FINANCE AND COMMERCE

Press, Volume LXXII, Issue 21806, 11 June 1936, Page 15

FINANCE AND COMMERCE

SOUND SALE AT ADDINGTON STOCK EXCHANGE'BUSY i v There was a suund sale at Addington yesterday for most classes of stock. Fat lambs met a spirited demand, and values were fully up to export schedule and frequently above it The markets for store sheep, fat sheep, and fat cattle were also better. Business continued brisk on the Christchurch Stock Exchange yesterday. Prices were inclined to be erratic but Broken Hill shares reached a record high figure. Mount Morgan and Selfridges were also in demand. Mention of the adverse effects of taxation on production was made by the chairman of New Zealand Breweries, Ltd in his address to shareholders yesterday.

the bank of new SOUTH WALES

SEVENTY-FIFTH ANNIVERSARY OPENING FOB BUSINESS IN NEW ZEALAND To-day marks the seventy-fifth anniversary of the opening of the Bank of Hew South Wales in New Zealand, a commencement being made in the Oriental Bank Corporation’s old premises. Shortland street, Auckland. The first manager was Mr D. L. Murdoch, who was also the bank’s first inspector for New Zealand. In the same year, branches were opened at Lyttelton (since closed) on July 18, Christefaureb July 19, Invercargill July 24, Dunedin August 8, Wellington September 1. and Wanganui September 3. The original Christchurch premises were rented from Mr William Sefton Moorhouse. Superintendent of Canterbury, and the first manager was Mr Charles Wesley Turner. At the time the bank first entered Into the life of the Dominion, its capital was £750,000, and it had a reserve fund of £212,500. The proud history of the Bank of New South Wales dates frwlr for more than a century. It was fffwwg the earliest of all colonial being established in 1817. and was the first bank to open its doors in Australia. At that time the population of Sydney was about 5000, and the total white population of Australia numbered only 15,000. The bank first commenced operations in Mary Reiby’s house in Macquarie place, Sydney, on April 8, 1817. The first ledger, still in existence, shows that operations commenced with a paid-up capital of £3623 expressed in dollars, the British sovereign not then having assumed its lawful sway in the currency system of the country. A summary of the first balance-sheet which was presented to the shareholders on January 21, 1818, is as follows: —Dr. notes in circulation and personal balances £ 7494 12s Bd, bank subscriptions recewed £3625, discount and premiums £2Bl 7s sd; total £11,401. Cr. Bill* in Treasury, store receipts and vpecie on hand. £3613 2s 10d: bills of exchange falling due, £5693 5s Id; mortgages. £1381; office goods and furniture ("cost). £340 10s 4d; bank expenditure for salaries, wages, stationery, etc.. £373 Is lOd; total, £11.401. Rapid Growth The discounting business of the bank toon assumed considerable pFonortions, (he hills increasing from £ 12,193 in the year 1817, to £ 81,672. during 1818, and £107.236. in 1619. Its early prosperity aroused powerful opposition and competition, and in 1826 its very existence was seriously threatened. These difficulties were, however, successfully surmounted, and in 1850, to meet the developing conditions of the colony, a new company was formed and incorporated by Act of Council.

In the great financial crisis of 1893. the Bark of New South Wales was «ae of the four banks that did not close its doors. The most important events a its more recent history have been ts acquisition of the Western Australian Bank in 1927. and of the Australian Bank of Commerce, Ltd., in I*sl. it* authorised capital is now £8.780,000 with a reserve fund of ..C.150,000. and its assets tota 1 £115,000,000. The bank has 765 branches and agencies throughout the Commonwealth of Australia, New Zealand, and London. Fiji. Papua, and the Mandated Territory of New Guinea. agents and correspondents twoughout the world. The establishment in the Dominion now totals 86 tranches and agencies. It is the largest Bank in Australia and New ZeaW ranks thirteenth among the ■•oks in the British Empire. The following is a list of the mannew of the Christchurch branch since “ opened in 1861:—C. W. Turner ‘IW-1870L W. S. Robison (1870-1899), MoJineaux (1899-1912), Arthur (1912-1918), G. A. R. Mackay C. N. Cotterill (1923-1929), Garrett (1929-1931), A. H. B. JgW (WBl-1933). J. E. Astill (1933G. H, Bourne (present manager).

DEVONPORT FERRY raitEl ASSOCIATION TELEGRAM.; AUCKLAND, June 10. Set profits £1931 higher at £19,648 *• *kown in the accounts of the Dev*Port State Ferry Company, Limited, wr the year ended April 30. Divided tor the year is unchanged at 5 tor cent. COLOMBO TEA AUCTION ,lu ** association TELEGRAM./ M DUNEDIN. June 10. •Jr. • Wright has received the ,cabled report on the Colombo 2* *»to of June 9:—“ The market for tnmon kinds advanced at the close rale, prices being slightly dearer, and fine teas were irregular 3? declined about 1 cent. Smaller ■nticinated. next week’s quan■"V hemg 2, 000.0001 b - ’ Australian mineral yields r'irEß i'Us* ASSOCIATION —COPYRIGHT.) SYDNEY. June 10. filNtuiLu. anc * minerals valued at were mined jn New South “bring 1935. compared with a «9,127,523 in 1934. The output Was 8-698,579 tons, valued at pn-moulh at £4.887,341. BRITISH WAR LOAN , LONDON, June 9. 3i per cent, quoted at OF SILVER ■fa-- . LONDON, June 9. at Spot, 193 d: lor- ■ 15-1 M a fine ounce.

