FINANCE and COMMERCE.

Dominion, Volume 23, Issue 84, 3 January 1930, Page 12

FINANCE and COMMERCE.

DAIRY PRODUCE EXPORTS

RECORD SHIPMENTS BUTTER FOR EASTERN CANADA Over 4000 tons of butter, the largest ihipiuent that has .ever left M Zealand in one bottom, was loaded by the C. and D. liner Port Hardy, which sailed from Auckland on December U ior Halifax and London. The vessel s record shipment totalled 101,098 boxes of butter, in addition to which she carried about 6000 bales of wool, 21,000 freight carcasses of frozen meat and other cargo. ine butter, which was valued at about £650,000. was shipped for the following destinations: Halifax, 1_39,-2.> boxes; Halifax, option London, 1100 boxes, Jamaica, iOO boxes, and London,’ 20,423 boxes. What is probably the record shipment of dairy produce is that carried bythe New Zealand Shipping Company s s£ea “U Piako, which has passed/the lanam a Canal on her way to Halifax and London One is carrying 157,010 boxes of butter and 16,024 crates of 'beese, of which 119,756 boxes of butter are destined feature of th « ®“ rr ®“ £ season's dairy produce export trade is the large shipments of butter to Halifax for the Eastern Canada market, bo tar live ships have left I, ®y.,. Z ® ali )? d J l .* 8 season taking butter for Halifax, the shipments being as follow:— Boxes. August—Port Gisborne ... 23,034 September—Hororata üb.GJU October— Itaranga November—Piako •Hn’r?Dccember—Port Hardy ... 140,0 Ta , Total •■••• 435,887 Thus with several months of the seasou still ahead, the five shipments of butter for Eastern Canada amount to 43a,88) boxes, as against eight shipments totalling 307,713 boxes for 4 the whole of the 1028-20 season, and six shipments totalling 104,043 boxes, for the 1027-28 season. At the end of December, 1028, last season, | only three shipments, totalling 234,446 boxes of butter, had gone forward to Halifax. ' .e „ . An Interesting feature of the Port Hardy’s shipment is the “parcel of 100 boxes of butter for Jamaica, which will be transhipped at Colon. The Raranga, which sailed in October, also had 100 boxes of butter for Jamaica. It is stated that New Zealand' butter is also shipped to the West Indies from England. A GREAT MERGER MARGARINE UNION-LEVER BROTHERS A /For the purpose of carrying out the share amalgamation plan with Lever Bro-, thers the Margarine Union has increased Ils capital by £7,500,000 by the creation of one million 7 per cent, cumulative preferred shares of £l, and 6,u00,000 ordinary shares of £1 each. This. brings the Union’s authorised capital up to £11,600,°°At the beginning of September the Margarine Union announced that a provisional agreement had been signed providing that the ordinary share capital of Lever Brothers and the share capital of Margarine Union, with whom was associated N.V. Margarine Unie, should be amalgamated as from January 1, 1930. It is stated that the principal object of the creation of the additional capital is to enable Margarine Union to carry out its part of the agreement (which will not involve any is- • sue to the publie), 1 while a reasonable margin of unissued capital will remain available for use in the future as and when required. , .. , . Of the existing authorised capital of £4,100,000 the Union has issued £3,600,000, comprising £1.000,000 seven per cent, preferred, £2,500,000 ordinary shares of £1 each, and £lOO,OOO in deterred shares .of 1/- each. Lever Bros., whose £2,400,000 ordinary capital is privately held, has an issued amount of £56,627,546, including preference issues totalling £46,082,272 and preferred ordinary amounting to £9,145,274. Widespread Interests. Following the provisional agreement witli Lever Bros, announced in September. shareholders were later informed that the Union and the United Africa Company had entered into an arrangement for the merging of-the West African interests of the two concerns. Dating from November, 1927, the Margarine Union, whose formation synchronised with that of its' sister concern, the Margarine Unie (of Holland), took over the ordinary capital of Van den Berghs. At the same time the Unie acquired Anton Jurgens Margarine Works and Van den Bergh’s Fabrieken. The operations of the Margarine group extend all over -Europe and embrace the production and distribution of butter, condensed milk, soap, candles, and bacon, etc., whlle.it is associated with several leading English ’ retail multiple shop concerns. including the Home and Colonial Stores; Maypole' Dairy, "Meadow Dairy and Lipton. At December, 1928. assets of the Margarine. Union totalled £6,096,453, while a ’ consolidated balance-sheet of the company and tile Unie showed joint assets of £lB,- i 436.238. ' The combined capital at . that date was £11,396.732.'80th" companies paid 10 per cent, for 1928. X I Numerous Subsidiaries. I Lever Bros.’ interests are very wide- 1 spread and comprise soap. African trading, plantation, whaling," steam trawling, and 1 seed ami oilcake concerns. I ' Among the companies in the British Isles | con I rolled by Lever Bro thers are the following :—Aberdeen Steam Trawling and Fishing, John Barrington and Sons, Bromboro Port Estate, Benjamin Brooke and Co., Bloomfields, Bartons’ Seed Crushing Mills, Edward Cook and Co., Joseph C'rosliold and Sons, F. S. Cleaver and Sons, F. Chivers and Co., Cook Bros. (Hornsey), 1911, Charles Dean, Erusmic, D. and W. Gibbs, Wm. Gossage and Sons, Kiehard B. Green and Co., R. S. Hudson, Hodgson and Simpson, International Icilma Trading, John Knight. Planters Foods, Southern Whaling and Sealing, S.P.D., Christi". Thomas and Bros., J. L. Thomas and Co., Trufood, Trading Association of Nigeria, Vinolia Co., T. Wall and Sons, John Walkden and Co., Joseph Watson and Sons, Wilkie and Soatnes, Mac Fisheries, Muirhead and Wlllcoek, W. B. Maefver and Co., Timothy Newby, and Sous, Niger, Ocean Harvest, Stanley Pibel, A. and F. Pears. Tlie company also controls Lever Bros. Company',' incorporated in Maine in 1899, and holds large interests in other companies in tlie Far East, Australasia, Canada uu<l the United -States. Lever Bros.: assets at December 31, 1928, stood at £68,309,448. The investments comprised spap.and perfumery companies, £25,072,457; DWest African plantations, oil milling. etc., £16,113,940; bargarine, etc., companies. £5,645,549; miscellaneous companies, £344.410; and shares in other companies, £7,233,851. FINE COTTON SPINNERS REDUCED DIVIDEND For the half-year to September 30 the interim dividend of the Fine Cotton Spinners’ and Doublers’ A.sociation is to be 3 per cent., against 4 per cent, a year ago, when the distribution was reduced from 6 per cent. For the 12 months to March 31 last, the company paid in all 9 per cent, on its £4,410,000 of ordinary capital, in place of 15 per cent, for 1927-28. , The interim dividend has not been so low as 3 per cent, for many years, and the reduction will cause disappointment in view of the references made by the chairman at Tie annual meeting last May to the efforts that were being made to regain trade lost since the war. Profits of this textile association have shown considerable fluctuation of late years, but the possession of large reserves has enabled the company to supplement earnings in lean periods by withdrawals from these funds. AUSTRALIAN PRODUCE (Rec. January 2, 10 p.m.) Sydney, January 2. Wheat, at country stations, 4/9 per bushel, ex trucks Sydney, 5/4. Flour, £l3 per ton; pollard, £9 per ton; bran, £7/10/- per ton. potatoes.—Tasmanian: £l3 per ton; local, £7 per ton. . Oats.—White, 5/- per bushel; Algerian, 4/3 per bushel. Maize. TJ-. .

