FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22517, 27 September 1938, Page 13

FINANCE AND COMMERCE

SHARE PRICES EALL SHARPLY

SYDNEY WOOL SALES SUSPENDED

the ItrnZnal 6 SoT fell sharply on the Sydney Sto'k Exl, PraCt !f ally all shares ing industrials were In* stocks drifted on light trading, but bank strTwe're £%£* nonce, ine reasons are that buyers are finding difficulty in making arrangements for holding wool for shipment Tn[ <or tne assumption of war risks. tne Hay s, Ltd., announce a net nrnfi+ f™. +i August 19 nf -p P or the y ear ended August ia. 1938, of £5892, compared with £4OBO. Dividend recommendation is unchanged at 6 per cent re-

HIGH PRICES FOR BEEF

VALUES ON AUCKLAND

MARKET

BUTCHERS' HEAVY ON SALES

LOSSES

[THE PRESS Special Sennce.l

AUCKLAND. September 26. No higher prices for beef than those

being paid now can be remembered by Auckland butchers over the last 20 * years. Retail prices for most beef lines were raised last month, but since then values on the fat stock market have again increased and butchers to-day said they were losing heavily on their beef sales. Unfavourable seasonal conditions and increasing exports are stated to be mainly responsible for a very noticeable shortage of beef for local consumption. Compared with the figures for August. 1937. chilled beef exports rose last month by 12,158 carcases and frozen beef by 6822 carcases. At last week's Westfield stock sale, "the price per 1001b fpr extra choice ex was up to 445. This represented a rise over the year of 3s. and buyers who have had many years' experience say they cannot remember having seen such prices before. Other iuyers said beef had not brought such high prices since the end of the Great War.

The increase in beef prices at West•field in the last two months has been •almost 25 per cent. The lowest price 'this year when consistently high prices have ruled has been 37s per 1001b against 30s last year. A marked upward trend has been noticeable since tAugust 10 a*d the present price of *44s compares with one of 41s, which •ruled from August to November 10 of last year. Prices for calves and pigs have also been exceptionally high, but reasonably low prices are prevailing for fat sheep, of which there is a good supply as a result of the poor lambing season. A year ago prime wethers would have brought up to 50s a head, but now they are bringing about 355. Ewes have similarly declined from 40s to up to 255.

SHARE PRICES FALL

SHARP DROP ON SYDNEY EXCHANGE LEADING INDUSTRIALS MOST AFFECTED Reflecting the grave view taken by investors of the international situation* prices of practically all shares receded more or less sharply on the Sydney Stock ■ Xxchange yesterday. Leading industrials ♦•ere most affected. Morning Sales

MELBOURNE Industrial stocks drifted on light trad'tng in Melbourne. Bank shares were Steadier.

!r TRADERS FINANCE * HIGHER NET PROFIT V - Traders Finance Corporation, Ltd., reports a net profit of £81,214 for the year ended June 30, compared with £98,684 in the previous year. The ordinary dividend is unchanged •t 10 per cent., and witM the preference dividend required £29,885. After transferring £16,500 to taxation re«ervfe and £35,000 to general reserve, there remains £5529 to be carried forward against £5701 brought into the accounts. The directors state that the volume of business was well maintained, and tanover was a record. The volume of ouajness has been maintained since the balancing date. The subsidiary company continued to make satisfactory progress, and paid a dividend of 5* per cent., £8382, to the parent company. The balance-sheet shows an increase of £242,349 in outside liabilities, and «,£286,751 in debtors. Capital was Increased by £12,067 during the year.