NEW ZEALAND BREWERIES

EFFECTS OF TAXATION ON OUTPUT CHAIRMAN’S STATEMENT IPRESS ASSOCIATION TELEGRAM.) WELLINGTON, June 10. A considerable decline in output in recent years, as the result of adverse economic conditions and the burden of direct and indirect taxation, was mentioned in the statement of the chairman, Mr D. W. Madden, to the annual meeting of New Zealand Breweries. Ltd., to-day. “Although improved conditions and a reduction in the excise duty assisted in regaining a portion of this loss, the position at the end of the year was that the company’s output was still below normal,” said Mr Madden. “In recent years there has been an increase in the public demand for bottled beers, and this feature has been noted in other countries also. In order to meet this demand and to ensure the provision of the highest grade article, the company has undertaken or has in train, extensive additions to buildings and plant at its several bottling establishments.” The statement confirms the purchase by the company of the old-established Timaru Brewery Company, Limited.) The purchase was completed a few, days ago. The directors intend to continue to operate this plant and to develop business as opportunity offers. The national licensing poll taken in November resulted in an anti-prohibi-tion majority of 335,575 votes, the statement continued. Following a succession of prohibition defeats in New Zealand, and a world-wide abandonment of prohibition wherever it had been tried, this should be a clear indication to the Legislature that the public mind was definitely settled against prohibition, and that it was futile and unreasonable to persevere with the triennial licensing polls. The Hon. E. R. Davis (Auckland), and Messrs E. T. Chrisp (Gisborne), and A. S. Duncan (Christchurch) were re-elected directors.

BUTTER POSITION SOUND

MARKET’S SATISFACTORY ADVANCE STOCKS REMAIN BELOW NORMAL The butter market has made one of the most satisfactory advances experienced for a considerable time, rising from 88s at the beginning of May, to the present level of 112 s per cwt, says the current review of A. H. Turnbull and Company, Ltd. W. Weddel and Company, Ltd., cable that the advance has been caused by the late spring experienced on the Continent of Europe which has brought about a reduction in stocks in the United Kingdom. Added to this the rapid falling away of Australian production has also strengthened the position. Perhaps the strongest factor, however, has been that the retail price of New Zealand butter has been kept at from lid to Is throughout the month, and this has maintained consumption at a very high level. With butter now quoted at 112 s ex the market, it seems as though retail prices will have to be advanced, and it will be interesting to see whether this will have any effect on the present excellent consumption. Latest quotations give the market quiet at 112 s, but we are advised that a firm market is expected. The stock position in London is very sound, as according to the latest figures supplied by the Imperial Economic Committee, the estimated total stocks were 16,000 tons, as against 23,000 tons at the same time last year. Forward buyers have been showing very great activity during the month with a strong demand for June-July-August shipment, and as high as Is 2d per lb f.o.b. has been paid. The cheese market has advanced rapidly, very much on the same lines as butter, and prospects for the future certainly look bright. W. Weddel and Company, Ltd., state that the stocks in the United Kingdom, and also the English production If cheese, continue to be below normal, and they therefore expect the market to remain firm. Forward buyers of cheese have been very active buying cheese unshipped to the end of season’s make, and as high as 6|d has been .paid. Just at the moment the market is reported quiet at round about 60s per cwt. VALUE OF ADVERTISING TRIBUTES TO USEFULNESS Tributes to the value of advertising and reference to the changing attitude towards it in modern business were made by Mr J. Mawson Stewart in an address to the Canterbury Advertising Club last night. He discussed advertising *appropriations and their place in modern budgeting, and said his experience of the value of advertising made him confirm any praise he heard of its use in business. Mr Stewart gave examples from his own experience of firms which had suffered from not paying sufficient attention to their advertisements, aqd said that the present day business was based on expert work in each department. That need for experts was nowhere more important than on the advertising side. Mr J. J. Staples said that the bugbear of advertising people in the past had been accountants of the very old school who had seen no items in the balance-sheet which would balance the advertising appropriation, forgetting, or ignorant of, the truth that every pound taken from advertising was a far greater amount from profits. Mr Stewart was fortunately one of the modern school of accountants which recognised the value of advertising.

