FINANCE AND COMMERCE

Dominion, Volume 25, Issue 264, 3 August 1932, Page 12

FINANCE AND COMMERCE

STOCKS AND SHARES ’ Market Activity Maintained ; IMPROVED DEMAND J An increased.demand spread over most «■ classes of stocks and shares was shown t in yesterday’s dosing quotation list on * the Wellington Stock Exchange. Prices ' -generally continued firm, and the> 1 A I sales .recorded were made at full mar > was an improved inquiry for / Government stocks, with little variation. T iu the prices bid, and four sales were I of New Zealands, of which two ’5 saiw made late, on Monday were report- < ed at 47/6, hardened another point to > 47/7 yesterday without response from sell- / The long-term mortgage shares i, were firm at 26/3, with no sellers. Union II of Australia had a sal « at J 6/19 4’ “ ers more were on offer at £<• bid £26/12/6 for New South Wales, S but Allers stood at cum dividend. Commercial of Australia were Ki wanted at 13/8, cum div., but ther. * ”'ax° «,”•« «■» ouirv in the financial section. New £ Zealand Guarantee Corporatt° 4 n /9 °'lnd *' aries hardened to a sale at 4/V, ana !•? more were sought at 2d lower without response. There was an inquiry for fi National Mortgage B at 16/-. A bid ft of 21/10 for Goldsbrough, Mort, was un k aU sVeltagton Gas recovered 6d at 28/-, '» ex div., but sellers stayed out. National. ' Insurance, bid for at 12/6 at the morn- ; . ing call, closed at 12/4. New Zealand Insurance were wanted at 39/-, ex divi■fiend. Queensland® at 39/9, and South British at 53/-, but there were no sellers Gear Meat, after a sale at 32/1 late on Monday, were bid for at 31/9, but sellers asked 32/6. New Zealand Breweries were firmer at 24/6. won * Steam preference were again sola at on/. Electrolytic Zinc preference were ;; done at 21/3 ami 21/4, and more were offering at 21/10, against bids of 21A h Colonial Sugars were offering at £4~ 5/-. Yesterday’s Quotations 1 ~ Buying and selling quotations at yesterday’s final call'. on the Wellington Stock Exchange were as' follow: — -

DEALINGS ON ’CHANGE , Sales in the Dominion The following sales were recorded on the stock exchanges of the Dominion yes-

COMPANY AFFAIRS Redemption Payments BROKEN HILL DEBENTURES If the judgment of Mr. Justice Maughan in the English High Court that the debentures of the Broken Hill Pty, Co., are redeemable in Loudon in English currency be allowed to stand, the consequences maybe far reaching, says the ‘'Sydney. Morning Herald.” It is certain, however, that the company will appeal to the Privy Council, and the redemption of the debentures may be postponed for the time being, • . Two issues of debentures are involved. The A series of £1,900,000, carrying 6 per cent interest, and the B series of £1,500,000, bearing 7 per cent, interest. Each year a ballot takes place for the.redemption of portion of each issue; The approximate amounts now outstanding are £139,000 of the A series, and £093,500 of the B series. The debentures were issued in Australia, but they gave holders the option of accepting payment in Australia or England. The action in the London Court was to determine whether those who exercised the London option were entitled to be paid in English currency. The decision in the affirmative will mean the company will have to pay the current rate of exchange of £25/10/- per cent. What this may amount to cannot be calculated because it is not known how many deben-ture-holders will exercise the London option, but it can be taken for granted that practically all will do so, if they are ro be assured of the exchange premium. INTEREST REDUCTION . A.M.P, Society Mortgages • As announced in this column yesterday, the directors of the Australian Mutual Provident Society have decided to reduce the rate of interest on existing and future mortgages on city, suburban and country lands to a maximum of 5J per cent, for a period of two years from September 1. An indication of the effect of this decision is given by the fact that according to the latest balance-sheet of the A.M.P. Society, its loans on mortgage amounted on December 31 last to £20,593,582. In its statement regarding its decision, issued in Sydney, the board emphasises the fact that “at present a special imposition of a super tax of 2/- iu the £ is levied on all interest received under mortgages. Were it not for this tax the society would be in a position to lend at 5 per cent., whereas, owing to this imposition it is forced to charge 54 per cent. If this super tax on interest is reduced or abolished, the benefit of such reduction or abolition will be passed on by the society to its mortgagors on the basis of a minimum rate of 5 per cent.” . SUN INSURANCE OFFICE The 416th Dividend In the fire account of Sun Insurance Office net premiums for 1931 were £2,454,739, against £2,478,941 in the previous year. Net losses were £1,161,078, against £1,249,191. Net premiums in the accident account were £1,473,884, compared with £1,395,801 in the previous year, and claims were £834,614, against £754,301. Net premiums in the marine account were £567,260, against £559.178 in 1930, and net losses were £455,789. Interest earned was £266,809. The balance brought in was 829,930. >, This was increased to £1,381,301 by the operations of the rear. An amount of £50,000 has been carried to pension fund, and £250,000 applied to writing down investments. Dividend per share on 2,400,000 £1 shares paid up to 5/- each again is 57- for year,' leaving £838,634 unappropriated. After deducting dividend, the funds are £7,031,514, comparing with £7,039,090 a year back. The dividend is the 416th ■paid by the company. - —“ 'v Mercantile Mutual Insurance With" a reduction in claims for losses greater than the reduction in net premiums, and with the reduction in administration expenses, Mercantile Mutual Fire Insurance Company, Ltd., showed an underwriting loss for the year 1931-32 of £9408, which was £23,546 below the underwriting loss of the previous year. Interest and rents of £22,202, a fall of £6698, make an available credit balance at profit and loss of £12,794. From this sum the directors propose to pay a dividend Of 3 per cent., absorbing £12,000, and to carry the balance, £794, to the contingent fund. The reduction of £53,719 in the net premium income is due to a shrinkage in premiums received from marine, motorcar, and workers’ compensation insurance. No appreciable .reduction occurred in other departments. The reduction in premiums from the marine department is due to depression in shipping and to withdrawal from London, where business has been very unprofitable. Taxation, including compulsory contributions to fire brigades and rates, was £32,915, being 13.5 per cent, of net premium income, compared with 11.85 per cent, the previous year. After providing for the dividend, the reserve and contingent funds, together with paid-up capital, will amount to £605,978, being 250 per cent, of the net premiums. In addition, there' is uncalled capital amounting to £lOO.000, while the sum necessary to reinsure outstanding risks is only £97,312.

