BUSINESS RESPONSIBILITY

Hokitika Guardian, 17 October 1925, Page 4

BUSINESS RESPONSIBILITY

1 XT'MR KSTIXG COMM ENTS

At the animal general meeting of tae Heneral Electric Company. Limited, held in London on .July 9, Sir Hugo Hirst, Bt. (chairman and managing director), made some intresting comment's on the company's position and policy. After reviewing the very satisfactory results of the year’s operations, he proceeded as follows •■These seem to he the main items requiring comment, and, while in due course I shall answer questions which the shareholders may put in case they desire additional information. 1 do not anticipate any criticism, except the one that I personally and some ot my colleagues who, with me, are important ordinary shareholder.- in this company, could raise ourselves, viz., should the dividend on the ordinary shares which we recommend l>e higher or not 7 Dur answer is for the present in the negative. if tilings continue as we have every reason to hope, the ordinary shareholders will ill Die long run he rewarded for their restraint. hut a eon--11 Mieli as ours, which is assuming onuii national importance, must first of all tight for absolute solely. Vie Lave too many examples in trout ol U s. in which industries, prosperous a few years ago. justifiably declared bio dividends, and, when an industrial crisis happened, such as always will happen, they were suffering through financial weakness. We have to realise that we are employing directly approximately 20.1)09 workers, and a venture to guess that the work they are engaged 011 finds employment lor a similar number engaged in primal' 01dustries and in distribution. No linaucial forward policy should endanger the steady employment ol stub an mini , we must realise in the electrical industry things that are wanted In-day may , 1 ,,t be wanted three years hence, that new ideas are constantly being evolved ami capital must he available to study and develop them. The value m the eommtmitv at large of a coinnany like ours shows itself ill oilier directions. The quality of its productions is mainly based on home raw material and home labour; what we produce does really add substantially to the wealth of the country. Our exports, amounting tn several millions, are much more valuable' exports Ilian those of much bi'i-ii'er concerns, who must, by the nature of their business, rely largeL oil importation, and whose exports leave leave this cutinlry merely a commission. While the country imports over bOd millions worth ol essential foodstulls. Hu- quality of our exports, which have to pav for such importation, plays an important part. Our eoutlibtltinn to taxation and public services ol various kinds (an not lie much less Ilian a quarter of a million, and tin* tact that out wages ami salary bill must amount to something between three and foul milHull pounds a year, means a considerable contribution to the purchasing power of the people of this country. "I will only just mention 011 c or two (,f Die products of this company which, in the uninitiated, seem to have developed into staple industries, and I am sure the few facts 1 tell them will (■beer them up as to what is 111 store, and whilt we may look forward to. Let me just give 11 few illustrations. The supply of electricity in the London area ’by some 70 to 80 authorities has involved II capital expenditure of over till millions. If the engineers ol this company were given the chance ol a modern lay-out of one big power-sta-tion. we could, tor less than Halt that capital, give a bigger output at a considerably reduced cast, of production. This is just an indication of what will happen sooner or later to 90 pel cent, of the existing power stations in the country. Aon can imagine how - reduced cost of Dl'oduet ion will stimulate the applicnt ion ot eieetrual apparatus in industrial and private service.

"But of course it i- impassible to i'MH'i |. (Oiilium'd prosperity (.1 one indusll'V. howe-.ei i.iiulilicd that iiehiHe m.i.v be For progress, it tlm rot -Krone any liiitl- of an ailing man iimv be. it must sutler event unity it Ihe illness caniml he cured, ami it would be w rong not lo admit I hat lids cuimIrv is Mifi'eriug from many ailments. It is not foi 10. on ties occasion. in dwell on 1 hem. or to suggest I'Hi'es, lull I am satisfied, whatever else may lie amiss, one tiling is certain, unless we realise that we are nut supermen. |Lil we are only ordinary mortal-' unless we walk as hard as other nation and :i -1 efficiently. we must drift farther back. Our eventual eul'e depends ~ii I fie 1 .ossihilit v of a big ex port. "Tbe ITexidelil of the Board ol Timlo rubbed it in flic oilier day Don foreign countries will in-: buy what (: ■e\ life v here they like, and ai tic price | bey like: we 0:111 mll compel , Loin I" lev our goods if we cannot c mnneto. "The recent investigaiion which my colleague, Mr Railing, am! I made of the working condit ions of the Cnnlineni satisfied 11s Dial most industries in mosi ('out mental countries work op to 7>.”> hours and more. Whilst D'ere is such a tremendous ilill'oremc in (he Working hours of our people compared with the foreigner, our great or skill, uni- greater loyally, our greater efficiency cannot make up tin* dilior•ellee ; we must realise llmt we must meet tie' situation in this dire tiou somehow. particularly in I lie basis industries of coal, steel atel iron, on which almost every other industry depends. We are outside the present di-nuie. am! anything T -n.v is nut said in a spirit of inteiTeivnee- what T sue ol hours and eftieieuev 1- al.-nlie-itbte to both employers ami employed, alike I offer it simply as a personal nninion. But there is one other as. pert of Die present stale of product ion L.hrouglmut. Die world to which I would like to make reference.

"Even if we settled all our diflieult iis. even if we worked as hour as iho foreigner. I still feel that the power ui‘ production of thi' world is ion urea I for the nhsnrhing power of the world at the present moment. The meat needs of the war developed ill" power of prnduefiiai of each country |.i at least double w hal it requires -. if w ild ("impel it ion between i oiiitt ri"--is allowed to I'M unchecked it will lead (o political dillii-ul 1 ies and ureal industrial crises. first in the weaker countries, hut eveniutdlv to the detriment of all and particularly to the dotrim out of the wam'-earners. I cannot hut lee I that the hie; industries of the prim ipal countries will have to nut their heads together in a spirit "i ill" ‘survival of I lie fittest.’ They will have di -ci .s siandardistu iou. wot 1.imr (.mdi'iiaii.'-. and sTmvimc of mat kef . Oulv i-v such cuihd-oration can indti■dial su-a lines", gradually h" ol.tained and the stendv recovery of the world i an he helped."