HEAVY TAXATION.

Auckland Star, Volume LXIX, Issue 124, 28 May 1938, Page 4

HEAVY TAXATION.

i SLEEPING PARTNER' i j McKENZIES DEPARTMENT STORES. SIR CHARLES STATHAM'S REVIEW. | Reference to the fact that in producing a profit of £85,352 McKenzies Depavtliient Stores, Limited, had to provide : £42,613 for taxation was made at the annual meeting of shareholders by [the chairman, the Hon. Sir Charles i Statham, M.L.C., who said that share- | holders would realise from this "just what a rather hungry sleeping partner we have in the State. - ' I In moving the adoption of the directors' report and balance-sheet. Sir Charles . Statham said that since the last general meeting the paid-up capital of the company had been increased from 400,000 to 500.000 shares by the allocation of one share in four to those members on the register at December 9, 1937. The directors offered these shares to the present shareholders at a price of 30/ a share, and all of them were duly taken up. It was possible for the directors to make satis-

factory arrangements to protect shareholders for the fractional rights, and this was done, and he was glad to say that they received as much as £2 2/8 a share for such fractional rights. At the same time as the allotment of the 100,000 shares was made, the nominal capital of the company was increased to £750,000. Since the last annual meeting the company had paid the 17% per cent dividend authorised at that time. The directors indicated that it was their intention to arrange for the payment of an interim dividend. This promise was duly carried out. and a 9 per cent interim dividend was paid in December. The directors now recommend the payment of a further dividend at the rate of 9 per cent. Shareholders on the register for the full year would therefore receive a total of 18 per cent dividend on their capital. The Year's Results. The directors had made available for shareholders the details covering the consolidated balance-sheets of the McKenzie subsidiaries. This consolidated balancesheet, road in conjunction with the bal-ance-sheet of McKenzies Department Stores, Limited, would make it fairly easy for shareholders to follow the movements of profit and dividend which had taken place as between companies. In valuing the companies' assets the directors' conservative policy had been continued, so that the shareholders could be ; assured that the figures given on the bal-ance-sheet on any particular item could be ! well sustained.

The profit position is that, after making <]ue allowances for all contingencies and requirements. the trading companies finished their year with a net profit of £85,352. He thought shareholders would agree that this was a very creditable performance indeed. "The trading companies, after paying dividends to the company absorbing £81.698. will have to carry forward to next year's account no less a sum than £52.146. The company, after providing for the dividend which is recommended to-day. will have £8865 to carry forward to next year. In other words, the combined accounts after paying all dividends will leave us with over £61.000 of und'stributed profit carried forward."