OIL INDUSTRY.

Press, Volume LXVIII, Issue 20564, 4 June 1932, Page 12

OIL INDUSTRY.

PRESENT-DAY CONDITIONS. COMPETITION FROM RUSSIA. Observations on the present state of the oil industry throughout the world wore made by Mr E. A. Beverly, of Sydney, managing director of the Texas Co. (Australasia), Ltd., in an interview with a "Dominion" reporter at Wellington this week. Mr Beverly said that the oil industry, in common with most industries, was suffering by the fall in the available market and by price-cutting. While there was still considerable business being done by those who went after it, the fact was that last year very few oil companies in the markets of the world made any trading profit, and the majority of the companies made a substantial trading loss.

This, he continued, had resulted in a number of producers, refiners, as well as marketing companies, either failing or passing into stronger hands. The fuel-oil industry had grown enormously during the last two years, on account of the cheapness of the fuel, and the fixed cost of production of coal. In 1929, there were a large number of independent marketers in Australia and New Zealand, in the same way as there were in other places in the world. The present unsatisfactory conditions prevailing in the oil industry had resulted in the majority of the smaller jobbers disappearing from the field, as they had not been able to operate at a profit.

Capital Not Attracted. It was interesting to note, lie said, tliat in Australia the association of resellers and industrial consumers of petrol formed a company, started the construction .of tankage, and when completed nearly a year ago, tho project was abandoned, as careful study of the situation in Australia showed that they could not operate on a satisfactory basis, and that it was useless to complete the bulk receiving plant. Such instances simply showed that under the present conditions there was apparently insufficient profit in the industry to attract new capital. On the other hand, due to unemployment rclu; works, considerable quantities of asphalt were being sold for road making, and the oil industry was developing new markets, and new uses for petroleum products. It would appear that those in the industry, who were well organised and keenly active, would solve their own problems, and in a reasonably satisfactory period new business would be encountered in the near future at a lower margin of prolit than had previously prevailed in the industry. Taxation of Petrol. In Australia, like New Zealand, petroleum products were all imported, and tho majority of the increase in exchange and duties have not been fully reflected in selling costs. In the meantime, taxation and duties in ft number of countries had materially increased, together with types of taxation such as sales tax, primage, road taxes, and so forth. The original theory of taxation in most countries in reaspect to petrol taxation was to apply such revenues to road construction and maintenance. It appeared, however, that collecting taxes from this source was not particularly painful, and such duties and revenues in several countries were now being employed to tho consolidated revenue. In most of the large consuming markets of the world, motorists and those oporating commercial vehicles had strongly organised in protest against heavy and undue taxation of tho petrol industry. "In Continental Europe and England, the oil industry is at grips not only with potential markets, but also with Bussian petroleum products sold at ruinous -prices/' Mr Beverly added. "As to whether the English and Continental markets can bo "made reasonably profitable cannot be forecasted, as Eussian production is improving. The present tendency is that these products are sold at whatever price that will turn over tho volume of petroleum manufactured. In,'tho same manner Bussian butter and wheat are affecting world market prices of these products."

LONDON WOOL SALES. NEW ZEALAND CLIPS. . '.UKITED I'RKSS ASSOCIATION— IST II.ECTRIO TF.I EOBAPH—COPIBICIHT.) LONDON, Juno 2. At the wool sales, 10,205 bales were offered, including 5023 from New Zealand, approximately 6331 being sold. There was good Homo and Continental competition, but considerable withdrawals of merinos, owing to high limits. New Zealand greasy crossbreds, Lowlands, top Old; average, s£d; scoured combing, Godley Peaks, 18d and lojd; half bred, Glenmore, 16-£ d and 14£ d. « ANGLO PERSIAN OIL. GREATLY REDUCED DIVIDEND. LONDON, June 2. The Anglo-Persian Oil Company's dividend for the year is 5 per cent., Qompared with 15 per cent, last year. The profits wore £2,318,717, compared with £4,649,579. BRADFORD TOPS MARKET. (UHITED PRBSS ASSOCIATION —BI ELICTRIC TKLEOSAPH—COPYRIGHT.) (Eeceived June 3rd, 5.5 p.m.) LONDON, June 2. On the Bradford tops market business was restricted. Quotations: —

CLEARING SALE. There was a good attendance of farmers present at a clearing sale held by Pyne, Gould, Guinness, Ltd., on account of Mr Thomas Macartney (Methven). Sales were: Ono hundred and twenty six and eight-tooth three-quarterbred ewes, in lamb, lis 2d; ISO at 13s 2d, 190 {our, six and eight-tooth halfbred owes at 13s 3d, 27 thiee-quarterbrcd ewes at 2s 3d, 30 fat ewes at 5s Id, 61 fat lambs at -9s 7d, 5 draught horses at £lB to £3B. Harrows £3 10s, roller £l6, 3-furrow plough £l6, blocks and chains £3, trees ss, grubber £5, disc plough £3, hustler cultivator £9, 5-leaf harrows £4, broadcast seeder £5 10s, drill £29, stripper £B, McCormick-Deer-ing tractor £4l, tractor plough £lO, binder £i, discs £3.105, mower £6 10a, lime sower £lO, grubber £1 15s, chain harrows £lO, 6leaf harrows £4 6s, twitch harrows £6, sheep feeders from £2. Us to £2 15s, tip-dray £l3 10s, spring dray £5, binder £8 10s, lorry £2O, shearing plant £ll, woolpress £ll.