WOOL SALES ARE SUSPENDED

ACTION TAKEN IN SYDNEY DIFFICULTIES CONFRONTING BUYERS lUhlieD FBK3S ASSOCIATION—COFYaiGHT.) (Received September 26, 10.30 p.m.) SYDNEY, September 26. The Sydney wool sales have been suspended until further notice, because buyers are finding difficulty in making arrangements for holding wool for shipment, and also for the assumption of war risks. PRODUCTION OF CARS RECORD HOPED FOR IN AMERICA PROBLEM OF FINDING MARKETS Observers in the United States hope that production in the motor-car industry in the coming season will reach the record figure of 4.000.000 cars. The industry is the most important in the United States, and a record production would be a powerful factor in stimulating American domestic recovery. It has been suggested that so many persons deferred the purchase of cars for replacement in the United • States last year that in the coming season replacements will reach record proportions. | A recent survey in England suggests ! that more and more the motor-car inI dustry will have to depend on replace- ! ments rather than new purchasers for I its market. The British Ministry of Transport i co-operated with the Society of Motor Manufacturers and Traders and the Middlesex- County Council in arranging a complete census and history of all cars in the county of .Middlesex. This county was chosen because of its central position and because it was thought to be typical of the whole country. When the data gathered from Middlesex were applied to the rest of England, it was found that the difference in estimates amounted to less than 1 per cent. The investigators endeavoured to ascertain how much the industry would have to depend on replacement demand, on exports, and on repairs of existing cars. Their inquiries showed that, of every 100.000 cars produced in England, 380 would be eliminated in the first year, 697 in the second. 3119 in the fourth, 7414 in the fifth, 17,388 in the sixth year, 12,564 in the tenth, and so on. The average life of a car in England is 7.6 years. It was found possible to determine the normal demand and to assume that new sales for the next four years would approximate to the level of 1937, 320,000 cars. To these 320,000 a year would be added replacements amounting to 165,000 in 1938; 175,000 iu 1939; 190,000 in 1940; and 210.000 in 1941. It will be seen that, unless car factories are diverted for armaments purposes or unless new export markets are developed, the expansion of th* British car industry has definite limits within the next decade.

The report shows an effort on the part of Government and manufacturers to adjust the expansion of an important industry to the maximum probable demand. Such a procedure- the report says, is much to be preferred to the previous haphazard production on the part of any manufacturer who chooses to enter the field of car production.

FRUIT HARVEST IN OTAGO PROSPECTS CONSIDERED BRIGHT [THE PRESS Special Service.! DUNEDIN, September 26. Notwithstanding the late spring, Prospects for the coming seasons fruit harvest in Central Otago are bright. The show of buds and blossoms in the stone fruit orchards of the Alexandra. Earnscleugh, Clyde, and Cromwell districts promises well for the final crops, provided frost does no damage in the next few weeks. Frost-fighting facilities throughout the whole district have been extended this year to a point at which it is almost possible to guarantee the crop. A few fire-pots have been kept burning in the Alexandra and Earnscleugh districts during the last week or so, but the need for constant vigilance has not yet been serious. The efficacy of- frost fighting by means of fires in the orchard, however, appears to have been well established in Central Otago, and whereas' these appliances were available in only a a very short time ago they are to be found everywhere today. It is estimated that this season i there are more than 12,000 fire-pots in the stone fruit areas ready for use at a moment's notice. RESULTS OF TEA RESTRICTION The Dutch Indies official report of tea control in the fifth restriction year expresses satisfaction at the results achieved, states the "Financial Times," London. Superfluous stocks have disj appeared, prices have been raised to a remunerative level and the income of native growers is three times as high as in the pre-restriction period. Nevertheless, a definite recovery of the tea industry has not yet been achieved, as the development of consumption . has been disappointing. There is still a potential over-produc-tion, which necessitates th« continuation of restriction.

COMPANY" NEWS ELECTROLYTIC ZINC NET PROFIT DECLINES BY £ 77,090 | A reduction of £77,090 in the earnings of the Electrolytic Zinc Company of Australasia, Ltd., is shown in a preliminary statement for the year ended June 30. Net profit amounted to £459,524, against the record figure of £536,614 in the previous year. With the exception of 1937, however, the profit is the highest for at least the last 12 years. The profit was struck after providing £145,000 for amortisation and depreciation, and £125,417 for taxation.

