FINANCE AND COMMERCE

Press, Volume LXXIII, Issue 22108, 2 June 1937, Page 11

FINANCE AND COMMERCE

BANK OF NEW ZEALAND PROFITS NEW BREWERY SHARE ISSUE Net profit of £600,008, against £565,181 last year, is shown in the accounts of the Bank of New Zealand, which will be presented in Wellington on June 11. The profit is the highest since 1931. Dividends on all classes of shares are unchanged New Zealand Breweries, Ltd., have announced an issue of 546,135 £1 ordinary shares at a premium of 5s in the proportion of one new share for every two now held. The purpose of the issue has not been stated, but it is presumed that it will be used to finance the purchase of the hotel assets of J. Staples and Company. Perpetual Trustees announce an improved net profit for the year. Dividend is to remain unchanged at 2s a share for the year.

COMPANY NEWS |

BANK OF NEW ZEALAND ACCOUNTS NET PROFIT HIGHER (rllM ASSOCIATION TSXXOBAU.) WELLINGTON, June 1. The report and balance-sheet of the directors of the Bank of New Zealand, to be presented at the ordinary general meeting to be held in Wellington on June 11, shows that profits, after providing for expenses of management and for all bad and doubtful debts and other contingencies, and after making provision for the annual donation to the provident fund, are £600,008 4s 6d, to which has been added the balance brought forward from last June of £339,100 7s 9d, making a total of £930,108 12s 3d. From this has been paid a dividend on preference A shares of £90,000, an interim dividend on C long-term mortgage shares of £7031 ss, an interim dividend on D long-term mortgage shares of £17,578 2s 6d, an interim dividend on preference B shares of £31,250, and an interim dividend on ordinary shares of £187,500, a total of £293,359 7s fld. This leaves available for distribution £645,749 4s 9d, which the directors propose should be disposed of as follows: —Dividend on C long-term mortgage shares at 6 per cent, per annum £7031 ss, dividend on D long-term mortgage shares at 7J per cent., £17,578 2s fld, dividend on preference B shares (making £IOO,OOO for the year) £68,750, and a dividend at the rate of 5 per cent, on ordinary shares (making £375,000 for the year, equal to 10 per cent.) £187,500. This will leave a balance to be carried forward of £364,889 17s 3d. [Net profit last year was £565.181. The profit this year is the highest since 1831. The dividends are all unchanged from the rates paid since 1934.] N.Z. BREWERIES NEW ISSUE 546,135 SHARES TO BE OFFERED AT 25/(WHSSS ASSOCIATION TBLJOBAIf.) WELLINGTON, June 1. New Zealand Breweries. Ltd.. have announced an issue of 546,135 new ordinary shares of £1 each, at a premium of 5s each. The issue will be offered t& shareholders in the proportion of ope new share tor every two held on May 29. . . . _ Though no announcement na» been made of the purpose of the new issue, it is probable that it will finance the purchase of the hotel interests of J. Staples and Company. The new shares will rank equally with exiting shares in respect of any dividends declared after October 1, 1937. Terms of the Issue are that los a share is payable on acceptance, of which 5s is regarded as premium; the balance of 15s a share on or before October 1, 1937. The paid up capital of the company at the last balance date was £1,092,271 in £1 shares fully paid. New 1 Zealand Breweries, Ltd., last made an issue of new capital m 1929, when authorised capital was increased to £2.000,000 by the creation of 1,500,uw new #1 shares. At the same time, £2504)00 of reserves were capitalised and 280,000 £1 bonus shares issued to shareholders in the proportion of one new share for every two old shares held. Holders of the 10 per cent, debenture stock were giyen the »P«on of converting their holding into one £J share fully paid for every £2 of stock. In May, 1938, the company acquired the business of the Timaru Brewery Company, Ltd., for approximately £73300; and the White Star Brewery, of Kalapoi, was also acquired as from the beginning of &&. Acceptance of the offer of shares must reach the company's office not later than June 30, 1937. PERPETUAL TRUSTEES An expansion to £6427 from £4473 is shown in the net profit earned by the Perpetual Trustees Estate and Agency Company of New Zealand, Ltd., for vSrS& ended April 30, 1937. The amount is subject to income tax. it is proposed to pay a second dividend of Is a share for the year, making the distribution 11.1 per cent, unchanged from last year. ~ x *♦«,.! In their report the directors »tate:— | *The amount brought forward from the previous year was £3387 *s aa, from which has since been paid income tax for that year, interim dividend of £I2BO for half-year ended October■3l. 1986, and the company's contribution to. the Btaff benefit fund, leaving a balance of £562 lfls Bd. The P r °at «£ the year Just ended amounts to £SBW 16s Od, and the available balance is, therefore, £6426 13s sd, which the directors now recommend to be dealt with as follows; £ s. d To, payment of a dividend of Is a share for halfyear ended April 30, 1937 .. .. 1,250 0 0 To writing off premises .. 208 8 10 To writing off office furniture and fittings .. 210 10 2 To staff benefit fund contribution .. ,750 0 0 To investments fluctuation account .. 750 0 0 To carry forward to next year (subject to income tax for year just ended) .. .. 3,257 14 5 The directors greatly regret to record the death in September last of ■Mr C. H. Hewlett, who was a director of the company since the opening of me Christchurch branch. Messrs W. f• Reynolds, R. K. Ireland, and C. Stanley Smith are the retiring directors, and offer themselves for re- „ election.

