INCREASED COSTS

New Zealand Herald, Volume LXXIII, Issue 22427, 25 May 1936, Page 14

INCREASED COSTS

Sir,—ln criticising my letter on the 8 above subject, "R.C.S/* has made the 1 same cardinal error a 4 js made by those I who say that all religious people are 1 hypocrites, because they hare met a few. of that kind. He reasons from the particular to the general. The list from which I compiled my figures contains the names of 26 firms. Wilt "R.C.S." be good enough to tell us (1) how many of these have watered their stock}. (2) the extent of the watering; (3) the effect in decreasing their nominal dividends. The percentage of businesses whose shares are quoted on the Stock Exchange is but a small one of thetotal number of businesses; and how many of these during the last few years hare paid very low dividends or none at all? i know people with considerable simu invested in industrials who have had to scrape and pinch to get along at aIL X have shares myself that are earning nothing. If business is making snch handsome and inordinate profits, why are investors, looking for the best' return they can get, rushing local body debentures returning- .low interest? When local bodies cari borrow at less than 4 per cent it is absurd to talk about inflated business profits; a fact which should be patent to anyone who reflects at all. To think that business and industry are in a position to meet the enhanced costs thrust upon t&ea without "increasing prices and charges , is absblutelv absurd. Any business mB? knows the money is not there. Besides, I think (though "R.C.S." may differ), that those investors who have had little or no dividends for the past few.yean, deserve a little -consideration; besides which many businesses are loaded tip with liabilities incurred in keeping themselves alive during the slump:' Ngaruawahia. A. WakbubtoS. i -—— * m