RIO TINTO'S PROBLEM Rio Tinto Copper Mines, whose undertaking lies
within General Franco's territory, reports a dismal result from its Spanish interests.. Fortunately, the company has mom prosperous investments in the Rhodesian copper industry which have enabled it to weather the storm. In the chairman's report Sir Auckland Geddes says that the bulk of what should have been the year's profit—say, £350,000—is represented by about 15,000,000 paper_pesos of unpredictable value, and that since the outbreak of.civil war in Spain the company has had to take pesos and promises of pesos in exchange for sterling and goods of sterling value to the extent of over £1,750,000. Without its Rhodesian investments he considers that the company would have had great difficulty in standing the strain. The net profit for 1937 was £z95,I55, compared with £445,460 in 1936. But the income from investments rose from £108,263 to £315,879, largely on account of the increased dividend paid by Rhokana Corporation, in which Rio Tinto has a large holding. The total of £51r,o34 against £553,824 is, however, insufficient to cover the full preference dividend, and to meet the preference dividend the balance carried forward has to be reduced by £66,863 to £384,912. * * * *
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