South Seas Trading Companies

Strong Financial Position

satisfied that they will weather the storm comfortably.

The accounts of Messrs. W. R. Car penter and Co. Ltd., for the year ended June 30, have just been published.

Here, again, profits have been fully maintained at £40,180, as compared with £40,034 for the previous year. The directors, in addition to paying the usual dividends, have transferred £25.000 to reserve, as against £15,000 in the previous year. During the year, the capital of the company was in creased by £10,000, making it £301,666.

The reserves are now £82,000. The statement of assets and liabilities shows a healthy condition. There have been no increases permitted in the values of such assets as “property” and “ship ping property.” Stock has been re duced from £8,000 to £3.400, and cash in hand has increased from £3,560 to £12,844. The amounts due by debtors have increased by nearly £3,000, but the amounts owing by the company to creditors are down by £12,000.

The directors, in their report, state that their conservative policy in the past has enabled them to face the present economic depression with all their resources in good order and, al though they do not expect much revi val during the current year, they are confident that their next balance-sheet will again show a favourable position.

Shareholders in the large companies (particularly Messrs. Burns Philp and Co., and Messrs. W. R. Carpenter and Co.), trading in the South Seas, are now reaping the benefit of the wisdom and foresight displayed by the direc tors in past years. Instead of dissi pating the considerable profits of the fat years in ways which are common to less farseeing directorates, these gen tlemen used their surpluses to streng then their assets and build up their re serves. They were thus well equipped to meet the present depressed condi tions, and they are still able to show substantial nrofits and pay satisfactory dividends. If the present period of low' prices is not unduly prolonged, they will emerge from the bad years with their splendid assets practically intact.

The accounts of the two Burns Philp Companies were published not long ago, and, in view of the conditions in the South Seas, they showed a condition of healthfulness which surprised some people. Messrs. Burns Philp unques tionably will find present conditions difficult, but everyone concerned seems to have confidence in the directors and executives of the companies, and to be