MINING

GILLESPIE'S BEACH , Gillespie's Beach has declared a dividend of Id a share. (J OLDEN SANDS The directors of Golden Sands, Ltd., have declared an interim dividend of Id a share, representing 8 1-3 per cent., payable on June 15.

GUARANTEED PRICE FOR CHEESE

SATISFACTION IN SOUTH CANTERBURY [THE PRESS Special Service.] TEMUKA, June 1. The recommendations of the Guaranteed Prices Investigation Committee regarding the marginal price for cheese compared with butter for the 1937-38 season are supported from cheese manufacturers in South Canterbury. Commenting on the committee's report that, in view of increases in factory costs the basic guaranteed price for the 1937-38 season should make allowance for factory costs at 3.25 d per lb of butter-fat and possibly for a cheeße yield lower than 2.51 gross and 2.45 net, Mr W. H. Staniland. chairman of directors for the Clandeboye dairy factory, said that he thought the report a fair one, and should satisfy South Canterbury manufacturers. The cheese yield quoted would come well within the yield of any factory in the Temuka district, he considered.

DAIRY PRODUCE MARKET

LONDON PRICES By arrangement with the Primary Products Marketing Department the following information is supplied:— Butter New Zealand, salted 108s (last week 108s to 109s); New Zealand, unsalted 109s to 110s (109s to 110s). Australian, salted 107s (107s to 108s); Australian, unsalted 107s to 108s (108s). Market firm. New Zealand retail price unchanged Is Id. South Africa, 105s to 106s; Danish, 93s f.0.b., 114s spot (90s to 110s); Dutch, unsalted 103s to 104s, exceptional 107s <slow),j (103s to 105s)). Market firm. Banish retail price unchanged, Is Id to Is 2d. '■ The Imperial Economic Committee estimated all stocks of butter in store at 720,316 boxes (last year 642,123 boxes), Cbeeae New Zealand, white 74s to 74s 6d (73s fld); New Zealand, coloured 73s 6d to 74s (72s 6d to 73s 6d); Australian, white 71s to 73s (70s to 725); Australian, coloured 71s to 72s 6d (70s to 725); Canadian, white 77s to 79s (76s to 78s); Canadian, coloured 77s to 78s (76s to 78s). Market quiet. New Zealand retail price unchanged London Bd, elsewhere 9d. LONDON PRODUCE MARKETS HIGH COMMISSIONER'S REPORT The Department of Agriculture has received the following cablegram, dated' May 29, from the High Commissioner for New Zealand, London:— Tallow—Market very quiet on spot at about fld below last week's prices; little more interest shown for shipments. Hemp—Manila: Market easier early this week: closes steadier. Value "K" grade for May-July shipments £32 10s. Sisal: Market more active towards end of week. May-June shipments sold £2B 17s fld; closing values July-! September shipments £29. New Zealand: No business reported; shippers not offering. Fruits—Port Gisborne discharged Hook forward condition; Northumberland Jonathans West Coast forward. Market overstocked; heavy arrivals of Australian fruit; prices weaker. Apples—Cox's Orange, Granny Smith 10s to 14s; Delicious, Sturmer, and Statesman, 8s to 10s; Cleopatra, 8s to 9s 6d; Jonathans, Dunn's Favourite, 7s to 9s; London Pippins 7s 6d. Pears—Josephine 12s, Winter Nells 10s to 12s, P. Barry 9s to 10s, Keiffer 8s 6d to 9s 6d, Winter Cole 8s to 9s.

