PRODUCING DIVIDENDS.

New Zealand Herald, Volume LXIX, Issue 21108, 16 February 1932, Page 5

PRODUCING DIVIDENDS.

VITAL MODERN FACTOR.

In a recent statement Lord Luke of Tavenham. K.8.E., refers to the problem of companies in maintaining their dividends.

" I sometimes wonder," he <>aid, ''why it is that there are still so many leaders in commerce and industry who have failed to realise the power of advertising to create sales and produce dividends. At the recent Washington Congress I met bankers, railway directors, engineers, men in control of vast industries spanning the Continent and ramifying out. over the whole world, who had not. yet grasped the knowledge of what is to-day the greatest selling force in existence. In these lean years —I hope and believe there will not bo seven of them—judicious advertising is more than ever necessary.

"The national importance of advertising—its vital and indispensable role in home and overseas trade —has never been so fully recognised as it is to-day. All thinking men, from the. Prince of Wales downward, have realised its power. Even such conservative industries as railways and shipping have become regular and intelligent users of advertising space. Even among those die-hards of the industrial world, coal and iron and steel and textiles, there is a stirring of the thy bones; though there are literally scores of textile firms who have not yet grasped what individual or collective advertising can do for them in (lie changed conditions brought about by the to older and more voluminous fashions of feminine attire."