GENERAL ELECTRIC

New Zealand Herald, Volume LXXVI, Issue 23401, 18 July 1939, Page 5

GENERAL ELECTRIC

A KECORD YEAR EVOLUTION IN INDUSTRY INTENSE RESEARCH EFFORTS i Keen satisfaction with the results , achieved in the past year's trading by the General Electric Company, Limi ited (the G.E.C.) was expresned by Lord Hirst of Witton, chairman and managing director, when addressing shareholders at the annual meeting in London on June 29. "I honestly thought last year when addressing you, that we had reached a peak that required some time to reach again," said Lord Hirst. "The outlook was not too encouraging, and the previous year had a number of characteristics which affected our company very favourably at th>3 time. However, I am here once more, submitting results beyond our expectations. "Net profit totalling £1,776,000 was just £4OOO more than last year and a new record in the company's history. The home business has kept up remarkably well. We have, of course, benefited by Government orders, but they have still played a comparatively minor part in our total turnover. I would like to emphasise, as 1 did last year, that profits on Government work are not the extravagant figure that seems to exist in public imagination. "We have again done well in export i and exceeded Inst year's figure, which | was a record. This achievement is not j due to any particular country or to ] any large contract, but is spread over ' nearly all our overseas markets, and | nearly all departments. Our overseas j market is mainly within the British Empire, which absorbs more than 80 per cent of our exports. Foreign Markets Cloned "Many foreign markets are closed to us by high tariffs, while from others we are excluded by patent or trading agreements. It is interesting to record 1 that our principal customer was again South Africa: next came Australia, j then India. All our overseas branches j have done well and nearly all have con- \ tributed to our profits, except China, land even there, in.spite of the conditions ruling, the figures have shown a I great improvement on the previous j year. In general, the balance-sheets of i our overseas companies are in a sound i and healthy condition. I "The trend for countries all over the j world to become self-supporting has increased particularly during the last vear, and the desire to start secondary industries has especially flared up in our Dominions. For many years we fought against starting factories abroad, but circumstances are so strong that we are to-day forced to study this question carefully if we do not wish to lose the footing which we have obtained in Empire markets. "Yet we are hammering away as best we can in other parts of the world, and in some cases where the Government has offered support to foreign countries, like Turkey, we hare found a satisfactory opening for doing business. . Successful Turbine Construction "As regards our heavy engineering activities, it may interest you to know that at Eraser and Chalmers, our mechanical engineering works, we continue with the successful construction of an ever-increasing number of turbines. At the moment, seven of those going through the works have capacities of 35,000 k.v.a. at a speed of 3000 r.p.m. Tliev find their way into all parts of the British Empire. An ever-increas-ing amount of electrification of works and factories is taking place._ Our group jof engineering works at \\ ltton, on ! the-electrical side, keeps pace with this I development through the production of j generators, motors, .switchgear transformers, rectifiers and traction equipj "\aturallv, as electrical development never stands still, new requirements, I which experience lias shown to be necesi sary have had to be met. These have had for their object the increase ot system stability, that is to ensure that the electric supply is maintained as completely as possible when short circuitsor such like disturbances take place. To this end, much quicker acting cir-cuit-breakers are now required than was thought necessary at first. Much work on these lines has been done in our high power test laboratory at \\ ltfc°" As regards large transformers, I can also* record good progress. I am particularly pleased that we are holding our own 111 the overseas transformer market. . "Large electrification contracts nave been obtained from British railways and for installations as far apart as Perth (Western Australia). Buenos Aires, Copenhagen and Spitsbergen. We have been particularly successful in the construction of electrical equipment for trolley buses, which we have sent to all parts of the world. "Equally so, we have reason to be proud of our success in the electrical equipment- of ships, both for light and power, both for the Admiralty as well as for the mercantile marine. Telephones and Radio "Our telephone works have been engaged to their full capacity throughout the year. The progress of mechanisation of "the British telephone service has again made signal headway, and this same feature has been no less remarkable in the Colonies and Dominions overseas. "Your company's activities in the field of radio communications are also worthy of mention, and a comprehensive range of ultra high frequency transmitters has been brought on to the market. Another of our pioneer researches initiated some years ago is bearing fruit, i.e., the generation of very short radio waves. The new valve developments we then undertook have put us in a position to take part very actively in important developments in this field of radio. "The confidenco which, for many years, your company has held in the future of television, was fully confirmed by the great increase in public demand experienced since last August. The public are now realising that television is no longer an experiment, but fill established factor in everyday life. Your company is well equipped to take an important place in all fields of radio and television activity, and I believe that success in these markets will have a definite influence on our future. Improved Lighting Forms "We are constantly endeavouring to improve the already excellent quality of our lamps, and have succeeded in continuing to hold, both in quantity and quality, our outstanding position in the lamp industry of the British Empire. "It is some years since I first mentioned to you our pioneer work on the now familiar mercury vapour electric discharge lamps. The study of those mercury lamps and of florescent materials has sine# then formed tho subject of very energetic investigation by our research workers. We see them coming into use for many purposes] in both concentrated and tubular forms for factory and other interior lighting, in highly concentrated forms for obtaining brilliant beams of projected light, as well as in improved forms for street lighting. "The yellow sodium vapour lamp has its advocates for street lighting, and we have taken care to meet this demand wherever it exists on a par with any other manufacturer. Business in general lighting and domestic commodities has been somewhat affected by the crisis, though the outfall has been made up by orders in other departments."

