194 



REVIEW OF REVIEWS. 



April 1, 1913. 



on their assets value. For this the low 

 rate of dividend is in a measure respon- 

 sible, while no doubt the small demand 

 for bank stocks consequent on the dear 

 money market is also a factor A point 

 to note is that the preference dividend 



may, if profits permit, and the directors 

 deem ht, be increased to 7 per cent. p. a. 

 When that rate has been paid for ten 

 half-years the preference ceases, and the 

 shares rank with the ordinary shares as 

 regards dividend. 



PORT JACKSON & MANLY STEAMSHIP CO. LTD. 



There can be but little doubt that tins 

 Company owes a very great deal to the 

 popularity of the surf. There has 

 always been a steady flow of passengers 

 to Manly, mainly for the benefit of the 

 sea air, but since surf bathing became 

 a fashionable pastime, the traffic has in- 

 creased by leaps and bounds, to the 

 pecuniary advantage of the shareholders 

 of this Company. The directors, how- 

 ever, do not care much to advertise the 

 Company's prosperity, and to this end 

 they do not admit to any more profit 

 than they can help. Anyone closely 

 glancing at the periodical balance-sheets 

 and unaware of the directors' reticence 

 in this matter, must necessarily form 

 very wrong conclusions as to the pro- 

 gress from time to time. For instance, 

 the net profit shown for the December, 

 191 2, half-year is only ;£'io,626, about 

 £1^0 less than the amount earned in 

 June last. Such a decline would sug- 

 gest that the Company's earnings were 

 falling away, and that the directors 

 found it a difficult task to earn the divi- 

 dend, for the current distribution of 13^ 

 per cent, per annum for the half-year 

 requried i^ 1 0,561, within £/0 of the 

 published earnings. Such a statement 

 can of course only deceive anyone un- 

 acquainted with the Sydney Harbour 

 traffic, for during the past season Manly 

 has, if anything, been more popular 

 than ever, and the flow of passengers 

 has increased tremendously. 



The inference of a declining profit is, 

 moreover, contradicted when one com- 

 pares the growth in the published re- 

 serves of the Company. These during 

 the half-year were increased by no less 

 than ^13,030, which of course came out 

 of the earnings, and the total profit, so 

 far from showing a decline, was actu- 

 ally ;^23,7o6, nearly ^^4500 greater than 

 the net earnings in June, 191 2. 



The directors, pessimistic though 

 they may be in the matter of profit, are 

 quite the reverse in their attitude as to 

 the future. Otherwise they would not 

 be so keen to build new steamers. Only 

 in October last a new steamer, the " Bal- 

 gowlah," was taken over from the 

 builders and placed in commission, and 

 good progress is now being made with 

 another boat, which will be ready in 

 September next. 



The effect of the outlay on steamers 

 was to bring in a New Steamer Account 

 for ^^5000, and to increase the existing 

 steamer asset by ;£"i 4,000, to nearly 

 ;£^i 19,000, and this, too, after ^providing 

 depreciation, no doubt on a liberal basis. 

 The money to provde for this arose out 

 of profits, for the assets increased by 

 almost ;^ 1 4,000 to ^^2 1 3,000, but this 

 sum was not quite sufficient, and i^S/OO 

 was taken out of the cash assets, thereby 

 reduced to ^^69,000. The Company's 

 remaining assets comprise — Properties, 

 plant, etc., ^^16,400; Coal. £2^00; and 

 Sundry Debtors, ;!^850. These have not 

 been changed to any extent. Its liabili- 

 ties are small, and consist entirely of 



about iJ^23O0 owing to sundry creditors. 



* * * 



The shares (211,212 £i shares paid to 

 15s.) are a very popular stock with a 

 certain class of investor. At the time of 

 writing they are selling at 47s. 6d., 

 which shows the low return of under 4^ 

 per cent.— that is, of course, on the 

 ordinary dividend. This, however, 

 weighs little with the investors who 

 fancy these shares. \\'hat influences 

 them much more is the hope that the 

 directors will, sooner or later, capitalise 

 some of the reserves, and make another 

 generous issue of bonus shares. Not, of 

 course, so generous as the June, 191 2, 

 distribution of ;:^52,ooo in one new 

 share for two old shares, but still a 

 satisfactory one for all that. 



