FINANCE AND COMMERCE

Dominion, Volume 24, Issue 104, 27 January 1931, Page 12

FINANCE AND COMMERCE

STOCKS AND SHARES

Wellington Exchange

A DULL MARKET

The quietness of the share market was rery marked on-the Wellington Stock Exrhange yesterday, for there was only one sale reported, and the buying orders of brokers were nine. Dullness was shown by «very class of shares, while some Industrial ’To? 'there was only one bld, the 4J per cent, bonds being In demand at £9B, which shows a drop of B/- on the buying quotation of last Fridaj. Wellington Ilacing Club debentures keep firm at £lO3. For Mount Eden Borough 5J per cent., 1904, there was bld £93. Bank shares were very quiet. Commer«lal Bank of Australia were wanted at ■l4/3 cum dividend, but sellers asked 14/9. There were many sellers of other bank shares. Bank.of Australasia were on sale St £B/15/-, a reduction of 5/- on the pre--vious selling quotation. Australian Bank ' of Commerce were offered at 16/-, o r I/O ( less than last week. The seller s quotation ; for Bank of New Zealand remains steady was very little doing In other shares. Wellington Deposit were wanted at 9/0, with no sellers. Wellington Gas were In firm demand at 28/- cum, and Auckland Gas changed hands at 23/4. New Zealand i Insurance were steady at 41/-. For New ’ Zealand Breweries 33/- was bld, a rise of fid. Burns, Philp, and Co. at 27/- were 6d. down. Waihl Mining shares were steady at 15/3.

LOW VALUtd or onanw Twelve Months’ Comparison Values of shares are now very much lower than they were twelve months ago. The all too-frequent announcements of reduction In dividend, or the passing of the same, have depressed the market, and the psychological effect has been to reduce share values to, perhaps, an unwarranted low level. A comparison of prices ruling in January last year and those current now show the enormous amount that has had to be written off share values over the twelve

The above shares are among- the most favoured, and there has been more or less active trading in them over the twelve months.

\ FRUIT. AND VEGETABLES , , Wellington Market Prices Values of fruit and vegetables sold at Wellington yesterday are quoted by Market Gardeners, Ltd., as follow:— Fruit.—Duchess apples. 3/- to 4/- per halt-case; hothouse tomatoes. 11/- to 17/3 per case; mushrooms. 1/- to 1/6 per lb.: peaches. 4/- to 57- per ease; plums. 4/- per case; gooseberries. 4/7 per box; raspberries. 7/8 per bucket; apricots. 5/8 to 8/3 per case; outside tomatoes, 5/- to 8/- per case. Vegetables.—Local potatoes, 8/6 to 8/6 per bag; local onions, 11/- per bag; swedes, 2/8 to 3/- per case; lettuce, 1/- to 4/6 per case; cabbage. 4/- to 5/1 per case: marrows, 4/6 to 5/3 per case: carrots, 3/8 per case; potatoes, 5/- to 6/6 per case: beetroot, 2/3 to'3/3 per ease; cauliflowers, 2/9 to 5/- per case; rhubarb, 4/- to 10/- per dozen bunches: peas. 4/- to 14/9 per sack; French beans, 4d. to Bid. per lb.; cucumbers, 1/- to 4/- per dozen. Fowls, 5/- per pair. AUCTION SALES TO-DAY. Allen St., 10.30 a.m.—Sale poultry (Townsend & Paul). 8 Willeston St., 10 a.m.—Sale sofas (E. Johnston & Co.) 8 Willeston St,, 10.30 a.m.—Sale carpets (E. Johnston & Co.) WEDNESDAY. Rooms, Bank of N.Z. Bldgs., Lambton Quay, 2.30 p.m.—Sale land and property a/c S.C., 17 Crtiickshank St. (Tolhurst & Son). Featherston St., Wellington, 2.3o—Mort gagee sale property, Levin (N.Z. Loan & Mercantile Agency). Panama St., 2.30 p.m—Sale land and property, a/c S.C., Mortimer Terrace, Brooklyn (Gordon Harcourt). Felldlng, 11 a.m.—Sale by Mortgagees of property at 'Kimbolton (N.Z. Loan & Mercantile Agency, Ltd.) Rooms, "Ocean House," 36 Martin Place, Sydney, 11 a.m.—Business premises (Hardie & Yorman). Johnsonville Fat Stock Sale—l p.m. Willeston St., 10.30 a.m.—Sale of carpet squares (E. Johnston & Co.) THURSDAY. Upper Hutt Stock Sale. Union Steam Ship Co’s, yards, Evans Bay, 10.30 a.m.—Sale of surplus stores, etc. fiQ, Jolinetou & Co 4,

