COMMERCIAL

Evening Star, Issue 17329, 17 April 1920, Page 9

COMMERCIAL

THE THREAD COMBINE. A MILK AND WATER REPORT. An alarming advance has taken place iii the price 01 sewing cotton. A list has been issued by leading manufacturers re 1 * vising the previous one of last Septcmbei. and mo new figures show a sumumlial increase in ail types of sewing yarn. The popular 300 yards spool whicu lias been retailing in Glasgow at ojd lias gone up to Bfd, and the 400 yards spool from 7id to lUd. The findings and decisions of the Subcommittee appointed by the Standing Committee of Trusts under the Profiteering Act, 1919, to inquire into the alleged existence of a combine among the manufacturers of sewing cotton have been issued. Tile committee stats that the supply of sewing cotton for domestic purposes in the United Kingdom is practically 11 monopoly of Messrs ,L and P. Coats, who in the direction and regulation of the output of commodities have taken advantage of their virtual monopoly by refusing to accept or by cutting down orders for their sewing cotton when it appeared possible that the goods were required lor speculative purposes or for export. In view of the fact that- 011 Sepcost of manufacture and selling costs combined amounted to 5.83 d. per reel only, the committee find that the advance* ment of the retail price can hardly be justifiable. Having regard to tho great profits made on their foreign trade, the committee also express the view l that Messrs Coats might have been expected not to increase their percentage of net profit per reel on their home sales, and to have sold it at a price which would have enabled it to he retailed at a cost not exceeding 6d a reel. Messrs Coats have not, however, taken full advantage of their position as monopolists, and bat for tho risks they have taken by buying large quantities of raw cotton in advance the present piice of a reel of cotton in Groat Britain would be much higher today than it is. In connection with Messrs Coats’s increased profits the committee have been struck by tho fact that although the firm’s output of sewing cotton in 1918-19 was 20 per cent, less by weight tlnfn the year 1913-14 tho profits were immensely higher, having increased from £2,634,588 in 1914 to £4,895.149 in 1919, an increase of 86 per cent. Messrs Coats refused to allow the committee’s accountant to examine the firm’s sales as a whole, on the ground that their foreign trade did not come under the purview of the Act. The Glasgow ‘Herald’s’ caustic comment on the above was: “Without finding that tho Messrs Coats have been profiteering to tho extent of selling 4d reels at 7£d instead of 6d, the Government's Committe of Inquiry have been careful to add that the firm have, nevertheless, not taken full advantage of their position as monopolists. And this recommendation has apparently y. s backed up one firm that their 4d reel is now to be sold at lOd instead of 71d. It’s a strange, strange world!”

• PROVIDENT LIFE ASSURANCE COMPANY. GENERAL MEETING. The annual meeting of the Provident Life Assurance Company was held yesterday at the head ollice nf the company, Dunedin, Mr A. M. Sidoy in the chair. The report and balance-sheet showed the new business in the ordinary branch to be £201,581, and in tho industrial branch £379,274. making a total of £580,855. Tho premium income had increased by £8,052 17s 4d, and amounted to £92,792 As 2d.» while the total income was £104.003 18s Id. The amount paid in claims during the year was £24,169 11s 4d, and the sum of £53,466 Is IGJ had been added to the funds, ’winning the total to £242,851 19s ■id. The Chairman regretted tire absence of Dr Roberts, who a fortnight ago had .bad a nasty fall, which resulted in a broken log. lie was glad to say the doctor was getting on well, and ho was sure ibe meeting would join him in an expression of sympathy and the hope that a .«pt\ dy recovery would be made. A review of the progress of tho company for the last five years showed that the income had increased bv £45.695. and the funds by £130,614. The rate of interest yielded by the funds had consistently impsaved, and was now 10s 7<l per cent. Litter than in 1014. The expense ratio bad been reduced by 4.4 per cent, in the ordinary branch and 10.26 per cent, in tho industrial branch during Cue five years. In 1919 the new business in the ordinary branch was nearly 10 per cent, greater than in 1918, whil-' the annual premium income; increased by £2,700. and intevst by £7OO. The average rat? of in West worked out at practically 51, per cent. Claims in this branch showed a great reduction, being littL more tlran c-ne-third or the total of 1913. The industrial branch premium income increased by £5.366 16a Id. and interest receipts by £1,100; the average rate of interest yielded by the funds was £4 17s 3d per cent. Death claims were £1,700 less, in spite of considerable losses from influenza, but claims by maturity had increased bv £4 .000. A vote of thanks was moved to Dr Roberts for his services to the company, and fh« meeting closed with similar Votes to tho directors n nd staff and to the chairman.—[l 679.]