lear and do not require any detail LO, thine the recounts are, ite explanation, "You will note that the board have taken the drastic course fof writing down to nominal figures all investments of doubtful value, transferring from reserve for this purpose an amount of $615,816.02. The Company's reserve has been built up entirely onl of profits made on the realization of investments Ju. past years, and, after this appropriation, there still remains a reserve of $384, 485.98. The fact must be faced that the company has had a setback in its fortunes, but it is now Ing favourable position financially and is ready to take advantage of better times if and when they come.
There Is one item in the accounts to which T ought to refer, in ease it may give rise to any apprehension misapprehension, It is the item of £33,030 due to our bankers, and which, at current rates of exchange, jeonstitutes almost the whole of our Indebtedness to which I have previously alluded. The transfer of this part of our Indebtedness was made Into sterling in order to effect a saving jin interest as between 8 per cent. and 5 por cent, and your directors felt justified in making the transfer, as they hold sterling securities exceod-Ing in value this amount, and. which consequently provide sri adequate hedge in exchange.
Text read from the printed page and cleaned; old type leaves the occasional error.