DEALINGS ON ’CHANGE

' Yesterday’s Business

DOMINION SALES

The following sales were recorded on the Stock Exchanges of the Dominion yes-

HIGH EXCHANGE RATES Banks Do Not Benefit In announcing the recent increases in Australian exchange in London from £llB to £125 for buying telegraphic transfers and from £llB/7/6 to £125/10/on the selling side, the chairman of directors of the Commonwealth Bank, Sir Robert Gibson, who presided at the bankers’ conference in Melbourne, said it would be remembered that a mobilisation scheme of London exchange was operating between the banks for the purpose of supplying funds in London to meet the interest requirements of the whole of the Governments of Australia. Under this scheme, the banks had accepted the obligation of making a first charge upon their mobilised funds for the interest requirements referred to, and as a consequence only the balance, after such division was made, was available for carrying on the ordinary business of the banks. This arrangement could only be possible so long as the banks were able to purchase sufficient London money to meet those requirements. The competition for London money had become more intensive as time had passed, and latterly the banks had been compelled to adopt a policy of increasing their buying rates, in order to provide for the requirements referred to. Owing to the fact that people in Australia were bidding against the banks for Loudon exchange at continuously advancing prices, the only course open to the banks, therefore, was to meet this competition by raising both their buying and selling rates. Sir Robert Gibson pointed out that the banks did not benefit by high exchange rates. On the contrary, high and varying rates Involved the banks in additional risks in conducting their business. "It is not the duty nor one of the functions of the banks to appeal to the community to refrain from'sending money out of the countr yto-day where such a course can be avoided,” said Sir Robert Gibson. “It can be pointed out, however, that those who Indulge in this direction are definitely increasing the difficulties which are facing the country in meeting its oversea obligations. It is suggested that citizens who have the welfare of the country at heart should co-operate with the banks to relieve the position in every possible way. It might well be a matter for consideration to Australians desiring to travel abroad for pleasure whether some sacrifice in this direction might be made until Australia is in a better position to provide means for such oversea expenditure." LOST TRADE Newcastle Coal Exports Figures released by the Newcastle Subcollector of Customs (Mi-. A. H. Gibson) last week show the quantity of coal exported from Newcastle beyond the State during 1930 at 1,135,631 tons—the lowest figure for any year of the century. It is considered that 1931 may provide coal export figures that, allowing for the absence of strikes, will be considerably lower than in 1930. Comment is caustic as to how the Labour Government expects its contemplated Coal Board to restore an industry so manifestly languishing, as the result of the absence of trade, to any semblance of prosperity. "Customers, not control” was the summary given to-day of the needs of the coal trade. Big Colliery Company An interesting company registration in Sydney last week was that of J. and A. Brown and Abermain Seaham Collieries, Ltd., capital £4,000,000, to acquire all or any of the business property, assets, and liabilities of Messrs. J. and A. Brown, and of Abermaln Seaham Collieries, Ltd., and to carry on tlie business of coal masters, wood, coal and coke merchants, Iron musters, smelters, etc., and to construct, hire, and work steamships and other vessels of any class. First directors, Stephen Brown, Sir A. Knox, T. Armstrong, C. C. Stephen, M. G. Anduaon. ff. Bridgman, A. E. Elephan.

COMPANY AFFAIRS

Christchurch Gas Co.

