The Imperial Chemical Industries Ltd. have issued their Annual Report for 1949. The Report contains some interesting information.
The capital, issued and converted into stock is £84 millions; the Reserves are £39 million, making a total of £123 millions. There is also a Central Obsolescence and Depreciation Provision of £35 millions. The Company has 93 subsidiaries covering Europe, S. & E. Africa, N. America, S. America, Australasia, Far East, Near East and Indian Sub-Continent. Its products include Chemicals, Metals, Paper Goods, Lime, Leather Cloth, Dyestuffs, Explosives, Glass, Paints, Plastics, Salt, Petrol and Cement.
There is a common idea that nationalisation is the last word in combination but what nationalised industry can compare with this gigantic concern which produces such a variety of different products and whose tentacles stretch all over the earth? The direct exports alone amounted to £38 million.
There is, however, an ominous statement in the early part of the report:
“German and Japanese competition has been limited, partly owing to restrictions imposed by the occupying powers, but there are now clear signs that this competition will become a problem in the near future.” (page 4)
There are, however, brighter statements further on. For instance:
“The production of the Dyestuffs Division has shown a remarkable increase during recent years. On the outbreak of war in 1939 responsibility for meeting the demands for dyestuffs throughout Great Britain and the Commonwealth fell largely on the Dyestuffs Division. Production had therefore to be increased by modifying plants and improving and shortening the chemical processes involved' and the measures were so successful that in 1949 production was about three times as great as in pre-war years, although substantially the same plants were in use.” (page 6)
And further:
“African Explosives and Chemical Industries, Ltd., in which the Company and De Beers Industrial Corporation Ltd. are the principal shareholders, achieved new records in the sales of both explosives and fertilizers. Devaluation has increased the profitability and length of life of African gold mines.” (page 12)
And still further:
“The prospects of future trading in China remain obscure. It appears to be the intention of the new Government to use Government trading agencies for all exports and imports but it is likely that they will continue to do business with the local representatives of foreign manufacturing companies, if it is in their interest to do so.” (page 13)
We have been reading for some time news of the disturbances in Malaya, of the bandit menace and of the bodies of troops drafted there to root out the bandits. We have even seen a newsreel of Mr. Strachey handling a gun on one of the expeditions against the bandits. These matters make the following extract from the report topical and interesting:
“Imperial Chemicals (Malaya) Ltd. was able to exceed by 20 per cent its record turnover of the previous year, mainly because of increased supplies, and its profits were again very satisfactory.” (page 13)
We have often been urged in the past to admire the philanthropy and disinterestedness of individuals and companies that make large donations to universities. Being of a suspicious turn of mind we have—suspected. In their earnest desire to impress shareholders with their efficiency and foresight the directors of the company have thrown some light on the subject. This is what they say:
“If a large research organisation, such as the Company's, is to justify its existence over a prolonged period, it is essential that it should be able to secure the services of numbers of able and well-trained scientists, and also to have available a continuous flow of new fundamental knowledge which it can use in solving the practical problems of industry. For this reason it is in the interests of the Company to assist, wherever it can, the universities and other educational bodies, which are responsible for the training of scientists and are engaged in the production of new basic knowledge. For many years, therefore, the Company has made a practice of assisting educational establishments with financial grants. . . .” (page 15)
Then follows a list of some of these grants which include: Post graduate research fellowships about £55,000 a year, and in addition over £4,000 a year on scholarships; Special donations about £20,000 a year; special researches about £8,000 a year; Grants for apparatus and chemicals about £25,000. This makes a total of about £112,000 a year. After the list of donations we find this naive paragraph:
“Except in the cases of the special researches, which are on subjects of direct interest to the company, no attempt is made to influence in any way the choice of the research projects, and the company’s practice of making these grants without attaching conditions is regarded by the University authorities as one of their most valuable features.” (page 15)
How very altruistic. The innocence of them! As if the grateful universities won’t give them “most favoured nations” treatment in order to get further donations. As a matter of interest we get a line on this a few pages later in the Report:
“The Company has found difficulty in recruiting in satisfactory numbers the high grade technical staff which is required, not only for design and construction, but also for all aspects of research and production. Energetic action if needed to increase the number of scientific and technical graduates coming from universities and technical colleges, and to improve and extend its teaching of science in the schools where there is generally a regrettable shortage-of science masters. The Company is maintaining particularly close contact with the Appointments Boards of the Universities and as a result it has been possible to recruit during the year 265 chemists, physicists; engineers and other scientists, of whom 200 came direct from the Universities. This will help the Company to carry out its extensive and varied research programme and to maintain its high standard of technical management.” (page 20)
So they get what they pay for!
There is a great deal more of interest in this Report but we cannot take up more space recording it. However we must not conclude without recording the following tribute to those upon whose work the Company owes its prosperity.
“The Company’s progress was sustained last year, as it has always been in the past, by the loyalty and zeal which was shown, in this country and overseas, by factory managers, foremen and workpeople, commercial, technical and clerical staff, and all other grades of employees. The Directors would like to record their sincere appreciation of such conscientious service and cooperation and wish to mention in particular the support which has been given to schemes for increasing the manufacturing efficiency of the Company.” (page 21)
Now that is real decent of them. It is true that words are cheap, it is also true that those who lack zeal get the sack; still, it is very sporting of them— three cheers for the Company!
Gilmac
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