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·THE COLONIAL DISPENSARY

HONG KONG

HONG KONG DAILY PRESS, TUESDAY, JANUARY 31,

BRITISH AMERICAN TOBACCO CO., LTD.

INCREASED NET PROFIT

COMPANY'S STRONG POSITION

VITAL IMPORTANCE OF STABILISING SILVER

SIR HUGO CUNLIFFE-OWEN ON PROSPECTS

18pecial Air-Mall Service)

LONDON, January 10, The thirtieth annual general meeting of British-American Tobacco Company,

Ltd., was held yesterday at 7, Milibauk, London, S.W., Sir Hugo Cunliffe-Owen, Hart, the chairman), presiding."

The Chairman said :

.

The Secretary (Mr. A. 3. flickard, F.C,I.8.) accordingly read the certißonte of Lord Plender, of Moasra. Deloitte, Plender, Grinths. & Co. · chartered¦ accountants, apponded in the accrunts. Before 1

charging the payments made to om- ployees during the year." -"

The item of reserves for buildings and machinery now stands at £625,099

An increase of £25,000.

Premium on ordinary stock issued remains at £386,808, the same figures last year.

Provision for redemption of coupons now stands at £80,019, a 'increase of £5,37.

Ladies and Gentlemen,With your approval, we will take the notice con: vening the meeting and the report of the directors and accounts, which have been circulated, as rend, and the i

Special reserve stands at £1,028,146, sceretary will now read the auditor's) an increase of £3,778. As your chair cortifieste.

mon have stated in speeches in previous years, this account was created in which to carry profits of capital mature

The Year's Basults,"

This brings m to the Inst item is The accuanta profit and loss account. show a net proat for the year, after deducting all charges and expenses d providing for income tax, of £6,438,252, An Increase of £103,804, which, under the very exceptional world conditions,

trust you will find satisfactory. Last your wa carried forward A balance of £1,833,040 18. 101. To this must be added the profits fur dus year a proviously mentioned, £5,438,252 19s. 7d., Joss the dividend on the b per cent, preference stuck of £995,000; on the por cent, second preference stock of £300,000, and the four laterins dividends Bait on the ordinary stock for the year,

The Chairban continued: deal with tho' accounts. I 'should' fika' to inform you that Mr. H. R. Gough has been elected a deputy chairman of your Company since I last addressed yo Mr. Gough has been in the employ of tho Company since 1995, and line boen a director since 1928.

You are aware, it is usual at our go through the various iteras of the balance-shent and

anocot necting to

maka sonza, comments thereço.

||

COST OF UNEMPLOYMENT

NOW £180,000,000 A YEAR

At a recent meeting of the Lea gue of Nations Union General Council, in London, Mr. Harold B. Butler, Director of the Interna- tional Labour Office, declared that nobody coining to London from abroad would ever divine for a mo ment the true state of things in this country. It was only when one went to the North, or to South Wales that one realised that thing were very far from normal.

He thought he was right in say. ing that the State was now paying something like £120,000,000 a year for unemployment relief, while in addition local authorities were pay ing nearly £40,000,000. It had been estimated that 25,000,000 peo ple in the world were out of

work.

to take advantage of any opportunity which may arise for further developing your "business,

Directors' Visits,

1 may possibly interest you to know that, following the practica of your directors personally visiting countries, in which your Company is intereste·l | (which practice has been in force inco the inception of this Company), the fol lowing countries have been visited dur ing the last year by one more of your directors :-West Africa, South Africa, Egypt, Palestine, India, Straits Settle ments, Malaya, Java, Siam, Australis, Now Zealand, Canada, United States of America, Mexico, Panamas. Brazil, Ar genting, and other South American countries. Two of your directors have

con-

been in the United States

inuously for the whole year,"and_ono of your directors bus boen in China continuously for the whole year. In

Taking the assets side of the balance sheet first, you will observe that the item of real estate and buildings at cost, lasa provision for amortisation, of lease. holds, £852,193, shows a decrease of outing la £3,030,400 38. 4d., leaving addition many visits have been paid to £60,428 as, compared with last year, disposable balance of £2,753,833 188: those countries on the Continent where

mainly due to the transfer of one of the Company's factories abroad tea subsidiary company...“.

