FINANCE AND COMMERCE.

Press, Volume LXIII, Issue 19151, 7 November 1927, Page 10

FINANCE AND COMMERCE.

TRADE [AT HOME.

STOCK EXCHANGE RALLY.

BIG WHEAT CROPS EXPECTED. (Bt CABLE—FHESS ASSOCIATION— COPTEISHT.) (AtrSTBALIAjr AND K.Z. CARL* ABSOCTATIOX.) (Received November 6th, 5.5 p.m.) LONDON, November 5. La?t week saw a pause in speculative activity on the Stock Exchange, and there was a certain amount of forced selling of some industrial tharesi, which bare recently been in so much demand. The prices of a number of these have fallen in some instances by a considerable amount, but during the last two days a rally set in, and the markets closed with a ctegree of cheerfulness which has been Jacking for some time, and many Industrials showed an improvement. A notable feature was the advance in Armstrong Whitworths following on the announcement of the fusion with Vickers, Ltd. The markets other than industrial have been steady and Gilt-edgeds are In a very firm position, being helped by the easiness of the money market and a firmer tendency in New York. Exchange Issues continue to come on the market, and it is reported that several Colonial Loan 3 will be issued kliortly. One of them is Kenya Colony's loan of £8,300,000. At least two Australian States are said to be also wanting loans in the near future, but at present it is unknown when they will face the market.

Wheat Eeturns. According to the latest returns of tho International Institute of Agriculture, Rome, the production of wheat in the Northern Hemisphere this seaeon exceeds last year's b.y six per cent, and the average of five years, 192125, by eight and a half per cent. Rye, barley, oata, and potatoes all show increases, but maize has decreased, though the Australian wheat crop will be well below last year's. The prospects are favourable for another heavy Argentine harvest. Commenting on these figures, tho "Economist" says: "Taking the world as a whole, this Reason's results are eminently favourable and may be said to have made a considerable contribution to the prospects of a world trade revival." Apple Market. Regarding the prospects for the apple season of 1928, F. W. Moore and Company write: "It,is fairly safe to say that there is not so great a supply this year as in previous years. It is just as safe to say that the supply is quite likely to be sufficient to meet all demands. The English crop, we believe, will be decidedly better than last year's, although, as there has been so much wet weather throughout summer, its keeping* quality may be low. Some European countries have better crops than last year, especially Germany, Hungary, Czechoslovakia, and the Austrian Tyrol, all of which market their surplus principally in Hamburg. France will also have many to export to this country, the crops there being reported to "be better than 1926." The latest official reports from the United States show a shrinkage on the earlier - estimate, the crop being expected 'to i be about half of last year's. l Another "estimate, made by a reliable organisation, gives 'the decrease as being nearly fifty per cent, in barrel apples, but places the'crop of box apples, which provide greater ponipetjtion for Australia and New Zealand, as they are not far below last year. Nova, Scotia reports show a considerable increase. Ontario has a better crop, though British Columbia jVnot so good, and Canada as a whole shows an increase.

Dried Fruit. . The Australian dried fruit trade continues to be satisfactory. Currants are practically - cleared, the stocks at< October 31st»being only 75 tons, compared.with 2862, tons last year. Sultanas have metjwith an excellent demand, and large sales have been effected, '■ prices ranging from 50s for common to 75s for finest. At the moment the demand has eased somewhat, * but prices remain firm. Arrivals of Smyrna sultanas are mostly loir grade and rain damaged, the percentage of fine being very small; 60 prospects for the maintenance of Australian prices seem good.

AUSTRALIAN LAMB SHORT. Prospects for the Australian frozen lamb export season, which has just opened, are not particularly bright as regards supplies, states the "Pastoral Review." Owing to the dry winter in the eastern States losses of lambs were considerably above normal in most of the districts from which freezers are drawn. In additiou, feed has been so scanty that a large percentage of the lambs that were saved have not matured satisfactorily. The result is that really well-finished carcases are exceeding scarce, and the competition of the local butchering trade is forcing prices of what are available above overseas parity. So far, the bulk of the offerings in the metropolitan yards have been of indifferent to poor quality, poor decidedly predominating. . On present appearances exports are not likely to exceed 750,000 carcases, which reprer eents a big falling off from last season's output of 1,911,000. At the beginning of October exporters were paying round 7d per lb, bare meat, and in some instances more, for the few prime weights then available, as against a maximum of s}d last season. Secondary and lower erades have been bought for less than 6d.

