GENERAL ELECTRIC CO., LTD.

Dominion, Volume 37, Issue 10, 7 October 1943, Page 6

GENERAL ELECTRIC CO., LTD.

Annual General Meeting CHAIRMAN’S ADDRESS

“In presenting the annual report, my first duty is to refer to the grievous loss the company has sustained through the death of Lord Hirst, who as chairman lias presided over this meeting for 33 years, and who has guided our company since its inception 56 years ago,” said the chairman, Mr'. A. 11. Railing, at the annual meeting of the General Electric Company, Lid., in London on July 29 last. "We have appointed as now directors Mr. Ashley Cooper, Mr. G. Chelioti and Dr. C. C. Garrard.

“Our balance-sheet speaks for itself. Our profit and loss, account shows that the profit after -providing for taxation stands at £1,748,917 as compared with £1,725,137 last year, an increase of £23,780. After providing £459,610 against £460,795 for depreciation, and £89,276 as against £78,911. for our pension' fund, we are left with a net-profit for the year of £1,195,741, against £1,180,946 last year. Adding the carry forward from last year of £815,379, we have available for distribution the sum of £2,011,120. You will see that after providing £700,000 against £685,000. for income tax, and paying the same figure as last year for dividend on preference stocks, we recommend that a dividend of 10 per cent, and a bonus of per cent, on the ordinary stock, both less income tax, should be paid as last year, and the sum of £817,762 as against £815,379 should be carried forward. “I feel it incumbent upon me. to reiterate the regret expressed in previous years by Lord Hirst, that war taxation does not allow us to add still further to our reserves during this period. For years the directors have followed the policy of writing off items of expenditure and depreciation which, in their view, should always be written down out of the current year’s profit but which, not being allowed, for tax purposes, have to be borne entirely out of the available net profits. These sums, during years of increased activity, are of necessity larger, and if our usual principles of prudence are applied they can only be found either out of the sums which might otherwise be added to reserve or out of the amount available for dividends. It will be seen that apart from -our large, carry forward our general reserve stands at £4‘,700,000. “The necessity to secure the greatest possible efficiency from management, staff, workpeople and from machinery is fully realized. Every effort is made .to attain it in a spirit of mutual understanding and co-operation. “We strongly feel that all our energy and all our resources at- this juncture must be concentrated on the task of win-ning-the war. While we are confident QI its outcome, we do not underrate the task still in front of us. We are, of course, mindful of the problems which will confront us after the war and of the important part which our company must be prepared to play in the post-war world. W e are naturally trying to plan for the tame when the present catastrophe will have" found its ultimate inevitable solution so 'that we may play the part which we owe to the nation and to ourselves both during the reconstruction period and afterwards according to the conditions which may apply. Some of these . conditions cannot yet be clearly foreseen as, for instance, the degree of international cooperation for ithe marketing and exchange of goods, the relative importance of replacing capital goods or providing consumers goods immediately after the war, the spending power available for various countries, and the measure of .expansion allowed to various industries. It is selfevident that some clarification on *hese points will have to take place before definite decisions can be made. , The General Electric Co. Ltd., of England, known throughout the world as the G.E.C., is represented in New Zealand by British General Electric Co. Ltd., Wellington, Christchurch, Auckland. Its issued share capital amounts to some £7,800,000 and its annual trading profits have exceeded £1,500,000 for several years. It has some 55,000 employees, and in addition 4000 employees are servingjn the forces. (Obe dividend on the ordinary capital is 10 per cent, plus cash bonus of 74 per cent. —P.B.A.