MINING. BELL HILL SLUICING COMPANY, LIMITED. The directors are pleased to advise that th© development work at the claim is practically completed. The main dam is now finished. It is a very substantial and imposing structure, commanding an enormous area of flat country. The flume is also complete, there remaining only the penstock and by-wash to be constructed at the .claim end of the flume. This work will occupy about a week, and meanwhile th© pipe line is being erected from the penstock to a nozzle in the paddock. The pipe-line consists of doubleriveted pipes, 30in in diameter, which will carry the full complement of water, with a minimum of loss. When a few thousand yards of paddock wash have been put through the tail race, the rock bottom of the paddock will be exposed. This will enable an open tail race to be cut from the jump-up to near the face through the rock. This will be the last work to be done before sluicing can be commenced on the face with two giant nozzles operating simultaneously on the bottom.

WAIHI ORE RESERVES. Commenting upon the comparatively small reduction of 21,890 tons in the Waihi reserves, which left 167,021 tons in the general account, the annual report of the Waihi Company states that the position, on the whole, was satisfactory, but the reduction of the average assay value in the general account to 32s a ton was a circumstance tending to cause anxiety as to the. future of the mine, for at that figure—with the present working costs and increased taxation—there would be little profit for shareholders in working the ore in the general reserve account. It was expected that taxation would be less in the current year and that the premium of gold would enable the company to continue to work the mine at a profit, but the position of the ore reserves and the report of the superintendent showed how precarious the future of the mine would be if the premium on gold were to disappear. The superintendent's report states that Owing to the increased proportion of small blocks now being -worked as compared with former years, and also owing to the narrowness of many of the branch reefs and the relatively large amount of development -work necessary to open those up, there had been h marked tendency for the mining work to become more expensive. Some relief was obtained when in May of the year under review the Arbitration Court, having in view the general economic position of the Dominion, authorised a reduction of 10 per cent, in the minimum wage specified in existing agreements. Extra Shift Working. Up to the time of that general order the minimum rate for surface labourers had been for some years, so far as the company was concerned, 57 jier cent, above the pre-war rate. Rates for mining and other work had risen in sympathy. In view of the present high cost of working and the general position of the mine, the New Zealand management of the company decided to avail itself of the authority granted by the Court, and all salaries and wages were reduced by 10 per cent. A roduction rate of pay was always a very disagreeable business, but the management felt that that course would be in the best interest, not only of shareholders, but also of the employees and the people of Waihi, as helping to prolong the life of the mine. With a view to taking the fullest advantage of tho premium on gold, the battery had been running an extra shift each week since January sth. Since the date of the accounts to April 2nd, a total of 59,29.1 short tons of ore had been treated, yielding bullion worth approximately £124,447.

THE FRUIT MARKET. DUNEDIN. (.THE PRESS Special Service.] DUNEDIN, June 3. Apples are in heavy supply, and the market is weaker. Cookers ore particularly plentiful, and salos hard to mako even at the low prices ruling. Dessort pears are in good supply, and meet with a fair demand. Cookers are low in prico. Sainoau bauanas which arrived ex Maui i'omare, havo now boen Bold out of wholesale hands. A small supply of Karotongau came to liaud at the end of the week. These were in good condition and met a ready sale. A shipment of Island oranges came to hand with the Itarotongan bananas, and was in excellent order. The Wainui, duo on Tuesday week, will bring a further supply of Victorian navels. Lemons aro in good supply, and the market is a littlo» t easier. New Zealand-grown nro offering in largo quantities. The condition of theso lemons is not of the best, and low prices have to be accepted. Local hothouse grapes liavo a sound enquiry. Thero is a good demand for hothouse tomatoes. Outside-grown aro mostly of poor colour nnd sales slow. METALS MARKET. (UNITED I'UESS ASSOCIATION— ELECTIIia TEMSGRAM1 —COI'VBtaiJT.)

AUSTRALIAN PRODUCE. MELBOURNE MARKET. MELBOURNE, June 3. Wheat—3s 4cl a bushel. Flour—£7 17s 6d a toil. Bran—£4 10s a ton. Pollard—£s a tor. Oats—2s and 2s Id a bushel. Maize—4s Id a bushel. Onions are firm and scarce at £ls 10s and £l6 a ton, occasionally higher. EGGS AND POULTRY. The Eed Comb Egg and Poultry Company leport splendid entries of all classes ol poultry at their auction sales on Wednesday and Saturday last. The demand was keen and prices advanced 6d to Is per pair. Eggs—Machine-graded, tested, guaranteed fresh eggs: First grade Is lid, second grade Is Sd per dozen. Average prices per pair received for poultry. at our auction during the weekPulletß up to 10s, roasting chickens, light up to 7s 6d, heavy up to 9s; ducks, up to 6s 6d; geese, up to 6s 6d; hens, light up to ss, heavy up to 6s 6d; turkeys, hens up to 10s, gobblers up to 17s 6d, —6

May 2Gth. June 2nd. d. d. Seventies .. 23 23 Sixty-fours .. 20* 20* Sixties .. 20 20 , Fifty-sixes .. 16 1G Fifties ..10 10 Forty-sixes 9 9 Forties .. 8* 8 J

(Received Juno iiid, 9.30 p.m.) LONDON J uno 2. Quotations: — Juno X. J une 2. Copper— per ton. per ton. £ s. d. £ 8. d. fctandard, spot .. 20 6 3 26 1 3 Forward .. .. 26 16 3 Electrolytic .. 30 10 0 30 10 0 to .. 31 10 0 31 0 0 American electrolytic: 5.25 cents per lb. Wire bars ... 31 10 0 31 0 0 Lead— Spot .. 10 5 0 10 1 3 Forward .. .. 10 10 0 10 6 3 Shelter — Spot .. 12 1 3 11 16 a Forward .. .. 12 7 6 12 2 6 TinSpot .. 122 3 9 119 7 6 Forward .. ..124 8 9 121 17 6 Silver— Standard, per oz. 15 15-lGd 16 18-16d Fine, per oz. .. 18id 18Jd