Shares Fall

Hawke's Bay Herald-Tribune, Issue 82, 23 April 1937, Page 5

Shares Fall

Telesrraph— Presi Abbxu-

EFFECT OF TAX ON PROFITS Sdme Companies May Leave England UNFAIRNESS CLAIMED

i * (By

-Copyrisbt.)

> (Received 23, 11.45 a.m.) LONDON, April 22. The wide range of Beeuritles which kar© not yet recovered from the effects of the gold-price scaie offered no resistaace to the tax upcertaiQties. A market statistlcian told' the Australian Associated Prjess that he estimated that seccrities had depreciated by over £200,000,006 yesterday. Ship transport alone lost over £6,000,000 during the day's trading. The Times City editor and other muthorities consider it will be a long time before shares Tegain their poisc. Griticism is ehiefly directed at the unfairness of the incidence of the tax. Not only does it penaliee 4 4 recovery ' 3 trades but allows shareholders in companies domicile'd abroad to escape j thus, the majority of South Africau *gold; mining companies are not taxed while West Afriean and Khodesian are liable. Ihe Zinc Corporation is liable, whilo Broken Hills are not affected. This anoinaly is reflected in the former 's •hares, whieh declined ten shillihgs. The Cify expects that on effect of the tax will be to lead many. companies ©perating abroad to transfer their Bomicile from England. The Stock Exchange remains depressed. Preoccupation with the Budget eaased two important developments on the Gontineht to pass almoet unnoticed. Forward f rancs are quoted at 113 to the ponnd, which is beiow the legal devaluation 3imit, The Paris Bourse is weak, the political uneasiness, labour troubles and the bad trading figures affecting eoufideuce. On the Prague Bourse prices collapsed. Because of over-speculation many s'mall operators were wiped out.