Motorcab Finance.
Page 2
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We give, on page 31 of this issue, a full summary of the balance sheet and profit and loss account of the General Motor Cab Company, Limited, for the 144 months ended the 31st July last. The publication of these accounts, as we pointed out in our issue of the 6th August, will quickly lead to the promotion of not a few fresh undertakings, and the underwriting for at least two large promotions has already been practically completed. The proposed distribution of no less than £94,000 in dividends, at a time when ,4'38,000 is allowed to remain on the asset side of the balance sheet in respect of underwriting and preliminary expenses, and £4,500 as an asset in respect of "teaching suspense ac count," and when there is an overdraft of..;20,000 due to the company's bankers, tempts one to think that the holders of the 6o,000 deferred shares of is. each, which shares were issued at par (L;3,000 in all) as part of the promotion scheme, are not a little greedy in taking out of the company no less a profit for the period under notice than a dividend of los. 7d. per share. Having regard to the exceptionallyhard use to which many of the company's cabs are subjected, we cannot accept the appropriation of L:33,449 in respect of cabs and cars valued at ,:,454,855 as in any way liberal. Big though the profits for the period under notice unquestionably are, we fear the shareholders will have occasion to regret the directors' most generous treatment of the holders of the deferred shares at this early stage of events.