The Guardian from London, Greater London, England • 9

THE MANCHESTER GUARDIAN THURSDAY AUGUST 22 1957 For low-cost buildings in concrete, contact: Company Meeting THE DISTILLERS COMPANY LIMITED CHESS PROBLEM No. 43 By J. da C. Andrade (Essex) Black (6) KENKAST CONCRETE ASTLEY, ment in yields has helped us to maintain our position, and the extension of our range of products has enabled this Division to show reasonably satisfactory profits. I referred last year to the successful introduction of a new form of Penicillin Distaquaine which for the first time made Penicillin available in a safe, effective form for administration bv mouth.

This product is now well established and is in great demand. Licences under our exclusive manufacturing rights have been granted to three other leading Britisfh pharmaceutical houses on suitable terms. The reorganisation of our selling arrangements, both at, home and abroad, has become fully operative during the year, with encouraging results, and the division is now represented in over ninety exoort markets Industrial Notes DICTATING BY TELEPHONE Dialling the typist In view of the importance of the North American markets to the Scotch Whisky industry, and the fact that no restrictions are imposed there on the import of Scotch Whisky, the British Government, after protracted representations from our industry, decided last November to allow the free entry of Canadian and American Whiskies into this country. In my Statement of last year, I mentioned that your Company, together with certain leading American and Canadian companies, had been cited as a defendant in an action for damages in the United States. As already announced in the press, a satisfactory settlement, in which no monetary consideration was involved, has been made out of Court, and the action has now been dismissed.

Gin. The sales of our Gin Companies have again shown a very satisfactory increase, although our export trade is becoming more difficult, largely duetto the fact that many countries are now producing locally made gin. The operation of high tariff rates imposed by many countries is a serious handicap to the imported product, and we are By our Industrial Staff for some years we had managed for The Slandaid Yeast Company Limited. Stocks have again risen by some partly clue to augmenting our stocks of Scotch Whisky, although increases in the inventories of other sections of our business have also occurred. There was a slight improvement in the liquid position of the Group as at 31st March last, the excess of current assets over current liabilities being 83.271,522 compared with last year.

On the liabilities side, you will notice small increase in issued Ordinary Capital, This was due to the conversion of a further 131,525 of 5 Unsecured Loan Stock 19(54, niid, in this connection. I should mention that the current financial year provides the last opportunity of converting this stock into Ordinary Shares. The option expires on 30th November, 1957. Most of the holders of the original 10,000,000 loan have already exercised their right to convert, but there remains a balance of 370,050. Our long-term indebtedness has been reduced during the year by the repayment of 1,000,000 of the 6,000,000 Unsecured Loan Stock repayable by instalments up to 1960.

A substantial proportion of the item Interest of Outside Shareholders in Some firms taking over new office buildings nowadays want telephone and dictation equipment to be made specially to fit their individual needs, rather than to be ol standard design with minor modifications. An interesting example of this is to be seen in the new headquarters of the Metal Box Company in Baker Street, where after months of preliminary Investigation and experiment, a combined dictating machine and telephone system has recently been installed. The main framework of the system lies in 100 telephones on three floors linked to fifteen dictating machines in the typing department. Each dictating machine is mounted on an automatic control unit and anyone dictating a letter has complete control over it through push buttons alongside his telephone. He first uses a selector button to "find a free dictating machine, and can then proceed with his letter, playing back any part of it at any time, making corrections and erasing mistakes.

Whenever he comes to the end of a letter, wishes to make a correction, or finishes the instrument the appropriate button records the fact through a pin-hole in an index strip. In the typing department, panels on the front of the automatic control unit have red and green lights which tell the supervisor which machines are free, which are being used, and which have taken dictation and require resetting. The resetting of the machine takes only a few seconds, during which it is temporarily out of the circuit. The recording disc and the index strip are removed and fresh ones inserted with a flick of a switch, and the machine is ready for the next user. The typists and there are only ten of them receive the discs and the strips, and transcribe the recordings on separate machines alongside their typewriters.

Each strip tells the typist how many letters have been dictated and the length of each of them The equipment is Agavox, by M. and Haycraft, and it is c.laimed that the installation offers considerable economies in typists' and executives' time. DISC AND DRUM BRAKES The Girling Company, which manufactures both disc and drum brakes, considers that there is much to be said for a combination of the two systems on production cars. According to an interesting technical note from the company, the fitting of disc brakes to front wheels and drum brakes to rear RAW COTTON TRADE Liverpool Market WIfflSZ MANCHESTER. ATHERT ON 729.

wheels offers both economy and efficiency. On modern cars it is argued roughly two-thirds of the total braking is taken by the front wheels. Consequently, the front brakes are more subject to fade than the rear brakes, a condition aggravated by modern body styling, which prevents the necessary cooling air currents from reaching the brakes. Conventional drum brakes can be made to operate satisfactorily under these conditions on the popular t3TJe of car which does not maintain high speeds for any length of time. But it has been found desirable to fit disc brakes to the front wheels of some fast cars, because of their non-fade characteristics, which are the result of their better heat-dissipating properties.

Cooling of the rear brakes is. of course, equally difficult, but as their duty is approximately half that of the front brakes, it has been found that a good drum brake of the existing leading and trailing shoe type will adequately meet the conditions. In addition, it offers a satisfactory solution to the fitting of a mechanically operated handbrake, as required by law. Disc brakes cost more than drum brakes, and where a drum brake on rear wheels can provide braking performance that is adequate for all normal use there are obvious economies in continuing to fit drum brakes. The combination of the two suggested by Girling mav become standard braking practice.