MOSGIEL WOOLLEN MILLS.

ANNUAL REPORT. [THE PBESS Special Service.] DUNEDIN, November 5. The directors of the Hosgiel Woollen Fac♦ory Co.. in, their fifty-fourth annual report, state that a statement of the company's position must prove satisfactory to shareholders. During the past year the company had been able to dispose of all its output at remunerative prices, and the result of the year's trade had been quite satisfactory. The liquid assets of the company in the form of New Zealand Government loans, cash on deposit, and the amount standing to the credit of the company's current account at the bank, shoved this year an amount of £58,490, as against £52,897 in the previous year. In »iew of this increase and seeing that the fompiny had more than sufficient capital for its business, the directors recommended that ■ special bonus of 10s a share (which would ■bsorb £11,922 10s) be payable to shareholders, and the same would be chargeable to the re&erve account. The directora were quite satisfied that ton payment could be made without in any way hampering the company's finance and it would at once be made if shareholders •i annunl ra eeting approve. j*.. l ? o,Td h * d deemed it wise to make an addition of £2OOO to the employes' benefit fund. The profit and loss account, after «i«« s . off t £sooo for depreciation, adding , to „. the ™ erv « »"ount, and adding -2000 to the employees' benefit fund, showed * b »J»nce of £16,093 19s Sd, out of which toe directors recommended a dividend of 4 per cent, and a bonus of 2 per cent., amount- "!* tO /5722 16s which, with the interim dividend, made 10 per cent, for the year. #,«--,.„ **yment ° f dividend there remained , £10,071 3a 3d to be earned forward to the ntv profit and lots account.

r SMITHFIELD PRICES. Th» New Zealand Meat Producers' Board fc&a received the following cable from ita London office, dated November 4th, advising Bmithfleld delivered prices at that date as follows, prices for the tiro previous weeks being

Lamb—The market is rather slow and there is a -weaker tendency owing to heavy pitching* of Home killed. Mutton—For wethers, the market remains steady and for ewes the demand remains dull. Frozen Pork—Nominal quotations. The market is over-slocked with Home killed.

AUSTRALIAN TAXATION.

FOREIGN INVESTMENTS. The exemption from Federal taxation of ir.tome derived from investments outside the Commonwealth has recently been the subject of questions addressed to the Treasurer, Dr. Earls Page, in the House of Representatives, involving the suggestion that it ehould be brought within the reach of the taxation authorities. Dr. Page replied that this involved a matter of policy, and he was unable to make public his attitude. ■

The character of these Australian investments is discussed by Messrs J. B. Were and Son, of Melbourne, in their recent letter. They state that two vital points which are usually overlooked when discussing this question are that chief investors in Is T ew Zealand securities are the Australian life offices which are not taxed, and in,, their case -a very considerable proportion of the investments represent accumulations in the Dominion; and that private investments By Australian tesidents in JTew Zealand securities fall very far short of the investment* in. Australian eecurities by Kew Zealand residents.

"What we have remarked as regards Kew Zealand applies with even greater force to Great Britain, and, of course, any action which is taken would need to embrace every phase of the question," Messrs Were remark. "Even more vital is • the very large investment' of .Australian capital ■in Easterr; .tin dredging propositions. Parochial-ism-in this matter would- do more harm 'than good. What has to be envisaged is that: a restraint on the outflow of! capital may, -lead, to; a, disastrous' check on the inflow of wealth."