' . . .. , ... . Lord Hirst proceeded to refer in f do-? tail to the activities of the associated and subsidiary companies of the G.E.C., all of which, lie stated,-had maintained a foremost place, in spite of the keenness of competition. A number was engaged in some work for the Government. In this connection he. said that though such a company as their X-ray business,. Watson and Sons, manufacturing in England, would be essential in the event of war, they were discouraged by the amount of business which was placed abroad, particularly in Germany, by hospitals and public institutions. Changing Business Conditions "I suppose you would like me to say something about the continuity of this work or what we think of the future," continued Lord Hirst. "The reply to that question is treated by many people very simply—either by saving it depends on the international situation or on the Stock Exchange, or by the defeatist saying—'slumps jsand booms must follow each other. ■ I personally think that too few people realise the changes that are going on in this post-war world. I ignore, for the moment, the international situation, and consider the future depends on our power to adapt ourselves to changed and changing conditions in our business an,d industrial lives. "Jf our friends in the Dominions think they must manufacture—and this desire has received an impetus by the needs of defence—let us link up' with them with our capital and skill in all such industries which their sparse population can absorb. It will strengthen our influence against foreign competitors. and. as there are so many things which they cannot successfully manufacture, it may well be tha.t our total export to them will not dwindle; it may even increase. "I could go on pointing out a number of changes which nave happened in this post-war world: I am not competent to suggest remedies, unless the world is prepared to sit round a table, study jointly in a friendly manner the conditions harmful to freer world exchange of goods, and try to find means to ameliorate them. In the meanwhile I know only one thing, that we must make every effort to increase our wealth by higher production. At the same time, we must not only think of improving our machines, but' also the standard of mental equipment and living conditions of our people. Your company is doing its best to work in this spirit. , . f Outlook Still Hopeful "In spite of all these difficulties which I have enumerated, there is still a strong streak of optimism in my veins concerning the future. Given that there is not going to be an international . flare-up. I feel the strong financial position of our country, the present good employment figures which mean an increase in the purchasing power of our people, the contribution of the Government to our productive programme, and our improving export figures, all these things convince me that we can look with confidence to tlie future, provided our costs of production are not unduly further burdened by unreasonable demands on industry. "The General Electric Company, Limited, of England, known throughout. the world as the G.E.C., is Represented in New Zealand by British General Electric Company, Limited, Wellington, Christchurch, Auckland. Its issued share capital amounts to some £7.800,000 ana its annual trading profits have exceeded £1,000,000 for several years. It has some 40,000 employees, whose annual, salary and wages amount to £5.600,000. The dividend on the ordinary capital is 10 per cent, plus cash bonus of 10 per cent, the same as in the previous year."— P.B.A.