SOME NEW DIESELS The diesel trains which British Railways has put into service in the Darlington area this week have engines, controls, and transmission supplied by British; United Traction, Ltd. The running units can be made up as two-car or four-car trains, or coupled together to form a train up to a maximum of eight cars. The trains can be driven from either end. The power units consist of two diesel engines slung in the chassis, and the transmission incorporates a fluid flywheel and epicyclic gearbox One car of each two-car train is powered, and two cars of each four-car coupling are powered. A MOVE The machine knife department of Spear and Jackson.

has been moved during the firm's holidays from buildings more than a century old across Saville Street. Sheffield, to the ground floor of a new three-storey factory which is to be officially opened on September 3 bv the Lord Mayor of Sheffield. The new premises now house machinery which previously occupied fifteen separate workshops. SU-Junc 26 SO Mixed contract Dec -Jan 26 9S Mar -Aprri 27 24 Afternoon United States contract: Oct -Nor 7 no :6 oi- Dec -Jan 26 25 Mar -April 26 611" Mixed contract unquoted Transactions for minimum quantut SUDAN FUTURES QUOTATIONS iBasts Lambert 6) Close sep.cmher-Octobcr 37CHI S'oiember-December 37 30 Januart-tcbruarv j'fj OFFICIAL SPOl VALUES tin pence per lb nie- ti mm1d! rss lin. 26 9 miojl.ns tit in 35 Peru, ijn lamtu.

zQod Misin 1.TO No 2 BP 51 31 75. No 2 I Viscr an A 2 24 75 nom I 65 u-jnlan Sao I'aulo good 2b 2, nom blnan No I roller-sinned 28 nom 5u nom. Bmnej Mexikar midJL'na 27 TO Ind.a tint) Pak'sun sjw-Kinned N'T bind ctto cc 2S nnm -IF choice 27.uy nom colier-Binned Sind superitne 26 25 nnm -tF superfine 24 95 nont bud. Sakel So 6 4St 70, Lambert 6 43 75 Turk sh Adana No 2 roller-ginned 25 Uu: Adana No i 24 25 American; Eityrvian So 1 65 25 nom No 2 63 00 nom American Markets NLW OKK. 21 Conor, futures cUkcc ileinji, 7 points latter 10 Lim.hancd.

In opening delimits prii.es lower cm sctlinn influenced bv favourable ueuthcr report and unceriatrui ener cotton next jcar Laicr however prut, readied tomcuhcU Af.crrtonn was Ir.w. ki die rtn-kci tluctua ini nr---w bin irma-ds the close hujirrs (merest in.rcnJ sltprnh, with p'uca iiioiFna hlshcr In New Orleans future closed itcidt 7 paints "ewer to unciiRriffcd. Co! ion on the snot in NV York wjs 5 points femer ai 3S Doc and in New Orleans was also 5 points lower at NFW YORK FUTURES To tv's close 711 33 72 92 85 13 52 12 72 32 65 Ilith Si i .11 S9 11 .12 65 Lou 11 fi8 i 11 H7 5.1 S-i .1.1 4- Prfri clo .13 77 .1.1 75 .31 92 ...3.1 91 2 71 32 66-S October Oecemtrer irch Mai Julv October December Egyptian Market UVDRI Nil 1,1 I ti tires oricnsd in Clic delimit and on Uj ndalinn Near ibe prices on moderate hmmz rnt! the close was MNl casj for (he lor.K tunc inlracl Jnd ptcad fo- mcd um stapler, Iric pot market uas itn quiet unit -i limned demand for the hiahc- P'adcs of Menourj and medium trades ot -htijauni for OlIoSw dclucri ai.kvandri lin per cantar of I'iosifc,) Karnak Id-Jin's cjrtc lre, Lloc Nmemrter Ma-uh i 4(3 43 un J2 40 Ashmntinr I d-Jj; close 72 au 72 31 72 5 Pre close 73 05 Aiuutt Ouohe- December Indian Market flOMBAY. Annual 21 After an openEng arJiance. (he a nil a contract sleadily cased on lack ot fol on-through support and profu-takins.

The clotc wai quiet, with the I (previous close Ri 6984) Jinuj Plural turn rati at ks ovo per kandy ot 7eiJlb MARKETS New contract Sent 2 Dec 2241-1, -Marcli 2271-J Mjj Jul, el0hC(1 sjcadi. ic to limner Sept Dec 326i Mn-ch i.i'H Mav H4. Jul IJ6i cli 1 10 lie haher Sept ft6j Dec fi-; Vh'ch 7 Mai 721 iuy li, 1 NEW YORK. AuBun 21. Uheir t.3ri a spot (new) 26 s.

Vo 2 red winter mewi Mine So 2 veKow spot 3 S71 O.iui No 1 ooi v.i Kve No 2 Menem spot 2J2i vvh te U1MMPLG. Auium H. IUc closed il to lower, pci. 1 1 1 Ucc IIJtR May lisi o.is xcr vcadv. Nc to higher.

Oct 701. Dec ftij, 7iM4 Dec yi'l? "4 1 10 h'licr 0ct '36' SUGAR PRICES LONDON. The svvar terminal marb.1,1 suaor dejrei iinuori i.n:nnoi halea law S) rermnerl lolalkj 7ti The Unite Icrmrnal Aiaaclation-s rwlce for r3. lime as '( cm c-, shipment 33, (n Messrs Tnit ana stated lesterilny Hint the hasic ff I ii ha h.iU been adiaSej to 5fli. ith tli-: cipon price bui aa announced later that these uncos had been inrhdrasT! Ciibf." "K' 21--Cubi lot.

fob COCOA MARKETS marVer stent unh liriqnoied -Dei" ScTnA "rS kilo elf romuv-T. ,1 pons SRKr- i.c.a is. rsin optinns Sen, fts rw spot. HI Z(l Sales Mar Ih 13. Maj 32S lot.

