FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22318, 4 February 1938, Page 15

FINANCE AND COMMERCE

MARKET STRONGER . . . I EXCHANGE HOLDING LOWER fs \ ..' The investment market here and in Australia continues i* (o recover slowly but distinctly. On the-local Stock Exchange ■■ business was moderate apart from one large transaction in {' Government securities, but although prices were erratic, quo- \ tations show a definite improvement. The Sydney Exchange t also improved in tone. New Zealand orders for some stocks i helped prices. r. J The Reserve Bank figures for this week show a decline of I in the amount of sterling exchange held. Advances [ TsfmJ the Primary Products Marketing account are £530,400 p higher, advances to the State for other purposes are £200,000 | higher, and investments are £256,300 higher. The note issue ! continues to decline, the week showing a reduction of £55,900. f. Demand liabilities to the State are £509,800 higher, but those I to the banks are £502,600 lower.

COMPANY NEWS BEBARFALDS, LTD. ___ Bebarfalds, Ltd., a house-furnishing company, reports a net profit of £25,247 for the year ended June 30, compared with £21.971 the previous year, and £13,793 for 1934-35. The directors recommend payment of dividends of 6J per cent, for the year on the "A" and "B" preference shares, tqgether requiring £12,469. These are subject to the adoption by shareholders, and confirmation by the Equity Court, of a resolution reducing ordinary capital by 5s a share. Payment of the dividends will leave £13,938 to be carried forward, against £ll6O brought forward. The provision for depreciation was j £1535. The directors state that trading conditions were favourable througnout the year, permitting of an increase in turnover. "Negotiations were continued throughout 1937 with 'A' and 'B' preference shareholders with a view to a satisfactory settlement concerning arrears of preference dividend," the report continues. "At one stage an amicable arrangement was evolved. Subseqeuntly. however, a minority section of the 'A* preference shareholders made demands which were considered inequitable. It therefore became necessary to abandon the scheme of April 8. 1936, together with ihe various amendments thereto which had been considered, and to out forward a new proposal to preference shareholders. The new proposal has uow been ratified by the requisite number of preference shareholders of each class, and subject to the resolution for the reduction of the ordinary capital being passed, and confirmed by the Equity Court, a dividend at 6J per cent, per annum will be paid on both 'A' and 'B' preference, shares." It is proposed that part of the amount, £53,350, by which the cut oi 5s per share would reduce the ordinary capital, shall be used to extinguish goodwill t £33,393). and that the balance shall be carried to a capital resei ve account. The preference scheme provides that arrears shall be reduced from £39.450 to £31.450 on the "A" shares, and from £39,252 to £31,292 on the "B" shares. Both classes shall receive 6i per cent., which is slightly more than 8 per cent, (the original rate) less the statutory deduction. The agreed upon arrears are to De paid as follows: After paying ividends at 6J per cent, from July 1,1936. to both classes of preference shareholders, an amount equal to thref times the aggregate amount of any dividend paid on ordinary shares is to be distributed, two-thirds among holders of "A" preference shares, and one-third among holders of "B" preference shares in part reduction of their agreed arrears. After the agreed arrears of dividend to "A" preference shareholders have been paid in full, the whole of the above mentioned sum (three times the aggregate amount of £>ny dividend paid to ordinary shareholders) is to be distributed amongst "B" preference shareholders until they are paid the agreed sum (£31,292) of their arrears in full. > In the event of ordinary dividend in any vear exceeding 6i per cent., each class of preference shareholders shall have the right to participate up to 3 per cent. Further, "B" preference shares confer further right in respect of any year, if and after, for thai year, a dividend of 10 per cent, per annum has been paid on ordinary shares, as well as the dividends of 8 per cent, on "A" and "B" preference shares, to share pro rata with the ordinary shares in any dividends which may be paid out of the profits of such year. GOOD PRICES FOR RAMS OPENING OF FEILDING FAIR EXCELLENT SALE FOR GOOD QUALITY (PBXSS ASSOCIATION TKLBOBAM.) FEILDING, February 3. A crowded attendance representative of both the North and South Islands was present at the first day of the annual ram fair at Feilding to-day, when about 1350 flock and 35 stud Romneys were offered The market was slow at first, and although firmed later, remained unsteady all through Nevertheless, the sale was tnrougn. Feilding ff «3od*is which averaged well al gS S? ffrtud rams was 75 euTneas w"h others 40 to 73 guineas, s?i average price being 37i guineas. elhibited in the flock -classes Feilding show sold extremely £.l the top price being 40 gumeas. w ■;. Ji 9n last year. The heavy perKge quality rams in the general flock offering brought the orice well down, although mSual P breeders with well-known flocks enjoyed a greatly improved i£ The-top price flock ram in this Stion^as23 guineas. Fully 80 per cent, of the offering was cleared at auction. PRICE OF GOLD LONDON, February 2. Gold is quoted at £6 19s 9d a fine ounce. PRICE OF SILVER (BRITISH OFFICIAI WIBBLBSS.) RUGBY, February 2. Spot silver <s quoted at 20 3-16 d a flne ounce, and forward at 19,<L

