Commerce, Mining, & Finance

Evening Star, Issue 21640, 8 February 1934, Page 7

Commerce, Mining, & Finance

RAW MILK SUPPLY THE FARMERS' RETURNS WELLINGTON CITY ARRANGEMENTS [Special to the ' Star.’J WELLINGTON, February 7. With butter ami cheese prices at abnormally low levels, the tarmers ulio maintain the milk supply for the Wellington City Council’s splendidly organised distribution scheme must be feelling quite satisfied in comparison with those who depend wholly on the Results from butter-fat turned into exportable products. Raw milk supply properly organised gives always a better return, though the outlet is limited, and low overseas prices have made the competition fierce in this sphere, as Aucklanders well know. The economic position has also affected Wellington, though prices are stabilised. Payment for milk supplied to the Wellington City Council is made on a butter-fat basis in the main, though the council’s administrative staff has had to plan an elaborate method of maintaining supplies through the winter, and, to give the farmer sufficient monetary encouragement to this end The method of fixing the payment to milk producers has been on its weight and butter-fat content divided into two seasons—viz., a .summer .season of eight months and a winter season of four months. To determine the basic price for the summer season, the factors considered are the following :—- (a) The parity of the London prices of. finest New Zealand salted butter—-one-fourth pan. ■(b) The local wholesale price of finest salted butter in bulk as fixed from time to time by the Association of Local Butter Merchants—one-fonrth part. (c) The parity of the London price of- finest New Zealand cheese (coloured and white) —two-fourths part. To this basic price so ascertained monthly is added a price to compensate producers for the loss of their byproducts, to meet the cost of licensing their dairies, and upkeep, and the extra expense involved in cooling milk and fulfilling the standards of qualityrequired by the agreements. For some years 2Jd per gallon has been added on on' this account For many years the basic price to the milk farmer was about Is 6d per lb of butter-fat content, but there have been successive arbitrations which have brought this price down, until to-day it stands at 12.6 d per lb. For the four months of winter the price paid is the average of the summer plus 85 per cant. This is payable only in respect to first grade milk. During the winter the council is losing on its retail sales, having regard to the cost of handling and distribution, but it equalises the position by slightly higher profits in the summer. .As milk production in the peak point of the season may be as much as three times that of the lowest point in winter, the municipal scheme'- involves the collection of supplies within certain zones, and a pooling arrangement among the producers, who are organised for this purpose. At the peak of production, it is only necessaxy, to collect the milk from an area within twenty miles of the city, hut in winter, supplies may be drawn from up to sixty miles. The producers turn their surplus milk, into ; butter and cheese at their factories, while the City Council itself has, a factory at Otaki to make profitable use of surplus milk from the Otaki area.. turning it into butter, which is marketed to the best advantage on behalf of the Suppliers’ Association. EAST AFRICAN COFFEE EARLY STRIPPING OF TREES East African Coffee Plantations Ltd., Melbourne, has notified the Auckland Stock Exchange that a cablegram from the plantations advises that dry weather at Savani estate is turning the balance of the crop. Owing to the danger from overbearing it hi\s been decided to strip the trees immediately in order to preserve them in best condition, for next year’s crop. As a result the last estimate of 400 tons for the current- year’s- crop from all estates is reduced to between 535 and 345 tons. The company’s A grade coffee realised £l3O a ton at the last sales. COLOMBO TEA SALE Mr L. M. Wnght has received the following cabled report on the Colombo tea auction of February 6:—The market for common BP’s was firm, while common medium and fine BOP’s were 1 to 2- cents cheaper. Owing to inferior quality, fine teas declined 3 to 6 cents. Quantity'auctioned was 1,510.0001 b. At next week’s sale a total of 1,910,0001 b will be catalogued. J. W. STAPLES AND CO. At the annual meeting of J. W. Staples and Co. Ltd. a final dividend of 2} per cent, was declared for the year ended December 31, making, with an interim dividend of 2) per cent, paid last August, a total distribution for the year of 5 per cent., the same rate as that for 1932. The net profits were shown at £12,908, compared with £14,636 for the previous year and £37,162 in 1931. With £16,118 brought forward, the balance in the profit and loss account is £29,026. The two dividends of 24 per cent, each will absorb £17,500, leaving £11,526 to be carried forward.—Wellington Press Association.