13 Jul, -S Scni 11 3i M1KLI.AC. t.nndnn leiicrs m.irl.c' slead, wilh 22SIU paid. April 22Ji 111 IO per cwl, Salss I lot ch All It 1 done (per cM. Annul 1 business iio. Auauit n.n, 1536.

business at Dec lW'6-i(n Zl. TT r' icrmemca Accra fi The 8Uth Annual General Meeting of the Distillers Company Limited will be held in the North British Hotel, Edinburgh, on Friday, the lath day of September, 1937, at 12 30 p.m The following is the statement by the Chairman, Sir Henry J. which has been circulated with the Report and Accounts for the year ended 31st March, 1957 I have "to report that since the date of the last Annual General Meeting, two new Directors have been appointed to the Board of the Company, the Rt. Hon. Lord Forfeviot, and Mr George F.

Ashford. Lord Forteviot has had many years' service with the Company and is Chairman of John Dewar bons Limited. Mr Asihford has also had long and varied service with our organisation, principally in the Legal and Contracts Department. I am sure the ability and experience of both these gentlemen will bring added strength to the Board. I have also to report the retirement from executive duties of Mr L.

A. Elgood, after the Annual General Meeting. Mr Elgood was appointed to the Board in 1943. and a year later joined the Management Committee, of which he was Chairman from 1947 to 1953. He has rendered outstanding service during his years of office, and I should like to pay tribute to him for the work he has done on behalf of the Company.

We wish him many happy years of retirement. Mr J. V. Marshall, who has been responsible for the production of our Scotch Whisky for some years now, retired from executive duties at 31st March last, and to him also I would express our sincere hanks and best wishes Both these gentlemen will remain members of the Board and will therefore be availab'e in a consultative caDacity for a further period. Mr C.

F. Merriam. who until recently was Chairman of our associated company. B.X. Plastics Limited, has informed me that he wishes to retire from the Board.

On behalf of all my colleagues and myself. I should like to extend our grateful thanks to him for his services over many years, during which his wise counsel and help have always been freeV given. Accounts. Before dealing with the Balance Sheet and Trading Results, I should like to make a few general observations on the trading of the Group. During the past year, there have been renewed requests from many quarters for a detailed breakdown of the profits earned by the various Divisions of this Organisation.

Having again reviewed all the circumstances, the opinion of the Board still is that the operations of the Group should be taken as a whole. As a general indication, however, I would say that approximately 75 of our earnings at home and abroad were derived from our Scotch Whisky and Gin interests- and the balance from our industrial activities. In considering these proportions, it must be appreciated that the great strength of our Company in the Scotch Whisky industry has only been built up over many years of trading and maintained by the large and continued inveftmenl in Whisky stocks, which to-day sts-nd at a record level. I would further add. as a point of particular significance, that by far the major portion of the profits on our potable activities is obtained from the export of Scotch Whisky, and the increase in our profits this year, to which I shall refer later, was obtained mainly from this source as the result of an increased volume of shipments.

As is well known, during the post-war years, the Company has carried out a policy of broadening its interest in the Chemical and Plastics fields The constantly expanding and changing char acter ot these industries has necessitated substantial investments, which to a very large degree have been met by piougnng oacK pronts earned on these enterprises As I have said on previous occasions, our industrial developments have in the main Droved successful and profitable, with the over-all yield on thP i capital employed comparing favourably uun mose ot the other principal coin-panics operating in this field. I hope the illustrated brochure recently sent out has given our shareholders some indication of the magnitude of our operations, and of how our policy has been worked out to a carefully planned programme. It is the opinion of the Board that the consolidation of our investment in the industrial field is giving a spread of actual and potential earning power which makes a valuable contribution to our economy, and may well serve as a sateguard in the future Turning now to the Accounts you will note that the trading profit for he year, after charging depreciation, amounted to 21,482,602, compared with 19,584,795 last year. Our income from trade investments was also higher at 1,259,306 against 1,018,441, mainly through receiving a first dividend on our investment in Murgatroyd's Salt Chemical Company Limited After i-nargmg interest on loans, the profit before taxation was J2.452,798. an increase of This year, we have had to bear the full weight of the tremendous burden of iaxation imposed upon British Industry by the Finance Act of 1936, and the provision required amounts to 12, 058.

558 compared with 10,484,301 last year This is a somewhat disheartening feature of a successful year's trading, for although our profit increased by innflnn i u-u win.r utuiui oil, with a net profit of 9,817,587 against last year Your Directors have decided to write down certain investments in Subsidiary Companies and, after various other below the line adjustments, none of which calls for special comment, the amount available for appropriation is 9.424,572. Of this figure, our Subsidiaries have retained 3,239,098, and the amount available to the Distillers Company itself is 6,185,474. In view of the very favourable results achieved, and despite the fact that the greater part of the higher profit has been absorbed by taxation, your Directors feci that a moderate increase in dividend is justified. They therefore recommend that the final dividend on the Ordinary Capital should be at the rate of 10 I-nd. per share of which, with the interim already paid of 4 4-5d.

per share, makes I per share for the year, or 18j'c, as compared with ITlo last year. In this connection, it is felt ihat the interim dividend presently paid has become somewhat disproportionate to the total dividend for the year, and, if no untoward event intervenes, it is intended to make the interim dividend for the current financial year (id. per share Out of the remaining balance your Directors have transferred (o General Reserve, leaving a balance of C89.SI77 to be added to the amount of unappropriated profits brought forward, and making the amount to be carried forward 2.364,431. As regards the Consolidated Balance Sheet, you will observe that we have expended ftime 3.300,000 upon additions to land, buildings, plant, etc This covers a very wide field, but the main expenditure has been upon (he construction of additional warehouse accommodation at our Scotrh Whisky Distilleries, and nn the erection of new premises and plant by one of our principal Gin Companies, to which I referred last year We also exercised our option to purchase thp Factory at Dnvercourt. Harwich, which a jftf.a wa, White (8) White mates in two SOLUTION No.

