REDUCED PROFITS

Otago Daily Times, Issue 23004, 6 October 1936, Page 6

REDUCED PROFITS

RESULT OF GOVERNMENT MEASURES COMPANY ALLEGES INJUSTICE (Per. United Press Association) AUCKLAND, Oct. 5. . Severe criticism of the Government's scheme of control in the wheat industry, which came into operation earlier this year, is made in a circular issued by the directors of the Northern Roller Milling Company, Limited. The circular was issued together with dividend warrants for an interim dividend at the unchanged rate of 4 per cent, per annum for the half-year ended August 31. " Your directors regret to inform you that owing to the regulations introduced by the Government — namely, the reduction of output, the fixation of price, the increase in the income tax, and the graduated land tax—-the company has not earned sufficient to pay this dividend and has had to use some of the undivided profits," states the circular. "Another factor has been the poor quality of the wheat, which means the extraction o'f less flour and more offal. Strong representations as to the injustice of the conditions imposed on the company's business have been made to the Minister of Industries and Commerce and also to the Minister of Finance, but so far without result. As the Government claims to be builders and not wreckers, your board feels that this company, after a successful life of 30 years, has the right to be allowed to carry on its business with a reasonable margin of profit. The board will continue to press upon the Government the necessity of doing justice to your old-established industry." ' The dividend on the ordinary shares last year was reduced from 7 per cent, to 5 J per cent., while £5731 was added to the undivided profits, making a total of £63,820. The chairman of directors (Mr John Hellaby) pointed out at the annual meeting in April that, through the Government's legislation, shareholders had had their savings or investment reduced by £125,000, that being the difference between the value of their shares then and in April, 1935.