MESSRS HOULDER BROTHERS.

Otago Witness, Issue 2861, 13 January 1909, Page 11

MESSRS HOULDER BROTHERS.

DEPRESSION IN SHIPPING TRADE. The report of Messrs Houlder Brothers for the year ended December 31, 1907, states that after paying the fixed remunera- , tion of the managing directors, the profit ' for 1907 amounts to £33,406. Investments , against reserve fund are maintained at : their full value, the sum of £442 having i been charged against the profit to provide for depreciation, and further securities to ; that extent have been earmarked. In a business of this nature it is very unusual ' to contract bad debts. The continued depression in shipping, however, culminated ! last year in the failure of a number of shipping firms. In two cases the company [ hts loans outstanding, on security of whioh '■ the directors now anticipate will not be ' sufficient to meet the loans in full, and j they have therefore created a special re- i serve fund of £10,000 to meet any possible deficiency. • ' After providing for the payment of de- , benturo interest and pieference dhidend, there remains a sum of £11,836. The directors have considered it prudent further to strengthen the resources of the company, and therefore, instead of propos- ( ing that this profit be distributed by way of further remuneration to the managing directors and dividend on the ordinary shares, they recommend that the whole amount be transferred to the general reserves of the company, thereby bringing: ' these reserves, exclusive of the £10,000 mentioned, up to the substantial figure of £117,838. Mr A. H. Houlder and Mr T. P. W. Forrester resigned their seals on the board in May. Mr Frank H. lioulder has been elected to a seat on the board, with the office of chairman, and b&s been appointed a managing director. The issue of £50,000 of ordinary share capital (being part of the increase of £100,000 in the capital of the company, sanctioned tit the special meetings held in June and July last) was fully subscribed, end the whole fi'um has now been received by the company. I