ABOUT COTTON

Otago Witness, Issue 3443, 9 March 1920, Page 25

ABOUT COTTON

"JEALOUS CRITICISM." PROFITS FROM ABROAD. WHAT SIR T. COATS SAID. (Fbom Our Own Correspondent.) LONDON, December 18. In Glasgow, at the meeting of Messn| J. and P. Coats, the chairman (Sir T. 0* Coats) gave an outspoken answer id criticisms on the huge profits made by the firm. The dividend recommended wail equivalent to 40 per cent., less tax. Sir Thomas _ said that' the markets in neutral countries,, which had been closed against them partially or altogether for 4 considerable period, jeoponed_some montha before the close of the financial year, and the accounts had naturally benefited. was nothing very remarkable in that, be* cause if the very much larger turnover of the last year had been spread over the previous war years the increase in volume of sales and profit would not have called forth any particular comment, and could in no way have justified the captious criticism which the publication of their balance sheet evoked. VAST TRADE ABROAD. Critics who indulged in an annual sneer! apparently would never understand, or per. haps did not want to understand, that. the great bulk of their trade was gone,, and consequently much the larger portion of their profit was made outside fhe United Kingdom. The earnings in home markets were only counted in thousands, not millions. There was at least one notabte exception to the jealous and ill-natured criticism. Ho quoted from a statement by Sir A. Geddes, which he regarded as an admirable- rejoinder to the outburst, "ii is surely remarkable," said the chairmaiiL " that our enterprise in carrying the flag of British trade to every market of the world during the better part of a century shculd be regarded in certain circles as tantamount to a crime. We should have' thought that our efforts to increase British* trade, deserved approval, not condemnation." ' —(Cheers.) BENEFIT TO THE TREASURY. The profit they made from their worldwide trading contributed a not inconsiderabe amount for income and other taxes ; to the Treasury. In spite of thinly veiled hostility, by which some members' of Parliament, who ought to have known better, and others grro.ted the annual statement the directors would endeavour to maintain and extend the company's business. Ae for the charge of profiteering, -which hod been reported in the press almost daily for months, the charge was absolutely groundless. Their, accounts and costings were being investigated by an accountant appointed by the Board of Trade at th s company's suggestion, and they awaited his report with perfect equanimity. With regard to the outlook for the ourrent year, their mills were ...well employedby export demand. But for the fact that there iwere still clouds on the political horizon, he would venture to say that the prospect for their trade was oncouriging. There was still a great scarcity of their manufactures in certain countries, ,! which ap3 - at.: present - non-productive, and they* could'.se'll;. more goods if they could produce them, but--iri face of 'the greatly depreciated value of currency in sbrne of these countries, prudence dictated that they should not commit themselves too deeply until the financial-situation became more: favourable. COTTON AND FREE TRADE Lord Emmott, speaking at the National Liberal Club on Free Trade and Cotton, said that no doubt India, under -the Gov* ernment's new scheme; would levy proteotective duties, to suit herself, and such action seemed to be a serious, menace to the cotton trade of Lancashire, for which India had hitherto been by'far the largest ". customer. At present wages in the cotton . trade were high, and they were likely to be higher in April. The profits were dangerously high. Bad days were bound to come, and 1 he wondered where they would be then in competition with the rest of the world, especially India, Japan, and America,