FINANCIAL NOTES Fresh evidence of the extent of financial resources

seeking investment, and also, perhaps, of the comparative scarcity of Trustee securities was afforded by the success which attended the Queensland Conversion Loan. The total, it will be remem- bered, was for just under £12,000,000, and applications for conversion from holders of maturing obligations represented something like £8,000,000, leaving probably has than £4,000,000 for cash subscriptions. These applicaticins, however, seem to have amounted to something like 145,000-,000,:solliat while very small applicants were favourably considered the larger applicants obtained less than 5 per cent. of the amount applied for. But while congratulating Queensland on the success of the issue, I feel bound to enter a protest against the meagreness of information given in the prospectus, and the point is deserv- ing of attention. All Colonial loans issued under the Colonial Stock Act are Trustee securities, and just now, when there is a dearth of such securities, there seems unfortunately to be a tendency to take advantage of that fact and to give the investor less information than he is entitled to receive. It is not, however, a shortcoming common to all the Dominions,

for in one or two instanees—New Zealand being one of them— the prospectus is usually accompanied by the fullest statement with regard to the present finances of the Dominion, such as the public is entitled to have put before it when applications arc being made for a large loan; * * * A JUSTIFIABLE PROTEST.

Not by any means for the first time, Lord Ashfield, at the recent meetings of the Underground group of companies, was obliged to devote the greater part of his speech to the effect upon the Company of the unrestricted competition of -street transport. In other words, the enterprise of the shareholders in putting up fresh. capital for extensions is. not receiving encouragement, let alone any kind of protection. During the past few years this group has spent very nearly £16,000,000 on extensions and improvements, while further outlays are contemplated of over £5,000,000. - As Lord Ashfield very properly remarked, until this expenditure has become self- supporting and has attracted additional traffic, it is impossible to contemplate further fresh schemes of expenditure. I fancy that not merely shareholders of the Underground group of

companies would endorse Lord Aslifiel(fs remarks, but the public as a whole which is concerned by the congestion of traffic, especially in the middle of the day when half-empty 'buses are running, would be glad to see some restriction placed upon the competition for passenger traffic. * * *

COURTAULD DEVELOPMENTS.

Quite the sensation of the week in the Industrial market, and one calculated to give a fillip to industrial securities generally, was the extrae..dinary rise in Courtaulds' shares, following upon a most remarkable profit statement. Moreover, to appreciate the excellence of the results and the fine dividend now received by the shareholders, it is necessary to recall the progress of the company over the last few years. On the present occasion an increase of nearly £1,000,000 in net profits is shown, the total amounting to £3,881,000 (after carrying £400,000 to Special Reserve for insurance, and £250,000 to Reserve for employees' old age allowances). A final dividend is proposed of 2s. 9d. per share, free of tax, making 4s. free of tax for the year, or 20 per cent., while £1,000,000 is placed to the General Reserve. Even after this increased dividend and huge allocations, the amount carried forward is £1,035,000; against. £754,000 a year ago. * * *

- EQUAL TO 120 Pint Cgs'r.

Thus, it will be seen that for the past year the dividend is 20 per cent., free of tax, but it has to be remembered that at 1919 the capital of the coripany was doubled by a bonus issue, and in the following year it was trebled by a further bonus issue of capital. Therefore, on the old capital previous to 1919, the present dividend would work out at something like 120 per cent., tax free. Incidentally, it may be remarked that these excellent results make. a very interesting comment upon the charge which has been made in sonic quarters of want of pro- gress in the artificial silk industry in Great Britain. - a * A GOOD REPORT.

Another industrial report of an excellent character issued during the past week is that of Bovril, both gross and net profits being substantially higher. In fact, as will be seen from the following summary, there has been steady progress in the matter of net profits for the past three years, a good feature indicated by the figures being the tendency for working expenses to fall, viz. :— Gross profit ..

652,000 617,000 Net profit .. 306,000 352,000 To Reserve .. 60,000 75,000 Carried Forwar l 29,253 34,284 Dividend on Deferred

9 p.c. 111 p.o. 121 p.c.

*

SCOTTISH WIDOWS RESULTS.

An excellent Report has just been published by the Scottish Widows Fund Life Assurance Society, showing that for the year 1924 the new business completed consisted of 3,831 policies assuring £2,630,959, while the new sums assured amounted to £2,551,959. Claims by death amounted to £1,250,000 (including bonus additions), being about 75 per cent. of the amount allowed for. The average gross rate of interest realized on the funds was £5 5s. ld. per cent. (subject to deduc- tion of Income Tax), showing an increase of 8d. per cent. on the rate earned in the previous year. Expenses of management and commission represented 11.8 per cent. of the premium- revenue or only 7 per cent. of the total revenue. The total income was £2,843,000, and outgoings £2,318,000, giving a surplus of £525,000, which is added to the Assurance and Annuity Funds, these now standing at £24,772,000.

A MERITED RECOGNITION'.

In fire insurance and underwriting circles there is a very clear recognition of the material services rendered by Mr. Hugh Lewis,of the Liverpool and London and Globe Insurance Company, Ltd., to the insurance and financial interests affected by the great earthquake in Japan. Iluge sums were repre- sented by the damage, and while underwriters for the most part were protected by their not having received premiums for earthquake risks, claims had been pressed which would not only have involved colossal payments, but would have challenged the whole status of fire insurance contracts. The skill and firmness with which the situation was handled,, however, and. the satisfactory character of the action of the Insurance companies and underwriters is now recognized universally by those who had been policyholders. Especially was the return to policyholders of the year's premium, current at the time of the earthquake, regarded as a graceful act on the part of the companies and underwriters. Recognition of the skill and tact shown by Mr. Hugh Lewis took the form of a dinner, given last week in his honour. It was certainly a well-merited recognition of exceptionally valuable services

1922. 1923. 1921.

681,000 391,000 75,000 70,881 (Tax Free) ..