FINANCE AND COMMERCE

Press, Volume LXXVI, Issue 22909, 4 January 1940, Page 5

FINANCE AND COMMERCE

COMPANY NEWS

DALGETY AND COMPANY UNCERTAINTIES OF WAR

Übom. otra ows correspondent.) I ':' LONDON, December 15. ; A net profit of £121,625 was realised during the last'year by Dalgety nd , Company. At the annual meeting this week a final dividend on ordinary shares of 3s a share, less British income tax, was declared, making 5 per cent, lor the year. This is a reduction l per cent, on the previous dividend. commenting upon the season in New Zeaiand, the chairman, the Hon. E. W Parker, said: "I regret to say that it was adverse throughout the Dominion, while prices for wool and stock were low. The disappearance of the Dominion sterling balances in London caused some anxiety. 'lt became necessary for the New Zealand Government to impose stringent* restrictions on imports into the Dominion, and this caused a good deal of dislocation to trade, but will eventually assist the position and also encourage the secondary industries. The war effort will make it necessary to raise further large sums, and this will mean increased taxation, and here again is where our company will have to carry a further burden.

"The acquisition by the British Government of the Commonwealth and Dominion •wool clips at a price about 30 per cent, above that for last season should benefit all growers and your company, too, and with more favourable seasonal prospects it may be that better days are in store, but the uncertainties of war conditions make it impossible to forecast what is likely to happen to our future results with any sense of reality.

"From the political standpoint it was a season of many critical-periods, which one.would have thought would almost inevitably have weakened demand, but through it all wool continued to meet a ready sale," said Mr Parker "Actually, the fears of war helped to increase its use, as not only was an abnormal demand created for military requirements, but the improvement in employment due to heavy rearmament programmes gave an added stimulus to civilian consumption. "There was also the attraction, from the buyers' point of view, of cheap wool, which encouraged restocking from the sub-normal levels of the previous year, and a tendency to buy in excess of requirements. This led to a certain amount of accumulation in consuming centres, particularly of fine wools, which acted as a brake against any ■ : material price improvement. While, therefore, it is satisfactory to record such excellent clearances, one "can only deplore the low level of values- which 'throughout the season remained considerably below the cost of production." OLYMPIC TYRE NEW ISSUE OF £162,000

Directors of the Olympic Tyre and Rubber Company, Ltd.. have decided to make a new issue of 162,000 shares of £1 each, at par, to be offered to shareholders in .the proportion of two shares for every five held. .; Shareholders will be asked to sanction a resolution authorising an increase of the' nominal capital of the company, from £500,000 to £1,000,000. The directors, in a circular to shareholders, state that the new shares will be payable Is 3d a share on application, Is 3d a share on allotment, and the balance in calls of 2s 6d a share at intervals of not less than two months. ii->. The proposal was made Because' in the last 18 months the rapid; increase in demand for the company's r,. products had necessitated increased production, the chairman .and managing, director (Mr Frank Beaurepaire) announced recently. "The plant at Footscray has been expanded to meet the increase in the company's activities and the requirements of the Defence Department for the manufacture of certain equipment. Proposals are. being considered to manufacture certain:'goods hot at present made by the company. We are certain that the new capital will be profitably employed," added Mr Beaurepaire. „ .

PRODUCERS' DISTRIBUTING

Sales turnover of the Producers' Cooperative Distributing Society, Ltd., for the year ended September was £6,565,035, the largest yet recorded by the society. , ■ ■ It is an increase of £ 848,473, compared with last year, which, was the previous highest. . An increase of £15,540 in earnings was more than offset by an increase of £37/313 in expenses, so that net profit fell to £25,792 from £47,655. Dividend at a steady rate of 4 per cent, requires £BBIO. Statutory tranfer to reserve is £15,000, leaving £4BBI to be carried forward,- against £ 2898 brought forward. . Bonus rates to consignors, provided before arriving at the net profit, are lower. Rebate of 15 per cent, of commissions paid on local sales of butter on the official quota basis compares with 221 per cent, last year, and rebate of 10 per cent. Commissions paid on local sales and other lines compare with 15 per cent. The total bonus amount is £19,066. WALDAS SHOES i The directors of Waldas Shoes, Ltd., are considering the- desirability of an early liquidation of the company. This ;tvas announced by Mr W. O. Burt, a director, who presided at the annual \ meeting in Melbourne recently "It is hoped that more than sufficient will be realised from the sale of freej hold assets to pay out preference shareI holders, and that thece will be a distribution to shareholders in specie of the shares in Public Benefit Bootery, I Ltd..". said Mr Burt.

