FARMING AND COMMERCIAL

Dominion, Volume 22, Issue 81, 29 December 1928, Page 10

FARMING AND COMMERCIAL

AUCTION SALES TO-DAY. Waikanae, 2.30 p.m. —Sale of 40 residential sections (N.Z. Loan and Mere. Agency, Ltd.). THE PRODUCE MARKETS MEAT, BUTTER, & CHEESE PRICES UNCHANGED Messrs. Dalgety and Company Limited have received the following report iroin London, dated December 27:— Frozen meat market unchanged. Dairy produce prices unchanged. FROZEN MEAT Messrs. M. A. Eliott, Ltd., Palmerston North, have received cabled advice from London of the following Smithlield prices for the week ended yesterday. These prices are on the ’’delivered” basis, that is. including storage charges, cartage, etc.: Best North Island prime lambs: Under 361 b.. 9 5-Bd.; 361 b. to 421 b., 9 3-Sd.: 421 b. to 501 b., 9d. Ordinary North Island lambs: Under 421 b., 9 3-Bd. Second quality: Under 4211).. 7 3-Sd. Best North Island wethers, and/or maiden ewes. 4811). to 5611). and 5611). to 6411)., 6 1-Sd; 6411). to 721 b. and over. s:|d. Ordinary North Island wethers and/or maiden ewes, 481 b. to 5611). and 561 b. to 6411).. fld: (141 b. to 7211). and over, 5 5-Bd. North Island ewes: Under 641 b., 4|d.; 641 b. to 721 b. and over, 3ld. New Zealand prime ox beef (equal fores and hinds), 1601 b. to 2201 b.. 4Jd. Nominally prices are unchanged since last report. WHEAT QUOTATIONS (Australian Press Assn—United Servlce.i (Rec. December 28, 7.5 p.m.) London, December 27. Cargoes have scarcely changed. Parcels have moved quietly, with Manitobas steadily held, but La Plata new crop is obtainable at threepence decline. I/>verpool futures: December 0s„ March .Is. 1 5-Bd.. May 9s. 2 5-Sd.. July, 9s. 4}d. There is no spot business. Quotations are nominally unchanged.

DOUBLE TAXATION

A conference of Government experts has been held in Geneva to consider remedies to lie applied to the problems of double taxation and fiscal invasion. A communique l)j the International Chamber of Commerce gives the speech of its representative (Mr. Robert Julliard) to the conference. Mr. Julllard stated that the attendance of business men at the conference was of importance, because Government representatives there considered taxation problems from the point of view of the man whose duty it was to collect taxes. On the other hand,

business men represented the taxpayers of the whole world, who had to contribute the taxes. That did not imply hostility. Most taxpayers hated to be in conflict’ with fiscal authorities or to be suspected of disloyalty in their dealings with the State. The manner in which taxgathering had developed, the increasing diversity of business transactions, and the pecuniary needs of Governments resultant from the war, had made taxation not only excessive in amount l>ut unjust in equity. The world had to work to live, and in each country authorities were well aware that they could not extend their prerogatives to the. point of smothering the capacity for work of the people. The International Chamber of Commerce, said Mr. Julliard, was not attached to any particular plan. What it wanted was an agreement between tlie nations for the abolition of double taxation. As an ideal plan it 'would willingly urge the principle of taxation only at tlie place of domicile of the’ taxpayer. A great number of countries, however, taxed revenue at its source, either as a result of their particular financial -system or because of a greater ease of collection. The view of the International Chamber was that taxation at the source should be restricted to tlie country of origin in order more particularly to reserve personal taxation to the country of domicile. In ail attempts to stop fiscal evasion It would be unwise to place new barriers in the way of free and normal movements of capital. What should lie done was to decrease the interference of political forces in the great business of industry and consumption. The only effective means to prevent evasion was to afford a country's capital a sufficient return and a sufficient protection so as to deprive the owners of any desire to send it abroad.

LIMITED LIABILITY SHARES

It Is stated that members of the Stoct Exchange of Melbourne some time ago hat experience of liability attaching to shares in limited liability companies where serif was not fully paid up. which led to restrictions being placed upon the listing of companies of that kind. That was particularly the case with mining concerns. In Victoria in subsequent years the no-Ea-bility principle was almost generally adopted in mining promotions. In other States dependence on limited liability companies has largely been tlie rule. Where subscribers of shares, or buyers of serin in the market are cognisant of the risk they run of having to meet calls until shares become fully paid up, the use of the limited liability plan has a distinef advantage. Directors are assured of a given supply of capital for the enterprise. This is not the position with no-liabi!ity companies, because shareholders can withdraw from them at any time without the risk of subsequently being dunned to meet calls. The difference is important, as liouidators have been known to call up the whole of the unsubscribed capital of a limited liability company when, in liquidation. even when a relatively small call would have met all debts. During the last three years many companies have been formed in Australia to bore for oil. a number of them being of the limited liability type. In some instr nces propaganda, work has been done to induce people to buv shares either as a permanent investment. or for a “flutter” in the share market. Little lias boon hear 1 of the financial risk taken when holding serin of the kind. Shareholders in limited liability companies have to exercise care when selling their serin that shares are taken out of their name in all cases where the capital is not paid tih. In the case of mining shares if a transfer is not insisted upon, the owner in whoso name tlie scrip remains may find that, although he long before had sold his shares, directors were calling un canttai which ho has to provid" because his name is retained on the register. TARANAKI OIL FIELDS, LTD. INCREASE OF CAPITAL In Its first report issued in 1925, Taranaki Oil Fields. Ltd., showed a paid-up capital of £309,453, of which £149,990 was paid in money, the balance being paid up otherwise than in cash. The nominal capital was then £500,000. A little later the nominal capital was increased to £BOO,OOO. and an issue of 154.750 new shares of £1 each was made. The paidup capital accordingly became increased to a total of £470.561, of which £303.561 Was paid up in money. The last bal-ance-sheet of the company was dated July 31, 1928. Up to that time the property account had absorbed £133,421. general development had cost £12,051. and drilling in Taranaki and near Gisborne had required £60.015. The company was owed £41,087 by sundry debtors, portions being cost of plant and materials charged to subsidiary organisations, in which Taranaki Oil Fields, Ltd., held shares stated at £170,967. According to a statement made by the chairman (Mr. Watt) recently, the present limited liability company is to be converted into a no-liabillty organisation in which present shareholders will receive new shares of the denomination of 30s. each. The scrip will be issued as paid up to 20s. each, so that the board will have a calling power of 10s. a share. This will mean that the holders of all shares will have to contribute equally in the future. The immediate object of this conversion is to test an area in the South Island, where, it is said, “very generous suface indications ot oil exist." The directors state that this block of country is not as large as either of the Gisborne structures now being drilled, but its dimensions are not small. Apart from this new enterprise Mr. Watt admits tliat further funds will be required for work at Gisborne. If oil is struck all difficulties as to finance will disappear. He expressed the belief that it might not be necessary to call up the whole of the new capital.

CUSTOMS REVENUE. The Customs revenue collected at thj port of Wellington yesterday totalled £5746.