DIVIDEND MAINTAINED Dominion Special Service. Christchurch, January 26. The report of the directors of the Christchurch Gas, Coal and Coke Company, Ltd., to be presented at the sixty-seventh annual general meeting of shareholders to be held on February 5, states that during the year ending December 31, 1930, 5| miles of mains were laid and 300 new consumers added. The sales of gas amounted to 444.109,800 cubic, feet, an increase of 14,072,700 cubic feet, or 3.27 per cent. One thousand and three new cookers were installed and the sale of other appliances was well maintained. ... , Considering the financial depression, which has especially affected the building trade, says the report, the expansion anil the financial results have been satisfactory. After writing off £13,774/15/- for depreciation, there remains a balance or £35,343/9/4 available. The directors recommend the payment of a dividend or * per cent, which, with the interim dividend of 4 per cent, already paid, will absorb £26,919/15/10, and to carry forward the balance of £8423/13/6. “The company’s memorandum of asso elation has not been altered since its inception in 1863. The scope of the company s ooerations has been widened since tnat date and It is desirable that the memorandum be amplified. At the same time it has been decided to take the WPO rt ““ of revising and modernising the artlc.es or association. Extraordinary general meetings of shareholders will be held to effect these alterations. It is with dee P r ®^ r ®h that vour directors have to record the death of three of their colleagues during the year —Mr. William' Reece, who had been a direc tor for 27 years, for 13 of which he wa chairman of directors; Sir George Clifford and Mr. Richard Allen, who had been members of the board for 22 years and six years respectively. Mr. C. P. Agar, Mr. Arnaud McKellar and Sir Charles Clifford have been appointed to fill the vacancies and will come before the annual meeting for re-election. The directors who retire b T rotation are Mr. F. E. Graham and Mr. George Gould, who offer themselves for reelection.”

A comparison of the main figures In the balance-sheet is as under:—

NAPIER GAS CO.

Dividend 8 Per Cent.

The balance to the credit 6t the profit and loss account of the Napier Gas h e / C S rdln o ff ut t %f h thl 9 n^mou re n P t°t t he l 8 recommend the payment of, a further dlTidpnd of 3 per cent, and o per cent, on preference and ordinary capital respectively making a total dividend for the year of 6 per cent, on preference and 8 per cent on ordinary Shares. It is proposed to transfer £lOOO to the plant replacement reserve fund, and to carry forward £6644 10/9. Australian Cement, Ltd. The accounts of Australian Cement, Ltd., for the year ended November 30 last, are the first to be presented since the company amalgamated with the Kan dos Cement Co., Ltd., of New South Wales, and formed Australian Portland Cement Pty., Ltd. The net profit of Australian Cement Co., Ltd., for the year was £45,557, but £30,000 was received In dividends from the operating company In December, and was not shown in the accounts under review. For the year ended November 30, 1929, the net profit was £138,894, and the dividend was 15 per cent. A bonus of 2 per cent, will be paid from profits derived from the sale of assets not acquired for resale. EXPORT MEAT PRICES Hawke’s Bay Reduction By Telegraph—Press Association. Hastings, January 26. To-day’s reduction of local export meat prices on the hooks is lambs from sd. to 4Jd., wethers from 5Jd. to 3d., ewes from ijd. for 641 b. to ltd. for 561 b. LOW PRICE OF MUTTON N.S.W. Growers’'Losses The president of the New South Wales Graziers’ Association (Mr. F. H. Tout) drew attention to the extraordinarily iow wholesale price of meat. He pointed out that this rate was disastrous to' the producers. "I am authoritatively informed,” Mr. Tout declared, “that considerable quantities of good quality mutton have been sold during the last two weeks for as low as lid. per U?. This. I understand, was the price fo.r the meat delivered into the shops. “Work out what this means to the growers, and a disastrous loss is disclosed. It Is probably costing the grazier an average of id. to Jd. a lb. rail freiglit on sheep sent to Sydney. The pelts are of very little value, and even this value has been depreciated by the sheepskin tax. The costs of selling the fat sheep, the slaughtering, and the distribution have also to be taken into account.

