Reflection of
p. 74 · Read in the full issue
Central Pacific Boom Morris Hedstrom's Balance Sheet
THE balance sheet of Morris Hedstrom Limited for the year ended March 31 last is, as usual, an interesting re flection of the economic condition of the Territories of Fiji, Western Samoa and Tonga, wherein most of its extensive trad ing is done.
The Company made a profit for the year of £97,797, which compares with £93,293 in the previous year, and it pro vides a dividend of 6 per cent, on its Preference capital of £219,206, and 10 per cent, on its £520,407 of ordinary capital.
It carries forward £186,208 (compared with £153,603 last year).
The Company’s total subscribed cap ital is £739,613. It has £619.595 in re serves, £262,673 is due to creditors and in suspense, and £186,208 in P L account —a total of £1,834,109.
A year ago, no less than £1,000,000 of the Company’s assets were liquid (cash, stocks, and investments in subsidiaries) —in fact, £306,441 lay in cash at the bank.
This position, which had been caused by wartime conditions, had persisted for some years, and meant that, for present purposes, the Company was heavily over capitalised.
During the last year, however, the posi tion has partly remedied itself. The de mand for much larger stocks of mer chandise, and the sharp increase in the cost of all goods handled, has made it necessary to use more than another £400,000 in the business. Liquid assets are, therefore, down to £645.329. But even that seems to be too much—no less than £264,564 is lying in cash at the bank. In other words, a large proportion of the resources of this big company is un employed.
If only the spirit of private enterprise, instead of the crippling and suffocating policy of Socialism, were allowed to dom inate these archipelagoes, there would be plenty of use for the vast equipment and large funds of all these well-established Fiji companies <MH Ltd. is the biggest, but by no means the only one); but, under present conditions, the respective boards of directors can only pursue a policy of caution, and hope that, presently, the political wheel will turn full circle.
This Company has a liberal pension fund arrangement, which is run as a separate company. Its funds are now in the vicinity of £200,000. all in closely vetted shares which give an average re turn of around 4 per cent. Some 237 per sons contribute to the pensions fund, and the parent Co. at present is contributing £2 for every £1 contributed by employees.
Income from all sources last year was £44,523 and payments only £3,600, so that nearly £41,000 was added to the capital account.
The well-known and popular secretary of the Fiji branch of the Royal Life Sav ing Society, Mr. F. S. Baker, will shortly retire from the Civil Service, and he has accordingly resigned from the secretary ship of the Society. At the annual meeting the president (Mr. Alport Barker) referred to the outstanding work done for life-saving in Fiji by Mr. Baker and it was agreed that the branch re commend to the parent body that the Service Cross, the highest award, should be bestowed on him.