FINANCE AND COMMERCE

Press, Volume LXXVII, Issue 23319, 3 May 1941, Page 7

FINANCE AND COMMERCE

STOCK EXCHANGES

SMALL LOCAL TURNOVER ■ Markets we?e quiet on call yesterday, and the; recorded turnover was negligible. There was again a full list of buyers for Government loans, but no sellers offered—buyers’ quotes for the 4 per cent, stock, due 1946 and 1055, and the War Loan, 1953, revealed firmer markets. Apart froqj vestibule business, the- following transactions were recorded: — - ; Sales on ’Change-Listed Stocks: 200 Wilcox-Mofflin (21. 7s lid. . Sales Reported—Listed Stocks: 300 Woolworths (Syd„ ord.), 16s.' N.Z. Breweries Firmer; Goldsbrough, Mort : were stronger, with buyers at 245. Buyers of New Zealand Breweries raised their bids to 30s 4d, but sellers wanted 31s. British Tobacco were stronger, with buyers at 46s 9d. Sellers of G. J. Coles reduced, their limits to 63s 6d, buyers at 61s 6d. Wilcox, Mofilin were fractionally firmer at 7s lid, market closing 2d either way. Unsupported sellers of, Wilson’s Cement reduced their limits to 18s 6d. , Woolworths, Ltd., eased to 16s, buyers staying in at that price, sellers at 16s 3d. Unlisted Stocks—Associated Gold Dredges (12s paid) were weaker, with unsupported sellers at 12s 3d. LATEST QUOTATIONS N.Z. Govt. p.c. Ins. 1941, b. £99 10s; 3i p.c. Ins., 1953-57. b. £IOO 10s; 31 p.c. Bonds, 1953-57, b. £IOO 12s 6d; 31 p.c) Ins., 22/5/60, b. £101;4 p.c. Ins., 194043, b. £IOO 15s; 4 p.c. Ins., 1946, b. £lO2 7s 6d; 4 p.c. Ins., 1949, b, £lO2 7s 6d: 4 p.c., 1949-52, b. £lO5 10s; 4 p.c. Ins., 1955, b. £lO5 ISs; 4 p.c. Ins., 1954-58, b. £lO6 ss: 4 p.c. Bonds. 1946, b. £lO2 10s; 4 p.c. Bonds, 1054-58. b. £lO6 ss; 4 p.c. Bonds, 1955, b. £lO5 10s; Rural Bonds, 5 p.c.. 15/9/47, £102; War Loan, 1/10/53, b. £B2 2s 6d. Other Debentures—N.Z. Refrig., 41 p.c., 1/8/45, b. £IOO 10s; Tlmaru Gas, 4 p.c.. 1/11/45, b. £B9. Banks—Comm, of Aust., b. 13s 9d, s. 14s sd; Comm, of Aust. (pref.), b. £8 15s; Comm, of Sydney, b. £l7 15s, s. £lB 10s; E.. S., and A*., b. £4; New Zealand (cum div., mortgage shares), b. £1 9s 6d; Union of Aust.,. s. £6 18s. Insurance—Aust. General, s. 19s; New Zealand, b. £1- 10s 3d; South British, b. £2 Bs, s. £2 10s; Standard, b. £2 19s 6d. Loan and Agency—Dalgety and Co., b. £6, s. £8 ss; Christchurch Building (ex dlv.), b. £l6; Goldsbrough, Mort, b, £1 4s, s. £1 ss; Mutual Benefit (ex div.), £l4; National Mortgage A, s. £1 15s; National Mortgage B, s. £1 2s: Permanent Investment; b. £9 15s; United Bulldifig, b. £1 0s 6d; Wright, Stephenson, s. IBs; Wright, Stephenson (pref.), b. 19s 6d. ; Shipping—Huddart-Parker, b. £2. Frozen .Meat—Gear, s. 13s 9d; N.Z. Refrig. (£1 pd.), b. 16s 4d; N.Z., Refrlg. (10s pd.), b. 6s 7d, s. 7s 3d: North Canty. Freezing (pref.), s. 18s; Southland, b. £1 11s, s. £1 15s. Woollens—Bonds Hosiery, b. £1 ss; Felt and Textiles, b. £1 18s, s. £2 2s; Kalapol (17s pd.), b. 14s lOd; Kalapol (7s pd.), b. 4s lOd, s. 5s Id; Oamaru,.s. 19s 6d; Wellington (pref.), b. £6 15s. Coal—Grey Valley, b, 5s 6d; Kaitangata, b. £1 11s; Westport, s. £1 3s 9d; West-port-StoCkton, b. 2s Id, s. 2s 9d. Gas—Auckland, s, 6s 9d; Christchurch, s. £1 2s; Christchurch (10s pd.), s. 10s Bd. Breweries—Ballins (15s pd.), s. 11s 3d; Now Zealand; b. £1 10s 4d. s. £1 11s; Swan; b. £1 3s. Miscellaneous—Aust. Consolidated Industries, b, £2, s. £2 2s; Aust. Iron and Steel (preL). b. £1 ss; Beath and Co., b 14s; Begg and Co., b. £1 Is; Booth, Macdonald (pref.), s. 6s 8d; British Tobacco, b, £2 6s 9d; Broken Hill Pty. (cum dlv.), b. £2 Is 6d, s. £2 3s 3d; Broken Hill Pty (5s pd., new), b. £1 3s 6d; Broken Hill Pty. (£1 pd., new), b. £1 18s 6d: Colonial Sugar (ex div.), s. £54; Denhard Bakeries lord-), s. 11s 6d; Dominion Fertiliser, s* £1 7s; D.I.C. (10s paid), b. 13s; Dunlop Rubber, b. ’£l 0s 3d; Electro, Zinc (ord.), b. £2 11s; Electro. Zinc (pref.), b, £2 12s; G. J. Coles; b. £3 Is 6d, s. £3 3s 6d; Hay’s, Ltd., b. £1 6s; Hay’s, ,Ltd. (contr.), b. £1 Is; Hume Pipe (Aust.), b. 13s, s. 14s; Masonite, b. £1 4s, s. £1 5s 6d; Mllbum Lime, b. £1 18s Od; Mlllaquln Sugar, s. £1 18s 6d; Macduffs (ord.), s. 9s lOd; Macduffs (pref ), s. ,19s 3d; N,Z, Farmers' Co-op. (A pref.), s. £1 18s 6d; N.Z. Farmers’ Co-op. (4} p.c. Stock, 1950), s. £81; N.Z. Newspapers (cum div.), s. £1 Us; N.Z. Paper Mills (cum dlv.), b, £1 10s 6d; Prestige (N.Z.) (pref., ex dlv.), s, £1 Is 3d; Selfridges (A’asia.), b. 15s; Weeks, Ltd., b. £8; Wilcox, Mofilin, b. 7s 9d, s. 8s Id; Wilson’s Cement, s, 18s 6d; Woolworths (Sydney) (ord.), b.' 16s, s. 16s 3d; WoolWortht Properties, b. £1 4s; W. R. Carpenter, b. £1 13s 6d; Zinc Investments, b. 4s 6d. : overseas Llsting-r-Woolworths (SA.)i s. 15s 64: , Australian Mining—Broken Hill ‘ South, b. £l' 2s 6d; Mount Morgan, b, 8s lid, s. 9s fld|£ New Broken v Hin; b. 10s ,Bd>. North Broken Hill, b. £l. v N.Z. Mining—Austral (N.Z.), b. £1 2s 3d; Big River, s. Is. 2d; Blackwater.b. 451; Clutha River, b. 9d, s: Is- 9dr Golden Sands, s. 8d; Grey River (ex, dlv.),; b. -lte 6d; Maori Gold,- b, 2d, :s. ad; ‘Moonlight; Goldfields, b. 2d, s; 44:.New River,,-Jj; 2d,.:,s sd: Ngahere, b'. 