, 1888-10-06

OOAhPVhS W OOb&iA tAOAA
ticles of association, viz, id per h., and
the result has been the very satisfactory
report now before us.
1t is by no means one of the least beue.
hts conferred on the public by the com.
pany, that a considerable yearly sum is
spent and circulated in the island instead
OF being exported to America in exchange
TOR ice. A multiplication of similar local
industries would largely add to the total
available capital of the island, and to- the
general prosperity.
10 resume our notice of the Report, we
find that the 10 ton machine made 1854
blocks of 200 lbs each, and the 5 ton ma
chine made 1887 blocks of 100 lbs each,
or a total Of l 1913 tons of 2OOOlbs. each.
This was sold for a gross sum of ga, 666
12S. lid.
The pla}, / reported in good working
order, the depreciation having been made
good out of Revenue.
Out of the net profit of 9211, Is. I'd. It
is proposed TO pay a dividend of 81. 1Od.
per share, which is nearly equal to 20 per
cent for the half year, which is really Il
splendid return. ASmall balance OF G3
Us. I'll. is carried to the Reserve Fund.
The wisdom Of declaring so large u pro
iii, and adding so small a sum to reserve,
would be open to grave question were it not
tlat the issue of new shares for the doubling
OF the plant will nCCeSSitate a reOrganiza-
tl0r OF the company, and that the present
shareholders are clearly entitled to all the
profit their capital has made before the
New Plant is placed in order for working.
Thus, We see that the Reserve Fund
stands at the small figure of &493. rs. Sd,
and this week we suppose, will be diStribu-
ted as IL bonus among the present share.
holders, who will then become SharehOl-
drrS in the increased stock OF the COmpa-
ny. We cannot refrain from pointing out
tn" inconvenience, not to say unwiSdOm,
OF not opening II Depreciation Account,
formed toy Il Yearly percentage on the cost
OF the plant, taken out OF profit, and to
the debit OF which all additions to and
RESERVATIONS of plant should be placed, in
stead of paying for the same out Of Rev
enue. as is done ut present. 1t must not
be forgotten that all machinery deterlOr.
ateS rapidly after a certain period. 1t has
a life, in fact. The youth and middle age
of machinery may require but little restO-
ration, but the old age Creeps ON rapidly
when it once sets in, and the charges on
revenue for renewals and repairs may well
become very heavy if 10 depreciation ac-
count, Something like a Life Assurance
Policy is not ready to bear the brunt of
the loss
1t must also be remembered that in these
days of marvellous advance in science
and art, mo one can tell how SOOn some
new and revoluti0nizing discovery may
render the present plant obsolete. A
generously supported Depreciation Account
would, in u few years, be able to pay, al
most, if not quite, for Il new and improved
plant, which would increase the profits oil
the stockholders.
The present Reserve Fund should also
be maintained OF Il firm basis, in order ia
equaliSe dividends and meet any unexpec,
ted calls caused by break-dOwns, etc, and
consequent loss of business.
We trust thai when the reorganization
is complete that this important point will
not be lost sight OF.
We are happy to learn from the report
that the applications for the new stock
have largely exceeded the number OF new
shares available. We also learn that the
new plant has already been shipped, and
is now on its way to this Island.
We congratulate the shareholders upon
so splendid an investment, and wish them
continued and increased prosperity