BRITISH TRADE.

Press, Volume LXIII, Issue 19152, 8 November 1927, Page 10

BRITISH TRADE.

PETROL AND RUBBER. f- ■- (tbitis roa thx raise.) (By the Commercial Expert o! the <r Economist.") Over-production remains the outstanding feature of the world oil situation. It is true that in oertain American fields an attempt has been made to restrict output, but it is believed that, on balance, American production will not be affected appreciably. The outlook is likely to be clearer, however, in the course of a month or two. Meanwhile, tions are going on for the marketing of synthetic petrol. Germany has recently been taking progress in the manufacture of synthetic petrol, which, it is reported, will be on the market early nest year. Synthetic petrol has been manufactured at the 1/eunawerke for nearly four months, but so far none has been put on the market. This may be. partly due to the fact that the quality has not fulfilled expectations- _ But the most important reason, it is stated, 13 that the I-G. has not been able to deal with the problem of distribution without the co-operation of one of the foreign petroleum groups. This co-operation has now been secured, for the I.G. has entered into relations with the Standard Oil Company. Very little is known officially regarding this arrangement, but it is clear that marketing facilities have been obtained. It is presumed that the reward of the Standard Oil Company will he an interest in the Mittasch process of working up heavy oils and producing light oils from them by cracking and hydrogenation. Whether or not the production of synthetic petrol will be a commercial success remains to be seen. It is noteworthy, however, that Dr. Bergius recently stated in Vienna that the current price of petroleum would have to drop 40 per cent- to 35 per cent, before it ceased to be profitable to produce petrol from coal by Berginisation.

Tbe Rubber Industry and Amalgamations. There has been little change in tho Immediate outlook for rubber since we wrote on the subject a month ago. This circumstance, combined with the boomlet in industrial securities on the London Stock Exchange, has reduced publie interest in the rubber share marked to very small proportions. But the financial aspect of the rubber industry is not completely neglected for a question thajt is much .canvassed in financial circles just now is tbe desirability of effecting amalgamations among the 1 rubber plantation companies. It is pointed out that one grave defeat of the present rubber share market is- that, owing to the large number of companies having a small capital, there are apt to be violent fluctuations in prices. In othet words, the market is narrow and any pressure to buy or sell exercise* a disproportionate influence. This is naturally most unsatisfactory from the point of view of the investing public since there is more than the ordinary difficulty in forecasting price movements over even the shortest period. This defect could be overcome by amalgamating, say, half a dozen adjacent estates. By this step the market would become freer and production costs would be reduced, by eliminating a number of agents' fees. But the fact tjiat agents would be eliminated is tho greatest obstacle (to the amalgamation movement. As might be expected, they are by no means anxious to see many sources of income dry up. It is admitted that the agent has rendered the industry good service. He has patiently nursed estates and piloted them through difficult times to a condition of tolerable prosperity. In these circumstances, he will not willingly resign his important position in the industry. But it is felt that there is urgent need for a scheme that will reward the agent for his past services and at the same itjme ensure both a freer market for rubber shares and more economic production.

Canada's Mineral Wealth. In recent months the world'« attention has been focused upon the natural resources of Canada. Her mining industries in particular have been the subject of extensive study. Canada's mining industries are a factor of increasing importance in. world economics. Thus the value of her total metallic and non-metallio production has risen from 137 million dollars in 1915 to 241 'million dollars in 1926. Ontario is the most important province in this respect, her production being valued at 85 million or 36 per cent, of the totaL The sum invested in Canadian mines and auxiliary enterprises is put at 640 million dollars, and they proride employment for about 110,000 persons. British capital does not now freely into Canadian mining enterprises, and though the stream is larger than it was, the Canadian mining interests would welcome the participation of British capital on a larger scale. There is, however, an abundant supply of American and Canadian capital seeking employment in this direction. Turning to the relative value of Canada's minerals, coal is still by far the most important item of her mineral production. Last year the coal output was valued at nearly 60 million dollars, though this was higher than the recent average owing to the British coal strike. One of the most promising features of the Canadian mining world is the expanding production of gold. In 1921 the production was only 926,3290z, but in 1926 the total of 1,748,3640z was reached. Moreover, it is believed that production will continue to show a conspicuously expanding tendency. But there are gaps in Canada's endowment of natural resources, one of the most aerioos being her lack of high-gTade iron-ore. Nevertheless, it is generally admitted that Canada is most generously endowed as . regards mineral resources, and it is equally generally thought that this will ensure her a good future.

