FINANCE AND INVESTMEN
By C USTOS WHILE they are not unmindful of the approaching storms of spring and summer battle season, the stock markets have ten as they were bound to do, the hopes kindled by Hitler's Rei speech. There is no widespread buying movement of pos recovery shares—that would be very premature, even in morton Street, at this stage—but there have been indications change in investment sentiment. Those who in recent months accumulating the long-dated and irredeemable gilt-edged s the hope of a further screwing down of interest rates have closing their commitments. Only a long war could possibly such purchases profitable, and the Treasury's recent action in to the 3 per cent. Savings Bonds has not given the " bulls" encouragement.
HOME RAIL RECOVERY
After being nobody's friend for nearly three months, Home stocks have at last commanded some support from investors, prices have rallied quite sharply. Oddly enough, the signal for belated buying movement was the disclosure in the Governm White Paper that tinder the first year's working of the new rental agreent between the Government and the companies was a surplus of nearly L22,000,000, which went as profit Treasury. This confirms the assertion made here in February so far from being generous to the railways the rental arrange represented an unjust deal imposed on the railways by the T at the pistol point.
Many will ask why the official confirmation of this dism position for stockholders should have encouraged buying on Stock Exchange? Would it not be more logical to sell? answer is (r) that most rail stocks, especially the junior prefer and the dividend-paying odinaries, have been grossly under-y in recent months ; and (2) that it is not unreasonable to argue as the railways are having to accept a raw deal in time of war, may have a better chance of getting a less raw deal after the Figures such as those just published for 1941 show that when B industry is really going all out the goods receipt's on the rat reach huge figures Even the " standard " revenue by whit railways have always set great store has been earned. It ma. be completely academic, therefore, that the companies succ during last year's negotiations in inducing the Government to note " of " standard " revenue figures. Rail stockholders s sit tight.
UNITED MOLASSES PROFITS
Stockholders in the United. Molasses Co. will view the dire preliminary statement for 1941 with mixed feeiings. On the of dividends they have nothing to worry about. They are 20 per cent., as for 1940, supplemented by a 21 per cent. tax cash bonus paid out of capital reserve. The unpleasant surf the steep fall in earnings. Consolidated trading profits are from £1,291,902 to £831,021, and although this decline is cosh to some extent by a smaller tax charge, the net profit is k19 below the 1940 level at £373355.
For an explanation of these results stockholders will have to for the chairman's statement. It is worth remembering, ho that the Molasses business is many-sided. It is in part industr part tanker shipping—this branch was recently extended b. purchase of Tankers, Ltd.—and there are important interna trading interests. It is possible that Government control, which covers a fairly substantial proportion of the group's activine cut down the margin of profit.
TRUST REVENUE PROBLEMS
Holders of investment trust share; would do well to inquire, the information is not disclosed, what proportion of the re behind their dividends has hitherto been drawn from Far securities. In many cases the threatened reduction of income this source is fairly substantial and may easily involve a seno in dividends, especially, of course, where the capital is highly g I see that Mr. James Prain, who has always dealt frankly Wit affairs of the Alliance Trust, has warned stockholders that the prospective loss of revenue from the company's holdings in China, the Malay Archipelago, Burma, India, Cey!on and Au represents about 5 per cent. on the ordinary stock. In refit the available earnings of 39 per cent., which covered the 25 Per dividend last year, this is not a serious matter. Alliance Trust holders have now received a 25 per cent. dividend for five sue' years, thanks to prudent management.
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