A final dividend of 9 per cent, on both ordinary and preference shares was paid on September 16. The distribution of 15 per cent, for the year is unchanged, although a bonus of 2£ per cent, was paid in the previous year. The year's payment absorbed £390,000. Net profits and various provisions in the last three years compare as follow: 1936. 1937. 1938. £ £ £ Net profit .. 322,864 536,614 459,524 To amortisation and depreciation .. 145,000 145,000 145,000 Taxation .. 75,403 130,534 125,417 Lower metal prices during the year are largely responsible for the decline in the company's earnings. The average price in sterling of metals produced by the company in the last three financial years compares as follows: — Year ended June 30.

Production of the company in the ' year ended June 30 was as follows, with the previous year's figures in parenthesis: Zinc, 69.718 (70.082) tons; lead, 2722 (2266) tons; silver, 360,450 (389,480) ounces. Production of both zinc and lead concentrates at the West Coast mines in Tasmania was in- ' creased. The mines were reopened early in 1936. AUSTRALIAN GUARANTEE The net profit of £113,809 for the year ended June 30 disclosed by the Australian Guarantee Corporation, Ltd., was again a record, and compares with £98,104 in the previous' year. Ordinary dividend is unchanged at 10 per cent, and requires £40,884. The preference dividend takes £6OOO, and, of the balance, £IO,OOO is applied to writing down proprietary rights, and £20,529 to writing down investments in Kemsley and Company Proprietary, Ltd. Both these items disappear from the balance-sheet, £79,470 having been received from the sale of the Kemsley and Company shareholding. Sums of £15,000 and £22,000 are transferred to general and income tax reserves respectively. The amount carried forward is £3832, against £4437, brought into the accounts.

The directors state that business again showed a substantial increase during the year, turnover was a record, and business has been maintained since the close of the accounts. During the year, the agreement with Tozer Kemsley and Milbourn, Ltd., of London, and Kemsley and Company Proprietary, Ltd., of Melbourne, expired.

The balance-sheet figures show substantial increases in the bank overdraft, and in the amount owed by debtors.

INVINCIBLE BUILDING SOCIETY

Net profit of £1654, compared with £1559 in the previous year, is shown in the accounts of the Invincible Building Society of Christchurch (Permanent), for the year ended July 31, 1938. Dividend is maintained at 5 per cent.

The directors in their report say:—

"The profits for the year amounted to £1653 16s sd. and the balance brought forward from last year £360 Is sd, a total of £2013 17s lOd. From this amount must be deducted the dividend of 5 per cent, paid to shareholders, amounting to £1476 15s 6d, the transfer to security depreciation reserve of £228 0s 3d to cover a loss made and charged to this account, leaving £309 2s Id to be carried forward.

"During the year it was found necessary to take over two properties, and a further property was abandoned to us with the consent of the Mortgage Adjustment Commission. One property was sold, the proceeds reimbursing the society for principal, arrears of interest, rates, and repairs, and the other properties are still on our hands. Every endeavour was made to sell all our five properties, but as they are occupied by tenants, we are not in a position to give vacant possession. Under the present legislation this is very important and makes it very diffi-cult-to dispose of property. "All the applications for relief under ! the Mortgagors and Lessees Rehabilitation Act have been disposed of. Four applications have been adjusted voluntarily, and two were dealt with by the Court. Of these one mortgagor abandoned his property to us, and the other had his mortgage written down by £228 Os 3d. This loss has been dealt with as explained above. "Nineteen loans were .. granted, amounting to £9410, an average of> £495 a loan. "The retiring directors are Messrs T. E. Chisnall and R. C. Jamieson, who are eligible and offer themselves for re-election. The shareholders' auditor, Mr Denys Hoare, retires and offers himself for reappointment."

The statement of receipts \ and expenditure shows that mortgage repayments were £5546 (£4782 last year), deposits 27,801 (£34,026), D shares £515 (£3300), and interest £2438 (£2205). Loans on mortgage took £10,779 (£11,849), deposits repaid £22,846 (£29,064), and expenses of, nranagement £451 (£427). -The directors of the Invincible Building Society of Christchurch (Permanent) are Messrs A. M. Anthony (chairman), Gerald H: Anderson, Thomas, E. Chisnall, R. C. Jamieson, ! and E. W. Cuddon.

