The Times, Monday, December 12, 1955 Page: 1 of 2
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i
.,United States of America.-The business
of Capitol Records, Inc., continues to expand.
Their sales will have reached about 7,000,000
in the calendar year 1955-a peak figure. In
January, selling prices of records in the
United States were drastically reduced, and
because of these lower selling prices, the net
profits of Capitol in the first half-year of 1955
were less than those for the corresponding
period of the previous year. The profit, after
taxation, which has been included in the
consolidated profit and loss account, is for
the three-and-a-half months to June 30, 1955.
This amounts to 41,635 and covers the
period from the date of the Capitol acquisi-
tion. This has no bearing on the profit for a
year as record sales are very seasonal, and
the period covered is always one of low sales.
Since June 30, 1955, Capitol'sturnover has
increased to such an extent that the profit is
substantially above that for the corresponding
period of last year. The net profits for the
calendar year 1955 should show an improve-
ment over 1954.
" ANGEL" "RECORDS
The " Angel " records, marketed by our
other American subsidiary, Electric &
Musical Industries (U.S.) Ltd., continue to
attract the American public.aThe sales of
these records, which are mainly of serious
music, have increased by 150 per cent. in a
year. These records are all exported from
Hayes.
More by design than accident the American
musical scene since the opening of the present
season has been dominated by artistes whose
records are published in America under our
"Angel" mark. The range goes from the
most eminent Soviet artistes, David Oistrakh
and Emil Gilels to our own Scots Guards
Band.
Starting in September in San Francisco
the "Angel" domination began with
Elisabeth Schwarzkopf's triumphs at the
San Francisco Opera. Four weeks later the
Russian pianist, Emil Gilels, who had
already made a series of records for us in
Paris, was greeted by the American public
as a new major star in the pianistic firmament.
Almost simultaneously, the Philharmonia
Orchestra, conducted by Herbert Von
Karajan in a tour of 24 concerts, convinced
the American public and even the American
critics that this 10-year-old British orchestra,
which has been exclusive to our company
since its inception, is the equal, if not the
superior, of even the most famous American
orchestras. A few days later David Oistrakh,
of whom our company has made the first
recordings outside Soviet Russia, was the
greatest musical sensation America has had
in 20 years. At the Chicago Lyric Opera,
the Greek soprano, Maria Callas, filled the
newspapers with accounts of her activities,
musical and otherwise, and visibly increased
the sales of our remarkable recordings made
under our exclusive contract with the famous
opera house-La Scala, Milan. At the other
end of the scale, our own Scots Guards Band
provided one of the most popular current
"Angel" records after selling out Madison
Gardens to well above its capacity of 19,000
seats. 'The success of the "Angel" trade
mark in America has exceeded our hopes and
more than justified your directors' decision
to establish our own selling organization for
at least part of our products in America.
France.-The activities of our highly
successful French subsidiary continue to
expand. It employs 2,500 people and
accounts for about 70 per cent. of record
sales in that country. It also has a good
share of the market for record players.
Italy-In spite of intensified competition
our subsidiary continues to hold the major
share of the record business in Italy. Thiscountry is, of course, an excellent source of
operatic talent and we are engaged on a very
large recording programme there.
Germany.-Our subsidiaries, now located
at Cologne, are making rapid progress and
reasonable profits. Their sales have improved
by more than 70 per cent. during the year.
Australia.-The business in Australia has
an annual turnover of several million pounds.
The manufacturing capacity, especially for
records, is being increased to take every
advantage of this profitable and expanding
market.
India and Pakistan.-We have recovered
from the set-back in India caused by labour
disputes in the latter half of 1954. Sales are
now much better. The immediate outlook
in Pakistan is not very promising because of
the recent flood disasters, but we areanow
able to supply records from our own factory.
South Africa.-Production at the new
factory has increased by 130 per cent. during
the year and reasonable profits are now
being made.
TECHNICAL AND MANAGEMENT TRAINING
We are aware of the immense importance
of increasing the number of our trained
personnel. For some years apprentice
schemes for graduate and non-graduate
employees have been in operation and the
company recently began a programme of
management training. The number of
employees in some form of apprenticeship
is now approaching 1,000. From our
subsidiary, E.M.I. Institutes Ltd., over 5,000
students receive instruction in radio, tele-
vision and electronics, either by personal
tuition or by correspondence courses. Of
those receiving personal tuition, one-half
are attending courses of training for employ-
ment in our development and research
organizations ; many of the remainder go
into other parts of E.M.I. We shall continue
to do all we can to train suitable personnel
for future administrative and technical posts.
FUTURE PROSPECTS
Our plans for the future have been made
in the belief that our sales in most territories
will show further increases. From next
January we shall begin selling Capitol records
in the United Kingdom ; our subsidiaries in
Argentina and France are already selling
them. We shall, of course, have the benefit
of a full year's trading profit from Capitol
Records in the year ending June 30, 1956.
In the United Kingdom we do not yet
know what will be the full effect on our
turnover of the restrictions on hire purchase,
the increase in purchase tax and the Chan-
cellor's restriction of credit. It is also too
early to assess the effect of future wage
increases on both demand and costs.
Although our competitors in the United
Kingdom are similarly affected by these
increases, our competitors abroad are
certainly not. We are, therefore, seriously
concerned by wage increases which affect
the prices of the goods which we have to sell
abroad. Despite these difficulties, I think we
can look forward to the future with con-
fidence.