i . Fairymead Sugar'Capital

A, proposal to increase • the nominal capital of Fairymead Sugar Company, Ltd., to £300,000, by the creation of 35,000 shares, was unanimously adopted by shareholders at the annual meeting at Sydney last < week. Explaining the reasons for; the increase. the chairman. Mr. W. H. Swanton, said that the new shares would he held in reserve to enable the company, if it should think fit, to acquire an interest in any subsidiary business capable of ■ being conducted for the benefit of the company. Tlie new shares, 'however, would not .be offered for subscriptiori either 16 the existing shareholders or to the general public. The directors had been considering propositions to acquire subsidiary interests, and in case an opportunity, arose they wished to have the authority to issue shares up’to the number stated. Referring to the prospects for the. present year, the chairman said that the, unfavourable weather conditions which bad just been experienced would greatly reduce tlie tonnage of cane available. Nevertheless, with efficient and economical working, the directors had no doubt that it would be possible to pay a dividend in the coming year. Java Kapok Writing from Batavia on July 6, Jacobson Van den Berg and Co. advise their Sydney representative: “The kapok market has remained very quiet during the last two weeks. The only consuming centre where some business has been reported is- Holland, but Australian and American markets remained very quiet. This inactivity had practically no. depressing effect on prices. On the contrary, there seems less inclination to sell than a few weeks ago. After the first scare, caused bv the heavy decline during ia'st month, holders have come to the conclusion that it is useless to force sales by reducing their prices, and are content to wait until a reasonable bid is made. We cannot yet say what the exact influence of the abnormal weather conditions will be, but it may be safely assumed that the crop will be one month later than usual. Apart from the probable effects of the rains, which may have caused some of the younger fruits to fall off, present low prices will probably ensure a natural restriction of the crop, ns some of the outlying district/ will be unable to produce profitably on,.tlie, present basis, iCOMM