HAY'S, LIMITED HIGHER NET PROFIT DIVIDEND MAINTAINED AT SIX PER CENT. \ The directors of Hay's, Ltd., in their fifth annual report and balance-sheet, record another year of good progress. Turnover has increased, and net profit has risen from £4OBO last year to £5892.

The directors say:—"Sustained progress has again been a feature of the year's trading. The turnover has substantially increased, with also an increase in the net profit. During the year the capital of the companv was increased by the issue of 15,000 shares, which were offered to shareholders, and were fully subscribed. The company's capital is now fully issued, excepting for 250 shares reserved, and any future development that may be regarded attractive will again call for consideration of an increase in capital and issue of additional shares. "The alterations giving us access to Colombo street referred to in last year's report have been completed, and the improved facilities for trading ought to have an important bearing on the company's further development, as the added window space allows for display to a shopping public in addition to the original Gloucester street premises. ' "The accounts show a net profit of £5892 9s 9d, which with the amount carried over from last year makes a sum of £9394 18s lid available for distribution. Your directors recom-

'or re-election as auditors." Balance-sheet items are:—

Directors of Hay's, Ltd.:—Messrs W. H. E. Flint (chairman), W. Morley. H. P. Donald: managing director and secretary, Mr J. L. Hay. W. R. CARPENTER W. R. Carpenter and Company, Ltd., have announced the terms on which the issue of 100,000 shares at par will be made. The present issued capital xs £750,000, so that shareholders will be entitled to apply for two shares for every 15 now held. This proportion, however, will not be followed precisely, and allotments will be made on the following basis:— One to seven shares, none; eight to 14, one share; 15 to 22; two, 23 to 29, three; 30 to 37, four; 38 to 44, five; 45 to 52, six; 53 to 59, seven; 60 to 67, eight; 68 to 74, nine; 75 to 82. 10; 50, six shares; 75, 10; 100, 13; 150, 20; 200. 26; 250, 33; 300, 40; 400, 53; 500, 66; 1000, 133. On application, 5s a share is to be paid, and the balance will be called up as and when required. The new shares will rank for dividend from January 1, 1939. HENRY BERRY Accounts of Henry Berry and Company (Australasia), Limited, with branches in New Zealand, show a net profit of £39,209 in the year ended September 15, against £37,373 in the previous year. Dividends on the 7 per cent, preference shares absorbed £33,977. TOOHEY'S PROFITS Gross receipts and net, profit of Tooheys, Ltd., for the year ended July 31 were the highest since 1929 at £780,887 and £151,973 respectively. In the previous year the net profit was £120,137, and receipts £667,744. The capital was increased by £140,000 during the year just ended. Dividend has been maintained at 9 per cent, and requires £131,905, so that after transferring £IO,OOO to reserve and £SOOO to officers provident fund, £27,002 is carried forward, against £21,934 brought into the accounts. HUME PIPE (AUST.) Profit of :Hume Pipe Company (Australia), Limited, for the year ended June 30, was £52,116, after providing for taxation, compared with £55,940 in the previous year and £34,005 in 1935-36. The announcement is made in a preliminary statement issued by tEe directors in Melbourne. An interim dividend on ordinary shares at the rate of 3 per cent, was paid on March 31 last, and the directors recommend the payment of a further dividend on ordinary shares at the rate of 4J per cent., making 7£ per cent, for the year. Dividend the previous year was 6 per cent. The directors also recommend the payment of a dividend on the new 7J per cent, cumulative preference shares to be allotted to shareholders of Hume Pipe Far East, Ltd., in exchange for their shares in that company in accordance with the recent merger resolutions. The dividend on preference shares will be in respect of the three

months ended June 30.

