Carpenters' Finance:

Directors' Cautious Policy

THE issue of the annual report of W.

R. Carpenter & Co. Ltd. was greeted with something of a public howl from shareholders. The directors an nounced a net profit on the year ended June 30 of £67,726 (which is practically the same as last year), but they recom mended a dividend of only 5 per cent., which absorbs £38,750 (on an issued capi tal of £775,000) leaving £25,000 to be transferred to a special Contingency Fund.

As shareholders have been kept on short commons for several years, and there was an accumulated total of £191,552 in the P/L Account on June 30, and £201,598 in the bank, there was naturally a little irritation. Why should the directorate hang on to funds like this?

This Company was built up, in the last 25 years, by the long vision and shrewd trading of the Carpenter family; and therein probably lies the answer to the shareholders’ questions. Many of the trends which affected Pacific Islands trade since 1914 were foreseen by the dir ectors, and smartly provided for; and if those same directors see enough in the present disturbed condition of the world, and the present queer conditions in South Pacific politics, to justify a gen eral reserve of £200,000 and a Contin gency reserve of £25,000, they deserve to to allowed to have their way—at least until some of the clouds roll by.

The directors report that the allied company, Southern Pacific Insurance Company Ltd., made good progress and paid 8 per cent.; while W. R. Carpenter & Co. (Fiji) Ltd. also made progress and paid 121 per cent.

The Co’s operations in New Guinea have been resumed, per medium of the newly-registered W. R. Carpenter (New Guinea) Ltd. But, owing to lack of transport, there has been no resumption m Solomons or G. and E. Colony.