CONSOLIDATED GOLD FIELDS OF SOUTH AFRICA, LIMITED
TILE ordinary general meeting of this company was held, on December 7th, in London.
Mr. H. C. Porter (the chairman) first referred to the irreparable loss the company had suffered by the death of Mr. John A. Agnew.
Since the last meeting the financial world had been subjected to repeated and violent shocks which had gravely impeded the normal conduct of business, and for this reason it was hardly to be expected that the accounts now presented would compare favourably with those of last year.
Dealing with the accounts of New Consolidated Gold Fields, the operating company, dividends, profits, &c., amounted to £1,070,327 against £1,221,439 last year. Dividends again showed a satisfactory increase. The profit carried down to the appropria- tion account at £997,048 was £183,346 lower than last year, a result more satisfactory than might have been anticipated consider- ing the extreme difficulties prevailing. A dividend of 2s. per share had been declared, making 161 per cent, for the year against zo per cent. last year. This dividend, which was payable to Con- solidated Gold Fields of South Africa, permitted the directors to recommend a similar final dividend in that company.
With reference to their South African interests, it was satisfactory to note that the working profit for the year in respect of their producing mines amounted to upwards of £5,000,000, showing an increase of over £500,000 compared with last year's results.
With reference to taxation, however, in soite of repeated repre- sentations to the Government that the burden imposed upon the gold mining industry was proving a severe handicap to the exploitation of new areas and rendering difficult the provision of further capital for existing companies, the Budget .introduced for the year ending March, 1940, afforded no relief to the industry, and, notwithstanding the magnitude of the contribution paid by the latter to the Treasury, the Minister's references to the industry suers very limited. The rapid deterioration in the European position during the latter part of August, and the consequent depreciation of sterling, induced the Government to announce its intention of introducing legislation to appropriate the whole of the proceeds of the sale of gold over a price of 15os. per ounce. The Gold Producers' Committee had made strong representations for some relief to be granted to offset a rise in working costs, and they welcomed the statement of Mr. Hofmeyr that the Govern- ment was prepared to deal with this matter when it arose. The report and accounts were unanimously adopted.
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