LIABILITIES Change April 30, from 1937. last year Capital issued .. 106,250 Capital paid up .. 22,500 Reserve Fund .. 22,500 Investments fluctuation account 6,000 +I,OOO Creditors .. 185,513 +45,699 Profit and loss .. 6,427 -425 Total .. 244,490 +46,274 ASSETS Leaseholds and buildings 4,873 —234 Office furniture 2,105 +l4 Mortgages .. 36,728 +1,750 N.Z. Govt. debentures 10,880 Local body debs. 7,000 Debtors .. 138,523 +18,438 Bank deposits .. 28,209 +20,515 Natl. Banto of N.Z. 16,621 +8,791 Total .. 244,940 +46,274 1935. 1936. 1937. £ £ £ Gross revenue 26,276 26,962 28,206 Net Profit .. 3,808 *4.473 "0,427 Dividend <p.c.) 11.1 .11.1 11.1 ♦Subject to taxation.

CANTERBURY MARKETS POTATOES STILL FIRM (BT OUR COMMERCIAL EDITOfc.) Tuesday Evening. Potatoes remain very firm, though there is no great trade in them, apart from the movemeit of supplies for South American shipment. Deliveries have been held up by the wet weather, which has interfered with digging, but since the week-end digging has been going full swing again,. In most districts, too, there is a shortage of labour to lift the crop. North Island inquiry is very moderate, partly because supplies there appear to be fairly heavy and party because deliveries to that quarter have been heavy lately. The price here is also a deterrent. It appears that till the June boats for South America get away the market will remain firm. The June increment of Id a bushel has gone on to wheat, and deliveries have begun to respond to the rise. Oats are very firmly held, in spite of imports to Auckland. Chaff is very scarce and firm. Supplies of good bright are exceptionally difficult to obtain. Farmers appear to be too busy to do much cutting, and the good price of oats is also a factor. Quotations The following are the prices quoted to farmers, on trucks, at country sidings, unless otherwise indicated:— Wheat—Milling, May, f.0.b., Tuscan 5s 3d, Hunters 5s sd, Pearl 5s 7d. Fowl wheat, prompt, to 5s Id, f.o.b. Oats—A Gartons to 3s sd; B Gartons, 3s 2d; Algerians, to 2s lOd; Duns, 2s 9d to 3s 3d. Ryegrass—Perennial, 2s 6d to 3s; Italian, 2s 6d to 2s 9d. Cocksfoot—Plains, 7d to 8d; Akaroa, 5d to 9d per lb. I Cowgrass—6d to 7£d per lb. White Clover—To 10£ d. Chaff—To £4 2s 6d a ton. Barley—Feed, 4s a bushel. Partridge Peas —4s 9d to 5s a bushel. I Potatoes—£s 15s to £6 a ton. Bran—Large, £4 15s; small, £5 ss. 1 Pollard—Large, £6 5s a ton; small, £6 15s. AUCKLAND I.TME PRESS Special Service] AUCKLAND, June 1. Potatoes are unchanged, although firmness in the South may bring an advance before long. South Island Reds are quoted at £9 to £9 5s a ton, and white £8 15s to £9. Onions from Pukekohe sell steadily at 12s 6d per cwt. Stocks of Java maize are almost finished, but a shipment of South African, which came to hand last week, is keeping the market well supplied. The quotation is 6s 7d a bushel. Southern chaff is selling at £9 15s a ton. Bran is in nlentiful supply at £6 12s 6d, pollard being quoted at £7 15s for local and Australian £9 10s to £9 15s. BRITISH WHEAT MARKET LONDON, May 31. Wheat cargoes arc lower. Parcels are easiei-. Futures: — May 27. May 31. London (qr.)— s. d. s. d. July .. .. 45 3i 44 1 November .. 42 4i 41 1 Liverpool (cental) — July .. .. 9 61 9 2 October .. .. 