EXCHANGE RATES

AUSTRALIA ON LONDON

“OFF THE GOLD STANDARD”

From December 18 new rates of exchange on London came into force in Australia. Both buying and selling rates have been, increased by 7/6. lhe banks will sell London money .by telegraphtc transfer at a premium of 42/6 per .cent., and will buy London money by sunilar transfer at a premium of 3-/b per cem The other usances have been altered in consonance. The new rates are.

Were gold available it would be cheaper even for the ordinary trader to ship gold than buy a bank draft at the new rat® B , savs the “Sydney Morning Herald. lhe banks have -taken action evidently the knowledge that if any attempt were made to ship gold or procure gold lor shipment it would be prevented by putting the Commonwealth Bank Act Amendment Act into operation. Private dealings in exchange on London have recently taken place even at higher rates than the telegraphic ■ transfer price given above. As much as 45/- premium has been quoted. With the increase in the rate of exchange between Australia and London so that it costs £lO2/5/- of Australian money to nurchase £lOO of British money, combined w"th the fact that the Federal Treasurer on the recommendation of the directors of the Commonwealth Bank may Place an. embargo on the export of gold, Australia may be taken’to be definitely off the gold standard. That is the position which should be faced. We are away from the corrective which automatically keeps onr price level in line, making allowances for tariffs, with prices of countries on the gold standard. When we decide to come into the standard again we may find- that it will be necessary to deflate in order to bring the price level back to the world price level. Canada, as we have on other occasions pointed ont, is also off the gold standard, and has been-so since tlie commencement of September. The reason for the restriction is that high rates, of interest for short term investment in New York was drawing abnormal amounts or Canadian funds thither, with the danger of heavy gold shipments Following the Australian change, the acting chairman of the Associated Banks in New Zealand announced that as from December 21 the rates of exchange on London would be as under: —

