COMPANY MEETINGS
MID-EUROPEAN CORPORATION
MR. NORMAN HOLDEN ON GENERAL CONDITIONS
THE fifteenth annual ordinary general meeting of the Mid- European Corporation, Limited, was held on May 9th at Win- chester House, Old Broad Street, E.C.
Mr. Norman Holden (chairman) said: Gentlemen,—The per- centage of our investments in Germany, including Austria, is now 15.97 per cent., as against 16.76 per cent. last year, and 33.84 per cent. in 193o; our percentage in the remainder of Europe is 13.09 per cent., against 14 per cent. last year and 29.36 per cent. in 1930. The total depreciation in the combined companies, including losses written off in Lothbury Continental Company, is £965,508, as against £827,159 last year. About 61 per cent. of the increase in depreciation is attributable to a more stringent method having been adopted in valuing investments which are quoted on German Bourses. Under present conditions, it is impossible to arrive at what is the true value of our investments in Germany. Our net revenue this year is, after Debenture interest and income-tax, £51,452, compared with £54,485. We have earned 4.30 per cent. (gross) on the Ordinary, as against 4.47 per cent. (gross) last year.
As to the general situation, the important influences seem to be, first, international politics and, secondly, uncertainty as to the effects of the heavy increase in Budget figures and their incidence on profits and earnings. My view as to the first is that after many unfortunate misunderstandings on both sides, Germany and Great Britain are now beginning to understand each other. That is to say, we now understand that Mr. Hitler's ambition is to dominate Europe, Africa and a large part of Asia, and he understands that we intend to stop him doing it. On this basis of conditional hostility, it should be quite possible to arrive at a reasonable work- ing agreement, which would enable both countries to carry on in much the same way as they did from 1897 to 1914, a period some- what longer than Mr. Roosevelt's minimum demand. As to the second cause of unrest—viz., the uncertainty of the incidence of taxation, I would make a plea to Government spokes- men to make up their minds whether they believe in the profit motive in economics or the socialistic and communistic theory of the inherent wickedness of the profit motive system. If they would do this, we might be spared a series of slogans that seem somewhat incongruous. " The people of this country will cheerfully carry heavily-increased tax burdens." " No increased profits through or during war." " We can rely on English investors subscribing large amounts of new armament loans." " Wealth will be heavily taxed."
The report was unanimously adopted.
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