FINANCIAL NOTES

MARICETS DEPRESSED.

THE Stock Markets during the past week have been over- shadowed by the French political and financial crisis and also by a revival of nervousness with regard to the international political situation. As a consequence, business has been more or less at a standstill in all departments of the House, while the tendency of prices has been distinctly downwards. Moreover' in addition to these influences, the market for gilt-edged securities has been adversely affected by the poor response to the Australian Government Conversion Loan for over £12,000,000. Underwriters of the issue had to take up 53 per cent. and the scrip was quoted in the market at i4 discount. ANGLO-IRANIAN OIL.

A good deal of attention has been attracted by the speech delivered by Lord Cadman to shareholders of the Anglo- Iranian Oil Company by reason of the fact that it was marked by a quiet confidence in the general outlook for the Oil industry. The company itself had achieved a great increase in trading profits which rose last year by £3,464,000 to £9,444,000, and this increase Lord Cadman said was due almost entirely to the growth of net proceeds from the sale of oil and nearly 60 per cent. of the increase was attributable to expansion in tonnage, the net price realised having advanced by less than 71 per cent. As regards the outlook, Lord Cadman said he considered that the industry was now healthier internally than it had been for some time. Hence, the decision to tiring the issued capital (by the bonus share distribution) into closer relationship with the capital employed in the business.

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A NEW UNIT TRUST.

Beginning on Tuesday of last week an offer was announced of Units of a new Trust entitled The Brewery Unit Trust, the initial price of the units being 17s. 6d. It is a Trust managed by London Management Securities Limited, the Chairman being Sir Lynden Macassey, K.B.E. I understand that the Trust is fully cumulative and flexible and is permitted to invest in 85 Breweries, Distilleries and companies engaged in allied trades from which the managers expect in the first year a yield of 44 per cent. from cash dividends alone. The duration of the Trust is zo years and the service charge for expenses is commendably low. The Trustees are the Midland Bank Executor and Trustee Company.

* * * * V.O.C.

The latest report of the Venezuelan Oil Concessions Limited showed very satisfactory results for the past year, and the favourable impression created by the report was strengthened by the speech of the Chairman, Viscount l3earsted, at the annual meeting of shareholders. His remarks revealed a prudent policy on the part of the directors with a disposition to look far ahead as regards future results. A sum of £25o,000 has been transferred to an Exploration Reserve and a con- siderable amount of exploratory drilling for the purpose of providing further crude reserves of oil-bearing territory has already taken place. A further point which emerged from Viscount Bearsted's speech was the evidence of good relations between the Company and the Venezuelan Government and also the wise expenditure on the part of the Company in pro- viding not only all necessities but amenities for its employees.

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GREAT UNIVERSAL STORES.

This undertaking is primarily a Mail Order business and at the recent meeting of shareholders the Chairman, Sir Archibald Mitchelson, and the Managing Director Mr. Isaac Wolfson, spoke very confidently with regard to the outlook, the Chairman at the same time explaining the reasons and the means whereby they were relinquishing responsibility for New Universal Stores, a subsidiary which carries on retail trading. The business' the Chairman stated, is one of great potentiality, but having been approached by prominent experts in that class of business with a view to taking it over altogether, or linking it with others, an arrangement has been entered into with Zellers Ltd. of Canada. That company is to take over the entire responsibility for the organisation and management and will also take a financial interest. As a result of the arrangement the Chairman of Great Universal Stores expressed the opinion that the Company should get back the whole of (Continued on page 1216.)

FINANCIAL NOTES

(Continued from page 1214.)

its investments in the Chain Store business including the loss shown by the Company last year, while it will hold a substantial interest in the equity of the business.

A NEW BANKING ENTERPRISE.

It appears that a new, and I believe important, institution is being organised under responsible auspices to carry on the business of Commercial Bankers in the Union of South Africa. The Company will be called "Commercial and Industrial Credit Corporation" and will have a capital of £500,000, half in Preference, and half in Ordinary shares. It will be closely associated with Mercantile Credit Co., Ltd., who carry on a similar business in the United Kingdom, and the capital is being issued through Messrs. Edward de Stein. The Company will specialise in developing the distribution of goods of all kinds on credit terms and one half of the Ordinary share capital will be taken by the directors and their associates, while the ordinary shareholders of Mercantile Credit Co., Ltd., will have the right to subscribe for a considerable portion of the balance of the capital. There will be a London Committee, while the Chairman of the South African Board will be Mr. Albert Victor Lindbergh, Managing Director of Central News Agency Limited.

WILLOUGHBY'S CONSOLIDATED.

The satisfactory Report recently published by Willoughby's Consolidated Co. Ltd., has been followed by a meeting at which the Chairman, Colonel H. T. Fenwick, was able to make some statements of an encouraging character. The total gross revenue for the year of 05,388 compared with £66,912 for the previous year and the company has maintained its dividend of 5 per cent., carrying forward a somewhat larger total than a year ago. With regard to the outlook in Southern Rhodesia, Colonel Fenwick spoke hopefully, stating, among other things, that both imports and exports had shown an increase, while railway traffics had been well-maintained. Notwithstanding the recent setback in markets, the company's investments show an appreciation over the book value.

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GENERAL ELECTRIC PROGRESS.

There are few important industrial undertakings which have shown more steady progress in the matter of profit earning than the General Electric Company, of which that veteran organiser Lord Hirst of Witton is the Chairman. A year ago the Company achieved record profits, but these have again been exceeded, the trading result for last year of £1,604,512 showing an increase of f 119,359. In commenting upon this fine result the Directors in their report say that it reflects the continued prosperity of the home market and the growing recovery in the markets overseas. The Company's works have been employed to full capacity and the high level of output has been secured in spite of a shortage of skilled labour and difficulty in obtaining raw materials. The oversea branches of the business have also given satisfactory results. The Annual Meeting of the Company takes place on July 1st, and Lord Hirst's speech is awaited with considerable