GOLD RESERVES FIRST STEP IN AUSTRALIA / ■ ’ The first step under the Act recently passed by the Commonwealth Parliament giving the Commonwealth Bank power to take over the gold reserves of the trading banks In exchange for notes, was taken on December 20, .says the “Sydney MornlnTho trading banks received a letter from the Governor of the Commonwealth Bank In Sydney containing important suggestions. The terms of the, letter have not been disclosed, but it is understood that they have not been couched in legal verAct 'empowers the Commonwealth Bank to require any person to furnish particulars of the gold coin and bullion held by him and to require any person to exchange such' gold for Australian notes. It is the intention of the trading banks to hold a ' meeting as soon as possible to discuss the general policy to be adopted on the gold position, as well as on. other matters uealt with in the letter front the Commonwealth Bank. The gold holdings of the Australian banks are as follow: NevvAsoutli Wales 6,290,034 Commercial of Sydney .. 4.181,099 National 2, <31,434 Union .... Australasia 2.682,7u.i E„ S., and A 2,u94,30G ' Commercial of Australasia 1,0-10.232 Bank of Commerce 794.369 Queensland 322,62 a ” Adelaide 242.943 New Zealand 210,247 £23,791,149 - Gold held in New Zealand by Australian banks is as. follows: — Bank. £ New South Wales 1,284,186 Australasia 974,895 .Union 949,956 . Commercial 224.615 £3,432,652 STANDARD OIL DEAL BID FOR ANGLO-AMERICAN A statement issued in London on No? vein ber 26 by the directors o£ the AngloAmerican Oil Company confirmed rumours that the Standard Oil group was seeking to obtain control of the company. The Standard Oil Exporting Corporation, which is owned jointly by the {Standard Oil of New Jersey, Standard Oil of Louisiana, lhe Carter Oil Company, and the Humble Oil and Refining Company, offers to issua.s per cent, non-voting preferred shares in exchange for Anglo-American on the following basis: — For each five and five-ninths £1 shares' of Anglo-American, one preferred share of Standard Oil Export of 100 dollars par value. ’ Taking the Anglo-American shares at choir nominal value, this offer is equivalent to 18 dollars (£3/13/9) par value preferred tor each Anglo-American -share of £l. The Export Company’s preferred shares are guaranteed both as to dividend and principal by the Standard of New Jersey and the other three companies owning the Export Company. Dividends will be paid in dollars on June 30 and December 31 each year, a full six months’ payment being made on June 1930. The shares are redeemable at lhe option of the Export Company at 110 pel cent, after December 31, 1935. The offer of exchange, which will n, main open until January 31, 1930, is subject to acceptance by holders of not less than two-thirds of the Anglo-American shares. Formed in February last by the Standard Oil Company, the Export Corporation controls the export business of the four companies mentioned above from which ‘ the products marketed by the Anglo-American Company are largely drawn. The directors of the Anglo-American, in recommending the acceptance of the offer, state that their company’s activities are entirely confined to the marketing side of the business and they have in mind that under existing conditions a purely marketing company is at a considerable disadvantage. They, therefore, consider that It would be to the shareholders’ interest co exchange their Anglo shares for guaranteed shares in a company closely associated with powerful producers and refineta. Return to American Control. Prior to 1911 the Anglo-American Compuny, which was registered in England in 1888, was coutrolieu by the Standard Oil of New Jersey, but the United States Court in that year, on a charge of violation of the Anti-Trust. Law, ordered a disintegration of the Standard Company, and us a result Hie Anglo-American shares were distributed among the Standard stockholders. The proposed scheme will thus restore the control to the Standard . group. ’ , . . The Anglo-American Company has had a successful career, and for the past decade has paid substantial dividends. At December 31, 1928, assets totalled £16,931,146. The authorised capital is £10,000,UOO, in equal parts u£ preference and ordinary. None uf the preference has been issued. During 1928 the shares went up to £4/11/3, the lowest price being £3/2/-. The company has been the largest distributor of lubricating oils and paraffin in Great Britain for nearly forty years, and since the development of motoring has handled a huge business in petrol. The company controls the British Mexican Petroleum, Irish American Oil. Glico Petroleum, and has substantial interests In candle manufacturing companies, and owns the Valor Company, of Birmingham, manufacturers of oil cookers and heaters. The proposed deal will thus place under American control several big English businesses, together with 700 storage and distributing depots, 28 ocean-going tankers, 14 coasting steamers, 1782 rail tank cars, 3469 motor-lorries and cars, and numerous tugs and barge*.

