V enturers' Corner Although it is the first payment since
1931, thet 4 per cent. dividend on the 8 per cent. cumulative los. preference shares of Tankers,Ltd., seems disappointing in the light of the freight market improvement. Having made two unsuccessful attempts to reorganise the capital, the board has underlined the necessity for writing down the fleet by allocating £200,000 to deprecia- tion, this on top of £76,696 for reconditioning and repairing, and another £25,000 for survey and repairs reserve. So, after payment of only half a year's preference dividend, there is only £6,015 to be carried forward, which means that this year's accounts will have to stand very much on their own legs.
The 103. preference shares, which were up to I's. in the spring, have fallen to 8s. 9d., offering a 4 per cent yield on the 4 per cent. dividend, but there are over five years' arrears: amounting to roughly 3s. net, included in the price. .While I do not foresee any rapid payment of these arrears, I_ see nc reason why at least the full 8 per cent. should not be paid this year. The profits for the twelve months ended March 31st, 1937, were £109,000, against a ftill. 8 per cent., preference requirement of only £47,060 net, and conditions in the tanker freight market are much more remunerative now than in the period covered by the accounts. A promising asset, apart from the tanker fleet, is the company's .holding of 30,00o shard in the Standard Oil of Indiana, now worth about £25o,obo. A buyer of Tankers preference is therefore acquiring a stake in the prosperous tanker Market - plus an indirect interest in the recovery of the Amerkan oil industry. - • CUSTOS.
[Readers' enquiries, or requests for advice regarding particular shares, will be answered _periodically as space permits. (ur- respondents who do not desire their names to appear -should append initials or' a pseudonym to-their -question.]
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