Barometer
p. 138 · Read in the full issue
Central Pacific
Annual Accounts of Morris Hedstrom Ltd.
IF the annual balance-sheet of Morris Hedstrom, Ltd., is ac cepted as a barometer of trading conditions in Fiji, Samoa and Tonga, the past year there has been good and prosperous. The company in the year ended March 31, 1954. made £110,328 net profit, compared with £107.834 in 1952, and £97,353 in 1953. The company hitherto has paid 10 per cent.; it is hoped in future to pay 12J. Both the com pany, and the Territories in which it operates, appear to be doing very well.
This company, for years, has been embarrassed by lack of oppor tunities in its area for fully em ploying its savings. Among the assets which it holds against its £2,394,000 of liabilities (mostly share capital, reserves and trade creditors) are cash and short-call deposits of £600,000, and about £300,000 in shares and gilt-edged stock. After long hesitation, the company in 1952-53 decided to build a large block in the centre of Suva —mostly the new South Seas Hotel (for which there is urgent need) with some shops and offices. Then came the earthquake of September, 1953; and for that and other reasons it was considered desirable to halt building operations at the first storey, and revise the whole plan. Building has not yet been re sumed.
The company also engaged in a building programme at Lautoka— primarily a large garage. This operation also had to be halted— due to an unanticipated difficulty in dealing with storm water drain age.
Notable Pensions Fund
One of the most remarkable things about this company’s annual accounts is its statement of its Pensions Fund. It has an accumu lated fund of just on £250,000, all invested, and the income from which is some £14,000 pa. The com pany contributes some £20,000 pa, and the staff contributions total £lO,OOO pa. That is, the Fund re ceives about £44,000 pa, and pays out in pensions only £3,000 pa. "if this goes on much longer, positions on the staff of MH, Ltd., carrying full pension rights, could be put up for sale by public auction! It is the juciest pensions scheme in the South Seas.
The French Oceania inter-island air service will be expanded in Papeete, with a Catalina aircraft, which Monsieur Pierre Widlund, a pilot employed by the local airways organisation, has flown to Papeete from France.