MONEY IN RAYON.

Auckland Star, Volume LVI, Issue 103, 4 May 1925, Page 4

MONEY IN RAYON.

CORTAULD'S HUGE PROFITS. Despite the keen competition from foreign countries in the manufacture of artificial silk, or rayon, as it is now called, the British linn of C'ortaulds, Ltd., London, which specialises in this product, has had a remarkably successful year. C'ortaulds, it should be mentioned, has a branch in tlie United States. After charging depreciation of buildings, plant, stocks-in-trade, and investments, directors' fees, corporation profits tax, income tax, capital issue expenses, and all expenses of management, and after carrying £400.000 to a special reserve account for insurance, and £250,000 to a special reserve for employees' old-age allowances, etc., profits amount to £3,880,745, which are easily the liiirhest in the history of the company. Following tbe terms of tbe resolution passed by the shareholders, the share capital of the company has| been increased from f 12,000,000 to! £20,000,000 by the capitalisation of the Sum of £8.000,000 of the capita] reserve, and the creation of the issue of 8,000,000 5 per cent cumulative preference shares of £1 each. According to the directors' report, "the outlook "continues to be encouraging, but it must be pointed out that the world's production of artificial silk is increasing rapidly, that much larger supplies will he available, and that competition must intensify."'