LOW PRICES, HIGH TAXATION

Evening Post, Volume CXXVIII, Issue 47, 24 August 1939, Page 16

LOW PRICES, HIGH TAXATION

In moving the. adoption of the annual report and balance-sheet of Dennys, Lascelles, Ltd., woolbrokers, at the annual meeting of shareholders held at Geelong, Mr. James Ford, managing director, said directors regretted that, in spite of a reasonably good volume turnover for the year, they could only recommend a dividend at the rate of 4 per cent. Low prices for primary products sold on commission, coupled with increasing costs for the services rendered for a fixed percentage earning, had greatly reduced net profits. Directors were much concerned at the prospect of taxes for companies rising. While it was realised that the cost for defence must be met, the increase in Government expenditure in other ways was alarming. Increased company taxation -on such a company was a straight-out tax on the shareholders. The severe drought conditions in western Victoria during the bulk oi the growing period of the coming clip would affect the growth of wool. There had, however, been a good season m the north, and it was possible that the clip from northern Victoria and the Riverina would be much better and heavier.