FINANCE and COMMERCE.

Dominion, Volume 23, Issue 52, 25 November 1929, Page 14

FINANCE and COMMERCE.

STOCKS AND SHARES . REVIEW OF MARKET THE WEEK’S TURNOVER The business done on the Stock Exchanges of the Dominion last week was larger than in the preceding week, this being due principally to the active trading in Commercial Bank, Goldsbrough, Mort, and Co., Mount Lyell, and New Zealand Breweries. A fair business was done in Government securities and debentures and bonds, but most of the transactions were recorded in Auckland and Christchurch. The 4* per cents. (1930) changed hands at £99712/6, and (1938) at £lOO. The per cents. (1930) sold at £lOO/o/-, oi per tents. (1033) at £lOO/17/6 and £lOl 2/6, and 5i per cents. (1930) at £lOl/10/and £lOl/12/0. The 5J per cents. (1932) were cleared at £99/17/6. Auckland City, 51 per cents (1940) at £lOO, and Mount Eden 5J per cents. (1964) at £99 were the only local body debentures sold. NewZealand Breweries bonds changed hands at 28/4 and 28/3. . _ ... A moderate business was done in Bank shares, with values showing some steadiness. There was a good turnover of Commercial Bank of Australia at 27/3 and 27/8, and the demand continues. Bank of NewSouth Wales sold at varying prices from £47/15/- (Sydney Register) to £4B/2/6, £47/17/6, and £4B. Bank of New Zealand • showed a slightly easier tone, with sale at 60/6 and 60/-. Australian Bank of Commerce also tended downwards, sales being made at 31/6, 31/3, and 31/-. Bank of New Zealand changed hands at £6/18/-, which is 3/- better than the last previous sale. Commercial Bank of Sydney sold at £24/10/-, which is equal to the last sale. English, Scottish, and Australian Bank changed hands at £7/12/6 and £7/13/6.* National Bank of Australasia, £lO paid, sold at £lB, or _3/- lower than the previous sale, and £5 paid at £B/19/- or 6d. lower. Union Bauk had quittance at £l4/7/6 or 6d. lower than the previous week. A parcel of Queensland National Bank realised £B/15/-. Financial and Insurance. A comparatively big business w-as done in Goldsbrough, Mort, and Co., the shares changing hands at 43/8, 43/4, 43/3, 40/6, and 43/3. Dalgety and Co. were easier, selling at £l3/18/- and £l3/16/-. There has been very little demand for other financial shares, and most of the Building and Mortgage companies have been neglected. Insurance shares were steady, with scarcely any variation in prices. . New Zealand Insurance changed hands at 46/3, South British Insurance at 60/3, and National Insurance at 16/3 cum dividend. The dividend has since been .paid. . The demand for Gas shares has eased, and except for sales ,of Auckland Gas at 25/- there is nothing doing in them. Thebest that can.be said for shipping shares is that sales are' made occasionally. Last week there was a sale of Huddart-Parker nt 42/-, and It is some weeks since , the previous transaction was recorded. .Northern Steam sold at. 14/7., and Devonport Steam at 23/-. . Coal shares have been rather slow with very little business Posing. Westport Coal changed hands at 33/3 and 33/-, cum dividend, and Renown," ordinary, at 17/-. Meat shares were dull. New Zealand Refrigerating, 20/- paid, sold at 12/9, and North Canterbury Freezing at 7/6 and 7/-. -. . , Breweries and' Miscellaneous. There were a few transactions in Brewery shares, more than in the previous two or three weeks. New Zealand Breweries changed hands at 87/6 to 88/4, and Staples , and Co. at 53/3. Two Australian concerns, Carlton Brewery, Melbourne, sold at 42/6 and Tooth’s Brewery, Sydney, at 45/6, ex dividend. Australian Distilleries sold at 21/6, or 1/6 more than In the previqus week. Colonial Sugar-. changed bands at £5O and £5O/10/-, while at the end of September sales . were made at £57/15/-. The increased taxation imposed by the Commonwealth- Government. will probably seriously affect ■ some share values, and cause' an all-round lowering of prices. Business was done in Electrolytic Zinc, ordinary .at 34/3 and preference at 35/6; “Herald” and “Weekly Times” (Sydney), £5/5/-; D.I.C. preference at 21/6; McLeod Brothers at £3l; New Zealand Drug at 73/6; British Tobacco at 44/9 ■ and 45/-.; Glenmore Brick and Tile, at-24/-; Beath annd Co. at 30/9; Whitcombe and Tombs, 72/6 and Whittome Stevenson at 45/-. There was .active trading, in Mount Lyell at 42/3 to 42/9. • Waihi' Mining sold at 12/5 and 12/6. WELLINGTON EXCHANGE SATURDAY’S QUOTATIONS Buying and selling quotations at the final call on the Wellington Stock Exchange on Saturday were as follow: — Buyers. 'Sellers. N.Z. GOVT. LOANS— £ s. d. £ s. d.

