LONDON STARTLED

Sun (Auckland), Volume III, Issue 851, 20 December 1929, Page 9

LONDON STARTLED

INVERESK NEWSPAPERS DIVIDEND POSTPONEMENT ANNOUNCED LONDON, Thursday. Still another city sensation of the first magnitude has arisen, says the “Daily Mail.” This time it concerns the Inveresk Paper Company, a large group of allied companies, including the “Daily Chronicle” Investment Corporation, United Newspapers and provincial newspapers, which was built up by a financier, Mr. William Harrison.

Inveresk shares slumped heavily recently. While today the ordinary shares recovered 2s 6d to 13s 9d, they changed hands once during the year at 67s 6d. The board of directors announces that although the estimated results have not been realised, the constituent companies’ profits continue to be satisfactory. Nevertheless stringent market conditions preclude the raising of further capital and it is essential to retain the company’s cash resources. The board is accordingly postponing the dividends on the first and the second preference capital for the half-year ending December 31. Full information will be submitted to the shareholders in the new year. A committee of the first cumulative preference shareholders has issued a circular alleging that the indebtedness of the Inveresk and certain subsidiary companies to bankers exceeds £2,500,000.

Mr. William Harrison has resigned the chairmanship of the various hoards. Mr. B. H. Binder, chartered accountant, becomes temporary chairman.

Mr. Harrison, who is a solicitor, took newspaperland by surprise a few years ago by turning his attention to the papermaking industry. Afterward he negotiated a succession of newspaper deals in London and the provinces. Many of these publications are earning large profits. ELDER DEMPSTER COMPANY DECISION NOT TO PAY DIVIDEND Reed. 1ff.33 p.m. LONDON, Thursday. The directors of the Elder Dempster Company, one of the Royal Mail group, announce that ip order to conserve the company’s cash resources, they have decided not to pay the halfyearly dividend of 6 per cent, and the 61 per cent, cumulative preference dividend.