MODERN BUSINESS.

Auckland Star, Volume LXVIII, Issue 259, 1 November 1937, Page 4

MODERN BUSINESS.

PROFITS TO STATE. RISKS TO SHAREHOLDERS. (By Telegraph.—Spec'.al to "Star.") DUNEDIN, Friday. Speaking at 't> annual meeting of shai eholucis in the Drapety Importing Company, the chairman ot directors, Mr. I'. C. llalsteci, referred to the degree to which laige trading companies in the Dominion ale contributing to the national revenue by way ot taxation. "lhcre is a tendency in some quarters to decry big businesses as being harmful to the country, and to discourage them by the imposition of heavy taxation and harassing restrictions," Mr. Halsted said. "The D.i.C. is one of the biggest businesses in the Dominion, and 1 think the following figures will be of interest to you and thu public in general. "We ha*** 860 employees, drawing £122,837 per annum. We paid the Government in direct and indirect taxes, namely, land and income taxes, duty and aales tax, no less than £84,521, also sales tax on everything purchased in New Zealand. We are unable to estimate how much this amounts to, as with such purchases the tax is collected by the supplier and charged to us as part of the cost, but it must be a very laSge sum. We purchase in Xew Zealand from local manufacturers and traders goods valued at £30f>.444, and in England and overseas f1.V5.023 (Xew Zealand currency). "Of our net profits, arrived at after making all the necessary provision for depreciation, but before providing for taxation," continued Mr. Halsted, "the .Government takes ft'll in the pound/ .uhorehqlders divide 7'l in the pound, and 3/ in the pound is retained in btisincvw for •*W purposes of expansion and stabilisation-*. ' ."Thette figures show dearly the support w<j afford local industries and traders, the very.; large amount we contribute to the revenue of the country, and the very 'moderate amount shareholders receive in return for supplying the capital and I taking all the risk."