DIVIDEND LIST Company. Per cent. Period Payable Westport Coal .. 5 Half-year To-day Wilson’s Cement . 6 Half-year Nov. 2B National Bank of Australasia .. b Half-year Nov. 27 Leyland-O’Brien Timber 41-8 Half-year Nov. 27 NZ. Paper Mills . 3i Half-year Nov. 29 Australian Glass . 5 Half-year Dec. 1 P. and 0. def. stk. 7 Half-year Dec. Henry Jones Co-op. 6i Half-year Dec. 2 N.Z. Loan and Mercantile 6 Half-year Dec. 6 Kauri Timber —, 3 Half-year Dec. 13 Mount LyeU .J. 13} Half-year Dec. IS U.S. MONEY MARKET New York, November 22. The Oileatp rediscount rate has been reduced to ft per cant. AUSTRALIAN TREASURY BILLS ILondoii, November 22. The "Mottling Post” financial -writer ata ten that the Commonwealth Government has now £10,000,000 worth of Treasurv bills outstanding in London. The latest issue at 5 3-8 per cent .changed hands in the market to-day at o per cent. The Commonwealth of Australia has placed £5,000,000 of Treasury bills at o 5 3-8 per cent, discount, maturing June 30, MHO.

DEALINGS ON ’CHANGE SATURDAY’S BUSINESS DOMINION SALES The following sales were reported on the Stock Exchanges of the Dominion on Saturday WELLINGTON. Nil.

MARGARINE UNION LTD. BIG INCREASE OF CAPITAL MERGER WITH LEVER BROS. Official cabled advice has been received from. London that an extraordinary general meeting of shareholders tff Margarine Union, Limited, has been called for Tuesday, December 10. A circular which accompanies the notice convening the meeting reads as follows: — “We are sending you herewith a notice convening an extraordinary general meeting of the company for the purpose of increasing the authorised share capital of the company from £4,100,000 to £11,600,000 by the creation of 1,000,000 7 per cent, cumulative preferred • shares of £1 each, and of 6,500,000 ordinary shares of £1 ■ each “It will be remembered that an announcement was issued in September that a provisional agreement had been signed providing that the ordinary share capital of Lever Brothers, Limited, and the share capital of Margarine Union, Limited, with whom was associated N. V. Margarine Unie, should be amalgamated as from January 1, 1930. The principal object of the creation of the additional share capital now proposed is to enable Margarine Union, Limited, to carry out its part of this agreement (which will not involve any issue to the public), whilst a reasonable margin of unissued capital will remain available for use in the future as and when requred. Full details will be given to the shareholders-at the meeting. At .a general meeting of shareholders of N. V. Margarine Uriie called for the same date, at which ■ similar particulars will be given to the shareholders, a resolution will be proposed for the necessary alterations to be made in the statutes of N. V. Margarine Unie in connection with the above-mentioned agreement. It was announced on September 2 that a provisional agreement had been signed forming one of the most important industrial amalgamations that have ever been effected in Britain. The companies concerned are Lever Brothers and the Margarine Union. For the purpose of securing complete co-operation between these organisations in the working of their business the ordinary share capital of Lever Brothers and the share capital of Margarine Union, Limited, with which is associated Margarine Unie, will be amalgamated as from January 1, 1930, on a basis of equality of status, which presumably, means not an equal division of capital in the controlling company, but an equal division of voting power. No alteration In the method of carrying on the business of either organisation is involved.

