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latter shower greater
companies and public enterprises; that the total of wages and salaries is rather more than three times as great as the total of gross trading profits; that the al proportionate rise hagetheoffe Between 1938 and 1948; and that both types of income have risen at a more or less equal rate-by about 50 per cent.-in the period between 1948 and 1954.
14. The distribution of gross profits as between dividends, taxes and reserves is a separate question. Table 2 provides estimates of the allocation of the total income of companies from their trading and other activities in the years 1938, 1948 and 1954.
TABLE 2
THE APPROPRIATION OF COMPANY INCOME(1)
112
£ million
Per cent. of total.
1938 1948 1954 1938
1948
1954
Gross trading profits of companies operating in the United King- dom (2)
690 | 1,790 | 2,560
67
76
76
Trading profits earned abroad
106 244 338
10
10
10
...
Non-trading incomes
239 322 466
23
14
14
...
Total income of companies ... 1,035 2,356 3,364
100
100
100
Dividends on preference and
ordinary shares
481 512 700
...
461/
22
21
Other interest payments, &c.(3) ..
United Kingdom taxes on income(4)
Saving before providing for depreciation and stock apprecia- tion(5)
160 206
374
...
151
9
11
95 743
978
9
31
29
299 895 1,312 29
38
39
Total income of companies... 1,035 2,356
2,356 3,364
100 100
100
(1) The coverage of this table is affected by successive acts of nationalisation and denationali-
sation. It includes all companies in private ownership at each date.
(2) Before providing for depreciation and stock appreciation.
(3) Debenture interest, co-operative society dividends and interest, interest on building society shares and deposits, other interest paid by banks; &c., and taxes and remittances 'paid abroad.
(4) Includes additions to tax reserves.
(5) Includes additions to dividend reserves.
Source: National Income and Expenditure, 1955, Table 29.
MON A
15. This table shows that in 1938 dividends in the sense in which they are normally understood, i.e., dividends on the preference and ordinary shares of companies-absorbed nearly one half of the total income of companies; taxes took 9 per cent.; and reserves, including depreciation, less than 30 per
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