Agreed Sale to Help Shareholders
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IN the ordinary way the company could have looked forward to many years of successful trading, but the Government has made it clear that it is determined to go on with its nationalization projects. That being the ease, the directors have been in touch with the Transport Commission on the principle that the stockholders' interests would probably be better served by this method than by fighting to the last ditch, as has happened in other industries.'
Sir William J. Thomson. chairman and managing director of the Scottish Motor Traction Co., Ltd., made this statement at the company's annual rs4
general med.-mg last week. He added 'that, although the S.M.T. group paid its officials and staff ,the highest salaries in the industry, fares, on the average, were the lowest, but a greater profit was made than by any similar transport company.
Net current assets. plus outside investments (at book value), less current liabilities, amounted to £5,500,000. Although only about £1,000,000 of ordinary stock had been issued, reserves and unappropriated profit amounted to more than £7,500,000. This satisfactory situation, said Sir William, had been achieved only by ploughing back profits for many years.