; "Directors ' must, however, have careful regard to the interests of both classes of shareholders,:' and accordingly liquidation proposals may have to await,the sale and liquidation of the freehold -assets. - : I i "So far-there have, not been any official accounts issued by Public Benefit Bootery, Ltd. "In spite of a measure of dislocation occasioned by the merger and increasing costs, it is anticipated that reasonable profits will be made. ; .official . accounts of Public Benefit (which will cover 17 months) will not' be available until after June 30. ->■•■-.--.'..-;-- ■■■•■ -

i ''Final-detailsvof the merger with Public Benefit are still being worked out. Directors I '.anticipate that .firiality will be reached at an early date. ~ ]... Vlft 1 - January last .directors anticipated number of fully paid up shares of .£1 , in-the new company to be allotted -to' this '". company- and to .Public Benefit Bootery Proprietary, Ltd., would-depend on the values of assets, etc., ias; at January: 31 to be taken over from thig; company. On the figures as at June 30, 1938, it, was, anticipated that this .company would receive 27,560 shares in the new company.

. "It now appears, however, that the number of shares will be approximately .21,000, and that (subject to realisation) there should be one ordinary share in the new company for every four ordinary-shares in this company. • The directors' anticipations in January last were that there would be approximately • one for three. " !*When the merger is completed the only assets of this company will be freehold assets and shares in Public Benefit," he concluded.

MIKING

GREY RIVER

The Grey River return for the period ended December 30 was 177 hours for 135,689 yards and 566J ounces.

MANUFACTURE OF CARS

AUSTRALIAN PLAN CRITICISED

MONOPOLY FOR ONE COMPANY

"It is to be, hoped that the Commonwealth Government has not committed itself irrevocably to Australian Consolidated Industries, Ltd., in the latter's proposal for the manufacture of motor-vehicle engines and chassis in Australia," states the "Sydney Morning Herald." "The terms announced are sure to raise a storm against the Ministry. "If the Government has committed itself irrevocably it means that a monopoly has been given to this company for five years to manufacture the most vital parts of the products of the motor industry. "The undertaking of the Government to use its powers under the National Security Act to prevent any other company than Australian Consolidated Industries, Ltd., raising capital for the purposes stated is a grave abuse of the authority which Parliament has so confidently given it as one of the means for furthering, combining, and strengthening the efforts of the country in the struggle for our very existence. "Nothing was further from the intention of Parliament than that the National Security Act with its drastically complete powers giving the Government control of the economic life of the people without any appeal whatever should be used to establish and ! foster a monopoly in an industry whose products have become essential to the life blood of the country. "What the Government has done, if it does not retract, is to give the company which it has invested with such a mastery over the manufacture of motor-cars, the opportunity of obtaining from industry and social life just as" much profit as industry in its use of cars and social life in its enjoyment of motoring can possibly bear. The statement that the proposed new industry is expected to give employment to 6000 men is the bait with which it is hoped to attract the support of the Labour Party. The estimate of unemployment likely to be caused by the scheme is significantly absent." Latest Details Further details received in New Zealand indicate that the car the company will manufacture will be of a popular American type of between 18 and 25 horse-power. The Minister for Trade and Customs, in his announcement, said that the Commonwealth Government had agreed to safeguard the company against competition from foreign 'or foreign-controlled companies which might desire to manufacture motor-cars in Australia. The site of the factory has not been revealed, but several near Sydney are under consideration. The Minister said the Government would not authorise capital issues for the motor-car manufacturing industry other than to the proposed company. The Government would do its best to limit tbe production of motor-cars and trucks to the proposed company for