UNION COLD STORAGE, LTD. Of all the multiple ehops companies in the United Kingdom, the Union Cold' Storago Company owns by far the greatest number and is, in fact, the world's largest retailer of meat. The Union Cold Storage company owns over 50 cold storage and freezing works in Britain and abroad; and a large fleet of refrigerating vessels.' It absorbed in 3923 the British .and Argentine Meat, Eastmans, Proprietors of W. and E. Fletchers (meat importers) companies. It holds all the shares -of Blackfriars Lighter and Cartage, Pure Ice, International Export, Shanghai Ice and Cold Storage, l Dnion Cartage and other concerns. The' capital of Union Cold Storage-is £12,000,000 in £1 shares—B,ooo,ooo. 6 per cent, cumulative preference, 2,000,000 7,per cent, cumulative preference,. 1,000,000 10,-per cent, cumulative A preference, 1,000,000 ordinary debentures, £740,620 4J per cent, first mortgage; and mortgages £338,500. The net profit for the past year was £638,815 a« compared with £721,904 in the previous year, after allowing £106,403 for depreciation and providing for the debenture service. The profits as disclosed constitute a new high record, as ie. oustomary, a new high level of profit having been indicated in each year during the las; 26 years. The report states that during the last year the new freezing works at Buenos Aires were completed, and that shipments are now being received; also that the new steamers oi the Blue Star Line are now in cbmmissiou. In'the opinion of the directors, these two events mark "a very important stage in the development of tho business and will be a source of further strength." The total assets of £19,863,349 are grouped in three main items, the largest is for £15,332,729 and includes freehold and leasehold properties, steamship, plant, machinery, appliances, and shareholdings in associated companies. Cash stands at £786,763, while debtor, stocks' payments in advances and Calance3 due from associates are grouped at £3,706,678, showing a reduction of £1,658,983 on the year. Sundry creditors are reduced from £2,191,000 to ' £1,380,777, but secured loans (including bank overdraft) have risen from £1,745,608 to £4,809,167. Accrued interest and dividends amount to £2,917,494 and are ear-marked for depreciation. During the year £17,597 debentures were redeemed, making £1,332,854 redeemed to date, including mortgages. There is a contingent liability in respect of £2,750,000 Blue Star Line debentures. That an agreement has now been reached in the South American meat war, in which the Union Cold Storage as representing the Vestey interests, has been one of the principal figures should improve prospects. The company's strength lies in the comprehensive character of it* organisation, as it covers all phases of the imported meat industry—production, refrigeration, ocean carriage, and wholesale and retail distribution in Britain and the Continent.

MINING RETURNS. (press association telegram.) EEEPTON', November 6. The Blackwater Mines, Ltd., returns for October. 1937, are: Crushed 3787 tons, yielding 1463 fine ozs valued at £6211; working expenses, £5262. The roaster also* treated 47 tons, yielding 88 fine ors, valued at £374. The working expenses were £llO, the working profit £1213, capital expenditure £l2, development expenditure £2S6, and profit over all £365.

AUCKLAND SHOW CHAMPIONSHIPS.

(MESS ASSOCIATION TSL2GBIM.) AUCKLAND, November S. The vexed question of whether the Auckland Metropolitan Agricultural and Pastoral Association should adhere to its decision to award North Island championship ribbons for stock at the annual show next month was settled at a meeting of the General Committee yesterday. It was decided to make the championship awards as announced with the exception of the classes for Frieslan and Ayrshire dairy cattle and fiomney sheep, the breeding societies concerned having made other arrangements for the holding of thtir championship events.

POULTRY PRODUCERS LTD. The Canterbury Co-op. Poultry Producers, Ltd., report that a large yarding of poultry came forward for the weekly sales, and although supplies were good, prices were high tor good quality birds. The following prices were realised per pair:—Table chickens, {!*« 7 » '»9« «d, heavy 10s to 13s 6d; hens, light 5s 6d to 7» 6d, heavy 8s 6d to 10s: ducks, 7s 6d to Ss 6d; ducklings, 8s to 12s 6d: geese, 7s to 8s; turkey hens, 16s to 2S«, gobb_ier« 3.0«. to. 45», - '

WHEAT.

CHICAGO QUOTATIONS. (bt cabls—rises association—coptbisst.) (ACSTBAXIAjr AND 3T.2. CABLS AgaoaiTlOH.) NEW YOBK, November i. Chicago wheat quotations are: —December, 124 cents a bushel; March, 127*; May 130$. RUBBER, ETC. IBT CASIS—SBISB AIIOCIATMjr—COITUOHT.) (.AtfSTBALIAX A\D K.Z- CABLS ASSOCIATION.) (Received November 6th. 3.5 p.m.) LONDON, November 5. Rubber—Fine hard para, l-i}d per lb: plantation first latex crepe, l"Jd; smoked ribbed sheet 17Jd. Jute—lndian native first marks, Xovem-ber-Deeember shipment. £3O 5s per ton. ' New Zealand Hemp—November-December shipment, £34 per ton. Copra—Bagged South Sea, November-De-cember shipment, £2B 7s 6d per ton. Linseed Oil—£29 15s per ton, equal to 2s 4Jd per gallon. Turpentine—36s per evrt, eiual to 2% S%d per gallon.

