FACTS FOR INVESTORS.

Auckland Star, Volume LIX, Issue 260, 2 November 1928, Page 4

FACTS FOR INVESTORS.

TREND OF THE MARKET

TIMBER SHARES BECALMED

When the weekly table for the information and guidance of investors was first published in these columns early in 1925, there was ae much interest in timber shares as in any other classification outside of the gilt-edged varieties. shares as those of Bartholemew, Kauri, Ley land and O'Brien, National, ParkerLamb, Rotoiti and Taringamutu were being dealt in regularly. Piactically all were returning good dividends and the market value was usually well above par. To-day only three can be quoted, as these alone continue to pay a dividend upon which calculations can be based. Even those which still remain in the dividend earning column have, without exception, depreciated in value. Four years ago sellers were aeking £2 2/6 for Bartholomew, and £1 15/ for Taringamutus, buyers were offering £1 10/9 for Kauri, £2 8/ for Leyland O'Brien, £1 10/ for Parker Lamb, £15/ for Rotoiti and £14/ for National. To-day Kauri can be bought at about 0/ below par, L.0.8. holds its value remarkably well at buyers £1 14/, National are priced at under 10/, while Rotoiti and Taringamutu are virtually off the list, no quotations being forthcoming. These brief facts speak eloquently of the difficulties the industry has had to face during the last few years. Faced by increased costs, decreased sales through foreign importations, only those companies which had been sufficiently long in existence to create substantial reserves and which were able to operate at low cost* have been able to continue the usual distributions to shareholders. Even so substantial a concern as the Kauri Timber Company, with three-quarters of a million paid-up capital, found it necessary first to reduce its dividend from 8 to 6 per cent, and this year to pass the interim dividend altogether. The fact of the matter is the troubles of the timber industry are world-wide and, whatever the future may hold, at present there appears to be over-production. The operators in 'Canada and North-West America, whose activities chiefly worry New Zealand timber millers, have themeelves to meet the keenest of competition and a good deal of unprofitable dealing takes place. If statisticians speak true the position in regard to over-production must inevitably right itself with the steady diminution of available supplies and in the meanwhile those concerned in the industry must rely upon their own efforts and such assistance as the Government is able to give. 'Some effort*, in this direction have already been made, and although it can scarcely be said that the "corner has been turned," there are signs of u. definite improvement. With New Zealand coal companies doing as well as many of them are despite an unfavourable world situation in that line, there is no logical reason why the timber industry should not make a recovery- When it does some of those companies which are at present marking time may again come into the dividendearning column and furnish a reward to those who are fortunate enough to accurately anticipate the event.