WOOLLEN MILL'S YEAR.

Auckland Star, Volume LXXI, Issue 227, 24 September 1940, Page 4

WOOLLEN MILL'S YEAR.

HEAVY DEMANDS OF FORCES. "CRUCIFYING" TAXATION. That the Kaiapoi Woollen Manufacturing Company had been called upon to take a full share in the production of supplies and equipment for the armed forces was mentioned by the chairman, Mr. T. W. Lewis, at the annual meeting in Christchurch last week. He said the demands had precluded the company from making available to its general clients the extended output it had hoped for under the polity of import selection.

Mr. Lewis expressed the hope that more latitude would occur in the coming year so that the company would again be able to take an increased quota of civil work. Reviewing the accounts, Mr. Lewis said that in 1939 the company owed the bank £100,854 on current account. This year the debit had disappeared and at July 19 the account was in credit. It was advisable, however, to take this figure in conjunction with the item deposits, and the cash position was as follows:—l 939, bank debit £100,854, deposits £73,516, a total of £174,370; 1940, bank credit £1207, deposits £90,962, a total of £89,755. There was thus a decrease of £84,615 on the two accounts.

Referring to taxation, Mr. Lewis said that, owing to the size of the company's capital, to pay even a 2J per cent dividend to shareholders, made the company qualify for the highest scale of taxation, which with National and Social Security added, now reached the astonishing figure of 12/1 in the £. Some of it was emergency taxation to pay for the war, and this position, of course, was accepted with good grace but, added to the previous heavy increases, the incidence of taxation was becoming such a burden that it would have the effect of crucifying companies if it continued. Under its operation enterprise would be stultified and endeavour diminished.

"From a general point of view," he said, "stabilisation of costs and prices is highly desirable, but in periods of emergency such as those associated with war, when considerable wastage occurs, and new channels have to be explored for supplies, and fresh sets of conditions encountered, such a matter becomes more difficult to control, and to achieve this object it would seem that an increased volume of produce is necessary to balance up the position and maintain an even standard. Wages and Hours of Work. "We have recently been called upon to meet a wages increase to all our operatives working under awards. This pronouncement came from the Court of Arbitration ,as an increase under the heading of a 'Cost of Living Bonus, , and, while we do not .question the Court's decision, we are of the opinion that if costs are to be stabilised extra production is required; the position could have been met at this point by expanding the working week to, say, a nine-hour ofay of five days of the ■week for the duration of the war at standard rates. Evidence is not lacking of the lengthy hours that, are being worked by the countries -who are at present waging war against us, and we have an example of what is at present being performed by workers engaged in all industries affected by the war in Great Britain." FARMERS' AUCTIONEERING. RECORD PROFITS EARNED. Record profite of £69,432 were earned by the Farmers' Co-operative Auctioneering Company, Limited, Hamilton, for the year ended July 31. The dividend on 1 ordinary shares is maintained at 6 per cent. The amount brought forward from last year was £0020. making £76,353 available. Dividends paid on preference shares absorbed £12,660, leaving £63,692, out of which £13,604 is required for the ordinary dividend, and £43,200 for income, national security and social security taxes. The amount carried forward ie £6888. Capital is the same at £478,953, and reserves are unchanged at £30,000. Liabilities to sundry creditors total £38,856. The company's turnover is «£2,299,464 compares with £ 1>892.719 the previous year. The balancing total is £26,355 higher at .£618,832.. . . SOUTH BRITISH. DIVIDEND AND BONUS. Tin directors ol the South British Insurance company, Limited, to-day decided to recommend to Ehareholders at the annual meeting on October 24, that a final dividend ol 9d a share, plus a bonus of 3d a .hare be paid, payment to be on the date of the meeting. '