8 101 8 4} BRADFORD TOPS MARKET LONDON, May 31. Bradford is firm. There is practically no speculative or forward business. Yarns are unchanged. Machinery is being well employed. STOCK MARKETS LORNEVILLE | (PBBSS ASSOCIATION TZLXOBAM.) INVEBCARGILL, June 1. Rises of 4s to 5s tor fat ewes, and 2s 6d for wethers were features of today's market at Lorneville. These marked increases were chiefly due to the operations of northern buyers. However, the market was erratic, and from about the middle of the sale to the finish prices in some cases were little better than last week. The fat lamb market was also a bright one, and export buyers were operating for the most part above schedule. Fat cattle values were about the same as those for last week. Fat Sheep—Prime quality wethers sold from 34s 6d to 365, good quality 32s 6d to 33s 6d, medium 28s 6d to 30s, light and unfinished 24s 6d to 25s 6d, extra prime heavy ewes up to 32s (id, prime heavy ewes 28s to 30s, good quality 25s 6d to 275, medium 21s to 22s 6d, and freezing ewes IBs 6d downward, according to weight and quality. Fat Lambs—Extra prime quality sorts made from 29s to 30s 6d, prime quality 27s 6d to 28s 6d, medium 25s 6d to 26s 6d, unfinished 21s to 235. Fat Cattle —Good quality handy-weight bullocks realised up to £lO, medium £8 to £8 10s, good quality medium-Weight heifers £6 5s to £7, light-weight £5 to £5 15s, small and unfinished £3 15s to £4 ss, good quality cows to £7 7s 6d, medium quality £5 10s to £6 ss, average £4 10s to £5, inferior £2 10s to £3 ss. RANGIORA A large yarding of cattle met with a poor demand at the weekly stock market at Rangiora yesterday. Sheep, of which there was a small yarding, were also hard to sell, but pigs were entered in large numbers and sold well. Fat wethers made from 25s 6d to 27s 6d, fat ewes from 12s 6d to 18s, aged ewes from 6s to 10s fld, and forward lambs 17s 6d. In the cattle market springers realised £7 10s, springing heifers from £6 10s to £8 10s, spring calvers from £4 to £5 6s, and yearling heifers £2 17s 6d. Baconers brought from £2 10s to £3 2s, porkers from £1 7s to £2, stores from 16s to 235, and weaners from 4s to 15s. TINWALD There was a good demand for prime quality sheep at the Tinwald stock sale yesterday, but as the yarding of this class was limited, prices showed a tendency to increase on the rates at last week's sale. A fair proportion of the fat section comprised inferior lines. The market was topped by W. S. Strange (Tinwald), who obtained 35s Id for three prime wethers. In the ewe section the best price was 26s 6d for 37 sold on account of G. R. Miles (Longbeach). The entry of store sheep showed a marked decrease on those of recent weeks. The principal sales were:— Fat Ewes—On account of W. S. Strange (Tinwald), 8 at 22s lOd to 23s lOd; W. J. Clucbb (Lismore), fl at 21s lOd; Adams Estate (Lowcllffc), 8 at 14s 7d; W. J. Anderson (Flemlngton), 40 at 17s 7d to 259; J. H. Papworth (WiUowby), 1 at 20s; F. P. Cookson (Eiffelton). 6 at 21s 9d to 23s 4d; R. Wilson (Riverside). 3 at 20s lOd; G. J. Giddings (Ealing), X at 15s 6d; J. Fitzgerald (Westerfleld), 23 at 14s lOd to 21s Id; Wright's Estate (Lagmhor), 24 at 18s Id to 19s 4d; Maidens's Estate (Anama), 24 at 16s 7d to 20s 7d; G. J. Anderson (Maronan), 10 at 13s 7d to 16s lOd; clients, 4 at 22s 7d, 4 at 22s Id, 5 at 20s lOd, 7 at 20s 4d, 57 at 17s, 20 at 15s 4d. Fat Wethers—On account of W. S. Strange (Tinwald), 3 at 35s Id: J. G. Anderson (Lismore), 14 at IBs 10d to 24s id; G. J. Giddings (Ealing), 6 at 25s Id to 26s 4d; G. GUes (Wakanui), 4 at 27s lOd; Maidens's Estate (Anama), 41 at 21s to 245. lOd; G. J. Anderson (Maronan), 28 at 19s 44 to 22s lOd. Fat Lambs—On account of Adams Estate (Lowcliffe). 5 at 21s; R. Wilson (Riverside). 3 at 22s 4d; J. O'Connor (Ash2at 22s lOd; G. R. Miles (Longbeach), 37 at 26s 6d; client, 15 at 24s Bd, 35 at 23s Id, 69 at 17s 6d. Stores—On account of G. S. Blackmore (Westerfleld), 196 two-tooth wethers at 255; H. Abbott (Coldstream), 71 ewe hoggets at 25s 4d; clients, 75 ewe lambs at 27s 3d, 86 two-tooth wethers at 22s 6d, 87 two, four, and six-tooth ewes at 23s 6d.