COMPANY NEWS

MACKY, LOGAN, CALDWELL The report of Macky, Logan, Caldwell, Ltd. tin liquidation), for the year ended February 19 states that negotiations were completed for the sale of the company’s two most important assets. The new company of Macky, Logan, Caldwell, Ltd., which was formed to take over the trading assets of the liquidated company, had exercised its option to-purchase. The shires held in the Oamaru Woollen Company realised approximately 13s S a share, and the factors property at Newmarket was sold for £10,500. The remaining assets, consisting of nronerties and securities, were not at pSent realisable, but sufficient income had been derived to pay the total outgoings over the whole. The appropriation account showed the results of realisations The accumulated loss had by £29.000 during the yelr by the benefit of the credit from the sale of the Oamaru Woollen Company shares. During. the peiiod two dividends to unsecured creditors had been, paid, totalling 10s in the pound. A further payment of 2s fid was in sight, and would be paid as soon as the funds were available. The remaining assets represented the residues of the liquidation, and, in the absence of any satisfactory offers, it was considered best to hold them, as there were indications of improving conditions. PERPETUAL FORESTS “There have been irritating but unavoidable delays in the organisation of the realisation company, and it is impossible to make a statement of policy at present,” said Mr W. Fraser, chairman of directors of New Zealand Perpetual Forests, Ltd., at the annual meeting on Monday. ... . Mr Fraser said the greatest advantage that, could come to Perpetual Forests would come through the success of the Forest Product? Company. If the Products Company were as successful as the directors felt sure it would be, given time and opportunity, then the shareholders of Perpetual Forests, would derive substantial benefits. Referring to Australian criticism of the company’s affairs, Mr H. Landon Smith, a director, said the purpose of the attacks was obscure. Apparently they emanated mainly from two sources, and in neither case did the parties responsible have any interest in the company. Replying to a question, the chairman said that while it was preferable it would not be possible to report new developments, arising from present negotiations with Forest Products, to a general meeting of shareholders. The decision of the Bondholders’ Commission in the matter would carry the same authority as the judgment of a final court. It would not be advisable or practicable to seek to alter that decision, once it was given. He thought that shareholders would have no reason to be dissatisfied with the results. The report and balance-sheet were adopted. The number of directors for

the ensuing year was fixed at three and Messrs Fraser, Owen Jones, and Smith were re-elected; At an extraordinary general meeting, held before the annual meeting, the draft new articles of association were approved without modification, and a special resolution was passed adopting the articles. MORRIS HEDSTROM

Net profits over £BOOO higher at £53,512 are shown in the accounts of Morris Hedstrom, Ltd., Fiji, for the year ended March 31. The amount written off for depreciation has been increased by £3OOO to £20,922, this sum being used largely in writing down the value of assets in copra districts. The year’s ordinary dividend is unchanged at 5 per cent. This absorbs £23,021, and the preference dividend requires £13,152, leaving £54,764 to be carried forward, against £40,425 brought into the accounts. Results for the last three years compare as follows: 1934. 1935. 1936. £ £ £ Brought forward 37,627 34,457 40,425 Net profit .. 30,708 45,141 53,512 £63,425 £79,598 £98,937 Div.. pref., 6 p.c. 13,152 13,152 13,152 Ord., p.c. 4 5 5 Amount .. 20,816 26,021 26,021 Carried forward £31,457 £40,425 £54,764 Total assets have increased by £22,065 to £972,054. This is accounted for chiefly by an increase in sundry debtors and in stocks, due to improved business conditions. Paid capital is unchanged at £739,613. General reserve remains at £BO.OOO, but insurance funds have increased by £3OOO to £45,080. Sir Maynard Hedstrom, chairman of directors, stales: “Notwithstanding the increased profits the directors considered it wiser to strengthen the financial position of the company rather than increase the dividend. The prospects for the current year are satisfactory—good crops of sugar and copra are assured, and substantial amounts are being expended in the development of the .goldmining areas.” HUME PIPE (FAR EAST) (PRESS ASSOCIATION TELEGRAM.) WELLINGTON, June 10. The directors of Hume Pipe (Far East), Ltd., announce a net profit for the year ended March 31 of £14,345, and recommend the payment of a dividend of 5 per cent., payable on July 13. [Profit last year was £l6lO, and dividend 3 per cent.] i . • THE METALS MARKET

PRICE OF GOLD LONDON, June 9. Gold is quoted at £6 19s a fine ounce. FRENCH AND AMERICAN EXCHANGE LONDON, June 10. United States and French exchange closed to-day at: Dollars 5.01, francs 76 1-16 to £1 sterling.

(BRITISH OFFICIAL WIRELESS.) RUGBY, June 9. June 8. June 9. Copper- £ s. d. £ s d. Standard Spot 36 5 74 36 5 74 Forward 36 11 10i 36 11 104 Electrolytic .. 40 2 6 40 10 0 to 40 12 6 40 12 6 Wire bars Lead40 12 6 40 12 6 Spot 15 6 3 15 10 0 Forward 15 8 9 15 10 0 Spelter— ■ Spot • 14 5 0 14 2 6 Forward 14 8 9 14 7 6 TinSppt 187 17 6 184 15 0 Forward 185 13 ,9 182 10 0 Silver— Fine, per oz. 20 l-16d 19Jd Standard, per oz. 21 id 21 7-16d