COMPANY MEETING
MR. EDMUND L HANN'S SPEECH AT the annual general meeting of Powell Duffryn Associated Collieries, Limited, held on -July 14th, the Chairman, Mr. Edmund L. Hann, after dealing with the accounts, referred to the modest increase in, the, profits for the year. despite Ihe substantial provision against all amounts overdue from Spain. The company's Spanish - business had been considerable, and substantial sums of money were out- standing in that country. Nevertheless, the position should not be viewed too despondently since Spain, before the civil war started, and for a great number of years, had a credit trade balance with Great Britain, and would certainly wish to trade again as soon as her internal difficulties had been overcome.
At the end of 1936 and since the beginning of 1937, there had been a very appreciable increase in demand. The company's collieries, although working regUlarly, had been unable, for reasons which would be well understood by those acquainted with mining condi- tions, suddenly to increase outputs to an extent sufficient to meet the requirements of all their customers. Everything practicable had been done to overcome this shortage, with the result that the output since the beginning of January had been considerably increased.
The Government rearmament programme had undoubtedly had its effect, although it had not been an unmixed blessing so far as the company was concerned, since not only had mining costs been seriously affected, but certain of the company's development schemes had been retarded •and others which had been planned had still to be considered, because they had been rendered of doubtful economic value. , . .
The Statutory Scheme of Controlled Coal Sales came into opera- tion in August of last year, but within a few months of its inauguration the general improvement in the coal trade took place. It would, therefore, be premature to express any opinion upon the merits of this important innovation in the organisation of the coal trade.
In the latter part of 1936 the representatives of the colliery owners and of the mine workers, had started a-series of frank, yet friendly, dis- cussions, which culminated in acceptance of a new Wages Agree- ment nearly six months before the expiry of the old. The workers had received as from April 5th last sut s:antial increases in earnings, which they might not otherwise have enjoyed until October 1st next.
SUBSIDISED GERMAN ExPoaTs.
The - welcome increase in demand was principally due to the improvement in the Inland market ; - the picture so far as export trade was concerned was a different one. He felt it his duty again to draw attention to the alarming decrease which had taken place in'this Country's 'export coal trade since 1929. This was principally due to the hetiVily subsidised exports from Germany. Last year the question of a Government grant to subsidise coal exports from this country was much discussed, and it must again receive considera- tion; the chance of any satisfactory arrangement being reaced in regard to a European Coal Cartel would b.:. remote.
Shareholders would be aware that a Government Committee had been appointed to report upon the organisation of the distribution of electricity in Great Britain. Among other recommendations made by this Committee, there was one that the distribution of electricity, unless provided by statutory undertakings, should be made the subject of compulsory purchase on a " cost less depreciation basis.". This proposal was almost the equivalent of confiscation, for no consideration was being given to the supplier's loss of profit and goodwill. The company intended to take all steps possible in conjunction with other colliery companies similarly placed to prevent such unfair proposals being put into effect.
Shareholders would have seen in the Press that the company had made proposals to the Government in regard to the installation of an oil from coal plant, and that the Government had set up a Committee to deal with this matter. The company's officers had given' evidence before this Committee and awaited with a great deal of interest the Committee's report. The erection of such a plant would be of incalculable value both to the. country and to South Wales.
The great improvement which was taking place in heating appli- ;-nces had increased the demand for all grades of smokeless fuel, and the public had been quick to show its appreciation of PhurnoD, which could be burnt with the highest efficiency under the most exacting conditions. The result had been that for the year under review sales had increased very materially.
The directors' report and the accounts were adopted, and the dividends recommended were duly declared.
The annual general meetings. of The Powell I)uffryn. Steam Coal Company, Limited, and -Welsh Associated Collieries, Limited,. were subsequently held, at which the reports and accounts were adopted
and dividends recommended- duly declared. - •
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