“The trouble' is,” Mr. Tout added, "our costs from the paddock are still based on the peak periods of the prices for our primary products. Our rail freights are more than 59 per cent, higher than they were in 1914. I am Informed that, leaving out the present rate of exchange factor, it costs 100 per cent, more to get lambs from the abattoirs to London than it did in prewar days, and that retail shop expenses, in Sydney show an Increase of about 100 per cent. Yet mutton in London is worth less than it was in 1914." It was stated by a meat exporter that it was now impossible to make sales of mutton and lamb in London on a forward basis. He believed that the meat would be bought when it arrived there, but the risk was on the exporter, and at least some of the exporters were disinclined to take it. “All the surplus meat of the world, he declared, “is on the road to London. France and Germany have shut out imported meat. Supplies from Australia, New Zealand, Argentine, Uruguay, Patagonia, Brazil, South Africa, and Canada are concentrating on Britain.” LIVE STOCK MARKET Country Sales At the Bulls sale last week Dalgety and Co., Ltd., had a good yarding of sheep and a moderate entry of cattle and pigs, lhere was very fair competition for the sheep, but buyers’ limits in most cases were extremely low. Small w.f. woolly wether lambs,'2/7; medium do,, 3/7; very fair do , 5/8- cull shorn wetner lambs, 2/-, small do., 4/- to 4/3; aged ewes, 2/10: fair shorn ewe lambs, 7/-; Two-tooth ewes, 16/-, fat and forward ewes, 3/-; fat ewes, 4/3, fat cows, £3/5/-; weaner pigs, 11/0 to 13/6, small store pigs, 22/-, 23/-; porkers, 30/-. There wns a fair entry of both sheep and cattle at their Ashhurst sale. Cull lambs, 2/4. 2/5; medium wether lambs, 3/Ad/o. good w.f. wether lambs, 5/4; two-tooth wethers, 6/10; Jersey cross heifers r.w.b., £3; small weaner heifers, 11/-, springing cows, £7/2/6: heifers In milk, £5/10/-; fat cows, £4/4/-; light fat cows, £3/5/-. £3/6/-, £3/11/-; empty cows, £2 5/-, £2/7/6: Jersey bulls, £2/15/-, £3: weaner pigs, 16/6, 18/S.

THE WOOL MARKET

Big Christchurch Sale

PRICES DOWN ON DECEMBER Dominion Special Service. Christchurch, January 26. Values for ordinary wools, which comprised the bulk of the catalogue at the second of the Christchurch wool sales today, were easier by from Id. to Id. a lb. when compared with those that ruled at the first sale. In some cases the drop was more pronounced. In view of the trend of the market at the recent North Island sales and the state of the Home market, this was not unexpected. There was a full bench of buyers and the sale was a steady one throughout, though the bidding was not as animated, except on odd occasions, as it was at the December sale. . The record price for the Dominion so far this season was obtained for five bales of super Corriedale ewe wool, branded Rydal Downs, which made lid. There were several sales of the “classier” wool at over lOd. The top price at the previous sale was 9|d. The catalogued offering was 29,833 bales —the largest quantity of wool yet offered at one fixture in New Zealand this season, and the sale was the most important of the Christchurch series in that it disposed of the main Canterbury clips. The quality of the offering was only medium, most of the clips opening up in a tender or dusty condition, the result of the unfavourable winter and spring and the subsequent dry weather. There were, of course, the usual proportion of stylish clips that come forward for this sale, blit the greater part of it was of a 50/56 count. There was little back-country wool offered, though there were sonje lines of Merino that brought good figures compared with the other wools.

One feature of the sale which made up "In part for the lack of animation was that the buying power was more spread and competition more general than at the opening sale. It was apparent, however, that all the buyers had had their limits reduced still further.