-five years. ~ ?s.—■■'■?*.. ■■ - "■' The Government had also undertaken that, if the vehicles proved satisfactory in quality and price, it would buy a substantial proportion of Its defence requirements from. the company. Purchase of Plant, The Minister said the company would have an initially subscribed capital of £250,000. It would give support to existing parts manufacturers in obtaining supplies of chassis parts for the new car. To purchase the plant for building the engines and assembling the complete vehicles, Mr W. J. Smith, managing-director of Australian Consolidated Industries, Ltd., will leave for the United States early. Mr Smith will be managing-director gl the new company. ■■'■'". . :. , . In the meantime, inquiries made in New York by Mr Smith's brother, Mr Arthur E. Smith, a director of Australian Consolidated Industries, Ltd., who has been in the United States for some months, indicate that suitable plant with .which to equip the Australian factory is obtainable in. America. It includes a quantity of machine tools which it is almost impossible to purchase at present in England. Licences +o make standard overseas chassis and engine parts may also be purchased in the United States. , . . • ' While Mr W. J. Smith is in America he will engage a. number of key men and experts. Steps, will be taken m the meantime to .train a-large number of Australian artisans in Australian factories. About 6000 men will be required for the new. industry, which it hoped to have in operation in July. 1941.,

LONDON STOCK EXCHANGE

(UNITED PBESS ASSOCIATION—COPTRIOHT.)

(Heceived • January 3, 1.15 p.m.)

SYDNEY

- Leading-industrial shares give promise of becoming firmer, while Broken Hill stocks continue to make headway on the local Stock Exchange. Morning Sales

MELBOURNE

NEW YORK STOCK EXCHANGE NEW YORK, January 2, Turnover on the Stock Exchange today was 580,000. LONDON METALS MARKET LONDON, January 2. Silver is quoted, at 22d to 23Jd a fine ounce, and spot tin £246 5s to £246 15s, forward £246 to £246 ss. Other metals are, unchanged. NEW YORK TIN ■• ' NEW YORK, January. 2. Tin is quoted at 48.75 cents per lb.

. LONDON, January 2. i Bank shares , and debentures are quoted:— , ' . £ s. d. Bank of Australasia .. 5 13 8 9 0 E.V S;, and A.3 Union of Australia 5 11 3 New South Wales • • 20 0 0 9, National of New Zealand 1 5 Bank of New" Zealand • • 1 6 15 British Tobacco • • S 1 g Goldsbrough, Mort U 4 12 1 1 Dalgetys • • p .and O. Deferred . ... 0 N.Z. Loan and Mercantile {* p.c. debs.) ’ , •: N.Z. Loan and Mercantile (ord.) 76 17 0 0 0 0

£ s. d. Commonwealth Bonds— 4 per cent., 1941 .. 101 2 6 4 per cent., 1961 .. 102 15 0 Australian Gas A .. • a. « I* 6 Tooths • • • • • 2 14 0 A.C.I. (cofit.) .. .. • a 0 19. British Tobacco • a 2 9 3 Broken Hill Pty. a a 4 1 6 Cash Orders ■ .. a ... 0 15 6 Colonial Sugar .. , a. 49 15 0 Afternoon : Sales Bank of New South Wales .. 27 2 0 Comm. Banking, of Sydney •• 18 11 0 Xust. General* Insurance ■ .. 0 18 3 Bums, Philp .. 2 15 0 British Tobacco ■ .. 2 ;9 6 Tooths .. , 2 14 3 G. J. Coles .. 3 14 0 Consolidated Industries .. 1 19 7 Consolidated. Industries (com.) • 0 19 3 Atkins a. 1 3 6 Carpenter .. ... • • 2 5 0 Electrolytic Zinc . m 3 1 4 Electrolytic Zinc (pref.) .. 3 2 0 Broken Hill Pty. .. • • 4 1 6 Arahura ... • • • « 1 12 6

£ s. d. Comm. Banking of Sydney . 18 17 0 Metropolitan Gas. . 13 16 0 Dunlop Perdriau Heralds " . 0 . 2 18 7 IS 0 Bradford Cotton ■ '• ' ' . 2 9 8 Emperor . 6 14 8 Loloma .. «• . iio e