Plant Renewals from Reserves T O have to meet the much-increased
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cost of plant replacements by drawing on reserves, was unjust and, in the long run, meant the crippling of enterprise, said Mr. C. W. Reeve, C.B.E., chairman of Associated Commercial Vehicles, Ltd., at the company's annual general meeting, last week. He emphasized that the reserves used for this purpose had already been taxed and, during the past two years, at more than 10s. in the
He said that the company's stock of stores, etc., at over £6,000,000, was much too high and was brought about by the necessity of taking delivery of materials out of balance and, latterly, by the inability of overseas markets to . accept delivery of orders. Lack of coachbuilding capacity in overseas countries and numerous currency and other import restrictions were among the causes of this state of affairs.
The company had many orders for overseas customers who urgently needed vehicles, but were unable to pay for them; and many more for home operators who could pny but were 'not allowed to have vehicle.
Mr. Reeve said that the profit made by the Maudslay Motor Co., Ltd., was retained in that company's account, as it was intended to redeem, as soon as possible, out of profits, the 54 per cent. redeemable preference shares.
Speaking on general conditions, he said that the buyers' market had arrived, and added that the nationalization of transport threatened heavy vehicle manufacturers with a sadly reduced number of custorners, or, perhaps, even only one. He also complained of the low standard of education of many apprentices who joined the company straight from school.'
Because of the operation of the steel control, the A.E.C., Maudslay and Crossley factories were working well below maximum capacity.