Plant, nachbuery, furniture, and fittings at cost or under, £507,946, shows a decrease of £181,235. This decrease is also due to the transfer of the machinery Installed in the factory just referred to and to writing" off of eartsin obsoleto machinery.

Goodwill, trade-marks, and patents remain at the same figure a last year —namely, £200,000,-and in view of the great valna of the Company's trade

marks the directors roninis of the opinion that this item should appear am this balance-abeet even if, only" at the nomina! valne ol £200,000.

Y

Investments in Subsidiary and

Associated Companies,

Investments at cost or under in shares In subsidiary companies, £19,433,809, shows an increase of £1,451,820, due to further invostinents in such companies and the transfer of our holdings in, an associate company which is now B subsidiary company»,

Shaces and bonds in associated com paules, £4,072,042, show a net decrense of £41,645, due to the transfer to the subsidiary company just referred to, less further investments.

British and Dogiinion Government ai other investments, £372,200, shows * decrease of £219,585, dao to the ren lantion of investments. Loans to and current accounts with your (1) sab sidiary companies (less provision for doubtful accounts), £5,115,048, show an increase of £372,400, and (2) ssociated companies loss provision for doubtful secounts), £2,803,430, khow an increase. of £709,552, The combined 'loans and current, accounts with subsidiary and naoaiated companios show an increase of £1,089.042.

These increases are partly due to ordinary business requirements of your Company and to the fact that we have mado advances to a subsidiary company for the purchase of lost tobacco, and also to the fact that we have to advance money for the purchase of leaf and supplies to companies operating... – in countries where the exchange restrictions prevent the Company from remitting sterling.

Stocks of loaf, manufactured goods, and materials at cost or under now sland at £4,797,400, decrease of £1,941,891. This is mainly secounted for by some of our subsidiary com panies now carrying their own leaf which formerly was carried by your Company, and partly accounted for by "the low cost of leaf” in 1931,-

Bundry debtors, less provision for donbtful debts and short-low deposits (£631,650), stand of £2,094,732, which shows a decrease of £439,241.

Substantial Cash Besources.

B

id, out of which the directors recoma mend the distribution on January 18 of a dual-dividend (fres of United King- dom income tax) on the issued ordinary stock of Bd. por £1 of stock, amounting tv -£786,092 n. 8d." leaving £1,039,740 175. 5d. to be carried forward,

The only other item I need-refer to in the note with regard to a contingent liability of £760,479. Of this amount I do not think more than £30,000 will ever be called up. One of the companies' in respect of which there is a contingent liability is Tobacco Insurance Company, Ltd. That caded on December 31, and I am glad company's financial year

our subsidiary companies have factories, `

I now beg formally to move the adop tion of the report and balance-sheet for the year ended 30th, September, 1932, including the payment on January 10t1 instant uf a dual dividend of 84. per £1 of stock upon the issued ordinary stock, free of United Kingdon, income tax.

Declaration of Interim Dividend.

I may also vuention that the directors have declared for the year, 1932-3 an

free of United Kingdom income tax, also interim dividend of 10d. por £1 sf stock,

to be able to tell you that the company | payable on January 18th, so that the lins again, had a very satisfactory year, ¦ stockholders will receive on that date and I need hardly remind you that, in Is. 6d. per El of stock. the eront of any of you having insur- ance to place (other than life insurancs), Mr B. J. Gillchrest (one of the do- Tobacco Insurance Company will be puty chairmen) seconded the resolution, very glad to be given: an opportunity to which, after the Chairman had replied quote for such business.

to a few questions, was carried un animously,

Taxation and Exchange

· Restrictions,

When I had the pleasure of addressing you last year I told you that 'from à. world tolacca manufacturing point of view I did not remember a moré dificult year than the one then under raview; under review has been, if anything, still but the Company's financial year now

more difficult.