Bradford was in the market for the topmaking wools, and the Continental buyers confined their attention chiefly to the pieces and bellies, and both these buying points secured a good share of the first two catalogues. The New Zealand mills were mainly concerned with the super wools and purchased the bulk of the high-priced lots, while local scourers secured a fair quantity of locks and crutchings. Japau also was in the market now and again, but buyers on behalf of the American mills were not operating. There were not very many withdrawals prior to the sale, but passings throughout were fairly frequent, whole clips In more than a few cases being passed. In addition to the lid. made by the Rydal Downs wool, seven bales of Corriedale from the same clip made 10}d., and six bales 9}d. Another line of Corriedale made 10}d. 15 bales bringing this figure. The top figure for Merino was 10td., 11 bales of the Leslie Hills clip making this. A big line of 59 bales from the same clip made 10d., and the pieces, 25 bales of tllem, made 7d. London Wool Sales Dalgety and Company have received the following report from their head office, dated London, January 24: Wool sales rather better tone January 23. Withdrawals not so heavy. BRADFORD TOPS MARKET Lower Basis of Values London, January 23. The turnover In tops at Bradford Is limited, but there is a better tone on the new basis. To-day’s quotations compare as follow with those previously cabled:—

FRENCH RATES LOWER Sale at Tourcoing Parle, January 23. A message from Tourcoing says the first wool sales .have been opened. The marI ket was depressed and sales were scarce. Th majority of the lots was withdrawn. Prices were from 20 to 30 per cent, below those in November.

SHIPPING TO LONDON Not Profitable Dominion Special Service, Wanganui, January 23. A big station-owner in the Wanganui district sent his wool Home, preferring to risk the Home market rather than the New Zealand wool sales. He received advice to-day to say that his clip averaged 3d. a lb., |d. less than if he had sold in New Zealand, and in addition he will have costs to pay, averaging Id. a lb. on his wool. He not only received a lower price, but is Id. a lb. extra the loser. WHALING INDUSTRY Over-production of Oil At the second general meeting of Hector Whaling, Limited, held in London last month, the chairman, Sir Karl Knudsen, after commenting on various items of the balance-sheet at July 31. 1930, stated that adequate depreciation (about £BB,OOO, or approximately Hi per cent, on the book values) had been provided on the Norwegian company’s accounts. In the statement notifying the shareholders of the interim dividend of 12J per cent, less income-tax, the directors announced their intention of recommending a final dividend of the same amount unless unforeseen circumstances should arise. Since that date there has been a further heavy fall in commodity prices throughout the world, with which have also fallen the prices of edible oils, including whale Oil. The directors did not feel justified in reducing the strength of the company s cash position at a time when the , out }“y .yas heaviest for the current season s operating costs and when no certain prediction could be made as to the trend of oil prices in the near future. Accordingly they had decided not to recommend payment of a final din de i n n ?h e th spe«h e 'to the shareholders on June 21, 1929, special reference was made to the desirability of close co-operation oetween the various whaling companies. The view was then stated that we should supZ nnv effort to regulate expansion, and t ' l Dur e in'g I tlw < last O two tll years expansion had FnTresJln have not considered it wise to develop in that way. While capacity to consume a valuable and economical raw material must increase steadily, it must be admitted that the recent expansion in production had been too rhuld At present no contract bad been entered into for the sale of the oil arising from the current season s catch. Early in 1930 the chairman of the largest consuming concern expressed the opinion that oil prices had reached such a level ns might tend to discourage production, which position he held was not to the consumer’s best interest. Nevertheless, the fall In prices had continued. It was possible that this situation might entail arrangements for storing part of the current season’s oil for a time. They feel confident that in due course this oil would be sold to the benefit of the company. “Whlie I am not yet in a position to make a definite statement, I can now-say that the majority of whalers have recognised the truth of our opinion expressed in June, 1929—namely, that only measures taken by the industry itself to control expansion can hope to achieve success. Efforts to ensure thait future production will keep in line with oonsumpUon ara now baity; mada.”

