General world conditions and the depression in South America, have,
of course, hit the Forestal Land, Timber and Railways Company, and it is fortunate that some time back the directors pursued a very conservative poliey.pending an improvement in the position. The company is mainly a holding one, and although the latest report shows that none of the subsidiaries revealed a loss their various direc- torates very properly wrote down stocks in view of the fall in values, and as a consequence the dividends received by the parent company were insufficient to prevent its own accounts from showing a loss. This, however, in its turn, was also partly due to the fact that the parent- company set up a reserve of £130,000 against doubtful debts, leaving a debit of £22,584, which, deducted from the credit balance brought forward, lcaVes a balance of £190,202. After paying the dividend on the 43 per cent. Cumulative Preference shares £78,251 is carried forward: The balance-sheet is 'a strong one with British Treasury Bills 'and cash amounting to over £600,000 apart from Insurance Reserve Fund Investments.
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