NEW COMPANIES

Dominion, Volume 32, Issue 143, 13 March 1939, Page 12

NEW COMPANIES

British Statistics For 1938 If the recession in the British trade and the regression of politics during 1938 paralyzed the stock markets they oid not discourage promoters of new companies. According to the statistics of company registrations in England issued annually by Jordan and Sons, the number of new companies formed in 1938 was only 1 per cent, smaller, than in 1937. There were 12,414 private companies (against 12,306) and 197 public companies (against 416). The aggregate capital, however, was reduced to some £70.06(1,01)0, compared with £114,000,000 in the previous year. It is worth noting that in spite of the growing alarm,in the autumn more new ventures were started in the second than in the first half of the year. By no means all the new rcistrations actually represent new business. Thus one of'the largest companies formed was Beecham-Maclean Holdings, Ltd., which merely took over two existing concerns. On the other hand, some companies registered with a nominal capital of £l6O were quickly expanded Io ‘•millionaire’’ companies". One example is a limince company formed with a share capital of £llO by the leading banks to hold the £5.500,000 new debenture stock of ■ Richard Thomas.

According to the nominal figures given, by far the largest amount of capital is 'represented, by land and building firms, while food accounts for the largest number of new companies. Very cautiously the compilers add to the figures their usual forecast of industrial conditions in 1939. Political uncertainty, they state, is an obstacle to industrial enterprise, and though industry has •reached a point where the removal of international tension would quickly lead to the resumption of full activity, '•unfortunately these differences are being fought out in the economic area.” AFRICAN GOLD PRODUCTION Rand’s Great Record The December revenue figures of the Transvaal gold mines were a new all-time record. Though production, 1,026,229 ounces, was 6657 ounces below the November figure, revenue at £7,619.750 beat the previous high by £28,038. This was because of the higher average price of gold which, at £7/8/6, an ounce, was the highest on record. With the completion of the December returns, two new yearly records have also been revealed. Production in 1938 of 12.156.629 ounces, valued at £81,203. .10. was the highest ever achieved in South Africa’s gold industry.