COMPANY AFFAIRS.

Auckland Star, Volume LXXI, Issue 282, 27 November 1940, Page 4

COMPANY AFFAIRS.

OPPRESSIVE TAXES. DEVELOPMENT RETARDED. MOSGIEL WOOLLKN COMPANY. (0.C.) DI'XEWX, Tuesday. Ait the annual meeting of the Musniel Woollen ( ompany the chairman. Mr. J. S. Sinclair, haul lor noim- jcai.s i»ast taxation had lx?rn criticised chieHy troni the angle that it iivcrcascd costs anil retarded velocity of luictinews. To-day. however, with a record maximum effective rmte for companies (excluding the excess protitH tax) of 1-/0% in the £ for income, national and Social Security taxe*. a very great danger- to the future welfare of our New Zealand businefutes, particularly industrial concern*, existed in a very definite form. In the cane of this company the amount of taxed payable on t.he 1040 profit van four time* thait of 1039 and this wag exclusive of a contribution to the War Loan. In effect, this meant 'that the liquid ea»h position had to bp kept at a very much higher level in order to meet this heavy drain, with the result that money would Itnw to the State, whereas portion of it could and should be retained for the development and e.vteimion of industry so essentially necessary towards providing additional employment and tor the benefit of industry in this country. Particularly necessary wnn this development if we were to grapple seriously with that burning question of rehabilitating returned men when the present catastrophe had ended. In order that industry might function to it* fullest it must not be unduly bled of its liquid cash. Record Sato Made. Mr. Sinclair said the New Zealand woollen mill* could Justifiably make the claim that their war effort, had been moat sincere and practical. Inasmuch aa production had none up to a new high level. Thin was shown by the following flßares tor 1939-40 with those for 1938-3 Cin parentheses:—Products manufactured. £ 1.401.733 (£061,636); flannel (yards), 1.166,>40 (1,251,022); blankets (pairs), 208.731 (139,123): number Of workers, 2080 * 2406); salaries and wages paid, <Ml .060 (£392.301); materials used, £009,3*4 (£377,190). The Mosglel oompany. Mr. Sinclair said, chiefly by working longer hours, had stepped up its produetlon to a figure which proportionately compared very favourably with the a cures quoted. Its salaa constituted a record.

£«I,7I« PROFIT. A.P.A. ASSOCIATION, LTD. Australian Provincial Assurance A*Delation. Limited, show* a huipluh of £61,716 for the year ended September 30. compared with £60.3fi8, including n taxation refund of £8439. for the previous year. The directors propose to allocate £30.933 as bonus to policyholders against £ 40.307 last year, •fid a further £10.000 Is to be placed to a policyholder*' bonus reserve. Other transfers are £5800 to taxation reserve and £0000 to dividend equalisation reserve. The dividend remains at 111 per cent, and requires £4000. which is to be paid wholly from interest on Commonwealth Oovern,jnent stock. The net premium Income In the life department was £333,473. against £334,817 last year. Inter..*.ls rents amounted to £ 118.791. against fii 8 ;i! 3: d ** th claims were £59,383, against £80,484; end endowment maturities £379,888. f w E *P«n»" Of new buslneai fell to £39.717 from £ 31,433, HEAVY LOSS SHOWN. BBVNNEB COLLIEBIES, LTD. The operations for the year have proved very disappointing, resulting, after providing £14*8 5 debenture Interest and £1707 13/1 for depreciation. In a loss of £13.019 18/7, which has been transferred to profit and loss account, states the report of Brunner Collieries. Limited, for the year •pded June 30 last. Last year the loss was £8734 7/3 and the retrogression of £8395 Is due to (a) decrease in sales of £3033. the total ror the year being 44.970 tons, as against 50,153 tons for the previous year; (b) Increase In working costs —chiefly in wages, power and employers liability Insurance; (c) Increase in overhead costs, rates, which Were Increased by £1015. due to a new basis of assessment. Interest on Government loan, and legal costs in connection with new Dnanclal arrangements. Th« report adds that tho mine wii closed for t time In February, but reopened on the Government agreeing to further advances to enable fresh plant and equipment to be Installed, with thr sblect of improving output and assisting worklnp costs. Under expert advice and the supervision of Oevemment officials, the best was being done to bring the output to a payable point.

WOOLWORTHS (N.Z.), LTD. ACCOUNTS COMPARED. Detail* of thp lat<*t balance-sheet of \\V.iilw 01 tlis I X.Z. I. Limited. a summary of whi. h was publiphed yesterday in the, "Star," with comparisons for the past two yearn, are below:— I LIABILITIES. | 1938 1939 1940 ££ £ | Paid rapltal 872.808 872,808 673.608 Res. of capital profit# 8.742 8.742 8.743 General res. 85.545 104.139 88.888 Profit and lo»s 91,831 83,486 65.300 Reserve for depreciation 92.978 108.262 130.160 Sundry creditors 79.113 135.402 140.227 Deposits .... 20.000 — — Taxation 173.340 358,842 303,580 Staff provident fund 5.000 7,500 9,000 ASSETS. Properties 184.491 337.983 309,118 Furniture, etc. 161.464 181.583 188,797 Stock 405.433 437.411 390.408 Sundry debtors 59.854 7,894 3.343 Caih. etc . 99.287 197.153 90,533 Investments . 13.430 13,737 7,177 Goodwill 304.339 304.339 304.339 Total £1.338.157 £1.388.991 £1.309.985 The principal chances In the latest balance-sheet Include a decrease of £ 15.391 In the general reserves, while allowance for depreciation Is advanced by £11.898. Sundry creditors are up by £ 14.825. Among the assets, properties are higher by £71,138, and furniture by £7314. but stock Is valued at a decrease of £47.003. Sundry debtors have been reduced £4653. Cash on hand and on deposit la less by £99.830. PROFITS AND DIVIDENDS. Net prof.ta and dividends have been as follow:— Net profit. Pref. dlv. Ord. dlv. £ P.c. P.e. 1930 15,505 — 30 1931 19.240 9 15 1933 30.706 9 30 1933 42,383 9 20 1934 48.225 « 9 23' 2 1935 90,104 9 14 193# 72.787 9 17' j 1937 111.461 9 15 1938 135,313 9 16 1939 116,866 9 16 1940 99.070 9 It UNITED INSURANCE. DIFFICULT YEAR FASSED. At the annual meeting of the United Insurance Company. Ltd.. in Sidney, the chairman. Sir Thomas Buckland. remarked that, particularly In the marine fleld, the year had been a very difficult one. also the effect ot the disastrous drought throughout the greater part of Australia was being felt, and revenue from the agricultural section of the company's business would suffer. Whilst the gross revenue had been well maintained, reinsure aces effected were heavier, chiefly due to the precaution of reinsuring the greater proportion of war risk eoamltnents. The total claims for the year were lighter than for the previous 13 months. The assets at £1.159.537 showed an lne/eaae of £ 17.00« for the year. The dividend wae 9 per cent per annum. DIVIDENDS DECLARED. The directors of the Waltakl Farmers' Freezing Company. Limited, have declared a dividend of 6 per cent, absorbing £5757, leaving £3805 to be carried forward. The Victoria Laundry Company has declared an Interim dividend at the rate of 2'j per cent for the six months ended November 30, and payable on December 1. LEYLAND O'BRIEN MEETING. The annual meeting of shareholder* of the Leyland-O'Brlen Timber Company was held today. the chairman. Mr. c. V. Houghton, presldlns. The report and balance-sheet, details of which were recently published In the "Star." were adopted. Mr. Houghton and Mr. J. B Elliot were re-elected to the board of directors.