REDUCED DIVIDENDS.

Auckland Star, Volume LXI, Issue 64, 17 March 1930, Page 10

REDUCED DIVIDENDS.

AUSTRALIAN COMPANIES. INCLUDING- BANKS: The unsatisfactory economic conditions in Australia are being reflected in the dividend distributions of various companies, and it is significant that three banks are included in the. list. The companies which have recently reduced dividends are as under: Previous Present rate. rate, p.c. P-c. Australian Bank of Com. . • S 7 Bank of New South Wales - • 1-5 Union Bank . ••• - • * 7 Elder, Smith and Co. _ Pitt, Son and Badgery ... — • 10 Queensland Meat Export ... 5 • Squatting. Investment- • 13 Aus. Provincial Assurance . ft _-a Broken Hill Prop. -••••••• 10 JNU - Joe Gardiner, Ltd. (Boot and y . Slioe) . . John McGrath, Ltd., Motors 40 20 ' Richardson and Wrench .... 262-6 -u South Australian Gas " Victoria Palace ............ "s A 2 Winehcoinbe, Carson, Ltd. ... 10 ' According to Messrs. J• B- Were and Son, market rumour "eras tipping that further companies would reduce payments, including Dalgety and Co., Goldsbrough Mort and Co., Dunlop Perdriau Rubber, Cresco Fertilisers, Howard Smith and Myer Emporium. It is also suggested that other banks may follow the lead, and that Broken Hill mining companies may reduce their distributions. On the other hand, four companies have increased their distributions. Australian Paper and Pulp declared a half-yearly i dividend on ordinary shares of 8 per cent per annum, compared with 2 per cent paid for the whole of last year. .British Tobacco has raised its rate from 11 to 12 per cent;Bellambi Coal paid 15 per cent per annum against 12Vj per cent paid last year (but since when capital was reduced by 10/ per share); and Melbourne Steam Ship declared an interim dividend of 4% per cent, against 3 per cent. It was rumoured that the Dunlop Perdriau Rubber Company was .overstocked, and that a number of hands had been dismissed. Indications that adverse conditions are prevailing in the motor trade are given by the official announcement that the Eapson Tyre Company's factory at Launceston is to be closed for a month, as the company is well overstocked with tyres. Since the foregoing was written information is forthcoming that Howard Smith Ltd., have decided not to pay their ordinary final dividend and the directors of Wallaroo —Mt. Lyell Fertilisers consider it inadvisable to declare an interim dividend. They stated that ' conditions were so altered' from previous years that, at this juncture, it was impossible to forecast the i result of this season's trading. South Australia had experienced a bad season, with a reduction in wheat yield, and the inclination of farmers was more and more to delay ordering superphosphates thid year. The Dunlop Company's dividend has also been reduced.