orAPANY MEETING
GREAT WESTERN RAILWAY CO.
chairman's speech at annual and special general meetings of ockholders, Wednesday, Mardi 11th, 1942:
ACCOUNTS
With regard to the accounts, the net revenue for the year amounted £6,931,767, of which £6,670,603 is our fixed annual payment under e revised financial arrangement with H.M. Government, to which I refer later. The balance of £261,164 represents, subject to minor usmients, the net income from sources not coming within the pe of the fixed payment. Tire balance brought forward from last ear amounted to £289,129, and after allowing for an appropriation 1:250,000 to the contingency fund it is proposed that a dividend La Jos. be paid on the consolidated ordinary stock for the half- ear to December pat last, making £4 per cent. for the year.
In present circumstances we thought it prudent to make this allo- on of £25o,000 to the contingency fund, which now amounts to • 4069,095.
The item in respect of superannuation and provident funds in the lance-sheet shows an increase of £7,710,005 over the previous year, ut this is largely a bookkeeping transaction, as the reserve for super- nation and pensions has declined by £7,184,719.
The only other item upon which I need comment is the increase I:5,604,851 in the-miscellaneous accounts on the liabilities side of e balance-sheet, which is due to transactions arising out of the ailway Control Agreement in connection with arrears of main- &c.
vISION OF FINANCIAL ARRANGEMENTS WITH H.M. GOVERNMENT When I addressed you last year I told you of the intimation which been given to us by the Government that in their view some odification of the financial arrangements then in operation would necessary on account of the war damage compensation proposals the Government. The Chancellor of the Exchequer in his Budget petch shortly after our meeting also referred to the desire of the chequer to avert further increases in railway rates and fares with a ew to checking the upward movement in prices which the Govern- tilt were anxious to stabilise.
These were the new considerations which necessitated a revision the financial arrangements previously agreed, and in the negotia- ons which followed the Government indicated their desire that the ew basis should be a fixed annual payment to the companies and London Passenger Transport Board in lieu of the previous rangement.
This proposal was readily accepted by the companies, and the only in at issue was the amount of the fixed annual payment which uld be made. •
In representing their views the directors necessarily had regard to national interest in the present emergency ; to the damaging en on the earning capacity of the undertakings which the con- gencies of war might bring about and to the post-war position of e companies. After taking these and all other factors into con- deration, they decided to accept the Government's final offer of an ual payment to the four main line companies and the London assenger Transport Board of £43,00o,000 to operate from Decem- r 31st, 1940, for the remaining period of control, which is to be ntinued for a minimum period of one year after the cessation of stilities. Our share of the £43,000,000 is £6,670,603. With regard to war damage, the new agreement provides that after ember 31st, 194o, no charge shall be made in the net revenue tints of any accounting period in respect of war damage and Is the earlier arrangement under which the cost of restoring such nage up to a maximum of £10,000,000 in any year was to be arged to revenue expenditure.
Previous page
