LANCASHIRE STEEL RECOVERY.
One of the features of the past week has been the publication of the report of the Lancashire Steel Corporation covering the year ending December 31 last. It is a most encouraging document, thoroughly justifying the steps taken some few years ago by banking interests to bring about a fusion of im- portant engineering and steel companies, and to finance im- portant reconstruction• works. Last year, the profits of the Corporation, including the earnings of the wholly-owned subsidiary companies, but before making provision for depre- ciation of fixed assets, or charging interest on loans of £1,015,625 provided by the guarantee group, amounted to £389,476, being an increase over the previous year of £226,353. The net disposable surplus is £392,367, which the directors have utilized to the extent of £350,000 in providing for depre- ciation of fixed assets, and the directors state that in their opinion the depreciation provided is now adequate, and the Company has now met all arrears in this connexion. The directors also state that the permanent capitalization of the advances by the Guarantee Group (which now amount to £1,250,000) is contemplated in the near future.
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