COMPANY AFFAIRS.

Auckland Star, Volume LXII, Issue 85, 11 April 1931, Page 4

COMPANY AFFAIRS.

ONAKAKA IRON SANDS. f A LOSING PROPOSITION. GOVERNMENT STATEMENT. (By Telegraph.—Press Association.) WELLINGTON, Friday. A reply was made to-day by the Minister of Mines, the Hon. A. J. Murdoch, to the statement issued by the chairman of the Onakaka Iron and Steel Company, Mr. J. Leggo, referring to the causes of the failure of the works. Mr. Murdoch said the statement so far as it referred to the assistance afforded the company by the Government was not only unfair but misleading. "Since operations were commenced, the Government has paid by way of bounty in respect of pig iron produced no less than, £36,291. In addition, the Government lent to the company £14,000 last year to enable, operations to be continued, and further, the Mines Department sold to the company, at a bedrock price, large quantities of State coal, for which the company is indebted to the department for a considerable sum. Had it not been for the assistance granted by the Government, the company would have been compelled to close down the works on several occasions in the past. "It is quite true that shortly before the company decided to go into liquidation further appeals were made to the Government for additional financial assistance. The whole position was then closely investigated by the Government, and the conclusion arrived at was that even if such assistance were granted, it would be impossible for the company to continue its operations successfully." Mr. Murdoch said that none regretted more than the Government that the industry had stopped, and it was a great pity indeed that Mr. Leggo did not state that a large measure of financial assistance had been given by the Government to the company since it commenced operations. al

UNION STEAM SHIP CO. LAST YEAR'S BALANCE-SHEET. The financial editor of "Fairplay" in the issue of February 19 gives the following particulars. of the balance-sheet of the Union Steam Ship Company as at September 30 last:-r . The company's ordinary capital, on which a dividend of 8 per cent for the year is paid, the same as for each_of the five preceding years, is owned by the P. and O. Company. The credit balance at profit and loss account, namely, £167,978, which includes the amount brought forward from the previous year, compares with £162,121 at the end of the previous financial year; £156,592 at the end of September, 1928; £119,214 at the end of September, 1927; and £115,695 at the end of September, 1926. The paid-up capital of £3,000,000 (£l,0t)0,000 of which is in ordinary shares) same as at the "fend of September, 1929; reserves at £150,000, are also unchanged; insurance fund has increased from - £861,674 to £881,840; while sundry creditors and uncompleted voyages aggregate £1,427,062, against £1,361,731. On the other side of the j account, the fleet, payments on account jot new vessels and investments stand in the books at £4,498,998, against £4,439,196. According to Lloyd's Register, the company owns 57 steamers and four motor vessels, totalling 227,362 tons gross and averaging about fourteen years of age. Owing, however, to the inclusion in the book value of an unstated amount of investments and payments on account of new tonnage, it _is impossible to ascertain the figure at which the vessels are valued in the books of the company. Hulks, etc., coal, stores, land, and premises appear at an aggregate of £660,335, against £636,555, and sundry debtors and cash total £467,547, against £459,775.

A.M.P. SOCIETY. SATISFACTORY OPERATIONS. The eighty-second annual report of the Australian Mutual Provident Society, covering the twelve months ending December 31 last, is referred to in an advertisement of the society in this issue. The report, as usual, discloses a very satisfactory record. Additional reserves for the year are £720,000, making a total reserve of £1,580,000. Cash bonuses for the year were: Ordinary department, £2,876,286; industrial department, £226,578, a total of £3,102,864. Reversionary bonuses in the ordinary department were very 'little below the previous year, whilst bonuses in the industrial department were maintained at the high level of 1929. The interest earned on mean funds increased to £5 4/11 per cent, and expense rates (excluding taxes) decreased iij both departments.

The total funds of the society npw exceed £80,000,000, and over £15,000,000 is invested in New Zealand. Attention is drawn to the fact that New Zealand claims, )bonuses, etc., are payable in New Zealand currency.