431 (Baxter) I Q-Ui (threat 2 Q-KU). R-KtS; 2 Kt-B5, or 1 K1-H2. 2 I or 1 K-K3. 2 Q-KU, or I I Kl (B7I. or 1 Kt-K2: 2 Kt-BS.

or 1 P-1U: 2 Kt. or 1 2 I In atMitiun to the interference bv BR and P. the interference corrections of the BKt al KtS and K2 are fine features, greatly enriched by the BK Hiatal K3 Korchnoi-Gligoric One of the masters of attack. Spielmann, was a strong advocate of the speculative sacrifice in which a pawn or other material is sacrificed, for no immediate compensation, but for an enduring initiative. Such sacrifices are not always objectively sound, but the opponent, forced on to the defensive (which most players dislike) and faced with a number of seemingly equal choices, often loses valuable time and wilts in the later stages.

The followine game from the S.S.R. v. Yugoslavia match is a good example. KING'S INDIAN DEFENCE While. I.

P-04 2 P-OB4 3 K1-OH3 Black. K1-KB3 P-KKlJ B-KI2 P-03 While. 25 Kt-B4(l2 26. KR-B1 27. 0-K3 IS.

Kt Kt 19. H-K14 30. P-K3 31. P.K5(U 32 33 P-B4 34 B-06 35 K4 36 37. OOP 38.

39 Ox 40 Kt-05 41. KI-B6 ch. 42. 0-B4 43 K-R2 44. 45.

ch. 46 P-KIJ 47 Resiens Black. Kt-K4 R-Ol Kt-06 Kt 1131 B-K3 B-KI6 Bx R-KI P-KM 115) OR-OI Bin P-B6 P-B7 K-RI 0-Kt3 ch R-KBI Kl K-K12 P-B3 6. KKI-K2C1) 7. P-K4 8 O-02 9.

12) 10. Cas.lcs 11. K-Ktl 12 13 Kt-BJ 15 B-B7 1 6. Q-K3 16) 17 PiP IS Hi OP 19 xxt 20 P-KKlJ 21. P-R5 22 23 0-02 24 K1-H3 Px R-Kl 13) OKI-Q2 0-K2 Kt-K4 P-OR3 KUH3I-Q2 0-B3 P-0KI4 KP M-B5 i 17) O-OI 181 0-B3 19) BP O-B2II0) P-R3(ll) I.

It is a matter ot lasts whether this rnoe Is preferred '26 An'nusual 'caplure: "after the norma! 9 Kt me main line runs 9 P-Q4: 10 BP P. II P-f5 Kt-KI 12 P-B4. P-B3: 13 B-K15. 14 P. 15 KI-B3.

B-KI2: 16 Cajll IKR) hcn Wh.te has stond nilmliinl! cham.es for the sacrificed pawn (Branstein-Vasjukor. Moscow. 1956) 3. Black beuns a lon-term plan which met this nmc sreat slrategkal interest, he Is uutle prepared to abandon ihc QP If he can obtain free play for the Pieces An aliernamc sssiem Is 9 P-QR3: 1(1 P-QR4 P-H4. II B-K1.

KI-B3; 12 R-OI. KI-QR4: when Black's prejure on the queen's side compensates for the weak pawn ISIiwa Boleslaisky. 1956). 4. Since quiet moles are answered oy P-0KI4.

White is bound to to for the pn win The more natural 14 B-K3: is answered by 14 B-Bl: KI-R4. P-OK14: 16 KI-K16. R-Ktl: 17 Kt IS. KR kt-with a strong attack 5. Now.

howcicr. 14 B-BIt 15 P-R5. leave Black lame l.fcless. 6. Wlpitc could probably refute Black's openinf by Pcrsitz's intereslint suggestion 10 if then lb 17 Kl.

Kt 18 Kt B4l-03. Kl: 19 Kl QBP. 20 Kt. 21 P-R5. with clear straieau.

adantaae (BlacVs bishop is hemmed in by its own pawns) It 16 P. Kt-Kt3: 17 P-B5. Kt tKt3l-B5. Ik KB Kl, Kl 19 Cj-Bl and Biacl. has nu cutrpemai.cn tor the lost pawn.

7 With two ooen riles in the Queen's side, and an excellent diagonal for the KB. Black now has the better aamc. a Not 211 M-K4: 21 P-KIS 9 For now P-Kt5 is not 10 be fea'ed 10 While threatened 24 0R2. which could now be answered by 24 B-K4. 1 1 Not 24 25 Kt-Kl3.

(3 26 QR-Ktl and wins. 12 25 P-114 looks; promising, but after 25 Ki-Hj. 26 P-K5. Kl (threatening B-B4ehl; Black's attack is tcr; slrong 13. Gliervnc has ma' cd finely In (he kut lew moses If 29 P.

B-R3 14 Ihc exdunge sar is forced. If 31 R-02 B7 ch: 32 K-Bl. P-B4. 33 BP (33 P. Kll H-Bl: 34 Q-QK15.