IBESERVE BANK I • FIGURES

I WEEKLY STATEMENT I ASSETS AND LIABILITIES if (P*«M ASSOCIATION TZLXOKIH.) 1 WELLINGTON, February 3. 1 The following is the statement of [Lets and liabilities of the Reserve (lank of New Zealand as at the close on January 31, 1938: W' Liabilities £ s. <L [ 11) General Reserve ' fund • ■ 1,500,000 0 0 (2) Bank notes .. 14,240,044 10 0 (3) Demand liabilities(a) State .. 3,532,496 J 11 b) Banks .. 9,805,469 13 6 (c) Other .. 693,166 13 9 (4) Time deposits .. (5) Liabilities in cur- - rencies other than 1 New Zealand currency • • 16) Other liabilities .. 195,907 6 3 Total .. 29,967,084 7 5 Assets 17) Reserve— „ „ (a) Gold .. 2,801.791 0 0 (b) Sterling exchange .. 16,230,651 411 (c) Gold exchange (8) Subsidiary coin 217,091 8 4 0) Discounts—- . (a) Commercial and agricultural bills (b) Treasury and local body bills 110) Advances—(a) To the State or State undertakings— (l) Primary Products ■':■: Marketing Dept. 6,623,765 13 10 (2) For other purposes 1,100,000 0 0 : (b) To other public authorities .. Jo Other .. Dl) Investments .. 2,914,652 19 11 ill; Bank buildings f) Other assets .. 79,132 0 5 Xj Total .. 29,967,084 7 5 iftuportiori of reserve (No. 7 less $ 51 to notes and other demand liabilities, 67.321 per cent. r WOOL RATES MAINTAINED IN LONDON Inferior sorts frequently . withdrawn ImraD FBXOO ASSOCIATION—COPIBIGBT.) LONDON, February 2. At the wool sales, 6877 bales were dfered,- including 2449 from New Zealand, and 5510 were sold. A moderate selection mei sustained demand, and ruling rates were maintoed. There were frequent withirawato among inferiors. Hew Zealand lots sold as follows: fwasy crossbred EHJ, 10|d and lljd; PMATA llfd and ll*d; Biriwai 10id JBdllld; slipe halfbred lambs, Eclipse, Hid and 13Jd. Jfrozen produce . LETTER DOMINION CHILLED BEEF MOD IMPRESSION CREATED (from Oar Special Correspondent.) LONDON, January 6. The first week of the Wew Year saw »jood display of chilled beef from *• Dominion on Smithfleld. This "»a special consignment of 136 quarto*, ex the Federal liner Middlesex, torn the Royal Agricultural Show at Sflnerston North, and the array of *•» promising shipment of good butch"tfmeat on Weddel's stand in the cenI 1*! avenue of the market was de- v dared, both as to its quality and conffition, to be a good augury for this traffic. _ = todeed. as a display of Empire *flled beef, it was said by some to j* the best yet seen on Smithfleld. ;r«fMiering that the beef had a ■ V long railway journey to me L f and that it had been 50 days in ZJttA, its condition was very fair. Vf* lack of bloom being due to aet'< but there being entire absence oi I« stain." The dressing was gen;2% commended, although in some BiJ: e Quarters the sawing down ana IST 0 ?, might have been rather bet- '& .Viewed generally, the Such Wer e in equal number as to %$* and fores, carried a very satis,S?ry amount of meat in the right Station, and were declared gentry suitable for the London wSK,% h Commissioner, together S* Mr Robert Forsyth, C.M.G., was "seat on January 5 to view the meat, gd atthe request of the Imported SrvTrade Association on behalf of SL?ew Zealand Meat Producers n&Mr w. C. Fisk, of Weddels, Mr ju,«amuton. of Messrs Hayes and ESi and Mr w - H - Bates - ol Mes l r t s tf*s. and Wootton, judged the meat. |S the award pen No. 1 (catalogue Wss«P lac ed first, pen No. 2 (cata■ffyw was adjudged second, and JSi«S- 5 (catalogue 473) was given .BL*w. Pen No. 3 (catalogue 471) glvery highly commended, and |&ljjM (catalogue 474) highly comsubsequent sale of. the meat B*F«& W ere realised, averaging ** hinds and 33d for forea.

CHRISTCHURCH GAS CO.