The Chairman concluded by moving the
resolution for the adoption of the report and
accounts. The motion was seconded by
Mr. L. J. Brown, A.S.A.A., managing
director, and carried unanimously. The
dividends, paid and proposed, were approved.
Sir Edward de Stein, Mr. Ralph Gordon-
Smith, Sir Percy H. Mills, Bart., K.B.E., and
Mr. Glenn E. Wallichs, the retiring directors,
were re-elected ; the remuneration of the
auditors, Messrs. Cooper & Cooper, having
been fixed, the proceedings terminated with
a vote of thanks to the chairman and
directors.The TWENTY-FOURTH ANNUAL GENERAL
MEETING of Electric & Musical Industries
Limited was held on December 9 at the
Connaught Rooms, Great Queen Street,
London, W.C.
MR. J. F. LOCKWOOD. chairman of the
company, presided.
The SECRETARY, Mr. S. T. Gibbons, read
the notice convening the meeting and the
report of the auditors.
The CHAIRMAN said-
The report and accounts have been in
your hands for some time andIhope you will
agree that they may be taken as read.
(Agreed.)
BOARD
Sir Alexander Aikman resigned as chair-
man of the company shortly after the annual
general meeting last year. Sir Alexander
has been a director of the company since
1941 and was chairman for nine years. He
performed the duties of managing director
for two years after the retirement of Sir
Robert McLean in 1944 and was appointed
chief executive officer of the board after
Sir Ernest Fisk's retirement in 1951.
During that year and subsequently, a
complete reorganization of the company's
operations was undertaken and is being ably
carried out by Mr. L. J. Brown our managing
director and his lieutenants, and by Mr. John
Macleod, who is mainly responsible for our
large complex of overseas interests. This
reorganization is already contributing to the
improvement in the fortunes of the company.
I have no doubt you will wish me to express
to Sir Alexander on your behalf our sincere
appreciation of his services.
Mr. Isaac Shoenberg was appointed a
director at the extraordinary general meeting
held in February last, and at that time I
referred to his great ability in commercial
and scientific affairs which makes him a
valuable member of the board.
During the year, the appointment of Mr.
Glenn E. Wallichs as a director was
announced. Mr. Wallichs is president and
co-founder of Capitol Records, Inc., our new
U.S. subsidiary, and has been largely
responsible for the success of that company.
Mr. Wallichs's experience and wise counsel
will be invaluable.
We are fortunate that Sir Percy Mills, Bt.,
K.B.E., accepted in July an invitation to
join our board. Sir Percy has had a distin-
guished career in business and public service.
He was president of the Economic Sub-
Commission of the Control Commission forGermany after the war and has been chairman
of the National Research Development
Corporation. He is chairman of W. & T.
Avery Ltd. and president of the Engineering
and Allied Employers' National Federation.
His wide experience will be of great value to
the company.
You will be asked later to confirm the
election to the board of Mr. Wallichs and
Sir Percy Mills.
At this time of the year Mr. Wallichs is
heavily engaged in the affairs of Capitol
Records, Inc., in America and he has asked
me to apologize for his absence to-day.
TRIBUTE TO EMPLOYEES
I would like, at this point, also to say a
few words about the company's employees.
I have already visited a number of our
companies, branches and factories-at home
and overseas-and I have been much im-
pressed by the loyalty of the executives, staff
and workpeople throughout the whole
organization and by their interest in the
fortunes of the company.
I am sure that you will wish to be associated
with the board in expressing to the more than
30,000 employees of the company through-
out the world our thanks and appreciation
of their hard work and devotion to duty.
ACQUISITION OF CONTROLLING INTEREST IN
CAPITOL RECORDS, INC., AND CHANGES IN
CAPITAL
Early this year we bought 96-41 per cent.
of the Common stock of Capitol Records,
Inc., of California, U.S.A., at a cost of
approximately 3,000,000. As a result of this
purchase, the company's capital and loans
were changed. The paid-up capital was
increased in February by the issue of
3,000,000 51 per cent. Cumulative Second
Preference shares. At the same time
2,000,000 was raised by the issue of a 41
per cent. unsecured loan stock, 1970/75; this
was used to repay 2,000,000 4 per cent.
Notes, 1953/58.
TRADING RESULTS
Detailed figures have already been pub-
lished and I will therefore refer only to the
more important figures. The group profit
before charging taxation and before deducting
the amount attributable to the minority
shareholders' interest was 1,980,000. This
compares with 1,076,000 for the previous
year. The improvement arises from a larger
turnover and from increased efficiency. The
group turnover (excluding Capitol andREPORTS APPEARING UNDER THE HEADING " COMPANY MEETINGS " ARE INSERTED AS ADVERTISEMENTS.
Printed by THE TIMES PUBLISHING COMPANY. Limited, Printing House Square, London, E.C.4, England.REPRINTED FROM
THE kW .TIME
COMPANY MEETINGS
Monday December 12 1955
ELECTRIC & MUSICAL INDUSTRIES
LIMITED
RESULTS BEST IN COMPANY'S HISTORY
AN IMAGINATIVE SURVEY OF PROGRESSIVE PLANNING
GRAMOPHONE RECORD SALES UP 33%
MR. J. F. LOCKWOOD ON IMPORTANT
E.M.I./U.S.A. ELECTRONIC TIE-UP
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Electric and Musical Industries Limited. The Times, Monday, December 12, 1955, periodical, December 12, 1955; London, England. (https://texashistory.unt.edu/ark:/67531/metapth1412445/m1/1/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Rosenberg Library.