QR-Ktl: 35 Q-R5. 36 R-RI: and v.ins 15 Decisiie The rest is played with masierli techniqu, bi Lombard)' wins William Lombardy has made chcs history by becoming the first United Slate-player to win an international event ahead of a Soviet competitor. He scored an over-whelming victory in the world championship in Toronto, winning the title with two rounds to spare and finishing far ahead of the Russian Selimanov. The 14-year-old American prodigy Bobbv Fischer, who will play in the next Hasting? Congress, is leading the United States open championship. FIRE DANGERS IN BIG FACTORIES Source of anxiety By our Parliamentary Staff The design of modern masS-production factories is criticised by the Chief Inspector of Fire Services in his annual report for 1956 for being a cause of fires spreading.

The report, published yesterday, points out that modern manufacturing techniques using continuous flow'' production, have" increasingly led to the use of very large factory compartments without divisions inside the building. The chief inspector comments "The dangers of fire-spread presented by this type of building are a source of anxiety to officers of fire brigades and I hope that factory managements and architects will bear in mind the importance of taking measures to minimise these dangers." The fire which particularly provoked this comment was at Crewe at the plant of Kelvinator. the refrigerator firm, on September 2 last year. More than 236.000 square feet of lactory space was destroyed and damage to the value of nearly 2 millions was caused. The chief inspector also welcomes the setting up of a British Standards Committee last year to investigate causes and the possible ways of preventing accidents due to clothing catching fire.

He emphasises that the whole question has long been a matter' of anxiety to fire brigades, who can see the terrible results of these tragedies at first hand." He points out, too, 'that a number of events during the year emphasised the need for industry to take greater advantage of the advice offered by brigades in the field of fire prevention. "The fire in February, 1956, at 'a woollen mill in Keighley, in which eight people lost their lives, has been followed by an increase in fire prevention work relating to factories (such as giving advice' on means of escape) and arrangements have been made for the establishment of closer liaison between Are brigades and inspectors of factories." The report shows that during the year brigades in England and Wales attended some 111,000 fires other than chimney fires, which was the highest figure recorded since fire statistics were first compiled in their present form in 1949. The two main factors leading to this increase, the chief inspector suggests, were. the increased use of blowlamps and. similar apparatus against frost during the extremely cold weather in the early part of the year and an unusual number of fire outbreaks on heath and grassland and in hayricks during the late summer.

Frozen Bread." Mr Eric J. Anderson, public relations consultant to the Federation of Wholesale and Multiple Bakers, writes. In your article about frozen bread there are a few points which need clarification. First, little of next year's-bread will be frozen, it is possible that a reasonable quantity of items like currant buns. finer rolls, and such-like goods will be.

Secondly, yeast does not continue working after the bread is baked Quality bread, especially the sliced and wrapped, is still palatable when it is at least three days old. not tne one dav 'ueyjested jn your article. Finally it is dangeious to suggest t0 the housewife that she stores her bread in a refrigerator unless it really is a deep-freeze type Bread stales more rapidly at temperatures around freezing point and unless it "can be stored at really low temperatures it much better kept in a clean bread bin." Kim-urn 'ffi' Xs! Wffly; PPP a Plastics Division. Our sales during part of the year inevitably reflected the credit squeeze and the recession in tne motor industry. The demand in the latter part of the year, however, showed encouraging growth, which still continues although there is keen competition in certain materials.

We are securing increasing sales of Geon polyvinyl chloride, Styron polystyrene and the EpokCellomold range of synthetic resins and moulding powders. The raw materials for these products are mainly supplied bv associated companies within the Distillers Group. By arrangement with B. F. Goodrich Chemical Company, U.S.A., British Geon is now constructing a new plant at Barry, South Wales, for the manufacture of oil-resistant synthetic rubbers and latices, which will be marketed under the registered trade, mark "Hycar." These materials are at present imported from the U.S.A..

and the growing demand for them in this market gives every assurance of our being able to dispose of the output of the new plant. Murgatroyd's Salt and Chemical Company Limited. This Company had a good year and was able to sell its entire output of its main products, chlorine and caustic soda, at satisfactory prices, On the other hand, salt was a difficult market, and sales and realisations were somewhat lower, due to intense Continental competition. It will be recalled that a substantial financial interest in this Company was acquired to meet the needs of British Geon Limited for chlorine, used in the manufacture of polyvinyl chloride, and I am glad to say that its total requirements are now being met by the Murgatroyd Company. Magnesium.

Our associated company. Magnesium Elektron Limited, had a very good year in sales of magnesium and its alloys. Our subsidiary, F. A. Hughes Company Limited, which has developed jointly with Magnesium Elektron Limited the new calhodic protection of metals against corrosion by the use of magnesium anodes, has had an outstandingly successful year in the installation of its Guardion system in ships, particulaily tankers.

efficacy of this anti-corrosion method is receiving widespread recognition, and this is reflected in the record sales achieved. South Africa. National Chemical Products. Limited, our associated com pany, has continued to make good progress, and the expansion programme to which I referred last year has made a valuable contribution to the year's trading. The over-all results are most encouraging, reflecting increased turnover and earnings.

Australia. The trading results of our associated company, C.S.R. Chemicals Pty. Limited, showed a further improvement during the past year. This is partly due to the bounty granted by the Australian Government on the production of cellulose acetate flake, but increased turnover in this material and improved efficiencies have made their contribution, whilst the expansion of the general chemical and plastics division has made notable progress.

Technical Development. For many years your Company has spent large sums on and development, the scale of which is in step with similar organisations, both in the United Kingdom and U.S.A. This is an essentia background to progress in the industries In which we operate, and. iudged on past results, vour Directors are satisfied that a con tinuance of this policy is essential to enable your Company to maintain its position and take full advantage of opportunities for further development. Future Prospects.

So far, the current year's results con tinue to be favourable, although in many markets trading conditions tend to become increasingly competitive. However, world trade continues to expand, and, subject to any major set back. I feel continent tnat tne oroaa spread of our operations will stand us in good stead and enaOle your uompany to continue its progress. Personnel. It is fitting that I should pay tribute to all employees for the part they have played in achieving what I am sure you will regard as very satisfactory results.

