COMMERCIAL

Evening Star, Issue 20655, 1 December 1930, Page 9

COMMERCIAL

THE SHARE MARKET DUNEDIN STOCK EXCHANGE. The week opened quietly on the Slock Exchange this morning, and no sales wcic reported or recorded. The quotations showed very little change from the closing ones of last week. . No buyers at all quoted for ban King shares. Sellers asked £32 10s for New South Wales and £2 15s 6d for New Zea amis Commercials were offered at 16s lOd jincl ■ '(Tnions at £9 12s 6d. • The insurance section was also without buyers, while the only selling quotations were £2 2s 9d for New -Zcahvuds and £2 10s for Standards. Buyers of Auckland Amusement Parks offered Is 3d, but sellers would not take less than 3s. New Zealand Drugs had a closer market, buyers still offering £2 17s and sellers having moved back to £2 19s. . Quotations as under; To-day.

DATES OF DIVIDENDS PAYABLE.

LONDON MEAT MARKET. Tho Bank of Now Zealand La a received the following advice, from its London office, dated November 28:— Frozen meat: Tho market is weaker for light-weight wethers, heavy-weights remain steady. For ewes tho demand is steady, but not sufficient to stand an increase in prices. The market for lambs is quiet and unchanged. Tho beef market is depressed owing to heavy stocks of Argentine. Wethers—light 5d to 5Jd per lb, heavy 4Jd to sid per lb; ewes, 3d to 4£d per lb; Lambs—two’s 8d to B§d per lb, eight’s 8d to Bfd, four’s, 7Jd to 73d, seconds 7Jd to 7|d; ox hinds 5d to 5Jd lb. fores .33d,'to 4d; cow hinds, 4-RI to 43d lb? fores Sid to SJd. DOMINION’S FINANCE. TREASURY BILLS PLACED IN LONDON. Pres* Association—By Telegraph—Copyright. LONDON, November 29. New Zealand privately placed £600,000 in Government bills, maturing on March 14, at a, rate of 2 3-16 per cent, discount, which is only slightly above the rate at which Treasury bill's are allotted to-day. [On behalf of tho Acting Minister of Finance Sir Apirana Ngata, in referring to tho issue of £600,000 Treasury Bills in London, points out that the issue of these bills has no relation whatever to tho Joan operations of tho Government. , These Bills were issued in anticipation of reve'nue, a contingency that generally arises at this time of the year when tho Consolidated Fund has' not received tho revenue from income tax. The Bills.mature on March 14, 1931, and therefore will bo paid off before tho end of the financial year. The proceeds arc to lie used for general payments in London, such as interest etc. The terms on which the Bills were sold (a discount of £2 3s 9d per cent.) compare favourably with the issue of Imperial ’Treasury Bills on tho same day at the rate of £2 2s lid per cent.— Special to ‘Star.’] THE TIMBER INDUSTRY. Referring to the depression iii tho timber industry, Mr Owen Jones, forestry administrator, to New Zealand Perpetual Forests Ltd., points out that of the major inlustries, coal and wood wore about tho only two which still marketed the raw product. Others had reached the stage where they took tho raw material, inado it into something better, and then sold it. There were evidences that the timber industry, too, was tending in this direction, and ho believed the future would see all kinds of product's coming from the tree which would yet supply the country’s' timber as it did to-day. Wood pulp was likely to bo one of tho principal manufactures of this kind.

So far as h~ knew, no paper from New Zealand trees had yet been made in the dominion, but there had been some successful results from New Zealand timber treated in America. It was also probable that artificial silk would bo made from wood. Then there were the different kinds of synthetic board which would probably take the place of ordinary dressed timber for flooring and lining. It was amazing to seo how this kind of material was being manufactured and used in America. Cellulose had many advantages over ordinary timber for some purposes, and it could bo manufactured so as to bo quite attractive. Cutting a tree into timber involved a waste of about 60 per cent., whereas, by manufacturing it into such products, the loss was only about half that. Ho believed there were great possibilities in this sphere in New Zealand, which would be all for the good of the timber industry. MURCHISON OIL COMPANY. The annual report of the Murchison Oil Company states that the directors have been actively engaged raising -urfher capital to meet the company’s liabilities and consolidate the position pending a reconstruction. In February last tlio mineral prospecting warrants ’were duo to expire, and Mr B. Bassett made a trifi through Nelson and Murchison, explaining tlio position to shareholders, and obtained substantial financial support. An appeal was also made to other shareholders by letter, and altogether £1,378 was subscribed. Application was then made for a renewal of leases, and the final grant has now been obtained, thus giving the company rights for a- further five years, subject to payment of rentals. 'AO present these are paid up six months in advance, and for tho next two years rentals will amount to £BS approximately. In March tho directors were invited to place a definite proposition before one of tho leading English oil companies, and full data and proposals were sent to England. After a good deal of delay advice was received from the English company that after full examination of our maps, reports, etc., their geologists were of tho opinion that the area of the sedimentary rocks was small to justify their interest. No criticism of Dr Bossard’s report was made, and the only possible interpretation of _ their cable is that the potential field is not sufficiently extensive to_ warrant Lins big English company’s interest. _ During the period of these negotiations efforts to interest other capital wore stopped, but since then, both in Australia and Canada, financial brokers have been approached. Unfortunately, considerable depression - exists m both countries, and the parties approacneo. consider tlio present time quite unfavourable for raising further capital for any speculative enterprise, but that when normal conditions return efforts would bo made to interest financial groups in the project. A further effort is being amed to interest certain people in England who are interested in oil production. The directors consider the position in New Zealand does not justify any appeal being made to tho public at the moment, and can only recommend holding on till conditions improve, meantime continuing their efforts to interest outside capital. The directors proclaim their unshakeablo faith in tho existence of a payable oilfield within the confines or the company’s holdings at Murchison. The company’s assets remain unencumbered by any mortgage, and application has been made for the return of £275 prospecting deposit in respect of the Mangles area. General development expenses amount to £532, of which £333 is rental on leasehold areas paid to the Government. Travelling expenses £64 wore incurred during the campaign to raise capital, to renew lease, etc. No brokerage was incurred in connection with the sale of shares disposed of since last annual meeting. Calls in arrears remain at the same figure of- £IOO. Sundry creditors £535 17s Sd, includes £302 salaries and wages to staff, £2OO, liability for rents to. leasehold owners, and £3-3 for sundries. It should bo noted that tho amount owing to sundry creditors has boon reduced during the year by £526 12s 9c], and it is expected that the amount now shown as outstanding can be further reduced, and negotiations to this end are now engaging the attention of the directors. THE GOLD SITUATION.