CHRISTCHURCH WOOL SALES.

For ilw first local wool sale of the season, to be held on November 30th. no restriction has been placed by the New Zealand Wool Committee on the number of bales to be offered. For the January sale the offerings are restrioted to 27,000 bales, and for the February sale to 20,000 hales. There will again be no restriction for the March sale.

REILLY'S (DUNEDIN) MARKET

REPORT.

Heilly'a (Dunedin) Teport prices as follows; Tomatoes, choice 2s 6d, medium 2a 3d, rough la 9d per lb; gooseberries, 6d to Sd lb; green peas, lOd to lljd per lb; new potatoes, 4d to BJd per lb; asparagus, 7s 6d 10» 6d, »nd 12s per do*, bundles; cucumwr», 10» and 16a per doz; lettuce, Is 6d and •» M per doz.; cabbages, 2s 6d and 4s 6d P* r down; cauliflowers, 8s and 16s par iot.i Sturaara, choice IBs and 16a 9d per •*»», Delicious 14s and 16a'per cue; epnnz «inoU Wgeptly wanted, t

HIGH COMMISSIONER'S REPORT. [THE PRESS Special JUrriM.] ■WELLINGTON, November 7. The Department of Agriculture has received the following cablegram, dated November sth, from the High Commissioner for N«w Zealand, London: — TALLOW. Spot market quiet, and easy, at an advance in prices. Present quotations are.— Mutton, fine 39s per cwt, fair to good 37s_6d to 38s 6d per cwt, dark to dull 36s to a is; beef, sweet and or mixed 39s 6d to 425, fajr to good 37s 6d to 39s 6d, dark to dull 3os 6d to 36s 6d, mixed fair to good 37s Sd to 39s 3d, dark to dull 35s 6d to 363 6d; gut, etc., 33s to 36s 9d.

HONEY. The demand is limited, and prices are the line as last quotation. OATS. The c.i.f. market is very quiet. New crop fair. Average quality Plate for January shipment is offered at 24s 3d ppr quarter, and the Chilean new crop, JanuaryFebruary shipment, is offered at 23?. Both quotations are above buyers' ideas of values. There is no demand for New Zealand, as shippers' quotations are too high. The value of "A" Grade Cartons for November shipment is 32s to 335. c.i.f. English is in fair supply. Best white Feed oats are quoted at 31* to 31s 6d, and other grades down to 245. PEAS. For Maples spot demand is very slow. ..o. 1 New Zealand partridge are quoted at »<s 6d to 90s ex store. Some business is reported in February-March shipments at 86s. Blues: The market is firmer. New Zealand are worth nominally £l9 to £2O for Febru-ary-March shipments. BEANS. English are in fair demand. Best winter are worth 46s 6d to 47s 6d, and choice old winter up to 535. Parcels of Chinese horse beans afloat to Glasgow have been sold at £lO 3s 9d, and October-November shipments at £lO ss. COCKSFOOT. Banish is in very limited supply, and the demand is good. November shipments are quoted at £5 12s per cwt c.i.f. HEMP. , The Manila market is irregular, ".I Grade at the close selling at -£4 l 10s for October-December and January-March shipments. The sisal market is quiet. Tanganyika No. 1 is quoted. November-January shipments, at £36, and No. 2 at £35. The New Zealand market is dull. A little business has been done in November-January shipments. Highpoints »t. £34 3 os. fair at £32 10s, and common at £3l 15s per ton. LEYLAND O'BRIEN TIMBER COMPANY. [THE PRESS Special Service.] AUCKLAND, November 7. The thirtieth annual report of the Leyland O'Brien Timber Company for the year ended September 30tli states that, considering the critical condition of the timber industry, a satisfactory year's business is recorded. After provision for income-tax the profit, including the balance brought forward, amounts to £71,784. The directors propose the payment of a dividend of Is 8d a share (lOd of which "was paid in April), absorbing £IO.OOO, and the provision of £60.0 for the directors' honoraria,' leaving £61,184 to be carried forward.

WOOL. (AOSTBALIAK AN» H.Z. CABLE ASSOCIATION) (Received November 7th, 11.40 p.m.) SYDNEY, November 7. At the wool sales there was keen general competition for all descriptions, prices remaining unchanged. Good and average descriptions, though irregular, showed a hardening tendency in some cases. Comebacks and crossbreds were in keen request and realised prices from, par to 5 per cent, up. Greasy merino fleece sold to 31£ d, equalling the eeaeon'a record.

