COMPANY AFFAIRS.

Auckland Star, Volume LXII, Issue 259, 2 November 1931, Page 4

COMPANY AFFAIRS.

WHITE STAR'S REPORT.

HEAVY LIABILITIES,

SHAW, SAVILL'S POSITION.

(From Our Own Correspondent.)

LONDON, September 17

Aβ was to be expected the White Star Line report, in the fortunes of which those of the Shaw, Savill and Albion Company are involved, is sai , reading after the recent law court proceedings, in which its chairman, Lord Kylsant,. was condemned as the head of the R.M.S.P. Company, the finances of which were questioned. The result of the year's working/after providing for all interest charges, but without making any provision for depreciation, is a loss.

The directors also frankly state that in (presenting the balance-sheet they recognise that the bookvalue of the fleet is in excess of present-day values, and that the value of the shares in subsidiary and associated steamship companies is also substantially in excess of their real value. No dividend has been received, from the operating company—the Oceanic' Steam Navigation Company, Ltd.—which, as is shown by the accounts published conjointly with those of the White Star Line, has suffered severely as a result of the general trade depression. Also the dividends due on January 1, 1931, and July 1, 1931, on the 6Y2 per cent cumulative preference shares, from the Royal Mail Steam Packet Company under its guarantee, are outstanding. In this connection it will be remembered that the moratorium, in favour of the Royal Mail Company granted in February last was extended in July by th.s White Star Line preference shareholders for a further period of eix months.

The actual lose on the year's working in the case of the White Star Line is shown in the balance-sheet as £33,400, ■while that of the Oceanic Steam Navigation Company figures at £379.069, which, less the credit balance of £213,062 from 1929, amounts to £166,006. The auditors state in their report on the White Star accounts that "No provision has been made for depreciation on the fleet of the Aberdeen and Commonwealth Line for the year."

The balance of the purchase price <)f the Australian . Commonwealth Line vessels was to l>9 paid by eight annual instalments, and including accrued interest the total was £1.340,502. There was also outstanding the. balance of the purchase, price of shares of Shaw,' Savill and Albion Company—since reduced to £300,000—as well as £386,653 due to the same company in respect of cash advances and £48,041 in respect of sundry creditoi-s. The Aberdeen Commonwealth Line fleet and the shares in the Oceanic Steam Navigation Company and Shaw, Savill and Albion have a combined book value of over £10,000,000, which is, of course, largely in excess of actual present values.

BANK OF ENGLAND,

HALF-YEAR'S PROFITS,

DIVIDEND 6 PER CENT. ' The half-yearly Court of the Bank of England was held on - September 17. The official report to the meeting was that "the profits of the half-year ended August, after making provision for all contingencies, amount to £675,703 19/9, making the amount of the 'rest , on that day £3,699,114 5/11, and after providing a dividend of 6 per cent, less income tax, the amount of the 'rest' will be £3,044,229 5/11. Six per cent less tax is the bank's usual rate, and Sir Ernest Harvey, the Deputy-Governor, in presiding at the Court, said, 'In spite of the difficulties through which we are passing, we hope ferhan we next meet to be in as good a position are we are to-day.'"

SHARLANP AND CO. LOWER DIVIDENDS. \ ■ i In their thirty-third annual report to shareholders for the. year ending August 31, the directors of S bar land and Co. report that, after providing for all bad and doubtful debts, including abnormal losses by earthquake, full depreciation of pjant, writing £1000 oft" the goodwill of Young Cheihicp.is' account, and taking stock at cost price, or market price, whichever is the lower, there remains >a balance of £8100 to be dealt with. This includes the sum of £5249 brought forward from last year's accounts. Appropriation is recommended as follow:—Payment of a dividend on preference shares of 6 per cent for the year, £2250; 3 per cent on ordinary shares, £2625; and to carry forward to next year's account, after providing - for income tax, £3225.

The directors tender their thanks to the general manager and staff for efficient service rendered during a "very trying year." Dividends paid last year and annually for a long period were at the rate of 7 per cent per annum both for ordinary and preference shares.

