FINANCE AND BUSINESS. 



5-5 



A^ very satisfactory feature in the 

 year's results was the marvellous growth 

 of over £4,200,000 in the sums assured 

 in force to £76,560,000. This is worth 

 special notice, for it represents over 61 

 per cent, of the new assurances of al- 

 most £7,000,000, a percentage greater 

 than the average rate of growth by more 

 than 8 per cent. Another interesting point 

 is that although these new assurances 

 were so great, exceeding those of 191 1 

 by about £800,000, the number of 

 policies discontinued, and the premiums 

 thereon, during the year were actually 

 lower, while the void sums assured were 

 but little increased. This certainly is a 

 great testimony to the Society's poou- 

 larity. 



The industrial department did excep- 

 tionally well last year, for not only was 

 the new business £1,015,000 larger by 

 about £25,000, but the expense rate was 

 reduced by 8 per cent, to 42.3 per cent. 

 The growth in the business in force was 



also gratifying, seeing that the present 

 total of over £3,083,000 represents an 

 increase on the year of 56 per cent, of 

 the business done. The valuation of 

 the policy liabilities has moreover been 

 strengthened, to do which, however, the 

 surplus of £34,700 of a year ago was 

 drawn on, with the result that the sur- 

 plus is now only £21,800. 



There are many other points of in- 

 terest in the report, but sufficient has 

 been said to indicate the position of the 

 Society generally. That position is 

 -without doubt a strong one as regards 

 the valuation of the policy liabilities, 

 and though one cannot be so sure about 

 the conservative valuation of the assets, 

 there is apparently no cause for anxiety. 

 The Society's growth is excellent, and 

 the profits are very good. The bonuses, 

 though not increasing, are being well 

 maintained at a handsome figure, and 

 what more need be said ? 



COLONIAL SUGAR REFINING CO. LTD. 



Now that there seems to be an end to 

 the need for anxiety concerning the 

 nationalisation of the sugar industry, 

 the shares in this Company have become 

 rather more popular than they were. 

 During "he currency of the Sugar 

 Commission, investors generally were 

 somewhat scared at the outlook, and 

 some shareholders did not hesitate to 

 realise on their shares. The scare was 

 not, however, general, and there was 

 never at any time the slightest symptom 

 of panic. The dullness of the market 

 passed away when the Commission re- 

 ported against nationalisation, and the 

 shares improved in value, until just 

 prior to the recent meeting they were 

 selling at £44. 



* * * 



At this price they are, at the time of 

 writing, still selling, though after the 

 payment of the half-yearly 12! per 

 cent per annum dividend they were 

 changing hands at £42. The yield 

 at £44 is under 5f per cent., which 

 is not high. Indeed, the shares seen. 

 dear at this figure, which contains 

 6s. 8d. per share for good will and inner 



reserves, for the surplus assets published 

 are only £21 13s. 4d. Still when one 

 remembers that the Company has for 

 years been building up its plant, especi- 

 ally in Fiji, out of profits, it is quite 

 possible that the dearness of the shares 

 at £44 is more apparent than real. 

 * * * 



The revival is due of course to the re- 

 jection of the referenda proposals 

 which secures the Company from Gov- 

 ernment interference for a time at least. 

 Yel that time may prove to be short, 

 in which case the Labour Party may 

 again endeavour to control the sugar 

 industry, and, incidentally, the business 

 of this Company. Still, in view of the 

 strong adverse opinion of the Sugar 

 Commission concerning nationalisation, 

 it seems scarcely likely that the inter- 

 ference would be in that form. What 

 is much more probable is that the in- 

 dustry will be regulated, a step the 

 Commission recommended. Regulation, 

 however, must prove impracticable if it 

 ,111ns ai fixing the price of sugar, for 

 that price is determined by supply and 

 demand, influenced by the world's 



