COMPANY MEETING

DORMAN, LONG AND CO., LIMITED

Tan forty-eighth ordinary general meeting of Dorman, Long and Co.; Limited, was held on Tuesday, December 7th, at Winchester House, London E.C. The Itc. Hon. the Viscount Greenwood, P.C.; Chairman, who presided, said : The year under review, ended September 30th last, has been one of expansion of the company's activities in every direction. This means a great increase in employment. In all our works, mines and collieries, including our subsidiaries, the total number of OW employees is now 39,889, an increase over 1936 of 3,780, and an increase of 17,141 over the year 1932. Of this great total 34,150 are employed in and about Middlesbrough and in the counties of York and Durham. Our total wage and salary bill for the year under review amounted to nearly L7,000,000. These splendid figures are most gratifying and make clear the strength and influence of our company in our national life and especially in the hell-being of the North East Coast. I am glad to say that in Middlesbrough and Tees-side, the centre of our activities, there is an increasing expansion not only of our own industries but also of other industries.

I know you will want to express through me and the Board our appreciation and thanks to all those who work with us in the Parent and Subsidiary Companies of Dorman Long, and whose united efforts have produced the record results set out in the report and accounts. I am glad to say a healthy spirit of co-operation exists among all grades throughout our great business, and your Board and the Management do everything in their power to maintain that goodwill.

Out of the £ to,000 which was set aside last year for a Pension Fund, £5,000 was definitely allocated to the existing StaffPension th

Scheme. This year e Board have set aside a further sum of £15,00o for a Pension Fund for all classes of employees, but the exact allocation of this Fund has not yet been determined by the Board.

In the course of his review of the accounts and balance-sheet the Chairman referred to the repayment of the company's debt to the banks following on an issue of 750,000 ordinary shares, and the consequent relief of the company from fixed charges of approxi- mately £14o,000 per annum.

Additions to plant during the year included the completion of the new coking plant, a new light mill, improvements to existing mill equipment and the rebuilding and modernisation of the North Steel Plant, all at Cleveland Works.

. During the year the company's interests in the Union Con- struction Co., Ltd., South Africa, has been increased and that company has been amalgamated with Wade and Dorman, Ltd., the name of the concern being changed to Dorman Long (Africa), Ltd.

Continuing, the Chairman said :

The balance of profit for the year amounting to £x,375,418 shows a marked improvement over last year, and is a further record in the history of Dorman, Long and Co., Ltd.

During the period of depression ending in 1934 the company was adversely affected as compared with some other steel manu- facturers owing to the fact that it owned and worked collieries, mines, quarries, coke ovens and by-product plants and blast furnaces in addition to steel works and rolling mills.

During the past two years the company has benefited from these departments in two ways : r. By the maintenance of supplies of raw materials to the steelworks, and

2. By the profits earned by those departments.

During the past three years expenditure aggregating L1,180,000 has been incurred in improving the company's productive capacity for coke and pig iron, with the result that the company has been able to do its share in response to the Government's demands for increased production of coke and pig iron on which the increased production of steel depends.

Owing to the shortage of pig iron and scrap, the very foundation of rearmament necessities, the British Iron and Steel Federation made arrangements to purchase supplies of great quantities of these essential commodities abroad and agreements have been entered into to cover the excess cost of these supplies over the prices charged to the steel makers by contributions at a flat rate per ton included in the selling prices of finished steel.

This company obtains little direct benefit from an arrangement

of this character. It has, however, been possible in this way to

maintain stability and to help _to expedite the national policy of rearmament.

Since 1932, the year of greatest depression, production has been raised By 65 per cent. in Coal. „ 128 per cent. „ Ironstone. „ 133 per cent. „ Coke. „ 171 per cent. „ Pig Iron. „ 177 per cent. „ Ingots. „ 16o per cent. „ Rolled Steel.

The material inclease in the company's output of. iron and. steel during the year 1937 reflects the activity of the steel trade generally

(Continued at foot of page 1084.)

DORMAN, • LONG -AND CO., LIMITED (Continued ft:' oni page- 108-3.)

and illustrates 'particularly- the :effort -the ..coin'pany', has made to

meet the great demand for rolled Steel. . •. :

At every annual meeting I have felt bound to emphasise. the:fact that the prosperity, of our_ induatry. is primarily due :to the. National Tariff Policy, of site Government. In my opinion this policy assures steadier and 'safer 'einploymerit or Labour 'arid - of capital.: ;Our industry 'has a &icy to the public to meet .detuand efficiency and improved -servide. 'That duty the steer industry fully recogii4es and is doing its best to discharge-. • - For the - future we will' continue to carry out our policy. for the concentration and for the modernisationof the works comprised in our great undertaking. Our orderbook is .iatistaciorY. With- the improved. state- of our finances;'With thelinprOVemetit iri-buf plant and equipment and with the efficiency and good. will of our personnel, we are equipped to do Our share in'the devethrrnient.Of our industry, in the progress" of our country aiid in the trade Of the World:

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The diNctors' report, balance-sheet and accounts- of the company for the, year ended September 30th,, 1937, were approved • and adopted on-the proposition of the Cliairinan, 'seconded-by Mr. J. U. Goodenough.