7s' 4d, s,I2S- lid; Nokothal, s. Is sd; Okarita.: »; 3d < a,** is 4d; Waibl lnvestraents. s, 4s;, Wdrksop.Extended,.s. 3d. Unofficial List—Afesoc. Gold Drg. (12s pd.) s. 12s 3d; Atist. Mot. Pet.Vb. Ils'Sd: British Developments, is r 17s :6d; Mlkonul (3s 6d-pd.). s. Is; MlkonuL (deferred), s. ss; Reece, Ltd., E. (preL). 3s 9d; ,SUknit (cum dlv.l.b. 6s 6d; . Slab-Hut Gold, (3s pd.), b. 25,. s. '4s; Taramakau .(,5s pd.), s, 3s; Urlwln’s, ib. £2'2s ;6d,-. * Auckland . :.t Sales—Govt. '.Bonds;; .16/2/43-46, 4 per cent, £lO2 Ss;; ’ Wat. Lqan, 1/10/53, .£B2; Govt. Stock, 15/3/40-43, 4 per cent;, £lOl 12): GOvt. StocV,' 15/2/43-46,’ 4 per cent., £102? 7® 6d; Auckland c Gas Perpetual Stock/ £97; Commercial Bank oLAustTalasia,: 14s; Bank of .New Zealand, v37a: • New Zealand, Insurance, 69s od. (sjTauplrl (ord.), 225; Felt and-Textlles (2nd pref.), 245 : 3d; Dominion • Breweries Australian Alloy SteeL 8s;-Farmers' Trading, 'l9s Id; Mackjf, Logan, 20s 3d; New Zealand Drug, 775: Woolworths (Sydney), 164 and 16s 3d. . ■ ' j : . WELLINGTON. ' Sales—Late Thursday:, Rank oINiZj, 365; 6d; Christchurch 'GBs>.(contr.), 9s, lid; Woolworths,. Ltd,.los, ~ Yesterday: Wellington Hospital Board>.' 4 p.c,, 10/12/43, £103; N.Z. Paper MlllS; 30s 7id. : ■" ... dune Din . i Sales-iN.Z. Breweries! 30s (odd lot); : Sales, Reported.—N.Z. Insurance,', 88s 3d; N.Zi Paper Mills, 30s 9d (3). 1 ’. SYDNEY * .Thfi Sydney Stock Exchange, was gener£26 6s; Union Bank,;£ 6 10s: Tooths, £2,10s 3d; Assocl-, iated-News, 11s Bdi British Tobacco, ~C2 i3s 9d;. Dfenlop Perdrlau, £1 Os 6d. ■- i Afternoon Sales—Bank of New South Wales,’ £26 6s; Union Bank, £6 10s; Tooths, 60s 3d; Taohejrs, 275; British Tobacco, 43s 9d; Dunlop Perdrlau, 20s 3d; Henry Jones, 48s ! i8d! Victoria Nyanza, 7s 6d; Loloma, 21s 2d. ■ ■_ SALE OF LARGE WEST END PROPERTY ! MESSRS FORD ajd v HADFffim LTD., CESTER-STREET, REPORT HAVING SOLD BY PRIVATE TREATY, FOLLOWING.. IMMEDIATELY ON TKE RECENT AUCTION SALE OF THE PROPERTY CWNED IN THE ESTATE OF; THE, LATE MRS MALCOLM and SITUATED . CORNER PARK TEBRACD:'aad „ SALISBURY: STREET. COMPRISING FINE .13 -ROOM TWOSTOREY RESIDENCE. WITH 3-ACRE OF BEAUTIFUL GROUNDS, ALSO. , ON.-BEHALF OF MR E, HARTLEY, two Very, fine building .sec--nONS.-CLYDE ROAD,: FEND ALTON, Ip/JMR - : "FORD and 'h’ADFIELD! LTD., 1 ; FOR REAL ESTATE. > i WEEKLY PROPERTY REPORT -i pr&Wpr’ys .Auction' Rooms, Lid., 425 -Btraet, ' report ‘an V ewr-in-deman'd 5, 'and 6«room;Thfe d<)Uoy/in& saleswere «p|eted this weefe : ’ J l , Acpoiiimfc i ■ his r,6-ro«pted 'hunAioiiv. situated,?, Nd.’ 30:-vFqtrhes UtreSljMiss, RrLapgbiin. - • y - • I ’S'. ' Bellamy;;jhis 5/roonMdly.peridence,.' xsituated -'ftb. so Sjtfhey th 'Mr Edwirf B^ker.' f Account Gy A/ 'Saunders, his 5- / Bituatiej9 No.

