NO DIVIDEND

Dominion, Volume 1, Issue 183, 28 April 1908, Page 7

NO DIVIDEND

DECISION OF BROKEN DILL DIRECXOBS. What is the motive? • A REDUCTION OF WAGES POSSIBLE. BY TELEGRAPH—rRESB ASSOCIATION —COPYRIGHT. "Sydney,' April 27. " The decision of the Broken Hill Proprietary directors not to dccjare a dividend this quarter came as a great fehock to . Broken Hill. , .0,;:,.-,.., Tlie. explanation that the low price of metals and the additional cost of working havo caused the directors tojpass ov'er .a'divideri'dj' is received with'incredulity.-' It is believed to be an indication that, preparation is'being made for some labour trouble or for. a severe slump in metal; yßlnes.'-,'' y.V • 1 Tho chairman of directors stated ..that the, lowriess of metiil vailies<'. hadj increased the cost of production, and "had affected, the earnings of the company'to the'extent of a hundred thousand pounds. Therefore, ,as the company had not - earned a dividend,, it could not pay one. ■ " The decision of the.directors'.of'the Broken Hill Proprietary not to 1 ' deilafe .'the qiiarterly dividend may be due to:the fall in the price of metals, for there is no doubt that at present quotations the mining of lead, silver, aiid copper, is made, unprofitable, or barely profitable. It is apparent, •however, that the directors wills presently seek, to make ~labour, earrjsome of the loss, and', a; decision "to ''reduce wages it\ay l be looked-for.''ln fhS't' caße"k or -lock-out, would seem to' b'e inevitable.?' The; shipbuilders' in Great. Britain- are' eip'e'ribhb-' ing similar troubles.