From the Company's business point of view we have been adapting and are still adapting ourselves to the exigencies of the world crisis.

One of our greatest difficulties in that, whilst me sy to avertain extent be abis to force 10 course of trade, it is quite impossible for us to forsce what the Governments of the various coun- tries in which your Company operates will do in the way of special taxation or in special tobacco taxation, although by this tune one would have thought that the Governments of all countries must have realized that may additional taxation on tobacco must mean a redus tin in cousuraption and consequential decrease in revenue..

Another difficulty we have to face is that it is impossible to foresco what re- strictions foreign Governmente may impore in the way of translerring money from these countries to England, As you know, many countries have imposed exchange restrictions, which means that when company operating in those countries declares a dividend we unable to bring the money to this coun try, and we have not, brenght such dividends. into our balance sheet.

Stabilisation of Silver,

дго

Last year I told you that in my opinion it was of vital importance, not only to you as stockholders in this com- pany but also to the world in general, that steps should be taken to stabilise the price of silver. The various Governments of the world, now seem to think that there may be some sound. sense in this argument, but they have deeds, and bas can only hope that ther not yet translated their thoughts into

hands and do something. (Hour, hear;) may shortly take their courage in their

Cash at bankers, in transit, shu at call, £8,034,118, as compared with £5,880,203 - under this heading last year, shows an increase of £2,747,820)- of this increase, £1,460,000 ts sccounted Surely the numerous exchange restric

for by the realisation of Treasury bills for that amount which appeared in last year's balance-sheet. '.

tions which are stifling internations! trade everywhere are ample proof that. the monetary system of the world has broken 'down, and this breakdown is one

Turning to the liabilitics side of the of the principal causes of the world de balance sheet, the issued capital of £4,500,000 5 per cont, preference stock, pression. The meeting of the World £8,000,000 0. per cent. second preference Rectomie Conference in an urgent nead, stock, and £23,582,701 ordinary stock and its first object should be to endear

our to evolve ́s. monetary system' which remains the" kamé,

would meet present-day needs, restora. Creditors that is, subsidiary com the price of commodities, free us from panies (£2,783,201), associated companies exchange restrictims, and restore trade (£2,299,259).. ́ ́, and other creditors with the vest silvor using markets of the (£3,70,791), making a total of £8,810,251 world. (Hear, hear,)

7

1

نوع قطف

A Woman and Her Age.

they last came, date of departure, represents an increase of £804,507, Twish I felt more optimistis, of the The Travel Association of Great and destination. Butand this The grester portion of these balances world prospects for the coming year. Britain has been asked question answers the question--these are consists of moneys deposited by your However, as far as four Company's hul-

aubsidiary and associated companies and need is concerned. I see no reason which appears to be of some con nothing in the regulation affecting provision for payment of taxation, dus expect that we hall not do so well in makuto komentavialing Great foreign visitors which requires to British Dominion. And foreign Britain. It A Must I stata mythom to state their age. Ir this re- Governments as a joy to one of nge in the hotel register 1spect, therefore, they may travel in Employees benevolent fund £108,478, ment,

Visitors from other lands, if over Great Britain and take their ease This consists of the £100,000 alloonted to look years of age, are required to in any British hotels without at the general meeting hold 1980% fram gieter their name, nationality anxiety. The secrat, if it be one, plus, the balapes of that aste of arrival, inddrose from which is their, own.

Larest received on t

her Governments, PROGET

mply agy

esah to enable na

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The Recognised Standard of Quality Resident Agentes John D. Hutchison & Co... Hong Kong,

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SEVENTY-FIRST

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