THE WHEAT INDUSTRY

Nelson Evening Mail, Volume LXX, 7 October 1936, Page 4

THE WHEAT INDUSTRY

GOVERNMENT CONTROL CRITICISED (United Press Association) AUCKLAND, sth October. Severe criticism of the Government’s scheme of control in the wheat industry which came into operation earlier this year is made in a circular issued by the directors of the Northern Roller Milling Company, Limited. The circular was issued together with dividend warrants for an interim dividend at the unchanged rate of 4 per cent, per annum for the half-year ended 31st August.

“Your directors regret to inform you that owing to regulations, introduced by the Government, namely, reduction of output, fixation of price, and increase in income tax and graduated land tax, the company has not earned sufficient to pay this dividend and have had to use some of the undivided profits,” states the circular. “Another factor has been the poor quality of the wheat, which means the extraction of less flour and more offal. “Strong representations as to the injustice of the conditions imposed on the company’s business have been made to the Minister of Industries and Commerce, and also to the Minister of Finance, but, so far, without result. “As the Government claim to be builders, not wreckers, your board feels that this company, after a successful life of 30 years, has the right

to be allowed to carry on its business with a reasonable margin of profit. “The board will continue to press upon the Government the necessity of doing justice to our old-established industry.” The dividend on the ordinary shares last year was reduced from 7 per cent. to 5% per cent., while £5731 was added to undivided profits,-making a total of £63,820.

The chairman of directors, Mr John Hellaby, pointed out at the annual meeting in April that through the Government’s legislation, shareholders had had their savings or investment reduced by £125,000, that being the difference between the value of their shares then and in April, 1935.