CHINA WOOLLEN MILLS

Dominion, Volume 28, Issue 255, 25 July 1935, Page 12

CHINA WOOLLEN MILLS

Raw Wool For Chinese Market

Mr. IV. M. Fleming, chairman of China Woollen Mills Development Co., Ltd., addressing the first annual general meeting held at Sydney on July 15, said the directors had dropped the idea of buying into woollen mills in China. Careful coneideration had led to the belief that they could do best by supplying raw wool. As against £120,000 required for the mill proposition, this would need only £3O 000, and one-third of that would be sufficient to begin operations. Instead of four shares for one they would ask the original shareholders to accept one for one. It sounded less, but really was the same thing, one in 30 being the equivalent of four in 120. The surest and most permanent way ot increasing prices was by widening the demand, continued the chairman. The best way of widening demand was by opening up new markets. In the case of wool this was doubly essential, for it was only too evident that the use of substitutes was restricting our market in Europe. Australia produced barely one pound of clean wool for each resident of China. A report prepared for the company showed that China, which was now controlled by a stable Government, wanted Australian wool. The general scheme, concluded the chairman, was to get the Chinese acquainted with Australian wool. It was hoped to open up an avenue to displace the padded cotton garments with wool. An extraordinary meeting passed resolutions authorising the increase of the company’s capital to £30,000, and the changing of the name to China Wool Trading Co., Ltd.

Australian Company Results

With a final dividend of 3* per cent. Australia Hotel Co., Ltd., has raised the ordinary dividend for the year to 6| per cent. This rate compares with 6 per cent, for the previous year, paid as to interim 2* per cent, and final 3* per cent.

The North Coast Steam Navigation Company, Ltd., reports a net profit of £39,424 for the year ended June 30, compared with £35,543 the previous year. Interim dividend of 4 per cent, has been paid, and the directors recommend a final dividend at the same rate, making 8 per cent, for the year, an unchanged rate. The dividends require £35,496, a sum of £3500 is transferred to dividend equalisation account, and £2723 is carried forward, against £2295 brought forward. Carroll Musgrove Theatres. Ltd., which owns the Prince Edward Theatre, reports a profit of £7281, after transferring £2500 to depreciation reserve, for the year ended June 30. The previous year’s net profit, after a similar transfer, was £8482. Dividends. On the participating preference shares and on the deferred shares are maintained at 7i per cent. (10 per cent, less the statutory deduction), and together require £7750, leaving £515 to be carried forward, against £984 brought forward. The Australian Estates and Mortgage Company. Ltd., reports a profit of £112.515 for the year ended December 31, compared with £149,129 the previous year, with £15,651 brought forward there was £128.166 available. Debenture interest required £51,776. and preference dividend for the year ended June 30. 1932, £32.500. leaving £13,890 to be carried forward. At a meeting in London of the Australian Agricultural Company the governor of the company (Mr. C. G. Hamilton) said they had in London more than £550.000 worth of Stock Exchange investments. There was little probability of the company investing in more pastoral estates in Australia, and it would not therefore require all these liquid resources. Possibly shareholders would r -efer to have some capital repaid. If such a wish was general the directors would consider what payment they could recommend and whether to take the necessary steps in the near future or postpone the question until the next auiiual meeting.

West Coast Gold Dredges

Barrytown Gold Dredging Ltd., Greymouth, has been placed on the official list of the Stock Exchange. The company has a capita] of £128,750 in 125,000 ordinary shares of £1 each, and 75 000 deferred shares of 1/- each. Ordinary shares are paid to 10/- each, Argo dredge, on Blackball Creek, West Coast. is now practically finisbei, and is expected to commence digging operations early in August. The dredge will be electrically driven and has a string of 55 41 cubic foot buckets, with an estimated digging capacity of 16.000 cubic yards a week.

Canadian Wheat Crop

By Telegraph.—Press Assn.—Copyright Ottawa, July 23.

Careful observations show that rust is taking a serious toll of the prairie wheat crop. Only the threshing results will reveal the full extent of the damage.

Colombo Tea Market Firm

By Telegraph.—Press Association. Dunedin, July 24. Mr. L. M. Wright has received the following cabled report on the Colombo tea auction held on Tuesday. At yesterday’s auction of 1,710,0001 b., common teas remained steady, while all other grades were dearer. The quality of the offerings again showed an improvement. At next week’s auction, 1,510,0001 b. is catalogued fog Bale,