FINANCE AND INVESTMENT
(Continued from page 61o)
A DEFENCE OF COMBINES
Contrary to some market expectations, Sir Malcolm Stewart was unable, at the annual meeting of Associated Portland Cement Manufacturers, to announce the details of a new quota scheme. He did disclose, however, that in conjunction with the Tunnel company, his own group was seeking to work out and implement a plan to provide more effective price control. In his view, such marketing arrangements would benefit not merely producers but con- sumers. I like Sir Malcolm's spirited and documented defence of the policy of combination in the cement industry. Some of his facts are very striking. Taking the average net price per ton obtained in 1925 as a basic level of loo, he showed that the 1938 average price was only 66 per cent. while costs had fallen during the same period from loo to 68 per cent. Thus, cement producers had given away to consumers the whole saving in costs, plus a bonus of 2 per cent. On this showing, the " Blue Circle's " policy of rationalisation comes out very well.
As to prospects, a great deal depends on the success achieved by the quota plan now being negotiated, but Sir Malcolm warned stockholders that the 1939 results were not likely to equal those of 1938. So far, home deliveries have been running " somewhat below " those of 1938, and the main hope of approaching last year's peak levels seems to lie in increased demand for large constructional work and a high level of activity in A.R.P. Obviously, the cement industry would have much to gain from a large-scale pro- gramme of deep shelter construction, but at present the Government shows no sign of being converted to this policy.
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