FINANCIAL NOTES.
Expectations of a better profit-showing by the Calico Printers' Association, one of the leading textile combines of the Manchester district, have been amply confirmed by the annual report which has just appeared showing a net profit for the year to June 80th last of £800,208. Precise comparison with the previous year is impossible, the last accounts having covered a period of two years, but even so, the profit for the two years was returned at £503,542, and this it may be noted included adjustment of excess profits duty which probably meant that the profits had benefited by a recovery of taxes previously paid. That even the net profit now shown is arrived at on a conservative basis seems to be indicated by the intimation in the report that before arriving at the figure no less than 1597,806 has been charged in respect of maintenance, depreciation, repairs and renewals. The profits, too, have been debited with debenture interest amounting to £128,000 before arriving at the published figure. An equally conservative policy is followed as regards the distribution of the published net profits, for after paying the 5 per cent. preference dividend requiring £150,805, the ordinary shares receive 10 per cent. per annum, with a bonus of 2i per cent. together requiring; 1251,842, so that the total dividend disbursements , represent only a fraction over one-half the net profits, and no less than 1850,000 is reserved for various purposes, 1150,000 going to increase the Reserve account, which will then amount to £1,200,000 apart from the Depreciation account of 11,838;829, and the Capital Reserve account of 160,000, while another £150;000 is added to the reserve for equalization of dividends raising that reserve to 1300,000. A further 1100,000 is added to the Em- ployees Benefit Fund, a fund which does not appear in the balane,e-sheet at all. A. W. K.
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