THE

MUTUAL LIFE AND CITIZENS’ ASSURANCE COMPANY; LIMITED MAXIMUM SUPPORT TO - WAR EFFORT RECORD INCREASE IN FUNDS The Fifty-fourth Annual Meeting of the Company was held in Sydney on the 17th April. The Actipg-Chairman (Sir Henry Braddon), in moving the adoption of the Report and Balancesheet, said;— It will be my privilege presently to move the adoption of the Annual Report, Balance-sheet, and Accounts for the year 1940. Copies have been circulated among you trior to the meeting. I propose, with your permission, to take them as read. During the year the Board recorded its deep sense of the loss sustained by the death on the 11th June of Mr Frank Leverrier, K.C., who was a member of the Board from the 4th December, 1930, and rendered eminent service, giving unsparingly of his great knowledge and ability for the welfare of the Company. His place was filled by the appointment of Mr James Hay Ashton, previously a Trustee. Sir Henry Manning, K.C., K.8.E., Attor-ney-General for the State of New South Wales, was appointed a Trustee in place qf Mr Ashton; Fifty-four years ago Mr Arthur M. Eady, C.8.E., began his career with the Company as a cadet in the first year of its existence. He has crowned it by discharging the duties of Managing Director since 1927. He has now retired from jthat position, but we are fortunate in continuing to have the benefit of his wise counsel as a Director. I am sure that the n mbers of the Company will join with the .board in expressing appreciation of his t unique service. '

Mr M. C. Alder, previously General Secretary, has beep, appointed General Manager and a Director. Mr H. Vaughan has been appointed General Secretary and Actuary. Business conditions in 1940 were overshadowed iby the war., Notwithstanding the anxious and disturbed conditions of the. year, the general tendency for Life Assurance hew busines to decrease, and the enlistment of a large proportion of our trained and experienced field staff, the Company has carried on its operations with success. This is all the more gratifying as it has been achieved under a policy of giving maximum support to the national war-effort and after making provision for war claims. By a similar policy during and after the last war the M.L.C. played no small part in ensuring the success pi the various war and peace loans. »n 1940, in addition to subscribing to war loans in New Zealand, Canada, and the United Kingdom, it subscribed to the Commonwealth Government loans a sum exceeding . £ 1,500,000, which is more than one-fiftieth of the total sum raised. So it is that every policyholder may rest assured that through the payment of premiums he is making a real contribution, to the war effort.

