FORESTAL LAND.
The annual report of the Forestal Land, Timber and Railways Co. makes cheerful reading. Notwithstanding the difficulties in international trading operations, the profit on trading and dividends and interest from Subsidiary Com- panies total £85,161 against only £25,226 in the previous year. Moreover, owing to the sound financial policy followed in previous years, substantial sums were released through the improvement. Thus, an amount of 180,500 provided against the- loss incurred by a Subsidiary is now released, the Subsidiary having earned enough profit to eliminate its deficit. After debiting administration- expenses and interest on the 6 per cent. Notes; the net profit was £101,697 as compared with £48,046. The payment of the 6 per cent. Preference dividend absorbs £111,951, leaving a balance to be carried forward of £4,092. The balance sheet is a satisfactory one, with Investments standing at £654,688, including £140,000 of the Company's own 6 per cent. Notes and Cash of £148,044. Last year's bank overdraft of nearly £83,000 has been liquidated, though the amount due to Trade Creditors and on Bills and provisions for outstandings has risen to £338,733 against £74,205. Against the Company's chief investment, having a book value of £7,571,299, there is it Depreciation .Reserve of £2,856,802, apart from Reserve Accounts amounting to £1,058,970. At the present price Of 20s. 6d. the 6 per cent. Preference Shares yield about £5 18s. per cent.
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