Luck Of M.H.

Remarkable Financial Position of Big Pacific Trader

NO company trading in the Pacific occupies a happier position to-day than the big Fiji firm of Morris Hedstrom Ltd., whose annual accounts (for year ended March 31) were pub lished during the month.

Most other big Pacific concerns have been more or less mauled by the Japan ese invasion; but M.H. have had all the luck —none of their territory has been touched, they had no money in shipping, and they held enough copra to get sub stantial benefits from the sensational rise early in this year.

Their chief trouble is that of USA prior to 1939 —they have too much money. Their accounts for the year ended March 31, recently published, show that, while their subscribed capital is £740,000, plus an accumulated reserve of £130,000, they are holding no less than £228,600 in cash, and £182,900 in “invest ments”. This is because, since war broke out, the directors have followed a care ful, conservative policy, so that funds previously represented by plant, mer chandise, and branch balances (totalling £450,000 in 1940, but only £300,000 in 1942) have now become liquid. It is not a good thing. The money is safe in the bank, of course: but £150,000 that was working in 1939-40 is now idle.

Nevertheless,- the company is doing exceedingly well. Its profit for the year just ended was £54,949, compared with £59,296 in 1941 and £51,783 in 1940.