TAXING EXCESS PROFITS

New Zealand Herald, Volume LXXVII, Issue 23851, 30 December 1940, Page 3

TAXING EXCESS PROFITS

BRITISH RATE CRITICISED

GROWTH OF OPPOSITION

(Received December 20, (1.30 p.m.) LONDON", Dec. 28

The campaign against the hxeess Profits Tax is gathering lorce. 1 hi' chairmen of many companies at annual meetings are comphiining of the lnequitalilo incidence or the tax. The Daily Telegraph says that representations have been made to the Chancellor of the Exchequer that the tax tends to remove the incentive to efficiency and economy, am! suggests that he should modify the tax in his next Budget, possibly reducing the 100 per cent duty to 80 or 90 per cent. The commodity markets have been affected by the holidays. Turnover is mostly small with little change in prices. The only one show of activity has been in cotton, which advanced sharply, apparently to some degree owing to fears that German raids might interrupt the flow of supplies. SHAREMARKET MORE CHEERFUL ACTIVITY PRIOR TO CHRISTMAS LONDON. Dec. '27 After several days' inactivity, sentiment of the London Stock Exchange changed completely in the week prior to Christinas. Cheerfulness replaced dullness, and investors decided to operate. . The amount of business was onl\ moderate, but sufficed to check any downward tendency. Brokers attributed the change to the effect of Mr. Churchill's speech coupled with the British progress at Bardia. ; Business was restricted on Boxing Day, but the tendency was satisfactory. Mining shares were a trifle lower where prices were altered. Current quotations in London for British and Dominion stocks compared with recent levels are: Dec. 12 Dec. 19 Dee. 27 Consols, 2Mi p.C. .. £7(i/4 £<(> Vi f'JjVa Funding, 00/00, 4 . 113'/i H3/a 11-va War Jx>:m, :i'/ a . . 303 102% 103 British 3'/a Convcr... 103% 103/ i 103/ a Victory Bonds .. H2'/i 112 New Zealand — „ ,_, T/ l(H8-5b, -l'/i .. 101/ a 104 . - « 1045, 3 . . . . to&Va 08>» 08/ a HIGHER LOLOMA RESERVES EMPEROR DIVIDEND PROSPECTS Production and development results of Loloma (Fiji) Gold Mines, N.L., for the year were highly satisfactory, said the chairman, Mr. P. F. Cody, at the annual meeting at Melbourne last week. Mr. Cody said that shareholders could reasonably look forward to many years of successful production from the field. The combined positive and probable ore reserves, both in tonnage and fine gold content, on September 4, exceeded the relative figures on July 31, 19;}7, before the beginning of milling, although 33,1(55 tons had been extracted for more than four tons of gold bullion, valued at £1,248,591, Australian currency. The belief that before long Emperor Mines, limited, would resume payment of dividends was expressed by the chairman. Air. Wallace Smith, at the annual meeting of the compaijy in Melbourne. ilr. Smith said that normally a dividend would have been declared in November, but the expansion of operations on the field and accumulations of larger stocks, spares and stores had temporarily reduced the funds available for distribution. CARRERAS' EARNINGS WEIGHT OF BRITISH TAXES LONDON, Dec. 22 Carrera I *. Limited, shows a profit of £2.1 Hi.ooo, of which £1.073,000 is absorbed bv taxation. „ . , ' The chairman, Mr. E. S. Baron, said at the annual meeting of the company, that all recognised the need for taxation, but the excess profit tax at the present level would seriouslv handicap the development of industry for' many years, and would also discourage additional effort and initiatne. FOREIGN EXCHANGE Closing telegraphic rates for purchases and sales of foreign exchange Auckland on oversens centres on Saturday were supplied by trie Bank of New South Wales as follows: — December 28 Buying Selling T.T T.T. New York, dol. to £ .. 3.25 12 3.2050 Montreal, dol. to C . . 3.U039 30200 Greece, drachmae to £ •lava. fl. to ,t . .. 0.00 pesos to £ . . <> Vii -i ~>o 1 pciuT to dol. I s ". b lJ 1 India, pence to rupee . 4 J*J I!m;j Ol.von. pence fo rupee . -- pence It) dol. Singapore. pence t<> dol. s Af. L'X.Z. l-S.A. 100 12.'! ' 125 Loudon, i-N.Z. t'St. 100 121 7/6' 125 Alist£ A. t'N.7,. too 100,10/- l'« Fiji. £F. fX.Z. 100 00 bfc>/.12/o QUOTATIONS IN LONDON (Received December 20, 7 p.m.) LONDON. Dec. 2S Foreign exchange rates are:—New York (dollar) -1.03; Montreal (dollar). 4.45; Switzerland (fr.), 17.35; India (rupee) Is (id; Hongkong (dollar), lod; Kobe (yen), 11 <d; Shanghai (dollar), 3 1 -, d; Argentine (peso). 17.015; Stockholm (kr.), 10.90. SHAREMARKET INDICES London Financial Times (1026 equals 100): Govt. Home Indus- Gold securities rails trials mines December 20 . 111.!' 4 1.4 S<_>.■ December 20 . 112.0 11.4 8^.4 December 27 . 112.1 4 1.4 Si.O I"-- 1 New York Dow Jones' (lif-ti equals 100): •_'o Kail- HO Shares "mads Industrials sold December 21 . 27.17 125.50 December 24 . 27.J0 12S.sU S: , ,00 December 20 . 27.32 120.02 Mo.ooo Dec her 27 . 27.58 120.51 1,2,0.000 December 28 . 27.55 130.11 S'.io.ooo Highest and lowest in I!>3S>. — Kails, 35 uu—24.15; industrials, 151.22 —121.1. SILVER AND TIN VALUES LONDON, Dec. 27 Silver is quoted at 23! id a standard ounce and 21 15-1 (id a fine ounce, against 23!<d and 25 1-1 (id an ounce, respectively, on the previous day. . . ~ The spot market for tin is slightly easier than last week. Forward levels arc unchanged. Quotations: Spot: Buyers, £253 lUs n, ion; sellers. £257. Forward: Buyers, £259 15s; sellers, £2(10. EGG PRICES UNALTERED The Plcg Marketing Committee advises that there is no change in the price of eggs. Standard grade hen are Is !>!id a dozen; large duck Is s',jd, with usual differentials for other sizes. CALL AND DIVIDEND LIST Dividends— DllO Sulphide Corp.—pf., int., 5 p.c., less tux. • • 1 , o-day Bricks and Mortar —urt.ly., I\i p.c. ,!o-morrow K and K. Tinge.v—pf., half-year, ■>i , ~e. . . . . To-inorrow Morris lledst rum —Int., ord., 11 p.c. To-morrow Hritish Tobacco- - final, 2 p.c.; int. i t!H I), 2 p.c. • ■ to-morrow Felt A Textiles- pf.. int., <> p.c. pa. Jan. 1 <; ,| ('ides -pf., half-year, 4 p.c. Jan. 2 Nut. Hank N.Z.- int., p.c. stg. / less lax) Jan. 1 I W'wths Props.—pfd., ord., lialfvea r. 3 p.c. Jan. 15 AV'wths (Syd.), Ist pf., 5 p.c.; 2nd, 3'.i p.c. Fel). lb Komntii Keefs—int., 3d stg. (tax free) ■ ■ . . Jan. 10 Gear Meat —final, 6d .. .. Jan. Calls— Eeid Rubber —2s 6d a ahars ~ Jan. 15 A.C.I. —con., 58 .. .. Mch. 31