TARANAKI OILFIELDS. ANNUAL REPORT. In their second annual report the direc-: tors of Taianaki (N.Z.) Oilfields No. Liability furnish a summary of the company's operations for the period ended April 30. They state inter alia:—"Your directors retain their confidence in the possibilities of the landed concessions controlled .by the company and its subsidiaries, and look forward with optimism to the outcome of the present drilling test (Waitangi No. 2 well) in particular. The balance-sheet shows paid capital £559.759 and sundry creditors £4691. Principal assets are: Property leases, rights, etc., £190,570; _ shares in other companies;, namely. Gisborne (N.Z.) Oilfields, Waitangi (N.Z.) Oilfields, Waipu (N.Z.) Oilfields, and Moturoa Oilfields, £254,652. The profit and loss account shows a debit of £5662.

NATIONAL INSURANCE CO. DIVIDEND RATE MAINTAINED. - The annual report of the National Insurance Company, Limited, shows that the not income for the year ended September 30 amounted to £273,485. After making full provision for losses outstanding, there is an un-dcrwritiu-s surplus of £9200. Interest and rents; less income tax, amounted to £35,489, and the balance 'brought forward from last year £37,956, amounting in all to £82,645.

An interim dividend was paid in May, 1931. which absorbed £16.667, leaving an available balance of £65.978. The directors have added £1404 to the taxation and contingency account, £475(3 to the investment fluctuation account, and have written £1112 off the company's premises. The directors now recommend the payment of a further dividend of 5d a share, making the total distribution for the year 9d a share, equalling £37,500, and to carry forward £37,843.

Following is a comparison ■ of the company's results for 'the last three years:— 1020. 1930. ' 1031. Ket income .. £255.133 £295.910 £273,485 Brouslit frw'O" £80.429 £37.508 £37.03(5 Surplus I(i,6S(J 20.259 9,200 Interest a t d reuts 35.264 35.405 35,489 e . . '_ £88.379 £93,2012 £52,G43 To -reserve ... 33.371 17.50U 7.302 Dividend, 9tl . 37.500 37,500 37,500 Car. forward . i'37,50S £37,956 i"37,543

AUSTRALIAN IRON AND STEEL. POSTPONEMENT OP DIVIDEND. The directors of Australian Iron and Steel, Ltd., have decided, in the beet interests of shareholders, to postpone payment of the two half-yearly dividends on the 7Vz per cent cumulative preference shares, due to-day. They explain that trade generally is still abnormally restricted, and the imniediate, outlook is so indefinite that it is not possible at present to forecast any date for the payment of the cumulative preferential dividends. When the directors can see their way to do so, shareholders will be advised promptly. Action has been taken to reduce considerably overhead expenditure, and, where possible, working costs, they add, so that when trade increases the company will be in a favourable position to take advantage of the improvements.

MOSGIEL WOOLLEN CO. (By Telegrapa.—Own Correspondent.) DUNEDIN, Friday. The annual report of the directors of the Mosgiel Woollen Factory Company states that)" although conditions during the year had been somewhat difiicult owing to the universal depression, the results revealed in the balance-sheet were very satisfactory. After payment of the interim dividend on April 6 absorbing £3815, providing £jOOO for depreciation and transferring £2000 to reserve there remained a balance of £15,482, which-the directors recommended should be dealt with as follows: —Payment of a final dividend of 4 per cent and bonus 2 per cent, absorbing £5723, making a total for the year of 10 per cent, and the remaining £9759 to be carried forward.

GOLDEN BAY CEMENT. The directors of the Golden Bay Cement Co., Ltd., report a profit of £148 3/3 for the year ended June 30, 1931, after allowing for depreciation in the working plant; but there is some of the old plant still to be written off. This will be dealt with in future accounts, but in the meantime it ie expected that a sale of some of this old plant will be effected. "The profit would have been substantially greater but for extraordinary expenses inseparable from a change-over to new machinery," the report continues.