Financial Notes

MARKETS IMPROVING.

IN another column I refer to the modification which has taken place in views concerning the monetary outlook, and it is this modification, together with a more hopeful feeling con- cerning the political outlook, which has been responsible for a rally in securities during the past few days. British Funds in particular, which had declined on the idea of dearer money in the near future, have recovered, while the satisfactory reports with regard to Home Trade have occasioned a further rise in several shares in the industrial group. An exception to the general improvement in Home securities has been the set-back in Prior Charge stocks of English Railways, and this movement is due to the refusal of the N.U.R. to accept the compromise offer of the Railway Management with regard to the restoration of cuts. I do not propose to discuss here the rights or the wrongs of the case beyond mentioning the bare fact that holders of the Ordinary stocks of nearly all the Railways have gone without a dividend for years while wages have been increased. Nevertheless, I incline to the belief that in spite of the wages trouble some of the Prior Charge stocks of English Railways are worth their present price, and perhaps a little more. In the speculative markets there has been a renewal of activity and firmness in some of the South African gold-mining shares.

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TAILORING PROFITS.

The profits of Montague Burton, Ltd., the multiple tailoring company, continue to rise. For the year ended March 31st last there was an advance in trading profits of over £15,000. The sum of £125,926 was reserved for Income Tax, while there is a transfer to Reserve of £130,000. The Ordinary dividend has been raised from 6 to 7 per cent. The general Reserve now stands at £415,000, and it is proposed to capitalise £61,200 of this amount by distributing a 3 per cent. Ordinary share Bonus. The Company has realised its holdings of nearly £200,000 in British Government securities, and the total of cash has risen from £382,000 to £763,840. * * * *

CABLE AND WIRELESS.

The shares of Cable and Wireless, Ltd., have fluctuated a good deal during the last few days owing to the generally accepted, though not yet officially confirmed, reports of Mr. Edward Wilshaw being about to be appointed Chairman and sole Managing Director of Cable and Wireless, the operating Company controlled by Cable and Wireless (Holding) Ltd. The appointment is one requiring Government approval, and it is believed that it has been obtained. The pending appoint- ment has been favourably received. Before the existence of the Cable and Wireless Merger Mr. Wilshaw had held administrative positions in the Eastern Telegraph Company for more than 20 years. In Cable and Wireless he has been

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successively General Manager, Chief General Manager and Managing Director. It is believed that Mr. Dennison Fender will continue as Chairman of Cable and Wireless (Holding) Ltd. * * * * A PROSPEROUS COMPANY.

According to the preliminary results of the British Plaster Board, Ltd., for the financial year ended April 30th last there has been a big rise in profits from £139,000 to no less than £413,087. A sum of £45,000 is now placed to the Reserve against £25,000 a year ago and the Directors propose a final dividend of 30 per cent. less tax, making 50 per cent. for the year compared with 40 per cent. for the previous year. The dividend, it should be noted, is payable on a capital of 1696,870. as compared with £374,400 a year ago.

* * * * THE LIMITED INVESTMENT FUND.

I fancy that flexibility will become a growing feature of new Trust Companies, for while the numerous Fixed Trusts are fulfilling a useful purpose in affording opportunities for the small investor, we learn by experience, and the promoters of these Trusts are evidently finding that an advantage is to be gained by a certain amount of flexibility in the range of investments. Recently the Limited Invest- ment Fund, the Managers of which are Municipal and General Securities Co., Ltd., made their distribution in respect of the first period at the rate of 3.60d. per unit free of tax, which is equivalent to a gross yield of £4 1s. 9d. per cent. per annum on the initial price of £1. This distribution has been arrived at after allowing for all expenses including the remuneration of the Manager and Trustees and after making full provision for the amortisation of wasting assets. In a small brochure issued by the Limited Investment Fund the management states that in arriving at a decision to introduce the Limited Investment Fund in December, Municipal and General Securities, Ltd. were particularly influenced by the conviction that today a greater degree of flexibility is required than is compatible with the Fixed Unit type of Trust.

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TELEPHONE RENTALS.

At the recent Annual Meeting of Telephone Rentals, Ltd., the Chairman and Managing Director, Mr. F. T. Jackson, was able to speak in encouraging terms with regard to the results of the past year and future prospects. Among other things he stated that the Telephone Service provided by the Company had given such satisfaction that the Directors had decided to extend the range of apparatus over a rental to electrical instruments which would simplify factory control and production. The subsidiary companies have had a successful year, all of them having operated at a profit, while the youngest of the group, Electro Rentals, Ltd., made a small profit against a loss in the previous year. He was also able to report favourably with regard to the progress of the Australian company.

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AN HONOUR FOR BANKING.

Real pleasure has been given to banking circles by the announcement that included in the Birthday Honours was the bestowal of a Barony upon Mr. J. Beaumont Pease, the Chairman of Lloyds Bank and Chairman for the present year of the London Bankers' Clearing House. The honour is a well-merited one, for Mr. Pease for some years has been one of our foremost Bankers, and his addresses at the Annual Meetings of Lloyds Bank have attracted world-wide attention. Incidentally the honour will be popular in the golfing world, where Mr. Pease enjoys a world-wide reputation.

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TILE OIL SITUATION.

Those who are in any way concerned with the Oil industry always await with interest the speech by Lord Bearsted at the annual meeting of the Shell Transport and Trading Company. Lord Bearsted's address last Tuesday was as usual full of interest. Among other things he gave some striking figures showing the growth of taxation of petroleum in this country. It appears that special taxation has grown from nothing in the year ended March, 1928, to S42,223,000 in the financial years 1934-35. Taking world figures, the group contributed for 1935 nearly £67,000,000 in special taxation of petroleum products and Income Tax to various Governments, an increase of over £9,000,000 on the year, against which shareholders in the group received about £12,000,000 in dividends this year. Lord Bearsted showed how the general level of petroleum prices was more influenced by duties than by initial costs and distribution expenses. Referring to the finances of the Shell Company, Lord Bearsted pointed out the conservative strength of their balance-sheet, and said that the question of an interim dividend would receive the Board's serious consideration. Lord Bearsted also referred to the unproved relations between the Mexican Government and the Mexican Eagle Company.

- A. W. K.