Some bankers in the United States fail to see any cause for .immediate alarm over tho forecasts which have boon made of a world gold shortage. An interesting suggestion is made by an American expert, Mr Reno Leon, in a special article in the New York ‘ Times.’ lb is that gold is now being asked to carry a great part.of tho burden formerly borne by silver. Ho says that more than half tho population of the o'arth use silver as a medium of exchange, yet Great Britain in 1920 reduced the weight and fineness of: its fractional currency, thereby throwing tons oT metal upon weakened markets in Bombay and Shanghai. Mexico had imitated the example sen by Britain. Ho suggests that Britain and Mexico shall restore their fractional currency to their former weight and fineness, that France shall resume hard coinage, and release to silver-producing countries gold which it does not need, and that tho United States shall also purchase more silver and release gold to more needy countries. GUARANTEEING LOANS. A leading mercantile house in Melbourne has received a letter from Loudon, setting out a rather remarkable scheme for guaranteeing payment of interest and redemption of principal of Australian loans. The promoters suggest that they should undertake to enter into contracts with holders of Australian loan stocks and guarantee payment as stated. A New South Wales loan, which will mature in some ten years’ time, and a Victorian Joan redeemable within about half that term, arc the subjects of a specific offer. Tho guarantors, of course, require a commission for their services. It is thought that the scheme is intended to appeal mainly to trustees who may desire collateral security. Whether it is intended that the proposal should embrace Australian loans floated internally, as well as those floated abroad, is not stated. One of tho leading banks of the United States is definitely mentioned as being interested in promoting tho scheme. MAHAKIPAWA GOLD FIELDS. WORK RESUMED JANUARY. [Spxcial to th* ‘ Star.’] CHRISTCHURCH, December 1. At a meeting of tho directors of Mahakipawa Gold Fields Ltd. the resignations of. Mr" C. A. Stringer (chairman of directors) and oi the secretary (Mr J. Hutchins) wore accepted with regret. Mr J. R. Teniplin was appointed chairman of the hom’d, and Mr W. H. Nicholls, of tho firm of Messrs Nicholls, North, ami Nicholls, publics accountants, .was ap-

pointed secretary of the company as from December 1. Mr K. M. Barrance, who was recently appointed mine manager, was welcomed by the directors, and a programme of work outlined in his recent report to the company was approved. Operations will be resumed at the mine ,ou January 4 next.

CHAIN AND PRODUCE. Messrs Donald Reid and Co. Ltd. report;— Oats.—Business, as is usual at this time of the year* is anything but brisk. Merchants are slowly getting rid of their previous purchases, and are not interested in tho incoming crops. There has been -practically no forward buying so far, and this can also bo said of all other kinds of produce with the exception of wheat, which, of course, has a fixed price, and can be safely negotiated with. The nominal value of oats to-day to farmers, Qp trucks their railway stations, is: A grade Gartens, 3s; B grade, 2s lOd, sacks extra. Chaff.—There is ample at present held in store to cope with tlio local demand until alter the holidays. All storage space is now required for wool, and merchants cannot reserve any space for chaff or other produce. Best oaten sheaf is worth up to £5 10s, sacks extra, ox truck, Dunedin ; medium from £4 10s to £5, sacks extra, ex store. Potatoes.—Odd trucks are still arriving, and sales are now bard to effect. Only the best freshly-picked lines are saleable, and sales are being made at £3 10s per ton, sacks in, ex truck or store.

