Voluntary Limiting Of Dividends; Views Vary And Coys. Make Reservations

Wanganui Chronicle, 18 February 1949, Page 5

Voluntary Limiting Of Dividends; Views Vary And Coys. Make Reservations

LONDON, Feb. J 6 (Rec. G pm).— Replies to a questionnaire sent out by the Federation of British Industries in order to ascertain the views of its member companies about continuing the present policy of voluntarily limiting dividends, reveal that there is considerable division of opinion on the subject.

Although a majority of companies said Ibey were prepared to continue Ibe policy for a further year, a number of theiii made reservations which they asked should be brought to the attention of the Chancellor of the Exchequer (Sir Stafford Cripps). Imperial Chemical Industries, for instance, said they considered Sir Stafford Cripps should be reminded that efforts made by the industry to

prevent inflation by limiting dividends were being nullified by a considerable increase in Government expenditure. The 1.C.1. also contended that any industrial concern should b e free to withdraw from the agreement if it. found itself threatened with discriminatory legislation. Another large flrm said it was only ! ■ prepared to limit dividends if in re-1 1 turn Sir Stafford Cripps would under- | i take not to use Stock Exchange prices |

as a basis for calculating compensation in the event of nationalisation. Several other companies made their agreement not. to raise dividends conditional upon there being no further increase in wages l . ‘ The present voluntary agreement, which Sir Stafford Cripps recently ’ admitted had been kept, by “the vast , majority” of companies, will end on March 11. A joint statement outlining the attitude of the Federation of British Industries, National Union of I Manufacturers and the Association of I British Chambers of Commerce towards a renewal of the agreement is | likely to be issued shortly—(Special : | N.Z.P.A. Correspondent.)