Annual Meeting Of Shareholders DIVIDEND OF SEVEN PER CENT. A decided improvement in the finances of the Christchurch Gas, Coal, and Coke Company, Ltd., was mentioned in the report of the chairman of directors, Mr F. E. Graham, at the annual meeting of the company yesterday afternoon. The recommendation to pay a final dividend of 4 per cent., making 7 per cent, for the year was carried. The revenue from sales of gas tar and residuals showed an increase of £1626 15s 2d, while the cost of materials and wages for the manufacture of gas and renewal oi plantrwas less by £836 10s sd. "As anticipated, there has been an increase in wages and salaries, but it is not as large as might have been expected," said Mr Graham. 'The question of wages will be before the Arbitration Court very shortly. The award asked for in the Court is lor the Dominion, and it is difficult to forecast what the decision will be. Salaries showed a decrease of £354 14s 3d, and rates and taxes were less by £1306 16s Id, mainly through the lesser profits made in 1936 reducing the income tax, but there will be a substantial increase in this item for the current year. Taxation approximates a S per cent, dividend on the paid-up capital, he continued. It is a heavy burden, when it is appreciated that competitors pay no taxation whatever. Decrease in Sales of Gas "Sales of gas show a slight decrease on the preceding year, but the sales of coke, tar, ammonia, and other manufactures have been excellent. Although sales of cookers and gas appliances have been very good, it is here we meet the full effect of the shortened working week. As there is ao work done on Saturdays in the factories, our industrial load on that day is nil. while the household load has fallen considerably over the week-ends. I think we may definitely say that the 40-hour week is responsible for our lessened sales of gas this year. "The net profit transferred to the appropriation account is greater by £4661 9s 2d, and there will be £8420 9s 6d to carry forward to this year's Investments increased by £IO,OOO through purchase of Government stock, and bank deposits were shown at £36,000, although most of this amount will be required for paying dividends, income tax, and rates. Provision has been made for depreciation on plant and buildings. Stocks of coal, mains, meters, and cookers are less by £3586 Us lid, while the item for cookers on Wre purchase has increased by £997 8s sd.

COAL OUTLOOK

BRIGHTER

EVIDENCE OF RECOVERY

Mr. H. De Y. Scroggie, chairman of the Newcastle Wallsend Coal Company, said at the annual meeting recently that the present indications of the demand for coal during the current year were satisfactory. "In addition to the returning prosperity of the country generally," he said, "the restrictions imposed by the South African Government on the export of coal from South Africa and the acute shortage of labour on South African coal fields, caused India and other Eastern countries to turn to Australia for supplies, and the requirements of Victoria, South. Australia, Queensland, Tasmania, and New Zealand expanded considerably. "Signs are not wanting that coal, as time advances, will recover some of its lost ground, and, in this connexion, it is interesting to note the principal findings of the Combustion Appliance Makers' Association in England, after] full investigation:— "That for small ships with low power the Diesel internal combustion engine is probably preferable and that for fast liners the oil-fired boiler is well established, but in the intermediate categories of ships coal used in conjunction with modern appliances could compete very successfully; that .mercantile marine is not economically beneficial when all costs are taken into account, and that the reliability and efficiency of modern steam machinery are insufficiently appreciated, particularly with regard to mechanically fired coal-burning boilers, so that to some extent preference for Diesel machinery represents a fashion rather than the result of economical facts." Mr Scroggie drew attention to the steady increase in the exports of coal from the Port of Newcastle during the

<last three years, the increase for the year 1935 being 101,714 tons, for 1936 being 239,641 tons, and for 1937 being 298,397 tons. These figures did not include shipments at Newcastle and Hexham for State requirements. RISING COST OF LIVING PETITION BROUGHT TO HOUSE OF COMMONS LONDON, February 2. Twenty-two attendants were required to carry into the House of Commons bundles comprising a petition signed by 804,000 persons throughout the nation protesting against the rising cost of living. The petition, which is sponsored by Sir Archibald Sinclair, complains that the higher prices for domestic necessities fall most heavily on the low-wage earners, those in receipt of fixed pensions, and those receiving the dole. The petition also seeks tax and tariff cuts and a modification of trade restrictions with the object of freer markets in order to benefit consumers. METALS MARKET LONDON, February 2. Feb. 1. Feb. 2.

copp er — j Standard, spot £ 8. 39 13 d. li £ s. d. 39 16 10i Forward 38 16 10i 40 1 10i Electrolytic .. 43 15 0 44 5 0 to 44 5 0 44 15 0 Wire bars .. 44 5 0 44 15 0 Lead — Spot Forward 15 17 6 15 15 7J 16 0 74 15 19 4j SpelterSpot 14 13 n 14 16 3 Forward — 15 0 0 TinSpot 180 12 6 182 2 6 Forward 180 17 6 182 10 0 Silver — Fine, per oz. 20 3-16d 20 3-16d Standard, per ' 02. .. 21 13-16d 21 13-16d