased dividends and larger bonuses have followed the rise in profits. * * * *

CROWN MINES.

There are few leaders in the mining industry whose views command more attention than Mr. John Martin, so intimately connected with the Central Mining group and, needless to say, his remarks on all questions relating to gold do not command less attention by reason of the fact that he has recently been elected a director of the Bank of England. At the recent meeting of Crown Mines, Mr. Martin mentioned that the 1936 tonnage crushed of 4,277,000 tons exceeded that of the gold standard year of 1932 by 945,0oo tons. As a result the gold yielded was only 20,876 ounces less than the big output for 1933, when the yield per ton was more than one dwt. higher. Mr. Martin dealt at some length with the native labour problem and in the course of his remarks upon the general working at the mines, he mentioned that the bottom of the new shaft at 8,527 feet below the collar of the first shaft at 2,927 feet below sea level was the lowest on the Rand. So far as European workers were concerned, Mr. Martin said there was no reason to antici- pate that the requirements of new and developing mines could not be met, though the native labour position was somewhat less assuring.

* * * * LICENSES AND GENERAL INSURANCE.

At the recent Annual Meeting of Licenses and General Insurance Company, the Chairman, Lord Ernest Hamilton, made an interesting reference to the establishment of a Life Department, which, he said, would make the company in all respects a composite office. The expectations of the Board of the results of the first eight months of working had, said Lord Ernest, been materially improved upon. There had been no claims in the first year's operations, so that the whole of the premiums had gone to build up the funds. The total premium on all the departments was increased by £52,448, while the total assets were raised to over £75o,00o. * * * *

Bat LER CONDITIONS IN CHINA.

Much, if not most, of the information obtainable in this country with regard to conditions in China, both political and financial, are obtained from the annual statements of Chairmen of companies and corporations carrying on operations in that great country, of which a notable example is furnished in the annual meetings of the Hongkong and Shanghai Banking Corporation. Very interesting, however, were some of the statements made at the recent meeting of the British and Chinese Banking Corporation by Mr. G. D. M. Bernard. In general, he described the past year as having

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FINANCIAL NOTES (Continued from page 926.) been the most useful and most hopeful for the industries and trade of China since the check due to the Great War. " Chinese public men," he said, " not only statesmen but merchants and bankers as well, taught by sad experience the virtue and the necessity of self-reliance, have at long last addressed themselves to the task of setting their house in order with praiseworthy energy and with a measure of success which affords grounds for encouragement." Mr. Bernard then referred in detail to some of the more important developments including some of those connected with railways and trade, and he also explained some of the many difficulties which still have to be faced.

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IDEAL BUILDING.

Although the report for the past year of Ideal Building and Land Development showed a decline in profits, the Chairman, Sir Thomas Keens, was able at the recent meeting to state that the balance-sheet was satisfactory and, in explana- tion of the fact that for the first months of the current year sales have been lower than for the corresponding period a year ago, he said it was due very largely to the bad week-ends and recently the results have been more promising. Sir Thomas also referred to satisfactory relations between the company and the Building Societies. * * * *

GRESHAM LIFE PROGRESS.

Commenting at the recent meeting of the Gresham Life Assurance Society upon the continued progress, the Chairman, the Hon. W. B. L. Barrington, mentioned that during the past year the society issued life and endowment policies assuring £3,758,931, this being the net figure after deduction of re-assurances. How steady has been the progress may be gathered from that fact that the figure compares with £3,369,803 last year and with £2,603,201 in 1934. The total premium income showed an increase over the previous year's figure of nearly £99,000, and has now passed the million mark. The total income of the society' from 'premiums, interest, dividends and rents was no less than k1,544,491. In the course of his speech, Mr. Barrington said that interest was being paid regularly on the holdings of the society in Spanish Government securities which represented a con- siderable proportion of its investments in that country. The Chairman also emphasised the fact that as the assets and (Continued on page 930.)

FINANCIAL NOTES

(Continued from page 928.) liabilities of the society in Spain were in the same currency, there was no reason to fear any loss.

* * * * PATALING RUBBER.

At the recent annual meeting of Pataling Rubber Estates, the Chairman, Mr. H. Eric Miller, was again able to refer to the steadier conditions prevailing in the Rubber market, a steadiness which he evidently welcomed after the recent temporary excitement. The fact that the absorption of rubber in the first quarter of the current year exceeded that of the same period of 1936 by nearly 5o,00o tons was, Mr. Miller said, evidence of healthy progress, With regard to the N.D.C. tax, Mr. Miller remarked that it was difficult to see how even rough justice could be done as between the various companies in the Rubber industry.

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BRITISH SHAREHOLDERS' TRUST.

The British Shareholders' Trust has achieved a considerable reputation as an issuing house specially connected with com- mercial undertakings, and it is therefore encouraging to note that at the recent Annual Meeting of the Trust, the Chairman, Sir Follett Holt, said that he did not look to the future with any misgiving, for if the trade of the country continued to progress, the financial world would soon settle down again and accom- modate itself to the N.D.C. tax shock recently received. The past year has been a satisfactory one for the Trust and the directors are able to recommend a dividend and bonus making a total distribution of to per cent. for the year. The Chairman referred with regret to the resignation from the position of Managing Director of Mr. Edgar Crammond, but hoped that he would soon be well enough to join their Council at the