' DAIRY PRODUCE. 1 Messrs A. H. Tarnbull and Co. are in receipt of the following cablegram from W. Weddel and Co., Ltd., dated London, October 4th:— Bntter.—Danish J 90s (last week 190s); N.Z. unsalted 184s to 188s (184s to 388s); N.Z. Salted 166s to 172s (172s to 1765). Market steady. Cheese. —New Zealand while and coloured 100s to 102s (last week 101s to 104s). Market quiet. Canadian white and coloured 102s to 103s (102s to 104s).

* FROZEN MEAT,

Th« New Zealand Loan and Mercantile Agency Co., Ltd:., have received the following: cablegram under date 4th inat.: Frozen Meat—Lamb, market weaker; Mutton: Wether and maiden ewe, light 6Jd per lb, heavy 6§d per lb; ewe, light 4jd per lb, heavy 4Jd per lb. Fair demand.

"i STOCK EXCHANGES. > f V" (PXSSS ASSOCIATION TBLIORiHS.) AUCKLAND, November 7. Sales—New Zealand Breweries, Ltd. Debentures, 23s 8d; Union Bank of Australia (fractions), 7s 8d; Farmers' Co-operative Auctioneering (A pref.), 17s 8d; North Auckland Farmers' Co-op. (B pref.), 6s 6d; Hikurangi Coal, 2s 9d; Northern Steamship (con.), 7s; "Wellington Woollen, £6 3s; Sanford, Ltd., 90s; Taranaki Oilfields, 10s 9d; "Wilson's Cement, 36s 6d; Ohinemuri Gold and Silver, 6a Sd, 6a lOd; "Waihi, 21<J 3d. WELLINGTON, November 7. Sales—Union Bank, rights (two parcels), 52s 6d, two parcels 52s 9d, two parcels 535; Union Bank, fractions, 8s 9d; New Zealand Guarantee Corporation, 8s Bd. Sales Reported—Gear Meat, 39s fid. DUNEDIN, November 7. Sale Reported—Taupiri Coal, 27s 6d.

MARCUS CLARK AND COMPANY. Marcus Clark and Company, Ltd., a retail drapery company, Sydney, shows a profit of £71,297 for the year ended July 31st, an increase of £12,034. At the same time capital l increased by £154,630. The report points oat that the profits do not include any dividend from shares held by the company in Marcus Clark (Victoria), Ltd. Dividend of 6 per cent, on first preference shares accounts for £15,647, of 71 per cent, on second preference shares £13,125, and 10 per cent, on ordinary shares £33,203. After carrying £IO,OOO to the reserve fund, bringing it to £150,000, there is £10,287 to be carried forward, against £9956 brought into the account. A .comparison of accounts follows: — Year ended July 31. 1926. 1927. £ £ Net profits .. 59,263 71,297 Div., ord„ 10 p.e. .« 25,000 32,203 Div., pref., 6 p.r, .: 12,000 15,647 Dir., pref., 7i p.c. .. 13,124 13,125 To reserve fund ». 10.000 10,000 Forward .. ». 9,956 Liabilities — „ Paid-up capital .. 625,000 i i 9,600 Loans on mortgage . . 162,000 159,500 Sundry creditors, etc. 256,492 207,143 Reserve fund .. 155,000 165,000 Insurance fund ■> .• 23,967 25,000 Assets — Stocks .. 253,443 .177,242 Book debts '.497,663 515,784 Plant and fixtures .. 26,970 32,198 Freehold . . .. 263,679 296,107 Leasehold .. .. 57.195 55,038 Cash account . . 10,753 15,212 Shares in other companies •. .. 157,763 296,226

BUCKLEY AND NUNN, LTD. The directors of Buckley and Nunn, Ltd., a Melbourne drapery establishment, in their report for the year ended July 27th, Btate that while the trading returns were the largest in the history of the company, with a consequential increase in profits, overhead charges tend to increase more and more with no sign of abatement. The net profit for the year was £74,025, compared with £65,117 the previous year. Ordinary dividend of 3s per share and bonus of 3d per share absorb £52,658, preference dividend, 7 per cent., £10,500. A sum of £6OOO is transferred to reserve, and £2OOO to the staff pension fund, leaving £19,413 to be carried forward, against £16,544 brought into the account. The capital of the company is £474,041, of which £150,000 is preference. Reserves amount to £127,128, and staff pension fund £14,213. Liabilities to the public are £236,119. Assets amount to £909,370, of which freehold property ia £296.179, stocks £322,928, cath £18,182, and goodwill *60.741, -3a~