To, the individual managements and all those responsible to them, our grateful thanks are due for the zeal and enthusiasm they have so willingly shown in the service of your Company. SOLDI E.R CANNOT AID MURDER INQUIRIES Taken back to camp Police were satisfied last night lhat a Regular soldier, aged 19, 4 who was taken to London from Catterick Camp, yesterday, could not help them in their investigation into the murder of Mrs Muriel Maitland (35), a widow, in Cran-ford Wood, Hounslow, on April 30. The soldier had been questioned and had (also accompanied detectives to the spot where the body was found buried under the root of a fallen tree. It was stated that the soldier, from No. 4 Training Regiment.

Royal Signals, was returning to Catterick under escort. He was in custody there awaiting confirmation of a sentence of 112 days' detention imposed at a court martial on Monday. HOLIDAY PHOTOGRAPH COMPETITION Headers are invited to enter tor tit "Manchester Ouardian" holiday pholographlo competition In Home Foreign and "Younger" cntefortea ilor the under 17il Rules in full first appeared in the paper on Prldar July 12, and will appear each Monday until the competition doses on September 13 Readers are rectified lo read the rules before submitting All entries must be accompanied by a e. lor return No enlrj must be smaller than 6'Mn -Each group of entr'ei must be accompanied o'j a coupon cut Irom the Manchester Guardian and each pnnt must bear on the back, name and address ol reader place dnl and subiect of ohotocruch HOLIDAY PHOTOGRAPHIC COMPETITION Manchester Guardian 3 Cross Street. Manchester 2 Name Date No.

of entries in Home Foreign Younger Age Younger section) carefully considering establishing our own manufacture in certain of these growing markets, where the quality and reputation of our brands offer the prospect of successful development. Our subsidiary in the U.S Gordon's Dry Gin Company Limited, had a record year in sales, and their brand remains the leader in that market In South Africa, the Gordon Company at Isando continues to make steadv progress, with sales showing a substan tial increase on the previous year. Ycast. During the year, our sales of yeast in the United Kingdom were reasonably well maintained, in spite of increased competition, particularly from foreign imports. Continued research has brought about further important improvements in the baking quality of our yeast, as well as real economies in production.

During the year, however, a very substantial rise occurred in the price of molasses, which is our principal raw material. This, coupled with higher transport charges, has since compelled us to increase our selling prices. The complete re-organisation of our distribution methods, to which I referred last year, is inevitably taking some time, but good progress has been made. The new system of direct delivery from factories will, when fully operational, reduce the high costs inherent in a nation-wide delivery service. In order to secure still further economies in production costs, your Board has decided to close the Vauxhall factory at Liverpool, and to concentrate tne production of yeast at our three otner factories.

This will become etiecuve during the current year. The Peerless Refmine Comnanv (Liverpool) Limited has had to meet more competitive conditions in fats, edible oils and margarine, added to which raw material prices rose sharply during the year. The volume of sales has however expanded, and earnings are satisfactory. Industrial Group. The products manufactured by the Divisions and Companies comprising the Industrial Group show for the most part an increase in the volume of sales, and the past year has been one of general progs.

Although we have adhered to a policy of price restraint and have had to meet higher raw material costs, increased efficiencies and turnover have enabled the Group to show further improvement in earnings. The chemical and plastics industries continue to expand vigorously, particularly in materials derived from petroleum, and the past year has seen the completion of extensions and the launching of new projects which should add significantly to your Company's position in these fields and its future earning power. General Chemical Division. Despite a sharp fall in sales lo some of the major consuming industries, notably the tmotor car industry, our overall 'home sales of synthetic organic chemicals and solvents showed a small expansion during the year and exports also increased. As already indicated, raw material, fuel and also labour costs continued their upward trend.

A major problem was the sudden substantial increase in the price of molasses, from which an important part of our industrial alcohol requirements is produced. Fortunately, the timely completion of British Hydrocarbon Chemical's extensions at Grangemouth for the production of synthetic industrial alcohol from petroleum enabled the Company to cushion the full impact of the higher molasses price on our consumers of industrial alcohol. At Hull, the vinyl acetate plant of our associated Company, Hedon Chemicals Limited, was commissioned on time. Market conditions are competitive, but sales are developing satisfactorily. Despite the poor summer last year, and the consequent contraction of the traditional outlets in the beverase and ice cream trades, total sales of carbon dioxide continued to expand rapidly, owing to the extended use of this material in industrial fields In view of the large programme contemplated for the construction of nuclear power stations, it is of interest to record that tne.

carbon dioxide equipment required at Calder Hall was designed and installed by your Company, which is one of the main suppliers of this product. British Hydrocarbon Chemicals Limited, Grangemouth. As already stated, the major ethylene and alcohol plants of British Hydrocarbon Chemicals Limited were successfully commissioned, and doubled the then existing capacities. The new butadiene plant is also in full operation. The entire output is being sold for the production of synthetic rubbers and similar polymers.

In addition, the plant for the manufacture of propylene tetramer, the inain raw material for detergent alkylates, has been completed and is now in operation Grange Chemicals Limited, a subsidiary manufacturing detergent alkylate required in the production of synthetic soaps, has had a successtul first year, and is now producing a very high grade product at well above designed output. Forth Chemicals Limited, also a subsidiary, has completed its major extension for the manufacture of monomcric stvrene, and' is operating successfully. This Company is now able to supply the present entire domestic usage of monomcric stvrene and sales arc at a high level. Your Company has sub-licensed to British Hydro-carbon Chemicals the exclusive rights which we hold from the Phillips Petroleum Company of U.S.A for the production of low pressure high density polyethylene by an improved proces-s, and a plant with an annual capacity of 12,000 tons is now under construction. The fields of application for polyethylene are constantly expanding, and the special material to be produced should be readily absorbed in this growing market.