Effect Upon Lever Shareholders. Lever Brothers have an issued share capital of £50,627,546, out of a total authorised of £130,000,006. The bulk of it is in preference or preferred ordinary shares. Only 2,400,000 being in ordinary shares. These ordinary shares alone will be concerned in the finance of the amalgamation (remarked the financial editor of ‘‘The Times”). Presumably the intention is that these shares shall be transferred to a holding company, which will issue its own shares in payment. This holding company will also acquire the share capital of the Margarine Union and Margarine Uuie. Therefore, the preference and preferred ordinary shareholders in Lever Brothers will retain their securities as at present, and will not be invited to make any exchange. But obviously they will benefit •from the amalgamation by the additional security which the combination of businesses will give them. Last year the profit of Lever Brothers was £5,274,075, of which £4,895,533 was absorbed in dividends on the preference and preferred shares. Among other, things the fusion of interests will eliminate competition between these two powerful compauies, and will undoubtedly result eventually In substantial economies in operation. Margarine Union’s Activities. The Dutch Margarine Unie and the English Margarine Union Company were formed in 1927 as a result of the amalgamation of two old-established marganiue manufacturing companies—namely, Anton Jurgens and Van den Berghs. Between them, these companies virtually dominate the margarine business. It is well known that, beside owning and operating very large manufacturing etablishments, they also control directly or indirectly a number of distributing concerns, which in Britain include the Home and Colonial Stores, the 'Maypole Dairy Company, the Meadow Dairy Company, and Liptons. The Margarine Union, which was formed to acquire the organisation of Van den Berghs, Ltd., .has an authorised capital of £4,100.000, of which £3,600,000 is issued. Of this £1,000,.000 is in 7 per cent, preferred, shares, Ji2,50<>,000 in ordinary shares, and £lOO,OOO in 6 per cent, deferred shares. These deferred shares carry the voting control, and are all held by the Margarine Unie, so that the Dutch company controls the English company. The Margarine Unie, which is much the bigger company, has an authorised capital of 350,000,000 florins, of which 149,736,0689. is issued, 13,000,000(1. in 7 per cent, preferred shares, and 136,736,000(1. in ordinary shares. According to the latest figures available, the combined issued capital of the two companies is £14,851,753, and the combined general reserves £4,147,043. MUTUAL LIFE & CITIZENS’ ASSURANCE A circular letter from the directors has been sent to shareholders of the Mutual Life and Citizens’ Assurance Company Ltd., proposing amendments to the articles of association of the company. It is proposed that the shareholders’ capital shall be included as from January 1, 1920, In the accounts and balance-sheet of the general branch, and interest thereon calculated at such rate, not exceeding 10 per cent, per annum, as the directors shall from time to time determine, may in the discretion of the directors be charged against the general branch and carried to the credit of the shareholders’ profit and loss account. At present the shareholders’ capital is included In the acounts and balance-sheet of the industrial branch. It is proposed that of the profits of the ordinary branch there shall be apportioned among the participating policy holders such sum as the directors may determine, but not being less than four-fifths or more than seventeen-twentieths of such profits, in the form of bonuses to their policies. At present the directors are enjoined to distribute among the ordinary policyholders four-fifths of .the profits of the branch. The amendment will empower them in their discretion to Increase the distribution from 80 per cent, of the profits to 85 per cent. The remainder goes to the credit of the profit and loss account of the shareholders. DOMINION FRUIT EXPORT At the quarterly meeting of the Board of Agriculture the report of the Director of the Horticultural Division showed that the total quantity of fruit exporteil from the Dominion last season was 992,151 cases. Of this quantity 758,761 cases of apples and 55,024 cases of pears were shipped to Great Britain; 159.837 cases of apples and 4087 cases of pears to South America; 12,000 cases of apples to Canada, and some 2400 cases of apple* to Honolulu and the Pacific istaadfc

FROZEN MEAT TRADE SMITHFIELD MARKET VALUES UNALTERED (Rec. November 24, 5.5 pan.) London, November 2.3 Mutton. North Island, medium, 6 1-Sd.; Australian, firsts, 4 5-8(1., seconds, 4jd., ewes, 4Jd.; Argentine, light, sd. Lamb. Canterbury, medium, Bd.; Australian, firsts, Victorian, light, 8 3-Bd., medium, 7 7-Bd., thirds, 7d.; Argeutine, seconds, Old. Beef. Australian crops, 4Jd., hinds, «I<[. 1 chilled Argeutine, fores, 5d.; hinds, i «-Bd.; others unchanged. MEAT BOARD’S REPORT. Lamb: Slightly Letter inquiry for first quality. Mutton: Wethers quiet; ewes steady. N.Z. porker pigs: Firm, with good trade. N.Z. baconer pigs: None available. The above report was received on Saturday by the New Zealand Meat Producers’ Board from its London office, which also advised that Smithfield delivered prices for the week ending November 22 averaged as follows (prices for the two previous weeks in parenthesis):— N.Z. wethers and maidens, Canterbury quality, selected brands, 561b./under, 6}d. (6}d„ 6»d.); 57/64, 6}d. (6}d., Gid.); 65/72, 5 l-Bd. (5 7-Bd., 6d.); other brands, 56/ under, 6{d. (Old., OJd.); 57/64, 6 l-Bd. (6d„ 6d.) : 65/72, 5Jd. (sjd., s|d.) N.Z. ewes, flllb./under, 4Jd. (4jd., 4jd.). N.Z. lambs, Canterbury quality, 361 b./ under, B}d. (BJd„ Sid.); 37/42. Bd. (7 7-Bd, 7 7-8 d.); 43/50, 7id. (7|d., 71 d.); seconds, 7d. (7d„ 7d.); selected brands. 36/tinder, B}d. (B}d„ Sid.) ; 37/42. 7=d. (7Jd„ 7}d.); other brands, first quality. 36/under, 7Jd. (7{d., 7}d.); 37/42. 74d. (7Jd., 7Ad.): second quality, 30/32, average, 7d. (7d., 7 l-Bd.) Australian lambs (new season’s). Victorian, first quality, 361b./under, 8 3-Bd. B}d„ BJd.); 37/42, 7 7-Bd. (8d„ Bd.) Argentine lambs (new season's), first quality, 36ib./under, 75d- (7}d., 7}d.); 37/42. 71d.- (74d„ 74d.) N.Z. beef: Not quoted. Argentine chilled beef: Ox fores. sd. (4 7-Bd., 4 7-8 d.); ox hinds, 7 7-Bd. (7?d., 7}d.). Australian frozen beef: Ox crops, over 1001 b,, 4 7-Bd. (4|d„ 4 5-8 d.): ox hinds, over 1601 b., 6 3-Bd. (6 l-Bd., fid.). N Z. frozen pork: Porkers. 60/801b.. 9Jd. (Old 91d.): 81/99111.,’.91d. (Old., Old.); 160/12013., 9Jd. (Old.. OJd.; baconers, 121/ 1801 b., not quoted (Sid.). Frozen veal: Not quoted. BROKERS’ REPORTS. Levin and Co., Ltd., have received the following cable from their Londoji agents, dated November 22:—As compared with last week’s quotations, values are unaltered. The demand for lamb is poor, and the market for mutton is. quiet, but steady.

