£1,000,000 LOST.

Manawatu Standard, Volume XLVI, Issue 107, 6 April 1926, Page 7

£1,000,000 LOST.

BRITISH DYESTUFF 3.

JUDGE HITS OUT,

LONDON, March 23

Jill- Justice Eve, in sanctioning a reduction in the capital of the British Dyestuffs Corporation by £4,421,000, ol which £2,841,000 would be written off as lost, scathingly commented on the fact that departmental control of the concern had cost the country £1,000,000. “That’s another penny' on the in-come-tax,” said his Lordship. ‘‘lt is your*.money and mine, but nobody seems to care until the suffering is brought home. This case is not unique. Wo. repeatedly invest the country’s mo‘ney in rotten undertakings.” Asked how Government control had acted so injuriously, counsel replied that it was impossible to make speedy decisions owing to the uecessicy of referring to the Board of Trade. Although the Government directors had retired, there was an understanding that the company would remain predominantly British and keep in touch with the Government regarding discoveries and research, and also there would be restrictions on the transfer of shares. Mr Justice Eve (ironically): For tho purpose of excluding 1 those knowing most about dyes. Perhaps it is. Anyway, I’m glad that tho country "is out of the whole business. DYES VITAL. WAR-TIME LESSONS LOST. EXPERT’S CRITICISM. LONDON, March 24. Criticising the new constitution and management of tho British Dyestuffs Corporation, which was yesterday permitted by tho court to reduce its capital by £4,421,000, of which £2;841,000, was to be written off as lost, Dr H. Levinstein (who in 1819 was appointed a member of the Trade Licensing Committee established under the scheme to provide State assistance to the British dye industry) declared that the war time lessons of the nation’s vital dependence on the dye industry, had been forgotten. He emphasised that great German dye plants welts potential arsenals, which kept Germany supplied with ammunition for four years and provided poison gases. He added: “The essence of chemical warfare is a surprise. In future, belligerents will ontv launch a substance as valuable and dangerous as mustard gas when it is available in sufficient quantities to secure victory, and there will not be time to provide a reply. Therefore, the nation would sleep more comfortably if it possessed some latent force to counter an enemy’s activities.” “RUINOUS TO COUNTRY.” Dr Levinstein said that Lord Ashfield, when president of tho Board of Trade, during the war, forced the amalgamation of dye companies into the Dyestuffs Corporation, but failed to fulfil tho promise to restrict imports of dyes for ten years. Parliament passed tho Dyestuffs Act after renewed German imports had irretrievably damaged tho industry. Lord Ashfield, despite the fact that he held 18 other directorships, was now chairman, of the Dyestufis Corporation, and introduced tho reconstruction, causing great loss to the companies in the amalgamation. Dr Levinstein’s company’s shares were now merely wastepaper. He added that Lord Ashfield was an example of the cult of the titled amateur entering business. This was truly unknown outside England, and was ruinous to, the counrty. It handicapped industry and stimulated labour unrest.