Marsman points to expansion in earnings in Review of Firm's growth

Title

Language

English

Year

1939

Rights

In Copyright - Educational Use Permitted

Fulltext

MARSMAN POINTS TO EXPANSION IN EARNINGS IN REVIEW OF FIRM’S GROWTH Summing up the growth of Marsman Investments Limited during the past fiscal year, J. H. Marsman, chairman cf the organization, points to the expan sion in the earning power of the com pany and to the consequent payment of a sizable dividend as a result of these increased earnings. He incidentally re ports in this connection that the com pany’s directors have recommended a final dividend of 7^ per cent, or a total distribution of 15 per cent for the past fiscal year, with the earnings of the company having justified the payment of this additional amount. Speaking on the effects of the war on the mines, he said that, while there is a feeling here of immunity, the close bond which ties the Islands with the United States having minimized the danger from the war, “we did not close our eyes to this eventuality....” He states that all the mines under the man agement of Marsman & Company have augmented their supplies so as to pro vide for nine months continuous opera tion, a precaution taken by the compa ny before the outbreak of the war against any adverse international situa tion that might arise. Mr. Marsman’s speech was read at the fourth ordinary general meeting of Marsman Investments Limited, over which Benj. S. Ohnick, first vice pres ident of Marsman & Company, pre sided. Pertinent portions of Mr. Mars man’s speech follow: “At the last Annual General Meeting. I had to report a deficit of £5,905.9.11 in our Profit and Loss Account for the year. During the past fiscal year, we have made a net profit of £93,434.10.3. During the year we paid an interim dividend of 7^ % and have carried for ward to surplus the sum of £58,234.17.7d. The earnings of your Company have been such as to justify the pay ment of an additional dividend to share holders and your Directors now have recommended a final dividend of 7^2%, making a total distribution of 15% for the year. “If you will refer to the surplus ac counts of Marsman & Company, Inc. The Marsman Magazine for September, 1939 and Marsman Trading Corporation, its subsidiary, you will see that these com panies have added very materially to their surpluses, the former to the ex tent of Pl,968,918.17 for the fiscal year, and the latter to the extent of P212,303.14 for the sixteen months’ period ending April 30, 1939. By referring to these accounts, you will see that the combined surplus of these companies amounts to P4,819,773.79. “As you know, the principal income of your Company is derived through the business and industrial operations and enterprises of its subsidiary, Marsman & Company, Inc. Since the conclusion of the fiscal year, there have been sub stantial improvements in the producing mines in which your company is in terested, and except for Coco Grove which is a placer operation, the ore re serves not only have been maintained but, in some instances, notably Itogon, the ore reserves have materially in creased. In the case of Coco Grove, other proven and promising properties are being investigated and if interest be acquired we hopefully expect the operating life of this Company will be prolonged and its earnings correspond ingly increased. Present ore reserves of Itogon Mining Company now have an estimated value in excess of seven million pesos, or double the amount stated in the report before you. Care ful planning and sound management have placed the producing mines in splendid operating condition. Total production now well exceeds £150,000 monthly, and unless disturbed by un foreseen events, we confidently expect the continuance of this satisfactory re venue for many years. “While we in the Philippines had a feeling of immunity from war and the ill effects of war upon business here, nevertheless, we did not close our eyes to this eventuality, even though danger therefrom be minimized due to our close bond with the United States of America. Now that war round about us is an actuality, I pause to explain that ordinarily and as a matter some what of general practice, mines in the 15 islands have been carrying operating supplies more or less for a quarter year period. Mindful of adverse interna tional situations which might develop, I must tell you that all the producing mines of which Marsman and Compa ny, Inc. are managers, already have augmented their supplies so as to pro vide for nine months continuous opera tion. In other words, they are main taining reserve supplies for six months in addition to the usual provisioning for three months. This necessarily has en tailed the tying up of considerable funds, but I am sure you now will com pliment the directors of these various mining Companies in the adoption of that protective policy which was recom mended by Marsman and Company.” Regarding the organization’s invest ment in other countries, he says: “Ow ing to the hostilities in China it has been impossible to date to proceed with the original plans for which the Marsman Hongkong China, Ltd. was formed, namely, to participate in min ing and engineering projects in that country. Consequently, the results to date have been negative. I am in formed, however, that arrangements are now being made to acquire on ad vantageous terms interest in a fully tested and promising placer mining property in favorably situated British territory likely to be much less in fluenced than ordinary by general war disturbances. While at the moment no thing in the way of trade, com merce or industry in the world is pre dictable with precision, and vision can not be projected too far in the future, nevertheless, entry into this new field is looked upon with considerable enthus iasm. Also this company in its metals trading department, with considerable stocks of antimony and its producing wolfram mine, though small, stands, I should say, in a splendid position hav ing as it does excellent established con nections and facilities for marketing in cluding arranged control of Metals Trading Company of London which is actively engaged in the metals market. “The milling plant at Mangani with a capacity of 200 tons daily is nearing completion and it is expected that pro duction will commence by December. Latest reports from the mine show that developments there continue to be very satisfactory. “In addition to the Mangani mine, other properties have been acquired in the Dutch East Indies and are being developed. It is confidently expected that at least one or two of these proper ties can soon be put into profitable ope ration, which will add considerably to the earnings of ’the Marsman Algemeene Exploratie Maatschappij.” 16 The Maksman Magazine for September, 1939

Media