44 p.e. Ins. Stk., 1988 1 00 0 0 51 p.e. ditto, 1941 ..: 100 0 0 — 5J p.c. Ins. Stk. and Bonds, 1936 ........ 102 0 0 4} p.c. Bonds, 1939 and 1938 — 100 7 6 DEBENTURES— Well. Racing Club .. 107 0 0 —• N.Z. Breweries (bonds) 1 8 0 1 8 8 BANKS— Australasia •— 13 15 0 Australian Bank of Commerce — 111 4 Commercial of Aust. (ord.) 1 7 6 1 7 9 English, Scottish, and Australian 7 12 0 — National of Australasia (£10) 17 15 0 •18 0 0 Ditto (£5) — •9 0 0 New South Wales ... 48 0 0 48 10 0 New Zealand .... 2 19 9 - 3 0 9 Ditto (long term) ... 1 8 2 — Union of Australia .. — 14 10 0 FINANCIAL— Abraham and Williams (pref.) 4 10 u Goldsbrough Mort .. —— 12 3 9 Ditto .(rights) ;....... — 0 8 9 GAS— Christchurch ■ ..... -•<. 1 6 4 Wellington (ord.) .... X— 1 13 3 Ditto (pref.) 0 18 0 — MEAT PRESERVING — N.Z. Refrlgerat. (£1) —— 0 13 U Ditto (10s.) 0 5 3 —• TRANSPORT— Huddart, Parker (ord.) — 2 2 u P. and 0. def. stock.. — *2 17 3 WOOLLEN— Wellington (ord.) — — 11 COAL— Hikurangi (ord.) —. 0 1 Westport Waipa — 1 12 3 •1 13 0 15 0 0 TIMBER— —. — breweries— New Zealand 4 7 *4 is u Staples and Co —• 2 13 6 MISCELLANEOUS — Burns, Philp, and Co. —— British Tobacco (Aust), (ord.) — Colonial Sugar . — 51 0 0 Dental and Medical .. 0 11 9 Electro. Zinc (ord.) . —— 1 *4 6 Ditto (pref.) — 1 15 6 N.Z. Drug 3 14 9 N.Z. Paper Mills .... •1 0 0 Wellington Cordage .. — 0 14 6 Wilson’s Cement .... ♦2 2 7 Mount Lyell 2 2 5 *2 2 9 ♦Cum dividend. tCum. rigirts.

AUCKLAND. £ S. (1. Westport Coal 1 13 0 CHRISTCHURCH. £ S. (1. English, Scottish, and Aus. Bank 7 15 0 Dalgety anil Co. (-) . 13 14 0 Goldsbrough Mort (3) & 3 1 Goldsbrough Mort 2 3 0 Goldsbrough Mort “rights” .... 0 8 () Australian Distilleries 1 1 9 o 4 3 Okarito (preni.) 0 1 7. Winding Creek (Gd. paid) 0 1 6 Sales Reported— Commercial Bank of Australia .. 1 7 7 Commercial Bank of Australia .. 1 7 6 Goldsbrough, Mort 2 3 4 Bank of New South Wales 48 0 0 Union Bank of Australia 14 6 6