Biochemical Division. The year under review has shown even keener competition in what mav be termed the basic antibiotics namely Penicillin and Streptomycin The trend towards better prices lo which I referred last year has not progressed as far as expected, and the competitive conditions in many markets leave very little margin. Continuous research leading to improve Subsidiary Companies" consists of Preference Issues made by some of our Companies and held by the general public Recently your Board decided that it would be much simpler administratively for these issues to be held by the Distillers Company itself, and made an offer to the holders to exchange them for a 5J Consolidated Unsecured Loan Stock of the Distillers Company. As announced in the press, the offer was accepted by the requisite majorities ir- each case. The effective date of transfer was 1st April, 1957, so that the transaction does not affect the Accounts under review, but the greater part of this item will be eliminated from the Accounts next year.

The only other comment which I think need be made on the Balance Sheet position is that the Ordinary Shareholders' funds have increased during the year by 5.083,441, as a result of the ploughing back of profits earned, and they now total 90,231,901. It is proposed, in future, to publish our results half-yearly. There will, of course, be seasonal and other variations which may affect the earlier period and the interim figures will not be audited, but as much information as possible will be given to enable the Interim Report to be a useful guide. Scotch Whisky. We have had a full and satisfactory distilling season, with production at a higher level than last year.

The total stocks of maturing Scotch Whisky held by the Industry as at 3 1 st March, 1957, were approximately 139 million gallons, an increase of 18 million proof gallons on the figure quoted in my previous reDort. and 54.5 million proof gallons in excess of the stocks held in 1939. As the stock position of the industry has improved, so it' has been possible for it to expand sales both at home and in export markets. During the year under review, the industry's sales in the Home market showed an increase of 377.000 proof gallons, at a total of 5 8 million proof gallons: exports rose from 15 4 million proof gallons to 16.4 an increase of 6 8 Of this quantity, more than half was exported to the U.S.A., where, in spile of increased supplies, our own Companies are siill unable to meet in full the needs of Distributors for their particular brands. Since the war there has been a continuous increase in the world-wide demand for Scotch Whisky, although in certain markets there are now indications that supplies are not far from meeting the demand.

The industry's stock position represents a coverage of approximately eight years at the present level of sales. This in itself is not an excessive figure, but judgment and care will need to be exercised in planning for the future, to i ensure that the distilling programme is reasonably related to the anticipated future demand for Scotch Whisky, and thai the stocks which the industry are laying down do not prove to be more than adequate. At the present time, however, the outlook is encouraging, and the popularity of our brands in all markets is the best testimony to the soundness of our policy of fully maintaining the quality of our products during the post-war years. In the event of more competitive conditions developing, this policy in regard to quality should stand us, in good stead. The increase in our stocks has necessitated an extensive programme for the construction of additional warehouse accommodation, which is now in progress.

At the same time, the work of reconstruction and modernisation of certain of our distilleries and large bottling and blending establishments is proceeding satisfactorily. In my statement last year, I referred briefly to Home Trade prices, and, in particular, to the pressure from the dis tributive sections of the trade for imProved margins of profit. The Com yany nas jjursueu a policy of price restraint in --espouse to the Government's appeal to curb inflation but these claims, aggravated as they are by continual inci eases in costs, have been strongly pressed and are now engaging the serious attention of your Board. So far as general overseas markets are concerned, I will confine myself to certain of those which are of special illLCICbL In Canada, desm'tp kppn from domestic whiskies, sales of Scotch Whisky are making progress. During the year, most Provinces reviewed their selling prices, which resulted in a narrowing of the differential between the price of the Canadian product and our own.

It is hoped that the remaining Provinces will follow suit. Our sales to Australia have for some time been limited by import restrictions, but these have been eased somewhat in recent months. Having regard to Australia's impioving economic position, I believe that this important market offers scope for expanding our business in the future. New Zealand continues to be a growing market for our brands, whilst in South Africa another of our important markets sales remain reasonablv steady. In many other markets we still have to contend with Import Licensing restrictions In India, there has been a drastic curtailment of imports of Scotch Whisky, whilst the Argentine, which in 1039 was the sixth largest overseas market, still docs not permit normal commercial imports, and supplies are confined to those sent to Embassies or taken in by returning travellers We are continuing to press for some modification of the present regulations.

Prance has been a traditional importer of Scotch Whisky for many years, and in spite of its post-war economic difficulties it has until this year allocated a fairly substantial sum to be used for this pui-pose. This sum, however, was always modest by com parison with that obtained by France from the sale of French wines and spiiits. which have unrestricted entry into the United Kingdom. For 1957. the French Government has only allowed 20 of the funds allocated last year for Scotch Whisky imports.

Desmte strong representations on behalf of the industry, so far no redress has been secured, and the position remains most unsatisfactory. The American Whiskey Distillers have for some years complained of the severe restrictions on the import of their product into the United Kingdom. Wednesday, August 21. Increased, interest in autumn and winter shipments was shown in to-day's rather better demand, with United States rain-grown and irriaated medium to longer staples a nam attracting most attention. The turnover, however, was restricted to small shipment sales in United States and Nigerian' and small spot sales in East African.

The official spot values were all unchanged American futuies opened with the United States contract steady, unchanged to 2 points up. and the mixed contract quiet, stead v. nominally unchanged Light hedging in the near positions was absorbed bv small trade bujing, while later deliveries advanced on commission-house buying caused by renewed easiness in the forward sterling-dollar exchange rates. Trading was much more active than recently and the mixed contract also rose 011 tradp and commission-house surjDarl Tlir ninrnniff cptinn rtrmpri ivitli thp United States contract very steady. 3 to 7 uoints up and the mixed contract steadv.