GERMAN EXPORTS INCREASE APPROACH TO BRITISH FIGURES Important figures showing c ® ra ®? rat t ’,'’® national positions in the trade of the world are given in Accounts rel . a v n^ Vri ,.° the Trade and Commerce of certain, 1 oieign Countries and British S®””!./? Overseas.” (Stationery Office, price 6/-..) net). The period covered is the six months ended June 30. 1929. rl ‘®. 8t l ati 1 s : tics of Germany’s exports are particii'aily significant, for they show that. It t c United Kingdom is still second to the United Sates in volume of exports, Ger- , many is not far behiftd; indeed. Gor wmany’s exports have made such striking increases since 1926, compared with the slow progress of the British, that it would not be surprising to find, when the -figures for later months are available, that she had reached the second place. The figures, for the six months are:— United Kingdom. Germany. £ 358,742,000 £ 320,495,000 The German figures for the seven months January-July are available. They are:— £374,341,000. For the eight months Janu-ary-August the United Kingdom’s export trade amounted to £488,307,000. The rate of the advance in Germany’s export is striking. Comparative figures for periods January-June, 1927 and 1928, are given below :— Germany. 1927 1928 £ 244,483,000 £ 28(5,309,000 United Kingdom. 1927 1928 ’ £342,341,000 £355,232,000 FOSTER CLARK PROFITS The accounts for the year ended September 26 of Foster Clark, Limited, manu- ■ facturing grocers, etc., shows a net profit, including income from investments, of £157,980, against £152,128 for 1927-28. in addition, a profit was made on sales of investments amounting to £3238, which was used to write down the book cost, of investments. These investments, states the report, have earned a satisfactory rate of interest during the year, and the lowest market prices of the quoted securities on September 26, 1929, considerably exceeded the book value. The business of Foster Clark (Australia) continues to expand, ami a satisfactory profit lias been earned. Only dividends received have been credited in these accounts, no account being taken of lhe undistributed profits retained by lhe Australian company. *The new factory, equipped with modern machinery, was occupied in January last. The report continues that for tiie year ended J uly, 1928, the Lin tang Rubber instate made a loss of £2186, of which £495 was for incometax on previous profits. The loss was provided far out of the Lintang company’s resources. In the opinion of the directors, this investment is worth more than its book value. The directors add that they think it advisable to provide for incometax on all profits earned up to date, and therefore propose carrying to taxation reserve account £5660, making the total of this reserve £28,655. Tlie directors think that this sum is sufficient to cover the company’s liability for income-tax, payable in January, 1930 and 1931. To the net profit of £157,980 there is added the amount brought forward of £60,719. making available £218,699. A balance dividend of 15 per cent, is recommended on the ordinary shares (the same), together with a bonus of 5 per cent, (the same), making the total distribution for the year 35 per cent, (against 30 per cent.). It is proposed to transfer to taxation reserve £5600 (against £4600), and to transfer £20,000 (against £10,000) to dividend equalisation reserve, leaving a balance to be carried forward of £63,099.

Exchange Sydney on London. Buying. Selling. St s. d. « Usance. 8. u. 101 12 0 •Telegraphic transfer 102 6 100 17 6 Ou demand 101 13 0 100 5 0 90 13 9 30 days GO days 101 100 16 0 3 99 2 6 90 days 98 11 3 120 days

Buying. Selling. Telegraph transfer .. — 42/6 p.c. prem. On demand 5/- p.c. prem. 30/- p.c. prem. 3 days .. 3/-p.c. prem. —• 30 days .. 5/- p.c. disc. 22/6 p.c. prem. 60 days .. 15/- p.c. disc. 15/- p.c. prem. 90 days .. 25/- p.c. disc. 7/G p.c. prem. 120 days .. 35/- p.c. disc.