§ 44. Mr. BUTCHERasked the Chancellor of the Exchequer whether his attention has been called to the published figures of the profits of the Maypole Dairy Company, which show that their profits in 1916 were £462,000, and in 1917 £747,000, and that in the latter year, after placing £10,000 to reserve, a dividend of 225 per cent. was paid on the preferred shares; whether the prices of the food products sold by this company are controlled; and whether he will take steps, by fixing prices for the food products sold or by adjusting the Excess Profits Duty, to limit the distributable profits of this company to a reasonable amount?
Mr. PARKERI have been asked to reply. The profits of the Maypole Dairy Company for 1916 and 1917 and the dividend paid in the latter year are correctly stated in the question. The prices of the food products sold by this company have been fixed by the Food Controller. I may point out that while the average dividend paid on the Maypole deferred shares for the four years 1914–17 was 112½per cent., the average dividend paid on these shares during the three pre-war years 1911–13 was over 190 per cent.
§ Mr. BUTCHERMay I ask whether, when a company dealing in food products is able to distribute a dividend of 225 per cent., it is not high time that the prices of those food products were further controlled, so as to avoid these extortionate profits being made out of the consumer?
§ Mr. LOUGHArising out of that supplementary question, may I ask the hon. Gentleman, in order to prevent its misleading character to extend, whether these deferred shares at all represent the capital of the company; and whether any dividend like 225 per cent., or even 100 per cent., was paid in any year by the company?
Mr. PARKERI can only refer both hon. Members to the reply I have given. The matter raised by the hon. and learned Member for York (Mr. Butcher) is one for the Food Controller, as it is not for me to reply on a question of policy. I may say that the figures I have given say, not 1974 225 per cent., but 112½ per cent. It was 190 per cent. for the three years preceding the War.
§ Mr. BUTCHERAs this question was put to the Chancellor of the Exchequer, who has control over these Departments, may I ask him if he will give a direction or suggestion to the Food Controller that will have the effect of reducing these extravagant profits?
§ Mr. BONAR LAWAs the question was referred by me to the Food Controller I have not looked into it, but I would point out to my hon. Friend, after simply listening to the question and the answer, that it does not follow if one dealer makes a large profit by selling at the same price as another dealer who does not make a similar profit, that the price fixed is unreasonable.