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Aviation History
1918
1918 - 1155.PDF
COMPANY MATTERS. Aircraft Manufacturing Co., Ltd. AN extraordinary general meeting of the Aircraft Manu- facturing Co., Ltd., was held on October 8th at the Central Hall, Westminster, for the purpose of submitting to the Shareholders a resolution enlarging the directors' borrowing powers. Mr. Hugh Burroughes, a director of the company, presided in the absence of Mr. George Holt Thomas, the chair- man of the company, who was prevented by an attack of influenza from being present. Mr. Burroughes, in moving the resolution, after expressing the regret of Mr. Holt Thomas at his inability to be present, said : " I trust that you will agree that the accounts arehighly satisfactory, which means the immediate participation of the preference shares in an increased dividend over and above the fixed 7 per cent., and makes the total dividend for the first year of the existence of these shares 11-4 per cent. I believe, however, that you will take even a greater interest in what the company has done to assist in winning the war. As regards profits, this company, as, indeed, any other air- craft company, notwithstanding the fact that we are pioneers, suffers by comparison with many firms who have only entered on aircraft production since the war, as we have a small pre-war standard year owing to the apathetic view taken as to the value of aircraft in pre-war days, whilst those firms who have come in since the war have a good pre-war standard on some other product, and we are, of course, all subject to 80 per cent, excess profit duty. It is somewHat difficult for us as directors of the company to praise its work, but as pro- prietors it is your due that you should know something of what we have done against the Huns. " I think I may safely tell you that during the war, as in pre-war days, it has thoroughly maintained its position as one of the largest producers in this country, but we have done much more than that, inasmuch as we have provided the designs on which a large proportion of the aircraft pro- duction of this country is founded, and I think it is not going too far to say that if it had not been for our designs it would have been very difficult indeed to carry the war into the enemy's country as we are doing to-day. Also we pride our- selves on the fact that we have supplied the designs for a very large*^>roportion indeed of aircraft production in the United States. Our latest types of machines have' remarkable qualities in many ways. We can therefore claim to have done our bit in the war both as regards production of machines and also as regards production of designs. "Lord Cowdray, when President of the Air Board, was good enough to describe the existence of this company at the outbreak of war as a national asset. I think you are aware that our machines are known as the D.H. machines, and are so named after Capt. Geoffrey de Havilland, who has been our chief designer since the beginning of 1914. In order that the name of our company and the name of the machines may be more closely identified, we are considering, with Capt. de Havilland's approval, a new form of nomenclature, which will be announced shortly. " Now, two questions have been addressed to the board, which I may as well answer whilst I am dealing with the question of design. I am asked what royalties we are to be paid by the Government ior the use of our designs in so many factories in Great Britain, and also for the use of them in large quantities in the United States. The answer is, frankly, I cannot say, but I have no reason to doubt as yet that we shall be adequately compensated, and I cannot imagine any Government would take designs, not only for this country, but for the United States—even though they may have the power under the Defence of the Realm Act—without adequate compensation. " Another question, which is of even more vital interest to you, which I wish I could answer correctly, is, what is likely to be the position of the Aircraft Manufacturing Co. after the war ? It is, of course, impossible to forecast this correctly. Naturally, aircraft will not be in the same demand as they are to-day during the war, but it is a curious fact that the pioneer firms—that is, those who were in existence before the war, building aircraft whether they were wanted or not, building regardless of the fact that no recognition could be obtained for the utility of aircraft in war—have, during the war, been the designing firms—that is, the firms in a positid%i to produce constantly improving designs to beat the German machines, and providing all the blue prints and technical information on which the enormous production of aircraft in this country has been obtained. "Now these firms, of which perhaps the Aircraft-Co. is the largest, can be counted almost on the fingers of one hand^ and if the Government after the war (always provided, of OCTOBER 10, 191-8. course, that we do our duty, as we did before and have done during the war) place their orders for the naturally diminished number of aeroplanes required with those aircraft-designing firms, as opposed to placing them with the hundreds of air- craft builders but not designers, who have only come in since 1914, then I believe that these firms would be adequately maintained. I have not yet encountered any Government official who did not think this would be the case. It is perhaps not for me to express an opinion, but at the same time I feel that it is necessary to maintain these firms in active existence, even in the interest of the nation. I have mentioned that our output is large—it is more than that, and for the last financial year it amounted to nearly £5,000,000 sterling. You will all realise that we cannot carry out con- tracts of these dimensions without adequate funds. It involves the carrying of very large stocks of material, the pro- viding for very large wage bills, and has, up to the present, involved very heavy capital expenditure. We could, of course, raise permanent capital, but I do not think—and I am sure you will agree with me—that it would be in our interests to saddle the company with huge capital liabilities on which we should have to pay interest after the war. " The resolution I have to propose gives the directors increased borrowing powers, in order that we might finance our very large contracts by temporary means. I may men- tion in this respect that.we have arranged, with the sanction of the Treasury already obtained, to create an issue of £250,000 in short-term notes redeemable at any time at our option, but in any case after three years, by annual drawings. The whole of this issue has been purchased by the British, Foreign, and Colonial Corporation, Ltd., who have placed our previous issues in a most satisfactory manner." Mr. A. F. Thomas seconded the resolution, which was put to the meeting, and duly carried. Sunbeam Motor Car Co., Ltd. THE Directors in their report for the year ending August 31st, 1916, state that the delay has been due to the time absorbed in negotiations with the Ministry of Munitions and Inland Revenue Authorities in settling the amount of Munitions Levy and Excess Profits Duty payable and in assessing the probable post-war values of the extensive capital expenditure incurred to meet national requirements for war purposes. The profit for the year, after paying all expenses of manage- ment and allowing for depreciation and income tax and after deducting excess profits duty and munitions levy for two years to date (but before providing for directors' remunera- tion) amounts to ^50,025 5s. id. After adding £71,167 12s. $d. the balance from last year, and deducting £900, the half- yearly dividend on the preference shares and £12,000, the interim dividend at 5 per cent, (free of tax) on the ordinary shares paid in April, 1916, there is a balance of £108,292 \js.6d., out of which the following appropriations have been made in accordance with the resolution passed at the meeting held on November 28th, 1916 :—Balance of dividend on the pre- ference shares, £900 ; final dividend of 10 per cent, free of income tax on the ordinary shares, £24,000 ; bonus of 3-s. per share, free of income tax, on the ordinary shares, £36,000 ; placed to bonus fund, &c, £5,000 ; directors' remuneration, free of income tax, £5,000 ; balance carried forward to next account, £37,392 17s. 6d. Vickers, Ltd. VICKERS, LTD., announce that Treasury sanction has now been obtained for the new issue of 1,850,000 new ordinary shares. and The Aircraft Engineer, 36, GREAT QUEEN STREET, KINGSWAY, W.C. 2. Telgraphic address : Truditur, Westcent, London. Telephone : Gerrard 1828. SUBSCRIPTION RATES. FLIGHT" will be forwarded, post free, at the following rates I UNITED KINGDOM. 3 Months, Post Free 6 ,. • 12 ABROAD. s. d. . s. d. 71 3 Months, Post Free 8 3 14 1 6 „ „ ,. 16 6 28 2 12 „ „ .. 33 o These rates are subject to any alteration found necessary under war conditions. Cheques and Post Office Orders should be made payable to the Proprietors of "FLIGHT," 36, Great Queen Street, Kingsway, W.C. 2, and crossed London County and Westminster Bank, otherwise no responsibility will be accepted. II56
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