FINANCE AND COMMERCE.

Press, Volume LXVIII, Issue 20736, 22 December 1932, Page 12

FINANCE AND COMMERCE.

LAMB PRICES. NEED FOR SPECIAL GRADING. REASON FOR NORTHERN SUPERIORITY. OPINION OF MR D. JONES. -A reason for the loss of priority in price by Canterbury lamb was advanced by Mr David Jones, chairman of the Meat Producers' Board, in commenting on a letter received by tlie 'Editor of The Press from a correspondent yesterday. "While the correspondent attributed the falling off in price to a decline in quality resulting from the time taken in transporting the lambs from the farm to the works, Mr J opes contended that the reason was that the North Island had a special ''Down"' grade for which there was a decided preference on the British marktt. There was need for similar special grading in Canterbury. AfXer all what founted was the demand on the British market, and if the British buyer preferred to know exactly what he was getting action had to be taken in New ZeaJand—if the producer was to get the best price possible—to see that his preferences were met in this respect. A Correspondent's View. The correspondent's letter is as follows: — TO THE BDITOB OF THE PKESS. Sir, —Tour correspondent, "Retired," brings up the important subject of the lamb export in The Peess of Saturday. He again stresses the fact that young "milk lambs" must go straight from the farm to the factory. There is no doubt that this, our primest and most' succulent lamb, deteriorates and wastes most quickly if treated otherwise. Perhaps Mr David Jones, chairman of the Meat Board, may be able to assist in this matter. The fact remains that of recent years other brands of lamb have crept up in price until "Prime Canterbury" has to take second .place. I attribute this largely to the .fact that not having an attractive market such as Addington, more lambs are taken by motor-lorry straight from the farm to the factory. Again, other districts which do not grow the same amount of artificial fattening feed as Canterbury rely more on getting lainbs away right from the ewe. I recall that Mr D. '\V. Westenra suggested at one time, when discussing this at an A. and' P. Association meeting, -that milk lamb shotild be branded as •such. It may be that since the war period rush, our factories havo become a tr'iflo negligent in regard to quality. This the Meat Board might investigate, together with the question whether stock 'ha.ye to remain long between the time they leave the farm and reach the hooks. The fact that Canterbury meat has Josf its priority in price and quality is so glaring that we must look to those who handle the product to assist in reconstructing that good name. I have no" doubt the stock agents will help in the matter of quick transport to the works. By a general feeling of cooperation amongst those who handle the product, including the butchers, a rise both in quality and price will take place. This will quickly reflect prosperity upon all those; engaged in this great industry.—Yours, etc., C. H. ENSOR. Haniner Springs, jpecember 17 th, 1932. The Special "Down" Grade. •'The reason why the North Island producers frequently get a higher price than Canterbury for their selected brands is that they have a special 4 Dqwn' grade, and this grade brings a Tiighcr price by about id per lb over crossbred lambs/' said Mr Jones. "As | chairman of the Meat Producers' Board 1 recently received from a London firm which was starting in the frozen meat business in a large way a letter asking for a list of all the works in New Zealand which had a special 'Down' grade. As a Canterbury man I very much regretted that I was unable to name a single Canterbury works. "The transport question was certainly a difficulty in the past, but it does not exist now, and Canterbury suffers under no disadvantage in this ■respect. The facilities for transport to tife works in Canterbury are as good as in any part of New Zealand. So the Jfact that the price obtained for our llamb is lower than that obtained for the specially graded lambs in the North ■lsland has nothing to do with transport, |or to deterioration caused by loss of ■time. British Buyers' Preference. "I do not want to enter into a battle of breeds, but the British. market has an undeniable preference for the Down cross lamb, and they are prepared to ipay the price for their preference. Most of the North Island freezing companies have met this demand and have <a 'Down' grade specially marked 'Down .Lambs.' These grades command a higher price and a ready sale. This has >encouraged the farmer to increase his [quantity of 'Down' lambs, and the increasing demand for Down' rams from the North Island has meant a very lucrative market for the South Island jstud breeders. The secret of the rapid improvement in North Island lambs is the Down cross lambs, graded and sold as such. They give the buyer what he wants and he pays accordingly. "The Canterbury companies have always set their face against a 'Down' grade of lambs, and they discountenance the farmer putting the word 'Down lamb' upon his own caTefully-bred ;Down -cross lambs that he is shipping on his own account and selling in London. The fanner loses 9d to Is a head Tjecause of this. "When farmers are shipping' Down' •lambs they should insist upon the words ['Down Lambs' being on the tickets on >«vcry carcase—it means money. I went 'through all the lambs in Addington sale •to-day; there were 96 pens of crossbred lambs and 187 pens of Down cross flambu, so that the quantity bred fully justifies a special grade to itself.. "What we want to .aim at is.the sysjtcm that will give us the highest stand-1 #rd of quality. That can be secured mjjr by paying for it.'* j