Buyers. : N.Z. GOVT. LOANS— £ .8 d Sellers. £ s d 51 p.c. Bonds. 1930 ... tub iu 51 p.c. ditto, Feb., 1937 101 0 0 — 0 101 51 p.c. dfito, Sep., 1937 101 0 0 7 6 5t p.c. Insc. Stk.. 1933 99 10 0 — ,-j p.e. ditto, 1938 ... 98 10 34 p.c. ditto, Feb. and 0 10 0 Sep., 1937 101 0 0 — 54 p.c. ditto, 1941 ... 96 10 0 ■ DEBENTURES— ‘ Wgtn. Harb. Bd., p.c., 1940 • 0 Waltomo Elee. P.B., • — 6 p.c., 1945 — 99 6 0 Eastbourne Boro., 61 p.c., 1952 .......... — Haurakl Plains, 51 p.c., , 1959 — 97 6 0 . 97 6 0 5 BANKS— r • Commercial Aust, ord. *0 13 § —. ;»• Eng., Scot, and Aust. . 4 0 U 0 v National N.Z — 3 10 1 New South Wales .... 26 12 6 *26 17 6 New Zealand 2 7 7 —— ■: Ditto, long term ... 1 6 3 ’ Union of Aust — 7 0 0 FINANCIAL— _ GoMabrough.Mort... Ilia !. National Mortgage "B" 0 16 0 — : N.Z. Guar. Corpn., ord. 0 4 7 N.Z. Loan * Mere., ord. — 41 0 0 / Wgtn. Invest., T. & A. ,0 6 9 — t Auckland, contr j0 14 Wellington, ord ?1 » 0 J INSURANCE— National 0 12 4 New Zealand 11 J9 0 . Queensland ......... 1 JJ* 9 - South British ;• 2 13 0 — . MEAT PRESERVING— 0 *-< Gear 1 n : Well. Meat Exp., pref. 0 12 6 TRANSPORT— ' Union Steam, pref. ... 0 19 9 Kelburn Tram., pref. . — 1 5 0 WOOLLEN— Mosglel 0 — COAL— Westport —« — O 13 0 l TIMBER— „ „ Kauri • 8 Leyland-O’Brien .4.. w 0 1 0 0 National — 0 6 Taringamutu — 0 5 0 BREWERIES— New Zealand 1 J 6 — Tooth and Co 1 6 0 — MISCELLANEOUS—, __ . British Tobacco, ord. . 1 5 0 ■—’ Burns, Philp and Co., South Seas ......... 1 6 6 Colonial Sugar — 42 5 0 Dental and Medical ... 0 J 0 —— < Electro. Zinc, ord. ... 0 11 0 Ditto, pref. ........ 1 „J 0 1 1 10 N.Z. Drug «... 2 12 9 N.Z. Farmers' Fertlliser 0 12 6 Sharland A Co., ord. 0 Im 0 —— Ditto, pref. 0 14 Wilson’s Cement 1 8 0 6 i 9 9 OIL— _ _ Moturoa o 3 9 — MINING— Blackwater 0 L. 6 0 13 6 Consol. Goldfields .... 0 4 4 — 0 0 • King Solomon ....«««* — 2 Mount Lyell ....«••■■ 0 17 5 9 U 18 0 8 0 11 Walhl 0 IS 6 0. 0 .. Bisr River a. —. 0 1 6 •Cum. dividend. fEx. dividend.

terday:— , WELUNGTON. £ « d Salei on ’Change: 9' 0 8 Sales reported: . O' Inscr. Stock, 5i p.c., 193-1 ... *98 l.» Ditto, 54 p.C., 1933 Ditto. 54 p.c., Sept., 1937 i •9!) 15 101 0 0: 1 Govt. Bonds, 5} p.c., Deb.-, 1937 .. Bank of New Zealand (2) 101 5 0. •2 7 Union Bank of Aust ..... . (5 19. 0 •1 12 0 4 9 1 0 0 Electrolytic Zinc, pref. 1. 1 3 . 1 1 ♦Late -sale Monday.. , AUCKLAND. ‘ £ « d Govt.'Bonds, SI p.c., Sept.,'1937 101 0 0 Inscr. Stock. 4$ p.c., 1939 90 0 0 Ditto, 5 1-8 p.c., 1937 98 10 0 Auckland Drainage Board, 5 p.c., 1936 Bank of Australasia 95 5 0 9 10 G 6 Bank of New Zealand 2 7 Ditto (°) 2 7 8 pjttA ... . 2 7 9 0 12 ■7 1 4 9 0 12 6 C - 0 13 0 0 15 9 * • 0 17 6 I-'" (’ounncrcial Bank of-Australia . 0 13 104 0. 4 7 ■Ji 0 1 s CHRISTCHURCH. £ s d Coni. Bank of Aust., cum div. .. Golilsbrough, Mort (3) 0 13 10 1 2 0 0 17 7 0 4 64. King Solomon' 0 1 74 Big River, 1/- paid 0 0 11 Blackwater Mines (2) 0 13 8. Ditto 0 13 G Ditto ........... 0 13 0 . 0 9 0 Sales reported— •1 12 1 1 16 0 fl 17 8 6 19 0 Lyttelton Harbour, 54 p.c., 1933,.;. 99 15 0 •Late sale Monday. DUNEDIN. £ 8 d Bank of New Zealand , 2 7 104 I'nion Steam, preference 1 0 0 , 0 9 0 Inscr. Stock, 1J p.c., 1939 . 96 0 0 ■ CUSTOMS BEVENUE. The Customs revenue collected nt the .£■ jjort of WaUwton »e«t*sdny galled