Mr. MACLEANasked the President of the Board of Trade whether inquiries have been made into the high dividends declared by the Bell and Times Spinning Companies, of Oldham; whether those dividends were equal to 666 and 800 per cent. per annum; whether his attention has been drawn to the disbursements made by those two companies during the last quarter, equally 200 per cent. per annum in each case; and whether notice has been given the workers of a reduction in wages?
§ Sir P. LLOYD-GREAMEThe answer to this question involves a somewhat detailed statement of the findings of the Standing Committee on Prices and, with the hon. Member's permission, I will circulate it in the OFFICIAL REPORT.
The following is the statement referred to:
An investigation was made last year by the Standing Committee on Prices of the Central Committee into the trading accounts, profit and loss accounts and balance sheets of the Bell Cotton Spinning Company and the Times Spinning Company.This investigation showed that these companies employed large loan capitals and that 591W the percentages of dividends upon share capital could not therefore be taken without qualification.In the case of the Bell Spinning Company the percentage of declared dividends and bonuses on subscribed and paid-up share capital for the year ending 30th April, 1920, was 333⅓ per cent., which was equivalent to 41[...]6 per cent. upon the total capital employed (after deduction of Excess Profits Duty but not Income Tax).In the case of the Times Mill Company the percentage of declared dividends and bonuses on subscribed and paid-up share capital for the year ending 26th January, 1920, was 355½ per cent., which was equivalent to 27.8 per cent, upon the total capital employed (after deduction of Excess Profits Duty but not Income Tax).The accounts of the two companies for the current year have not been investigated, and I have consequently no information for that period beyond that published in the trade papers, nor have I any information as to the last part of the question.