TOBACCO SECURITIES TRUST
EFFECT OF TAXATION ON REVENUE SIR HUGO CUNLIFFE-OWEN'S STATEMENT
TH:E 13th annual general meeting of the Tobacco Securities Trust Company, Limited, was held on January 30th at 7 Millbank, S.W.
The Rt. Hon. Lord Bradbury of Winsford, G.C.B., presided in the absence through indisposition of Sir Hugo Curiliffe-Owen, Bt., the vice-chairman of the company. The review of the year's operations of the company prepared by Sir Hugo Cunliffe-Owen, the vice-chairman, which, having been cir- culated with the report and accounts, was taken as read, was as follows : —It is usual at our annual meeting to review the important items of the balance-sheet Taking the assets side first, shares in a subsidiary company stand unchanged at £2,000,000. The subsidiary company is Tobacco Investments, Limited, which is a holding company holding the bulk of our unquoted investments. Other in- vestments at £3,232,654 show an increase of £280,012 due to our subscriptions to War Loan and War Bond issues during the year.
Advances to a subsidiary company, £304,155, show a reduction of ki66,o7o, representing payments made to us by Tobacco Investments, Limited, which rayrnents are made in the ordinary course of our business. Cash at banks at £379,544 shows an increase of £52,136. Turning to the liabilities side of the balance-sheet there is no change in the capital in form or in amount. Sundry creditors at £221,891 shows an increase of £180,016, due mainly to provisions for income-tax and excess profits tax. Capital reserve at £119,207 shows a small increase of £2,152, accounted for principally by profit on American stocks requisitioned by the Treasury. The general reserve remains unchanged at £200,000. This brings me to the revenue account for the year, which shows a net income of £498,909, compared with £535,700 the previous year, a reduction of £36,791. This reduction in net revenue, however, is due entirely to increased taxation.
At our meeting last year Lord Catto informed you that we were continuing our sales of the much reduced balance of shellac at greatly improved prices; this balance has been sold during the year ended October 31st, so that we have no further interest in this commodity. Lord Catto, to whom they were so much indebted for his services to the company, had been called in by his Majesty's Government, and had therefore had to rc,ign all his other offices.
The report and accounts were unanimously adopted.
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