6 points up There were no tenders Conditions became less active in the afternoon Further trade-buvin? and -scattered mil! fixations maintained the small advance until the final dealings when some professional liquidation caused a slight easing Inter-month switchings were prominent on local account and the market closed with the United States contract steadv. 2 to 7 points up and the mixed contract quiet. 4 to 6 points up on the dnv The Sudan contract opened ouiet. nnminally unchanged Prices eased on offering caused by tlip expected reduction of per lb in the nxpnrt tax. hut buveri were "ot attracif-d The market closed ouie 21 nomts lower MFKICV FUTURES Ol'OTVTlONS United Stares enntrxu ni rn.ddlin I I in 1 Cloe Hutu I E't riiMe Oct -Not id on iu Re- -Jan 26 2-1 2 2C 2(! rs 1 Mi--Ann, 2ft 2h fi 'ft'' Vat -June 2h S2 2tt SO 2(l -An 2.

Uri 2fr lixcd cnnir.ut Oh.e Hiuh Low l''c lrc -Vol. Jo vh. Dec -Jan 2n 2" 26 Mir An-il 27 22 27 2J. 27 2" TN Ma -June 27 55 2 JiiU-Vie 27 49 -7I1 Onquoted vertlcniem prices 1 mtea contraci: aub On -Nov. 26 00.

I3ec-Jn 26 24 Mar -April 26 M.11-June 26 H2. Jub-Atw 2fi Mixed contract: Oct -Noi 2b M. Dec-Jan 26 9Ji Mnr -April 27 22 Mav 27 35 J-Aur 27 4y New York ai Liverpool's close Kat 3 to points tower Prices im cents per lb Ocr 3.7! Da. 33.71. Mar 591.

May 33 89. July S3 50. Oci 32 62. Dec 32 53 BUSINESS DONE IN AMFRICAN FUTURES tin pence per Morning Untied States comraci Oct -Nov 26 01 26 20. 26 22, 2t 21' Mr -Apnl 26 56 GRAIN LIVkKPUUL.

heal opened unquoted and. modrl from Uute i rue rest in Dccmrx-T Iju in the Cition no ieriou, dttcmpis were miilc trdtle tinrinj; inc nun rm tin. In the uttcrmmn. hov.ci,cr, condiiuni. ucrc mure on some outside veiling orders, which were nimi.

onset internment imeresi A fir business done in lOccemher but trjnacttuns in October were icl.tt vcl ma I Imcr-month luhinji hjh tenure, witi December at Wo premium ocr October, Uumpcss Uais rmoked in October al 1 1 nd Detcmrier tlHiZHl Prices stctdieU on lovi support in tt: dealings nnd the market iluscd uticti.irf:cd. Closing prices (per lonl October 24 120, Uecember 24130 Prut on the spot marvel acre WHEAT N'o 2 Vonhern Manitoba from Ul Jehn auk 28j5f) Arpcnt re Stpt -Oct and Oct -No 6 MA7t No 2 elicm AiK.riL.ln Alljpttc, Aur 21,150 Owl 2'ilfcr9 Nnv LIZ 1 5 10 Canadan f-cstl Nil 2 Si Laurence Am 222 1 N'ov oKOUN'DNOr AH. French ttet African extractor pc. Auk -Sept Oct to lcc 2SWHI A'jcniir-Uruju extractions JH Sept -Oct L2HI5ll -rina expc.krs ah pc, Sept -Oct Oci -No and Nm Rerun cxpellcn. 56 pc bcpt-Oul and Oc: -No.

15,7 6 COTTONWELLn CAKC llrit.sh African 46 A ,14 29'5'H. Sept Oct to I3ec t3it" Kthj ctpclcrt 46 l. Aiu -Sep' and Scpl -Oct CIV'S '0 SO A Oh AS ML Cunad an extracted cc. 0: to jt fU, 'i it AH per ton. ctf United Kircadum ION DOES.

H.irici opened 1 '6 up on stcadj overseas tti rose harpl Liter on rep oris ihat a 1-ire order v. is circulating in th; mnrkc; Other small tmcnitR movements occurred and prices anairi rose Euhtly to erase ai the da's best letels. 60 10 SIS huhcr Itusinc included Nov nt 2026 to 2090. Jan 20110 to 20150 and Mnj 20130 NUbc opened irKLitive jnd uncnanscd and: remained idle throughout the oi In riose unaltered on the previous leiels Ciosme prices (per (on) Barley, Sen. CZUHJ NftL Jan mifO 201.10 Mar 2liM6.

May 2012 Scpl 12240. Nov 2280, Jan htHI Mr rd Maj nom Spew uncut pni.es on -be Hatic ce Vn 2 Manitoba e-sr Lawrence to London. mid-Aue 'O So 3 So 12'" American No 1 hard Winter li pc P'oien Srpt 2tV'2'()' American N'o Ked Wine-. Ana i2' f. Argentine.

Bamso Southern Ports. Sent -Nov .2 17,6 A id -a car.cw Sept -O-E E2.7''i na-i-carwe-. 25flO All per ion c.f Ln ted CMTCACO. uru 2T.Mot irr 1 rts simll cn.ncM ei.hcr in que: nits cither was ni'ilv fmoiT tire ovLf the l-rjin In nc declines Ir, i lui.iic riiic a point or more vioucd wheat oia "'I II ro lie hi" biahcr. Ola .1 cil the rev.

lie II." lo I Iracl Sepi I HI lcc.