‘ Wheat.—Tho fowl wheat demand represents the bulk of the business passing. The quantity absorbed for the month is always fairly regular, and stocks are gradually becoming exhausted. There will probably bo a shortage before the new season’s crop is available. Tho continual cold weather will bo taking effect on all springsown wheat, and a poor harvest will bo the result if a turn for the better does not come very shortly. Fowl wheat is selling ex store at juices ranging from 5s 3d to 6s 6d per bushel, sacks extra, ex store, Dunedin.

N.Z. FARMERS’ CO-OP. The directors of tlio New Zealand Fanners’ Co-operative Distributing Company Ltd., in their 27th annual report for the year ended September 30, 1930, state that the profit and loss account shows a gross profit of £47,535 5s 7d, and the expenditure amounts to £41,405 3s 9d. The net profit, after making provision for bad and doubtful accounts and for depreciation of plant and furniture, amounts t) £6,130 Is lOd, which, with £1,2. 15r. 7d brought forward from last year, gives a balance of £7,416 1,7 s 3d to be dealt with. The decrease in profit'compared with the two immediately preceding years was duo to the smaller commissions received from sales of wool and live stock, owing to the lower prices ruling, and to a proportion of the usual offerings of wool being withhold from sale, because the growers were not prepared to accept the market _ prices. When proposing the distribution of profit last year full provision was made for income tax under the then existing scale of taxation; but as a consequence of the increased taxation imposed by the Land and Income Tax 1930 Rill, the company has since been assessed for an additional amount of £667 11s, and the amount brought’ 1 forward in the profit and loss appropriation account has been correspondingly reduced. It would bo possible to pay a small dividend, but in view of the unfavourable market prospects of farm products the directors consider it inadvisable to do so, and recommend that the balance of £7,416 17s 5d available in tbo profit and loss appropriation account' bo allocated as follows:—Write off £1,500 for depreciation of properties, add £I,OOO tD the general reserve fund, add £1,500 to the reserve for bad and doubtful accounts, provide a sufficient sura to cover income tax, and to carry forward tbo balance. '' The retiring directors are Messrs 1. Currie, D. Scott, and G. E. Yule, who offer themselves for re-election. The retiring auditor, Mr S. E. Lambert, lias been nominated, and offers himself for re-election.

Buyers. Sellers. J e s. d. £ S. 1 d. BANKING— Bank of New South Wales (emu div.) ... — 32 10 0 Bank of New Zealand (cum div.) — 2 i b 6 , Coranicrcial Bank ... —. 0 16 10 E.S. and A. Bank ... — 5 6 0 National Bank of New Zealand (cum dU.) — 5 12 0 Union. Bank of Australia Ltd — 9 12 i INSURANCE— N.Z. Insur. Go, 2 2 9 Standard Insur. Co. — 2 10 0 SHIPPING— Huddart, Parker (ord.) ... e— 1 6 3 P. and 0. Deferred Stock (cum div.) ... 2 5 0 U.S.S. Co. (pref.. cum div.) 1 0 0 1 1 0 COAL— Kaitangata Coal 0 2 3d — Westport Coal Co. (ex div.) — 1 8 0 LOAN AND AGENCY— Dalgety and Co. (cx div.) —_ 8 0 0 Goldsbrough, Mort ... 0 19 2 — Wright, Stephenson (ord.) — 0 13 D MEAT PRESERVING— N.Z. Refrigerating (paid) 0 8 6 MISCELLANEOUSAuckland Amusement Park Ltd (ord.) ... 0 1 3 0 3 0 Brown, Ewing (prof.) — 1 0 6 Crystal Ice Co. 1 1 0 — Dominion Rubber ... — 0 16 0 M’Lood Bros 10 0 0 — National Electric ... 0 9 0 — N.Z. Drug Co 2 17 0 2 19 0 N.Z. Paper Mills ... 0 18 0 i— Wilson’s New Zealand foment — 2 i 0 BREWERIES— N.Z. Breweries (cum div.) 2 2 0 2 3 3 New Zealand Breweries Debentures 1 1 0 — Dunedin Brewery — 1 0 6 MINING— Kawarau 0 0 3: 'i 0 0 7 Mount Lyell (cum div.) — 1 0 3 Kildare 0 0 7 0 1 0 Okarito ' 0 5 5 0 5 8 Paddy’s Point — 0 3 3 WAR BONDS(Bonds quoted are £1C0 Bonds.) 1938 41r p.c. Bonds, ... — 100 0 0 1939 4£ p.c. Bonds ... — 100 0 0 1938 4i p.c. Inscribed — 100 ,0 0 1933 51 p.c. S.S. Bonds 99 5 0 1936 5t- p.c.' Bonds ... 99 5 0 —

Stock. Amount. Period. , Date. N.Z. Breweries 1/3 interim Dec. 4 N.Z. Ivoan and Mcr. £?, final Dec. 4 Bank of N.Z 1/4 interim Dec. 6 (annrox.) Kauri lumber . 7 id (Inn I Dec. 11 P. and O 1/final Dec. 15 U.S.S. Co ... 6 3-5d final Deo. 16 Mount Lyell 1/-' final Dec. 17 A.P.A 3d final Dec. 20' National Bank of N.Z....3/ interim Jan. 3