PROFITS FROM TOBACCO.

New Zealand Herald, Volume LXV, Issue 19892, 10 March 1928, Page 9

PROFITS FROM TOBACCO.

BRITISH AMERICAN RECORD.

REVIEW OF 25 YEARS* PROGRESS.

•V " An outline of the vast operations of the British-American Tobacco Co. was given at the twenty-fifth annual meeting by the chairman, Sir Hugo Cunliffe-Owen. The profit for the year w%3 £6,354,095 and after payment of dividends on. the-6-per cent. preference shares and of 85, per cent, on the Ordinary shares, there remained a balance of £2,319,129. The chairman recalled that he was the only director remainii\g out ot the original directorate. He said the company was formed in September, 1902, with a capital of £6,000,000, divided into 1,500,000 b per cent, preference shares of £1 each and 4,500,W0 ordinary shares of £1 each. "It is interesting to look back and remember that in our first month's trading we made a net loss of some £IO,OOO, and our first year's earnings resulted in a . net profit of £140,000,'- J the chairman continued. "By September, 1912, our profits had grown to £1,931,159. and our capital was then 6,500,000 ordinary shares and 4,500,000 preference shares. From that time we have been fortunate in having an almost, uninterrupted increase in prosperity, and to-day with .an issued capital of £27,999,606, divided into 23,499,606 ordinary shares and 4,500,000 preference shares, we have a net profit of £6,354,095 ; 17s 59. ; "When the company was incorporated its operations consisted mainly—although not entirely—in the export of goods from* England and America to-foreign countries; to-day the most important end of the 'company's businesses-its shareholding in companies operating, in other countries. To-day we have upwards of 120 subsidiary and allied undertakings, in which wo are large shareholders, and we • and those companies employ upwards of 75,000 people. If you will consider the number of these subsidiary and allied undertakings, it will'help, yon to understand how our profits are Arrived at. Yon will realise that those profits :>re deprived not from an excessive margin of profit on a small amount of business,- but from a sinall margin of profit qn a large volume of business.'" Sir Hugo Cunliffe-owen stated that investments in associated companies were .shown in the balance-sheet at £20,135,600, which <was less than the asset Value of those companies.! ;U . 1 •. ■ i.' i .'■ ■' -■ *'■ ■/ i IMPERIAL COMPANY'S YEARPROFITS EXCEED £9,000,000.

That the profits of the Imperial Tobacco Company for the year ended October 31, 1927, substantially exceeded £9,000-000 was the conclusion reached in financial circles in London, when the company an- 1 nounced its final dividend for- the year, majking a record distribution of 25 per qent. on. its ordinary capital. The, company has a large holding of shares in its "twin/' the British Aiherican Tobacco Company, and it was observed that the dividend from its additional shares was more than sufficient to raise the total profits to the figure assumed. This was calculated by the Financial News to be £9,227,100. • / •' The company's capital comprises £12,857,940 in preference shares and £29,951,700 in ordinary shares, the latter figure y.haying been reached in 1923 by 'the capitalisation of £7,439,040 from ireserves—a one-in-three bonus. The profits, and taxful dividends for the last five vears have been as ! follows?: ; , t - : J ■ , * * ' . , Dividend; Net Profit. P.O. Amount. 1923 f .. £7,474,690 20 ' £6,056,330 1921 . ; 8,369,060 22i , -6,222,030 1925 i., 1 8,88-1,990 '24 ' 6,528,450 . 1926 .. 8.9Q8.350 ': 6.528.450 ; 1927 m . 25 <*,827.9.70 After the last capitalisation, reserves ;were reduced 'to about £5;000,000. They have again risen by annual' accretions of £500,000 to £7,000,000.- • , : ' • ! '• FROZEN MEAT TRADE. : GERMAN- QUOTA REDUCTION. ' J : (Received March 9, 5.5 p.m.) A. and N.Z. - . BERLIN, March 8. In response to* the agitation by German .agrarians ; the Federal Council has re.duced the. quota of frozen meat allowed to enter Germany to '50,000 tons a' yean An be sub-' ,mitted : to the Reichstag before the dissolution, , MARKET REPORTS. FRUIT AND PRODUCE PRICES.