booths £ s. d. 2 10 6 [Australian Gas, A (old) 6 19 6 'Australian Gas (new) 6 18 0 (Anthony Hordera 0 IS 9 Australian Glass 4 10 0 'British Tobacco 2 5 9 • Broken Hill Pty. 2 13 9 Tanners 1 11 0 Afternoon Sales *£., S.. and A. Bank .. 5 2 6 'Associated New»p«per» .. 0 19 9 Adelaide Steam .. _ 1 13 0 ■Burns, Fhilp .. .. 2 10 0 .British Tobacco _ .. 2 5 9 Tooths 2 10 0 Tooheys 18 9 Australian Glass — 4 9 8 Tanners .. .. 1 11 0 (Anthony Hordcrn -J, 0 15 4 Stedmans •• 0 11 0 •Hume Pip* m. — 0 19 1 ■Sargents .. «» 14 0 United Provisions +. .. 0 7 4 Goldsbrough, Mort .. 16 3 [Henry Jones — •• 2 7 0 wUaquin Sugar — 119 0 y. Adams ~ •• Standard Cement — 0 13 0 0 19 0 fTraders Finance — -- 117 jyoolworths 0 19 10J Mount Morgan 0 10 10 Broken Hill Pty. 2 13 9 (Emperor .. •• t« 0 11 6 iTaranaJci 0 11 10 Oil Search 0 7 «

Sales £ s d. Conun. Bank of Australia 0 15 9 British Tobacco 2 6 0 G. J. Coles 3 14 9 Bunlop-Perdriau 1 0 0 Goldsbrough, Mort 1 6 6 Herald and Times 2 15 6 Aust. Foundation Invest. Trust 0 4 9 Imperial Chemicals (pref.) 1 - 1 1 18 7 6 Electrolytic Zinc Mount Morgan Mount Lyefi 0 10 9 1 6 6 Broken Hill Pty. 2 13 6 • North Broken Hill 2 4 0 South Broken Hill 1 8 1

1936. 1937. 1938. £ s. d. £ s. d. £ s. d. Zinc, a ton 15 3 11 20 2 1 16 14 7 Lead, a ton 16 4 6 23 2 8 17 12 11 Silver, per oz. 2/2.4 1/9.9 1/7.61

Liabilities Change from 1938. last year. Permanent D shares .. 29,825 + 514 Subscription A shares .. 2 —4 Equalisation of dividend reserve 1,000 •— Security depreciation reserve .. ;. 500 . Profit and loss 309 —51 Deposits 19.425 + 4,954 Enterest accrued 175 +92 Payable on loans granted 453 —404 Creditors 26 —2 Interest paid in advance 18 —5 51,734 + 5,094 Assets Properties 3,489 + 1,021 Loans on mortgage 45,849 + 3,562 Debtors .. 91 —137 Furniture 8 — Bank .. 2,297 + 648 51,734 + 5,094

mend allocating this sum as follows:— £ • s. d. To pay a dividend at the rate of 6 per cent on the paid-up capital 2590 10 0 Transfer to income tax reserve 1890 0 0 Carry forward to next year 4914 8 11 9394 18 11 "Mr H. P. Donald retires i from the board by rotation, but offers himself for re-election. Messrs W. E. Best and "Wilkinson also offer themselves

Liabilities Change from 1938. last year. £ £ Capital paid up .. 37,312 + 11,400 -alls paid in advance .. 5.864 + 1.947 Sundry creditors .. 11.823 + 6,270 Bank .. .. — ■ —9,789 Profit and loss .. 9,395 + 3.153 Contingent liability at August 19. 1938: capital uncalled on investment. £3,200. Assets Land and buildings. less mortgages .. 11,503 + 2.578 Furniture and attings .. 5.860 + 2,511 Motor-cars .. •• 50 i + 298 Bank .. .. 2.300 + 2.300 Cash .. .. 267 + 64 Stocks .. .. 32.763 + 1.622 Debtors .. .. 10,400 + 2.806 Investments .. .. 800 + 800 Year Ended August. 19. 1937. 1938. Net profit .. .. 4,080 5.892 Dividend (6 per cent.) .. 1,790 •2.590 To taxation reserve .. 950 1,890 Carry forward .. 3.502 4.914 •On increased capital.