LONDON (Jan. 24)
The Jewish Colonial Trust, with important financial interests in Palestine, which faced bankruptcy in 1932 because of bad debts amounting to over Â£500,000, has succeeded in writing off these debts and regaining its reputation, it was reported today at a meeting of the trust’s board of directors.
The fact that the trust, which was established by the late Dr. Theodor Herzl, founder of political Zionism, holds ninety-seven and a half per cent of the shares of the Anglo-Palestine Bank, which achieved an enviable position during Palestine’s prosperity, was given as the chief reason for the trust’s improved position.
As a result of being the controlling shareholder of the Anglo-Palestine Bank, the colonial trust obtained 100,000 bonus shares from the Anglo-Palestine Bank and also benefited from the premium on 200,000 new ordinary non-voting shares issued by the bank.
Twenty times on the day of issue at a price double their value, it was stated. Even the Palestine disturbances did not affect their market value. They are now quoted in London at 41 shillings per share, while the original value was twenty shillings.
From this transaction and from revaluing of the shares the trust profited by over Â£600,000, thereby being able to write off its over Â£500,000 bad debts. The balance sheet now published shows the trust in a sound position.