HIGHER PROFIT EARNED.

Auckland Star, Volume LXXI, Issue 97, 24 April 1940, Page 4

HIGHER PROFIT EARNED.

MACKY, LOGAN, CALDWELL. WARNING NOTE SOUNDED. Satisfaction with a. year's trading that had shown an increased profit of some £7500 was expressed by the chairman of directors of Maeky, Logan, Caldwell, Limited, Mr. H. M. Rogerson, in moving the adoption of the report and balancesheet, which has already been published, at the annual meeting of shareholders this morning. He sounded a note of warning, however, in connection with the future. "Although the year has shown a good figure, your directors appreciate that they must view the future with caution," he 6aid. "No one can say what the next two or three years may bring forth. The difficulty will not lie in selling goods, but in getting them to sell." He added that the directors were keeping a keen watch on the position and were obtaining saleable stocks at saleable prices wherever they could be purchased. The position, however, was bound to become increasingly difficult, but the requisite steps to overcome difficulties would be considered as occasion arose. It was decided to allocate a final dividend of 3% per cent, plus a bonus of 1 per cent, bringing the total dividend for the year up to 7 per cent. The two retiring directors, Messrs. H. M. Rogerson and S. Steer, were reelected, and Mr. .Jolm Grierson was reappointed auditor. A vote of thanks to the staff for its co-operation during a difficult period was carried by acclamation, and, on behalf of the executive and staff, the managing director, Mr. H. J. Mills, made a brief reply. MUTUAL LIFE AND CITIZENS'. INCREASES OF RESERVES. Sir John lVden, speaking at the annual meeting of the Mutual Life and Citizens' Assuraiic? Company, Limited, in Sidney, said thai the company, anticipating an increase in death claims and taxation, and a reduction of interest rates on investments. had decided to add to its reserves by setting aside £225.000 from the surplus on the ordinary branch and £&4,500 from the surplus on the industrial branch. At the same time it had been possible to allot substantial reversionary bonuses to policyholders. The total amount of funds held in Australia by life offices, he said, was well in" excess of £200.000.000, which was only a little short of the total savings bank deposits. This showed the value placed on life assurances by all sections of the community, and the importance of life offices in the financial structure of the'nation. The company had subscribed one fiftieth of the total issue of the first loan in the present war, and would continue to subscribe and help throughout the war. TAX ON BONUS SHARES. i B.H.P. SHAREHOLDERS SEEK RELIEF. Relief from liability for taxation in New Zealand of the bonus shares recently issued by the Broken Hill Proprietary Company. Limited, is being sought by the Stock Exchange Association for the many shareholders of the company in New Zealand. It is pointed out that the bonus shares were issued out of past premiums paid by investors for share issues, and therefore cannot be regarded as income in the real sense. This, it is claimed, was demonstrated by the market's revaluation of the shares following the distribution of the bonus issue. This week a half-yearly dividend, the first since the bonus issue, of 9d a share was announced. This payment will actually return the shareholder less than he received for the six months prior to the issue of the bonus. At the former rate of 1/3 a share each half-year the payment on 100 original shares totalled £6 5/ for the six months, but the forthcoming distribution will yield only £6 3/ from a holding of 164 shares, made up of 100 original plus 64" bonus shares.