MEAT

LONDON xMARKETS. (Received Xovember 6th, 5.5 p.m.) LONDON, November 5. Sheep—Canterbury, light -61 d per lb, medium 6Jd, heavy 5Jd; North Island, lisrht 5Jd per lb, medium 33d,- heavr 5Jd; New Zealand ewes, iid. No Australian, Argentine, or Patagonian is offering. Lambs —Canterbury,., light 9jjd per lb, medium 9sd, heavy 8!<d; seconds Od: otunr selecteds, light 9|d, medium 9Jd: North Island firsts', light 9Jd, medium 91d, seconds SJd; Argentine firsts, light' B§d. medium Bd. Frozen Beef—-All nominal. Xew Zealand, fores 3Jd per lb, hinds' s}d: Australian, crops 3 15-1 fid per lb. hinds 4Jd; Argentine, fores 3:3 d, hinds. 5Jd. Chilled Beef —Argentine fores, 3Jd per lb, hinds sld.

COTTON. (Received November 6th, 5.5 p.m.) LONDON", November 5. Cotton —Liverpool quotation : American middling upland, 11.22 d per lb. HIDES.

(Received November 6th, 5.5 p.m.) LONDON, November 5. At the hides sales, moat works dry-salted Queensland hides, 35 to 451b, SOd to 40d, 25 to 351b and 20 to 301b all made 14£ d per lb; Sydnev, 35 to 451b, and'3o to 401b, 14Jd; 25 to 351 baud 20 to 301b, 14Jd; wet-salted Queensland, 50 to 601b and 40 to 501b, 10Jd; New South Wales, 50 to 601b and 40 to 501b, 103 d; abattoirs Victorian, 10Jd.

PIG INDUSTRY. ' AN IMPORTANT MEETING. ! / Present indications point to a numerous attendance at the meeting in the Chamber of Commerce on Thursday evening," convened by the Canterbury Progress League, to discuss matters* of interest to 'those connected with the pig industry. One of the objects is to devise, or suggest, ways aud means whereby the industry cafn be placed on a more eatisfactory basis. Amongst those who have promised to be present are Messrß J. Fraser, general manager of the Meat Board, 11. W. Gorringe, instructor in ewine husbandry, Department of Agriculture, Wellington, and M. J. Scott, agricultural chemist, Lincoln College. It is hoped, that the chairman of the Meat Board, Mr D. Jones, M.P., Mr B. E. Alexander, director of Lincoln College, and others prominent in connexion with tho primary industries of Canterbury also will be present. Representatives of" the meat freezing companies and of mercantile houses interested, in the export of pork also have been invited to attend.-

STOCK EXCHANGES. AUCKLAND, November. 6. Sales: —Duiou Bank of Australia, fractions, 7*; New Zealand Insurance, 38s 9d; South British Insurance, 56s 3d: Taranaki Oilfields. 9s 9d. 10s; Alburnia Goldmining Co., 2s 7d; Waihi, 21s 6d;Waipa Collieries, 15s 9d. WELLINGTON, November 6. Sales on 'Change:—Union Bank, -rights (two parcels), 535; Union Bunk, fractions, 9s; Taranaki Oil, 9s. DUNEDIN, November 6. Sale on 'Change:—Union Bank, fractions, 9s. Sale reported:—New Zealand Drug, 655.

alto BQO-^a'. — KOT. 4. d. Oct. Oct d.' *d. y.Z. Wethers and Maidens- - Canterbury quality— Selected brands: 56-under .« ., <H 64 6| 57-84 .. 6i &i 6i 65-72 .. 5J 31 6 Other brands: 56-under „ .. SJ H 6j 67-64 •• *? H 6 65-72 .. 5'j 5S 5* New Zealand Ewes — 64-under .. .. 41 4j *4 N.Z. Lambs — Canterbury quality: 36-undesr ,. ?£ 9* 92 37-42 .. 3* Pi •13-50 • • n 9 n Seconds .. 0 •91 »t Selected brands— £S-under .. H 95 ?i 37-42 .. 9$ 5* •91 Other brands— First quality: 36-under _ ... n iH SJ 37-42 .. n 9-i n Second quality: 30-32 average .. 8J 94 Si Argentine Lambs— 1st quality: 36-tmder .. h ?4 Si 37-42 ;. 6 s s. Xew Zealand Beef— Ox fores .. 3£ 35 31 Ox hinds .. 5' s i 5 i Argentine Chilled BeefOx fores .. 3J 4 »i Ox hinds .. 5i 5| 6 Argentine Frozen Beef— Ok fores .. 3J 32 u£ Ox hinds .. 5J 5j of Frozen-Pork — 80-1201b .. R *L SJ 120-180lb 7 r~