DALGETY AND COMPANY EXCHANGE COSTS £175,177. Gross profits reported by Dalgety and Company, Ltd., for the year ended June 30th at £676,375 show a reduction of £125,520 on the previous year's results. The net profit of £54,107 shows a fall of £7.4,362. It las not been charged with the cost of exchange, which amounts to £175,177, and is met by a transfer from contingency reserve. The dividend, already announced by cable, is 5 per cent., compared with 7 per cejit. for the previous year and 10 per cent, for 1929-30. Preference dividend of 5 per cent, requires' £25,000, and £IO,OOO is appropriated to staff provident fund. A sum of £196,464 is carried forward, against £212,357 brought forward. 1930. 1931. 1932. £ £ £ Net profits . . 235,946 128,469 54,107 Div., ord., p.c. 10 7 5 Div., ord., amt. 150,000 105,000 75,000 Pref. div., 5 p.c. 25,000 25,000 25,000 Staff providentfund . . 25,000 25,000 10,000 Car. forward 238,887 212,357 196,464 Gross profits 927,222 801,895 676,375 Liabilities — Capital— Ordinary . . 1,500,000 1,500,000 1,500,000 Preference 500,000 * 500,000 500,000 General reserve (premium on shares) . . 500.000 500,000 500,000 Reserve fund 1,000,000 1,000,000 1,000,000 Staff provident fund . . 316,000 341,000 3GG.000 Terminable debentures . . 746,009 665,150 678,900 Sundry creditors .. 2,823,061 2,235,082 2,071,289 Cash .. 688,271 -468,936 414,396 Investments 26,372 29,869 33,005 Bills receivable 92,323 97,640 73,801 Sundry debtors 1,085,576 935,832 947,111 Advances, etc.- 6,904,289 6,610,983 6,784,231 Merchandise 707,531 565,107 462,241 Premises, etc. 300,753 306,826 329,621 Reserve fund investments 1,000,000 1,000,000 1,000,000 Terminable debentures are higher by £.13,750, but creditors show a fall of £163,793. Cash has been reduced by £54,540; merchandise stocks are lower by £102,866, and bills receivable by £23,839. There are increases of £11,179 in sundry debtors, £3136 in investments, £173,248 in advances, and £22,795 in the item premises, plant, and furniture. AUSTRALIAN PROVINCIAL LIFE. BONUS PAYMENTS RESUMED. New business written by. the Aus-. tralian Provincial Assurance Association, Ltd., for the year ended September 30th amounted to £418,829, a reduction of £15,995 on the previous year's total, total premium income •vns £342.976, a fall of £23,512. Interest, rents, and dividends were £109,783, against £133,906. Death claims amounted to £c0,137, an increase of £2604. The ratio of claims to expectancies, according to the report, is well below the mortality table used in the actuarial valuation. Endowments matured accounted for £78,729, an increase of £27,534, .and, surrenders £66,407, an increase of £1740. Total claims, at £202,880, represented the largest amount paid, out m any one- year, .exceeding:'the pre-; vious year's-figures by i32,i85. Loans on policies, at £157,182, show a decrease of £10,714, which' the directors interpret as meaning that the bottom of the . depression has; been' reached. Administration and field expenses, at £55,085, show a reduction of £8255, and- taxation vAccounted for £23,376, against £44.753. ' The stir plus cf revenue over expenditure is £7-1,768, and the amount transferred to appropriation account is £100,772, result* ing in a reduction in assurance funds to £2,419,085. There was no bonus in the previous year, but £15,000 was carried to a special bonus reserve account. A sum of £31,338, . including this reserve, has now been allocated to provide a. bonus ranging from £1 10s per cent, to .£2 10s per cent, on "whole of life" policies. From the appropriation account, amounting to £12.j,950. transfers have been made of £5-5,000 to purchase and establishment recount, which is extinguished, of £IOOO to Canberra leasehold reserve, and- Of £37,058 to general reserve account. The balance-sheet shows capital at £357,028. Assets are valued at £3,043,637. .of which £1,281,848 is in Gov.ernB.ent securities,. £444,238 in freehold, £818,555 in loans on mortgage,'.£232.831 in shares ifi other cdmpanids, and £16,361 in bank deposits and cash. SANFORD, LIMITED. REDUCTION OF CAPITAL. [THE PRESS Special Service.] AUGKLANp, December 21. A largely-attended extraordinary general meeting of Sanford, Limited, wholesale and retail . fish merchants, held" to-day, unanimously endorsed thft directors' recommendation that ' the capital of the company should be reduced from ' £125,000, divided into 105,000 ordinary shares of £1 each and 20,000 preference shares of £1 each, to £59,3^5. The reduction .is to be effected, by cancelling the "paid-up capital, which has been lost or is unrepresented by available assets to the extent of. 12s 6d a share on each of the ordinary shares and by reducing the nominal amount of the ordinary shares from £1 to'7s 6d each. ' Preference shares will remain unaltered. The year ended May 3lst last resulted in a net .loss to the company o, £9631, after providing ;for depreciation. compared with a net profit of £2185 in the' previous year. The last' dividend paid on ordinary shares was 2i per cent, in 1929-30. For many vears the company paid dividends at 7 per cent. A distribution at that rate was made on the preference shares in 1931. but for the year recently' closed there wns no provision for dividend N.Z. AND RIVER PLATE. DIVIDEND DECLARED. (PF.ESS ASSOCIATION TELEGRAM.) AUCKLAND, December 21.Advice has been received bv the local attorney of the New Zealand and River Plate Land Mortgage Company, Ltd., that the net profit for the year ended ? October 31st, 1932, was £102,625, including £43,983 brought into the accounts. , At the annual meeting, to be held in-London on. January 17t1i,-the directors will recommend that a final dividend of per cent, be declared, making a total of '7 per cent, for the year (less income tax at 5s in th'e **£ l), absorbing £49,000, that £SOOO be carried to reserve, leaving £45,625 to be carried forward. Concerns merchandising products -ot good quality can develop the unparalleled sales opportunities in Canterbury effectively and most economically through th©' advertising columns of Ths Press. " . tHi