DALGETY'S AFFAIRS

Auckland Star, Volume LXXIV, Issue 81, 6 April 1943, Page 5

DALGETY'S AFFAIRS

UNABLE TO TRANSFER. FUNDS Addressing shareholders at the annual meeting in London, Sir John Davidson, chairman of Dalgetv and Company, Limited, said business had been remarkably well maintained during the year, in spite of many difficulties, but indications pointed to a contraction in earning power in several-directions, due-primarily to -shipping difficulties, restrictions of-imports- and rationing; In addition, the heavy taxation levied both in Britain and overseas constituted a grievous burden which must, however, be willingly borne as a means of furthering the prosecution of the war and achieving final victory. The combined United Kingdom and overseas taxation for 1939 was £82,000, for 1940 £221,000, for 1941 £260,000, and for. the year under review £366,000. Sir John said the two main features of the balance-sheet were the increase in cash of £704,000 and the decrease in advances of £680,000. The latter was largely attributable to the fair to good prices obtained for wool and immediate payment therefore by the British Government. The increase in cash, which was a natural result of the decreased advances, , would have been substantially reduced had the company been, permitted' to remit from Australia the amount required to pay off maturing terminable debentures. These had been reduced by only £255,000. It was intended to reduce them further, but the Commonwealth authorities would not permit the transfer of the necessary funds. An effort was made to renew the debentures, but a substantial amount had had to be repaid in England, and authority was even refused to transfer money for this purpose. .• ..»•»». "I feel the decision was unfair to the company, as it certainly was detrimental." added Sir John. "The money was borrowed here just prior to the war to help pastoralists during a serious drought, and the company should not now be financially prejudiced as a consequence of the help then given." In the current balancesheet terminable debentures are shown as £830,995.