Financial Notes

THE Stock Markets are now displaying a somewhat uncertain tendency. A week ago they were very much under, the influence of international, politics, and a fairly general setback occurred in some of the industrial and speculative shares. With _the close. of the last fortnightly account, however, there- were signs that weak- speculative positions had been liquidated, and the eetnmentement of the new account at the beginning of this week was ehtiracterited by a fairly general recovery in all directions. Industrial Shares, including the shares of aviation companies, rallied, and, as, noted elsewhere, there was a general improvement .in Home Railway stocks on the satisfactory character of the speeches at the annual meetings of the Great Western, the London, Midland and Scottish, and Southern Railways.

MARKETS RALLYING.

* * * *

ASsuaniscE PROGRESS. At-the annual meeting of the Refuge Assurance Company, the chairman, Mr..J. W.,Wilcock Holgate, was able to present a most encouraging report showing that last year the. Refuge had a premium income of nearly £10,000,000 while its total assets now amount to just upon £63,000,000, being an increase of just under £2,000,000 during last year. These figures, I think, Must be regarded as a testimony, both to the appeal made by the company to the mass of the community and also to the improVed financial condition of the people. This latter point would seem to' be emphasised by Mr. Holgate's reference to the decline in the amount of Loan:4 on Life Policies since 1932, The report also showed that the Refuge had been able to keep its net rate of interest-earnings up to the good figure of £4 10s. 3d. per cent. That is the average rate, earned on the combined funds, Ordinary and Industrial.

* - *

GOODSTORES PROFITS.

time of . At tb, time of the pulslication,of,the !vim?* of Selfridge sand. .Company,, .1 _referred to . the remarkable in profits.. which permitted an advance in the dividend from 5to 10 per • (C-oratinued on page 450) ' cent. At the annual meeting held last Monday Mr. H. Gticl:'—on Selfridge stated thrit thg company had, during the year, enjoyed an excellent• increase in sales, and created a ..htw record in the number of individual transactions, whilst the number of the staff had been greater than ever before. The accounts revealed a liquid position, and Mr. Selfridge emphasised the point that the improved results were enti.ely due to the increase in sales, as no new department had been opened during the year.

a * * *

TRUSTEE 3 PER CENTS.

There have not been wanting signs during the past week that the investor is demanding something more than 3 per cent., even on Trustee securities. During the past few Weeks quite a number of English corporations have made issues of 3 per cent. stocks at par, but while oversubscription has been reported in many instances, nearly all of the stocks in question have fallen to a small discount, and last Monday, in the case of an issue of Surrey County 3 per cent. stock for £1,500,000, the response from the public was insufficient and the underwriters had to take up a large portion of the issue. It seems probable, therefore, that in the immediate future, there will have to be either a pause in the issue of 3 per cents. at par, or else that such issues will have to be offered at a little under . par. * * A SUCCESSFUL ISSUE.

In striking contrast to the falling off in the response to 3 per cent. Trustee Stocks has been the great success of the Belgian Conversion Loan. The purpose was to convert. an outstanding issue of £8,600,000 in 7 per cents. into a new Bond for the same amount, but carrying only 4 per cent. interest, the price of issue being 981. Although a foreign loan, the combined fact of the good credit of Belgium and the desire on the part of investors for security giving a yield of over 4 per cent., occasioned a rush on the part of cash applicants accompanied by a keen response on the part of those desiring to convert, so that the cash applicants finally only obtained about 3 per cent. of the amount applied for, while the 4 per cent. Bonds now stand at about 1 premium. * * * *

COLVILLES.

It is now a matter of general knowledge that in the revival of Home Trade the steel industry may be said to have led the way. Fresh evidence of this has been afforded by the excellent report of Colvilles Ltd., the big Scottish iron and steel manufacturers. Trading profits for last year increased materially, and although no dividend was announced on the Ordinary, the sum of £200,000 was transferred to the Special Reserve for Preference Dividend, making that fund up to £330,000, while the balance-sheet showed the company to be well supplied with liquid resources, of which cash amounts to 2436,000 in addition to investments of a market value of

£64,500. Moreover, a further improvement in t : ding con- ditions is reported, and before the issue of the annual report the interesting announcement had been made of an impending offer for sale of Ordinary shares in Colvilles, following upon the entry of Colvilles into close relationships with the steel companies of Scotland and the acquirement of certain other interests from David Colville and Sons, Ltd.

* *

A SOUND INDUSTRIAL.

The annual reports of the United Glass Bottle Manu- facturers for some time past show steady progress in profit-. earning power. The latest report shows that last year's profit, after providing for depreciation and debenture interest, stands at £151,125 against £138,991 in the previous year, while the balance-sheet is stronger. The company pursues a con- servative policy in the matter of its distribution of profits, and, on the present occasion, £13,000 is put to Debenture Reserve Fund, -140;000 to the General Reserve and £7,500 to Special Provision for Moulds and an equal sum to the Staff Fund. The dividend on the Ordinary shares is 7* per cent., being the same as a year ago, but the bonus is increased from 11 to 2* per cent., making a total of 10 per cent. against 9 per cent., with 244,494 to be carried forward. The Ordinary £1 shares of the company stand at about 44s. 6d., giving a yield to the investor of about £4 8s. per cent.

* * * *

INDUSTRIAL CO-PARTNERSMP.

I referred in these columns last week to the excellent Report of London Brick .and Forders, whose profits for the past year had established a record, while the balance-sheet was a strong one and a dividend had been declared on .the Ordinary Shares of- 22k per cent. It is always satisfactory (Continued on page 452.)

Financial Notes

(Continued from page 448.)

•

Financial Notes

(Continued from page 450.) when in addition to recording substantial profits for the shareholders, the profits have been consistent with due con- sideration for the wage-earners. This certainly seems to be so with the London Brick Co. and Forders, and at the annual meeting, held on Monday, the Chairman, Mr. P. Malcolm Stewart, O.B.E., J.P., was able to show in no uncertain fashion the extent to which employees had shared in the Company's prosperity. This year, he said, " we shall make a record distribution through our profit-sharing bonus scheme. The total thus distributed over 10 years will then be close on £200,000." Mr. Stewart also explained the many amenities granted to the workers in the shape of social clubs, swimming baths, tennis courts, &c., and it is not surprising, therefore, that he was also able to refer. to the cordial co operation of the workers. Wages, he said, " come first and our rates of wages are generally above the standard district rates. The principle of co-partnership is put into practice through ( sr profit-sharing bonus scheme and the future of our employees will he, at any rate, partially provided for by the proposed