TALLOW AND HEMP

\ London Market Dull The Department of Agriculture has received the following cablegram, dated January 24, from the High Commissioner of New Zealand, London:— Tallow. —No auction this week. Market quiet with very little business doing. Spot quotations nominally unchanged. Hemp.—Manila market has declined further owing to insufficient support. “K” grade January/March shipment sold at £l9 57-. but closed better and prices hardened, sellers now asking £l9/15/-, Sisal market dull, but firmer at the close, with buyers December/February shipment No. 1 fair average quality at £l6/15/-, second grade £l6. New Zealand market idle, with quotations nominally unchanged. No firsthand sales reported. Wool.—Sales opened January 20 with representative catalogue. Fair attendance. Competition somewhat irregular. Compared with closing rates last series, Merino 15 per cent., crossbred 10 per cent, to 15 per cent, lower. 172.000 bales available for series, of which New Zealand 55.000, Australian 112,000, South American 2100. Taranaki (N.Z.) Oil Fields A fifth call of sixpence per share on all the issued shares in the capital of Taranaki (N.Z.) Oil Fields, N.L., making such shares paid to 23/6 each, has been made due and payable at the registered office of the company, Collins Street, Melbourne, on Wednesday, February 11. Calls due by New Zealand shareholders may be paid to the company's office at Gisborne.

months:— Jan. 1030 Jan. 1931 £ B. d. £ s. d. Australian Bk. Com. .. 1 6 10 0 14 6 Com. Bk. of Aust, (ord.) 1 5 3 0 14 4 Bk. New South Wales.. 41 5 0 27 5 0 12 1 6 8 0 0 National Bk. of Aust. (£5 paid) 7 18 0 4 15 0 E., S„ and A. Bank.... 6 18 0 4 10 0 Nat. Bk. of N.Z 0 10 0 4 18 0 Bank of N.Z 2 18 0 2 7 0 Goldsbrough, Mort and Co 1 12 6 0 16 10 Dalgety and Co 12 6 6 6 12 6 2 4 3 18 4 Electrolytic Zinc (pref.) 1 12 0 0 16 6 Mount Lyell 1 16 10 0 19 0

terday— WELLINGTON. £ s. d. .13 4 AUCKLAND. £ s. d. Auckland Harb. Bd., 5} p.c., 1960 97 10 0 Commercial Bank of Austr. (2) 0 14 8 Union Bank of Austr South British Insurance 2 12 6 6 12 6 14 6 King Solomon Mine 0 0 6 Waihi Grand Junction Electrolytic Zinc, pref 0 15 9 CHRISTCHURCH. £ s. d. Austr. Bk. of Commerce (2) .. 0 14 0 Comm. Bk. of Austr., cum div. 0 14 6 0 14 5 Union Bank of Austf., cum dlr. 7 18 6 0 13 3 1 14 0 18 0 Mahaklpawa (2) 0 0 8} Sales reported— Insc. Stock, 5J p.c., 1941 p 0 96 10 0 96 0 0 Inser. Stock, 5} p.c., 1033 99 7 6 0 19 0 Comm. Bk. of Austr., cum div. 0 14 7 Union'Bank of'Austr., cum div. 8 0 0 Austr. Bank of Commerce .... 0 14 0

1929 £ 187,678 1930 £ 193.521 27,343 26,827 Dividend per cent. .... 8 8 Dividend amount 26,919 26,019 Liabilities— Paid-up capital 836,493 336,495 Deposits paid by employees against shares Reserve fund Renewal fund 7,836 66,410 47,836 27,518 13,521 66,410 47,836 34,569 Debentures 100,000 100,090 Assets— Freehold property ... 24,775 24,744 Plant, buildings, mains 502.310 512,796 13,881 10,925 14,875 17,830 Cookers on H.P. ..... 36,257 12,519 34,685 11,847

Jan. 1. Jan. 8. Jan 15. Jon. 22. Per lb. Per lb. Per lb. Per lb. tl. d. <1. d. Sixty-fours .. 22 21J 21 20 Sixties .... ... 20 10 10 18 Fifty-sixes ... 15 15 144 144 Fifties .... 12 12 114 114 Forty-sixes .. 9J 02 94 94 Forties ... ... 9J 92 94 84