AUST. CONSOL. INDUSTRIES

Dominion, Volume 32, Issue 150, 21 March 1939, Page 12

AUST. CONSOL. INDUSTRIES

Bonus Issue And Taxation Au extraordinary meeting of shareholders of Australian Consolidated Industries Ltd. was held in Melbourne last week lor the purpose of authorizing the bonus issue of 11 new shares for every four held. "The company’s advisers,” said the ehairman, Mr. E. Norton Grimwadc, "consider that the allotments made to shareholders will not be subjected to Federal income tax in the hands ol shareholders- nor will they be liable m the majority of the States to ordinary State income tax, but they may be liable to certain special taxer? in some ot the States and in New Zealand.” "The problem of taxation is a major one these days,” Mr. Grimwade declared. "Everything possible has been done, to protect shareholders, and the capitalization has been made wholly and exclusively out of profits from the sales ol assets not purchased with a view to resale at a profit. The company itself will also be liable for some additional tax as a result of the future system of working, but the need for sectionnlizing the business was considered to be so paramount that it was deemed to outweigh the expense ot the further impost thus suffered.” agreed to the recommendations of the directors regarding the bonus issue and capital increase.

Pukekohe Produce Prices

Dominion Special Service. PUKEKOHE, March 20. Trade in Pukekohe produce has been steady since last Monday and there has been no alteration iu values. _ Growers are inclined to hold onions against a further rise in price and supplies are thus not very readily obtainable. .However, the price remains at 17/6 a cwt.., f.0.r.. Pukekohe. for both table onions aud piekiers. Potatoes aud other lines are available in fairly free supply. Potatoes are still at 11/- a cwt., and pumpkins at 7/6. Carrots still bring 5/- a sugar-bug, and parsnips 7/6. Tomatoes remain at 4/3 an 181 b. case, marrows at 4/6 a dozen, rhubarb at. 4/6 a dozen bundles, and Parlin cooking apples at 8/- a 301 b. case.

Goodyear Rubber Company

The Goodyear Tyre and Rubber Co. (Australia), Ltd.,' reports a profit of £243,251 for 1938, against £157,543 iu 1937. The year's profits Avere augmented, the directors point out, by the absorption of the low cost of rubber, resulting from the writing down of rubber stocks to market value at the end of 1937. The preference 4 dividend requires £24,000 ami the ordinary dividend of 26 per cent, against 16 per cent, in 1937) absorbs £195,000. With £387.491 brought into the accounts, £411,743 is carried forward.

All tlie ordinary capital is held by the parent company in the United States and investment interest in Australia is limited to £300.000 of preference capital.