ARMAMENT DIVIDEND POLICY
William Beardmore and Co. is among the undertakings to which rearmament demand, reinforced by the plant modern- isation which better times made possible, has brought a sharp rise in earnings. Between 1937 and 1939 trading profits have increased from £185,315 to £513,674 and for 1939 an ordinary dividend of 10 per cent. has been paid out of earnings of over 70 per cent. This is conservative finance, but it was amply explained by Sir James Lithgow at the annual meeting. He stated that the works were fully employed, capital expenditure is necessary to cope efficiently with the large demand and that resources must be accumu- lated now to safeguard the pOsition when the war is over. It should be apparent to stockholders that this policy is in
their best interest. * *
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