FINANCIAL NOTES.
Evidence of the activity of the investor continues to be afforded not only in the strength of existing securities, but in the ready response given to fresh issues of capital. At the time of writing particulars are announced of a new Victorian loan for £5,000,000 in 5 per cent. stock at the price of 99k, the underwriting of which was quickly arranged. From the particulars which will be found on another page of the important meeting of the Under- ground Electric group of railways held this week, it will also be seen that the chairman made a reference to the Bills now before Parliament, representing an ultimate further expenditure by the company of over £8,000,000. In the course of his speech Lord Ashfield gave a most interesting account of the results achieved by the " Tubes ' and also by the London General Omnibus Company, and of their successful efforts to cope with passenger transport in the Metropolis. Moreover, it is satisfactory to recognize that within the next year or two the usefulness of these companies to the travelling public will be greatly increased by the extensions now taking place. In the meantime, it is good to know that the work of these extensions is doing something to relieve the problem of unemployment. In emphasizing the service performed for the public by the tubes " and buses, Lord Ashfield also pointed out that there was a direct responsibility to stockholders, who had invested over £50,000,000 in the enterprise. * * Those who were present at the annual dinner of the British Overseas Banks' Association, held last Monday, must have been impreised by what is involved in the organization of our banking resources as applied to the development of the various parts of our Empire. Mr. Francis Shipton, who presided over the gathering, explained that the organization represented banks with something like 6,000 branches scattered over our Oversea Dominions, which during their existence had been the means of distributing something like £600,000,000 for the development of various parts of the. Empire. A feature of Mr. Shipton's address was his reference to the proposals originally made by Lord Sydenham for further developing our Empire resources, and it was evident from the speech of the Secretary of State for the Colonies, who was the chief guest of the evening, that the Government were alive both to the possibilities and the responsibilities attaching to Empire developments. * * * * I commented last week upon the fact that the excellent Railway dividends were likely to draw attention to the high rates still prevailing for passenger and goods rates, and now that the Reports of the companies have been issued this point is emphasized by the huge sums which have been placed to the credit of Depreciation and Reserve Funds. In a table published in the Morning Post on Monday last,- it was shown that as regards the English companies alone the total now standing to the credit of these funds was £109,500,000 as compared with only £15,500,000 in 1914. It is clear that the Railways have done exceedingly well for themselves as regards the " compensation moneys obtained from the Government, and in view of the present state of unemployment a good many will be asking whether it is not time for work in the matter Of repairs and renewals or extensions to be accelerated. In that--connexion I am glad to note that the London and North-Eastern Railway announce a programme of works involving an expenditure of approximately £2,000,000, and it is stated that the work is being undertaken now " with a view to relieving unemployment."
In view of the excellent character of recent dividends, it is not surprising that a cheerful tone should have characterized most of the final meetings of shareholders of the Railways under their old titles and under the old boards of Directors. Apart, however, from all question of dividends, there is no doubt that in the case of many of the Railways really sincere tributes were offered to Directors for the conduct of what is certainly a very diffi- cult task, namely, the handling of the transport service of the country in a manner which shall give satisfaction to the travelling public, the trader, and also to the stock- holders. At the Great Eastern Railway meeting a fine valedictory speech was delivered by the veteran Chair- man, Lord Claud Hamilton, who had a warm reception from the shareholders. Similarly, at the meeting held in the previous week of the South-Eastern Railway, a handsome tribute was paid both to Mr. Cosmo Bonsor and to the retiring Secretary, Mr. Charles Davis. Mr. Davis entered the service of the South-Eastern Railway just over fifty years ago. He was appointed Assistant Secretary in 1898 and Secretary in December of last year. He was popular in the service and, indeed, with all who came in contact with him.
* * * * Although in the matter of dividend distributions shareholders of the Chartered Company may well feel that it is a case of " hope deferred Company justifying despon- dency, the figures on the Administrative side recorded in the Report just issued must be described as satisfactory. The figures of Southern Rhodesia show a surplus for the year ending March, 1921, of £72,000, and for the year ending March 81st last of £256,000, whereas in the previous accounts there was a deficit of £91,000 in respect of the year ending March 81st. Moreover, in the case of Northern Rhodesia there is a reduction to note in the annual deficit. On the other hand, the Commercial Accounts are less satisfactory; the excess of revenue over expenditure is lower than in the two previous years, the total for 1921-22 being £105,000 as compared with £162,000 in the previous year. For the moment, how- ever, interest on the part of Chartered shareholders chiefly centres in the intentions of the Government with regard to the future of Southern Rhodesia. A. W. K.
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