LEVER CO-PARTNERSHIP

Evening Post, Volume CIX, Issue 36, 12 February 1930, Page 14

LEVER CO-PARTNERSHIP

NEW SHAKES OFFERED ' (From "The Post's" Representative.) LONDON, 7th January. In order to complete the amalgamation of Lever Brothers and the Margarine Union, it has T^een found necessary to do away with the co-partnership scheme of the former concern. Consequently the 17,000 . Lever employees holding co-part-ners' shares to the nominal value .of £2,352,548, have been, notified of a paherae for exchanging their shares for the 7 per cent, cumulative preference shares of the combine. In a letter' from the secretary of the Co-partnership Trust, it is stated that each co-partner's interest had to be separately valued, in view of age, length of service, and so on, which were taken into account. It was also indicated that a dividend of 5 per cent, would be paid for 1929, the first distribution since 11(24. The secretary's letter says, in part: "Lord Leverhulme and the executors are pleased now to be in a position to oifer ( you the under-mentioned number of 7 per 'cent, cumulative preference shares of £1 each, fully paid, 'in Margarine' Union (or Unilever, as will be the name of the company very shortly), and cash in lieu of a fraction of a share in exchange for your partnership interest, which will be cancelled. But this will not affect the rights to a 5 per cent, preferential certificate under the trust deed. These rights will remain unaltered. "The value on the London Stock Exchange of the 7 per cent, cumulative preference shares •in Margarine Union on 19th December last was £1 3s per share. The trustees of the Co-partnership Trust consider that "the above offer is a veryfavourable one to you, and they unhesitatingly recommend you to accept." Commenting on the change and the offer the "Financial Times" says:— "After twenty years the famous co-part-nership scheme which has been such a feature of the" great Lever Brothers' business, is 1 to come to an end. It has been one of the most interesting profitsharing experiments in this country, and its disappearance is to be regretted, in some .senses, though nowadays employees have much more direct opportunities of securing holdings in the undertakings which they helped to carry on. But the late Lord Leverhulme's scheme was largely of a pioneer nature, and its success has assisted materially in convincing industrialists generally of the wisdom and advantage of enlisting the active, financial co-operation of the small capitalist who is on their own pay-rolls. "The Lever scheme would have had to be terminated anyhow, owing to the effects of the founder's will, but the amalgamation of the firm with the Margarine Union has hastened the winding-up process. .... This has necessitated an _ individual appraisement of each holding, which can have been no light task, and holders will receive in exchange 7 per cent, cumulative preference £1 shares in Unilever, representing this value, together with 5 per cent, for the past year, the first dividend paid since 1924. Tiere was every inducement for a fine firm lile Lever Brothers to end an experiment such as this in a handsome manner, and it has truly done so."