SHAREHOLDERS WARNED

Press, Volume LXXII, Issue 21975, 26 December 1936, Page 9

SHAREHOLDERS WARNED

NEW ZEALAND’S LEGISLATION DALGETY AND COMPANY CONCERNED (rKOK CUB OWB COBBEBPOHDMT.) LONDON, November 21. Concern that the New Zealand Labour Government’s legislation might affect the earnings of Dalgety and Company, Ltd., “to an unknown degree” during the current year was expressed by the Hon. Edmund Parker (chairman of directors) at the com; pany’s annual meeting this week. Although, said the chairman, he had a brighter story to tell shareholders than for the last few years, he felt that he should “warn” them about New Zealand. “Although,” said Mr Parker, “we have not reached that prosperous state whep we were able to distribute large dividends and bonuses, we have at least turned the corner, and I am sure that the results of the first year will prove satisfactory to you. We are at last able to recommend an additional payment, by way of dividend, of 1 per cent., bringing the distribution for the year up to 6 per cent., free of British income-tax, and to show definitely improved earnings. I must warn you, however, that during the current year We are faced with a grave drfiught in Western Australia and with legislation In New Zealand which may affect our earnings to an unknown degree. Some Trepidation "A Labour Government has come into power in New Zealand, and legislation of a kind has been introduced which makes all plain-thinking people view the future with some trepidation. I do not view the outlook with equanimity. At present it seems that the result of this legislation will be to affect seriously the return on the considerable amount of British capital invested in the Dominion and render further investment of such funds improbable. “In regard to the company’s own operations. better results were achieved in the Dominion during the last financial year, and these helped to swell our much Improved earnings. The exchange position has been the subject of many rumours, and at the present time remains unchanged. “The enhanced price of wool, of course, did much to help us in New Zealand, as also did the rise in dairy produce prices, arid the extremely good market for frozen meat. While mentioning wool, I am hoping that the dispute now going on between the Governments of Australia and Japan concerning the tariff will soon be settled, and that we shall see Japan back in 'the market. I offer no comment as to the merits or demerits ot the dispute, as it is impossible to do so without a full knowledge of all the relevant factors, which I do not possess. Research and Publicity “A fund is being raised in Australia by moans of a levy on wool growers in order to further research and to carry on a publicity campaign in the cause of wool. A similar fund is to be raised in New Zealand, and it is hoped that co-ordination among manufacturers on this side will be reached and that they will contribute their quota towards the very desirable end in view. “I am gla;l to say that the rise in the price of wool which manifested itself last season was well maintained, and our results show an increasing benefit. Such drastic provisions had been made in New Zealand during the slump that on this occasion wc are reaping the benefit and I hope may do so for some years—that is if the new legislation docs not affect our activities in tlie Dominion to an excessive extent. We have carried the total exchange cost in our accounts without assistance from reserves, to which wo had to have recourse last year—notwithstanding the figure being larger by some £20.000 odd. I feel that there is ground for hope and look forward to presenting you with perhaps as good results next year. In any case (ho outlook is more hopeful than it has been for many years. The 1035-38 wool selling season was one of the most successful experienced for many years. It was characterised by stability of prices and absence of any sharp fluctuations in the market, and for this reason can be looked back upon with feelings of gratification by all sections of the trade,” Dominion’s Wool Selling Season Referring to the 1936-37 New Zealand wool selling season, the chairman said: “If the present keen demand for crossbreds is maintained—and we see no reason why it should not be, taking into consideration the amount of this class of wool which will be required for army clothing, Coronation decorations, etc. —Dominion growers should have a prosperous time ahead of them. It will be remembered that Japan was an important buyer last season in New Zealand, and wc expect a demand from that country again in the coming months. British buyers will doubtless be the mainstay of the market again, and we think it quite likely that America will want wool.” THE METALS MARKET

PRICE OF GOLD LONDON, December 23. The price of gold is £7 Is Od a fine oz. PRICE OF SILVER (BBITISH OFFICIAL WIBELESB.) • RUGBY, December 23. Silver is quoted at 20|d a fine Ounce for spot, and 20 13-16 d for forward. BONUSES DISTRIBUTED BY GENERAL MOTORS, LTD. General Motors (N.Z.), Ltd., have decided to distribute more than £3OOO to employees. Of this amount £2OOO has been allotted to hourly pay factory workers. In announcing the bonuses, the general manager, Mr G. C. Seers, states that the '•ompany wishes to share the benefits of the last year with its workers. NEW YORK CALL MONEY NEW YORK, December 24. New York call money is unchanged at 1 per cent.

LONDON, December 23. Dec. 22. Dec. 23. Copper— £ s. d. £ s. d. Forward 48 0 74 48 8 Electrolytic .. 52 15 0 52 15 0 to 52 15 0 53 10 0 Wire bars 52 15 0 53 10 0 Lead— Spot 27 2 6 28 2 6 Forward 27 2 6 27 17 6 Spelter— Spot 18 18 9 18 18 9 Forward 19 1 3 19 18 9 Tin— Spot 238 2 6 232 2 6 Forward 238 2 6 232 7 6 Silver— Fine, per OZ. 22^d 20ld Standard, per oz 22 15-16d 22id