War claims paid and in course of settlement amount to more than £40,000, A number have arisen through enemy action against our'.mercantile shipping and through air fatalities; others through the . participation of Australian and New ■ Zealand forces in the campaign in Northern Africa. Our new business has been maintained surprisingly well. In the Ordinary Branch 18,989 new policies assur* Ing £6,643,702 were issued, and in the Industrial Branch 79,293 policies assuring £3,872,897. Existing policies 'now number more than , 700,000,. and with Bonus Additions - assure more than £93,000,000. < v : Total income fOr the year,amounted tO neiafly , £5,000.000, £1,400,000 interest ;on Vestments, 'taking all things into consideration a very satisfactory, returnywas earnedorv paitflculariy sighificanfimviewpf the very large proportion, held. In Government and public interest rate earned in Branch was £ 4 16s 2d per cenirand iffipe Industrial, £4 17s l. ; outstanding at the efl<£ olIxMe; year, on ’asiets of £31,697,715? was only £13,654. Of this siiip, £6B7Sp«iß> collected-* in the first few the current year, and has been hrought Into account as an assefcj/OBOnding collection,; . the , balance has^^h' written off. ■ 'fir the. General Branch account the item "premiums”' 1 refers toaccident premiums for the half-year commencing on the Ist . July, 1940, For some years past we reinsured our accident risks, but it has now been thought preferable hot to do so. The .expenses of conducting opr businessVwere reduced. The percentage of expenses to premium income in the Ordinary Branch, which was 14.54 in 1939,! was reduced to 13,29 in 1940. In; the Industrial Branch the expense rate wa? reduced from 32.58, per cent, in 1939 to 29.68 per cent, in 1940, a saving of "nearly, 3 per 'cent. .These .results, must be regarded as. very gratifying. ; The increase in funds and. general reserves amounted to £1,751,524, which is the greatest ever recorded by the company for; any one year. f :■ 'fljhe-- funds is to guarantee the, payment of future claims. Our. Life Assurance funds/ now, £28,348,467, are; large ; because the claims which the ,Company will be calleg upbn to pay in the future will he larger Just,as'a savings -bank is expected to hold £1: of assets for each £1 due to its depositors/ so ! does a life office need to hold the present equivalent of each £1 of assurance, placed with it. This present equivalent, or actuarial reserve, is calculated on the rate of interest* which it may be assumed to earn over the future duration of the policy. The lower the valuation rate, i.e., the lower the rate of interest assumed, provided that the mortality tables are satisfactory,, the greater is the that the actuarial reserve is adequate, and hence the greater isecurity for the policy-holder. Security has always been the watchword of the : M.L‘,C. Nearly 40 years ago the Company valued its Ordinary Branch liabilities on the assumption of future interest earnings at' 3 ; per cent, This was the strongest basis in Australia at that time. Ini 1936 this basis was.strengthened by the adoption of a 2j per bent/ net' premium basis. For the year"l94o there has been a still further strengthening. by the use of 2J per bbrih ,as the valuation rate. This is the 1 rate at; which the. Industrial Branch liabilities have been valued since 1934. I may add that, in making the valuation in' each Branch the most modem, mortality tables have been used. • ■■ In these troublous times security is the most important -quality a company can offer. In- addition to - the unexcelled actuarial reserves we have built up general reserves to £700,000. Furproviifed‘ >? Uip? ‘ of* £1,000,000, afad^'hy,' v the- conservative ftgpresv at securities ■>. appear.; ’m our books. k During-the year pajmaents to policyholders* amounted to * £-2-033.367; which is approximately £7350 .per , workingday. Total payments’ to policy-hold-ers siqce the inception : 6I • the Company amountto £40.888915, These flgures igive some -meaSUre’ of our service to policy-holders, a service -which, in the vast majority of cases, brings the benefit of life-assurance to their deperidants, at times ,of special even dire need, and whibhv in these ■ and other cases, by helping -the benqflci-, aries,helps f to malntain and promote the-.-general > well-being/. But.. beyond the-service tp policy-holders, thej-e, is, A constant service to the fommumty

building up the funds which guarantee the payment of these benefits, and . by the investment providing moneys for employment, and contributing to the general welfare. During the war this service is virtually concentrated on aiding defence, and other activities , of the nation. ■ . The strength of the Company s position is‘evidence-of the;lyisdom :of ats . founders in framing its profit-sharing constitution,- adopted for-; Ordinary policies in the early days of the Coinpany, and extended in 1925 to all In-, dustrial policies since written in Australia and New Zealand. Policies_ par-. ticipating under this system receive a very large proportion of profits. A small percentage is allocated to shareholders who give actual guarantees which ensure energetic and efficient control. As a result, bonuses to participating policyholders have been excellent, while the reserves have, been built to a standard which places our Company among the strongest financial institutions of the world. Mr A. M. Eadyf in seconding the Chairman’s motion, said:— It is a source of satisfaction to us all that during a war year, in spite- of its difficult conditions, the strength of the Company has been further creased. and that bonuses to policyholders have been maintained. As an example of the benefits accruing to members of the community generally in the investment of our funds, I may quote the £3,000,000 advanced to Co-operative Building Societies (already reduced by repayments to £2,500,000 approximately) en-. aiding the erection of some 4500 homes. Not only has employment been provided for many, but the housing difficulty has been ameliorated. A very pleasing feature is the improved outlook and the happier conditions of life for those who have benefited by pur investment activities in this direction. A typical case came recently under notice, where people who had lived for many years in a home only eight feet wide, in a terrace in a congested area were able to move - into a new home in a bright new suburb. Theywill pay small weekly instalments for 21 years, after which the property will be their own. This cottage was shown to our General Manager with obvious and justifiable pride. The Company is anxious that those who work for it. both in the office sod in the field, should ha'"* thp best practicable conditions. To this end superannuation schemes have been arranged for the various sections of the Company’s service. The commencement of a Simoi-rmnoatinn Sel l "™ from and including the year 1940, for the Industrial Agents of the Company, me*\ that every section of the Company’s service now has such a scheme. " KAURI TIMBER COMPANY ip a ) WELLINGTON. May 2. The Kauri Timber Company has declared an interim dividend of 2J per cent, for the half-year ended February 28, pay-