Apples and pears in great variety were sold at the Auckland City Markets yesterday. Owing to the large supplies prices for most lines showed a decrease, although imported fruit still brought high values, A large percentage of the cargo of bananas from the Waipahi was damaged and faulty and rejects were sold at reduced prices. Tomatoes were fairly plentiful, but there ■was no demand for seconds and cracked lines. Passion fruit showed a decrease in value, supplies being more plentiful.. Good coloured hothouse grapes were keenly sought. Peaches showed the effects of the recent rain and values eased.

The field produce market was more heavily supplied than it has been for many weeks. As a Result prices for the majority of popular lines of vegetables eased somewhat. lyumaraa, cabbage and. pumpkins were forwarded in large .quantity and the demand was small. Potatoes rbse slightly in price. Green peas and beans were scarce and prices were higher. Both rock and water melons showed no change in values, but lettuce was quoted at 66d a case less than late rates. Most lines of vegetables experienced Only a fair demand." Values for both hen and duck eggs remainedt the same as earlier, in the week, while there was no alteration ,in the price obtained fo£ farmers" butter. ' The poultrypens wer full; a notable feature being the - reappearance -of turkeys. These birds brought good prices, hens realising 7s to 8s each, and gobblers 15s to 20s. Cockerels of heavy breeds brought up to 6s 6d, and the lighter birds found sale at 2s to 3s 6d. HenS and pullets were in good supply. - • The following prices were realised FRUIT. Apples, Gravejistein, choice, coloured, 4s 63 to 7b a case; 'others, 2s 6d to 6s; Cox's Orange Pippin, 6s to 9» la eaße; pears, Bon Chretien, 9a to 10s a. case; Louis Bon, 9s to lis; Peokhams, 7a to : 9s; Capimokt, 6s to 7s 6d: Qlairgeau, 5s to,6s a case; peaches, Golden Queen, 4s to: 6s, a case; No. 2's, 3s'to 4s' 6d;' tomatoes, choice, coloured, 7s to • 10s a case ; others,.. 2s 6<i to 6s: lemons, 10s to 22s a case; grapes, Hatnburge. is to Is 6d per -lb,; Colman, Is 9d to 2s -6d; Golden Queen, Is to Is 2d per' lb.; passion- fruit, 6s to 10s a case; cape gooseberries, 4d to 6Jd per lb.; oranges, Jafias, 30s a case eaaet; bananas* repack; 2s to 26s a case; rejects, ex. wharf 2s to 14s. a case. FIELD PRODUCE. • Potatoes, Southern, 13s to 14s per cwt.; Hastings, 116 to J2b fid; onions, 10s to lis 6d per kumar&s, 2d to 2|d per lb.; cabbage, to 12s 6d a sack; on benches, 2s to 6s a dozen; swedes, 3s to 5s a bag; pumpkins, fis 4d to Is 9d each; green peas, 6d to 7}d per lb.; beans, 6d to 6Jd ,per lb.; lattiice, 4b to 8s Cd a case; cucumbers. Is to 3s a dozen; tnilrrows, 3s to 7s a dozen: water melons, Gd ,to 1b 6d each; jock melons,-3d to 9d each;-celery. Is 6d to 4s a bundles rhubarb, ,2s to 8s a" dozen bundles; spinach. Is 8d -to 2s a dozen; .spring .onions, 4d to Is a bundle; carrots, parsnips, beet said turnips, l» to' 2s a dozen bundles. • . • DAIRY PRODUCE. ' ' Hen ' agg?. ls : lid t6 2s a dozein; - duisk Is 9d to Is lOd;. farmers' butter, Is to Is 3d per lb." POULTRY. Cockerels, hesvy prime, is to 6s ,Gd each light, 2s, to 3s 6d; roosters, flit, heavy prime, 2s, to 2s 6d each; light, Is 6d to 2s; hens, heavy, 2s 6d to 3s "each; light, 5s 6d to 2a 6d; pullets, heavy, 6s to 8s each; light, 6s to 8s; drakes, young, prime. 2a 9d to 3s 6d each-; ducks, young, 4s to 6s each; turkey Hems, 7s to 8a each; gobblers, 26s to 20® each.