The picture presented by White Products sales, however, is by

no means so attractive. We are up against the ability of the Oil Companies to produce solvents by the use of modern techniques. When one bears in mind, in addition, the doubt about the continuation of the present preferential excise duty of 1/3d. per gallon after 1964, it will be sect, that the outlook for our White Products is not good. Needless to say, the whole problem is receiving our very close attention.

As you know, we are developing the production and exploitation of Pyridine and Pyridine Bases and their derivatives and you may have seen in the Press the announcement of our plans to increase considerably our production of Pyridine. The Pyridine bases arc only found in Crude Tar in very small proportion and, even so, few Distillers prac- tise full extraction. In the 1920s blends of Pyridine Bases meeting either of two international specifica- tions were used at home, in Europe and the United States for the denaturing of industrial alcohol. These markets have dwindled over the years and they could not in any case be said to involve chemical ex- ploitation. However, during the last 15/20 years Pyridine itself has found its place as a versatile organic chemical. We ourselves use relatively large quantities of Alpha Picoline for the production of 2-Vinylpyridine. Beta Picoline is used in the pro- duction of Nicotinic Acid and Nicotinamide, com- ponents of the Vitamin B complex, and Gamma Picoline is the starting point for the anti-T.B. drug, [son iazid.

You may have noticed in the Press references to the production and development of "Promintic." This product consists of a Pyridine-based derivative which was one of a number of research-scale chemicals which we produced and offered to in- dustry for examination. I.C.I. Ltd. found that this particular chemical had great value as a veterinary anthelmintic and after very extensive trials are marketing it for that purpose. We have an agree- ment with I.C.I. with regard to the supply of the chemical.

This is far from being the whole story, but obviously chemical exploitation would always be subject to limitation if availability were confined to the quantities extractable from Crude Tar. This is why we decided to increase our production by new methods.

During the year a new continuous Naphthalene crystallising plant was put to work at Four Ashes and after the inevitable teething troubles, has settled down well and is a credit to our Technical Staff. It has enabled us to reduce costs and increase out- put.

Road tar continues to be a large and important market for us and our good position here has been well maintained. On the other hand, the Tar Fuels market, which on the whole has been a successful feature in our sales, has been considerably disturbed by the Hydrocarbon Oils duty in the Budget and has not yet settled down.

The exploitation of Pitch and Creosote constitutes a field that has been exhaustively worked over already for very many years past, a fact which the Coal Tar Research Association discovered when it began life in 1948. We have developed and arc con- tinuing to develop and explore outlets for special qualities of Pitch and Creosote. but these are not Quite apart from these, however, we are not at present able to allocate very large quantities of our other products for export. None the less, and particularly having in mind future expansion in new directions, we are building up our export organ- isation so as to he able to handle business in every country. We already have, as you know, an American Company selling, in the main, Tar Acids, and a subsidiary thereof which handles the import arrangements for the Tar Acids and sells bulk liquid storage facilities as well.

During the year, as you may have seen from the Press, we have formed a Company known as Schenectady-Midland Limited, in conjunction with Schenectady Varnish Inc. of America to manufacture and sell the special resins, adhesives, varnishes, etc., for which Schenectady have earned a great reputa- tion in the States. This step is responsible for the increase in Trade Investments as shown on the Balance Sheet. The new Company was incorporated in the Autumn and so far we have been exploring outlets and developing sales by way of importation from Schenectady. Prospects, however, are suf- ficiently encouraging to support a case for the erec- tion of manufacturing plant and with this in view we have already cleared and serviced a portion of our 60 acre site across the canal from our ex- isting Works at Four Ashes. The building up of an enterprise like this, although it is not spectacular in size, takes time and patience. but we can see the prospect of useful business which we intend to expand by every means possible. This develop- ment is one in which Tar Producers, as such, are not concerned.

The new Market Development Department to which I referred last year is proving most valuable. The relationship between Sales, Market Develop- ment, Research and Development and Production can always present something of a problem; in our case the Departmental Heads meet together quite frequently and so ensure that each point of view is given its full weight. The optimism I expressed in referring to all this in general terms last year is proving to be justified.

Despite what I have just said about particular Departments nothing must cause us to forget our gratitude to our Staff in general and to our work- people whose united efforts are vital to our progress.

The report and accounts were adopted and the dividend of 121 per cent, on the Ordinary Shares was approved.

G.R.A. TRUST

POINTS FROM MR. F. S. GENTLE'S STATEMENT ifill 33rd Annual General Meeting was held on 26th July.

In the Chairman's Statement, previously circulated, Mr. Francis S. Gentle, C.B.E., after referring to the improved results, reported that the £200,000 Olympic Enclosure at the White City had been widely acclaimed and would strengthen the Company's competitive position.

The effects of the new Betting Act were being closely watched. Any move to enable betting offices to remain open after 6.30 would he resisted.

The Board was also alive to the restrictive effect which the recommendations of the Royal Commis- sion on Local Government in Greater London might have on the choice of Appointed Days. This could lead to increased competition between Tracks in the Greater London area.

On freehold property, Mr. Gentle warned against the impression that greyhound stadia could quickly and profitably he turned over to other USCS. This was to reckon without the Planning Authorities.

But, taking the long-term view, the enterprise was soundly based and Mr. Gentle expressed confidence in its future.