AUSTRALIAN STOCK EXCHANGES press Association—By Telegraph—Copyright. SYDNEY, February 7. On the Stock Exchange some irregularity was noticeable in regard to industrial shares, hut the market was strong, with an increased turnover. Morning sales:—Bonds (fours) —1841, £lO2 2s 6(1; 1944, £lO7 ss; 1947, £108; 1950, £IOB 10s; 1959, £IOB 7s 6d; National Bank, £0 12s (id; Associated News, 21s 3d; Associated News (pref.), 225; Australian Glass, 51s; Broken Hill Proprietary, 44s 6(1; Meggitts, 20s; Wilcox, Mofflin. Pis Id. Afternoon sales:—Bank of New South Wales, £33; Bank of Australasia, £l3 10s; Commercial Bank of Sydney, £l7 15s; National Bank (£lO paid), £l3 10s; do (£5 paid), £6 12s Gd; Union Bank, £lO ss; Howard Smith, 15s 9d; Australian Gas (A), £7 19s 6d; British Tobacco, 37s 4-Jd; Tooths. 455; Toohoys, 28s 6d; Australian Glass, 50s 6d; Goldsbrough, Mort, 34s 6d; Australian Provincial Assurance, 11s 5(1: Anthony Hordern. 15a 10-Jd; General Industries, 11s 6d (pref., 21s 7-Ad); Hume Pipe, 13s lOd; Henry Jones, 33s 3d; Kuala Kampar, 15s; Mount Morgan, 745; Broken Hill South. 745; Broken Hill Proprietary, 44s 6d; Commonwealth Bonds (fours) —1938. £105; 1941, £IOO ss; 1944, £lO7 ss; 1947, £IOB ss; 1950. £lO3 10s; 1953, £lO7 7s 6d: 1955, £lO7 10s: 1959. £IOB ,ss; 1961. £IOB 7s 6d. MELBOURNE, February 1 Queensland National Bank, £5 15s; National Bank (£lO paid), £l3 9s; Dunlop Perdriau, 20s 6d; British Tobacco, 37s 3d. LONDON STOCK EXCHANGE (British Official Wireless.) Press Association—By Telegraph—Copyright. RUGBY’, February 6. On the Stock Exchange the restriction of business was attributed to the unsettling news from the Continent. Gold mining shares were inactive, but British Government stocks were steady. METAL MARKET Press Association—By Telegraph—Copyright. LONDON, February 6. The following are the official metal quotations:— Copper.—Standard, £34 0s 74d per ton: forward, £34 4s 44(1. Electrolytic.—Spot, £36 10s; forward, £37 10s. Wire bars, £37 10s. Lead.—Spot, £ll 16s 3d; forward, £l2 2s 6d. Spelter.—Spot, £ls Is 3d; forward, £ls 8s 9d. . Tin.—Spot, £227 8s 9d; forward, £226 18s 9d. Pig Iron.—Home trade, £3 2s 6d; export, £2 17s 6d. Antimony.—British, £3O 10s; foreign, £22. Molybdenite. £2 Is per unit. Wolfram, £1 7s. Silver.—Standard, 19 9-16 d per oz; fine, 21id. DOLLAR AND FRANC Press Association—By Telegraph—Copyright. LONDON, February 7. (Received February 8, at 11 a.m.) The dollar is quoted at 5.024, and the franc at 79 5-16. PRICE OF G9LD Press Association—By Telegraph—Copyright. LONDON, February 7. (Received February 8, at 10 a.m.) Fine gold is quoted at £6 16s 9d per oz. America was the chief buyer of the 1 £1,240,000 offered. Advice has been received front Messrs Arthur Bell and Sons Ltd., Perth, Scotland, that they have purchased the Duffton-Glenlivet Distillery, the BlairAtlioll Distillery, and their entire stock of old Scotch whiskies. The distillery at Dufftown has been silent for the last two years, but will be reopened by the now owners at an early date. This expansion on the part of this well-known Scottish firm of whisky distillers is indicative of the revival in trade, due, among other things, to the changes in U.S.A. as a market for whisky.

KAURI GUM INDUSTRY PROMISING RESEARCH WORK [Per United Press Association.] WELLINGTON. February 7. Hard hit by competition from synthetic gums, the kauri gum industry of New Zealand has languished to such an extent that it is now almost a thing of the past. For some time the Department of Scientific and Industrial Research has interested itself in the welfare of this industry by directing its efforts to the elaboration of processes which will yield a product satisfactory to the overseas consumer. To Dr J R. Hosking. of tr,e Dominion Laboratory, was entrusted this particular task, and as a result of his investigations he has evolved a method for purifying and standardising the crude kauri gum. Highly favourable reports have been received from abroad on the article obtained by Dr Hosking’s process, for which the Government has taken but patent rights. The authorities are hopeful that its use on a commercial scale will bring about a successful rehabilitation of the industry. WRITING DOWN LAND VALUES A METHOD SUGGESTED [Per United Press Association.] STRATFORD, February 7. In an article in the Stratford ‘ Evening Post.’ Mr J. B. Hine, a former Cabinet Minister, refers to the necessity for writing down land values if dairying is to be continued on the land. The dairy industry, he says, is in a much worse position now than a year ago, and an endeavour should be made to spread the loss so that neither the mortgagee nor the mortgagor will have to bear the whole of it. Therefore, the State should carry out the necessary adjustments. In many instances the farmer’s equity has disappeared, as well as part or the mortgagee’s security. As to the method of adjustment. Mr Hine considers that the practical way appears to be for the Government to create a “ land mortgage reduction fund ” by the issue of debentures (say for ten years) at a low rate of interest, and offer these to mortgagees to the extent of the reduction of the mortgage principal. Alternatively, Mr Hine suggests that a “ redemption fund ” should be provided for in the following manner:— Every-mortgagor who obtains a reduction of the capital sum of a mortgage owing to him should covenant to pay into the “ redemption fund ” a percentage to be fixed of anv increase in the price of primary products received by him over and above the prices ruling at the time of revaluation, this lien to be in force for the same period as the debentures. Such provision would safeguard the “ redemption fund ’’ should an increase in prices occur during the currency of the debentures. NEW GUINEA GOLD SHARES Press Association —By Telegraph—Copyright. LONDON, February 7. (Received February 8, at 11.30 a.m.) New Guinea Gold shares are quoted at os 104 d. DAIRY PRODUCE The New Zealand Loan and Mercantile Agency Company Limited have received the following cable from London, dated February 7 ; —Butter, 68s, 695; market firm. Cheese: White, 435; coloured, 455, 45s 6d; market steady. EMPIRE INDUSTRIES DISPLAYS TO BE FEATURE OF WELLINGTON SHOW Displays of Empire goods are to be prominent features of the coming Easter Show of the Wellington Show Association. Alter preparing a plan and lay-out of 1,000 square feet for a British Court the association’s committee revised the plan to take in another third more. This was filling up, and tire committee expected that the whole of the British Court would be filled within a fortnight. The goods in the court would bq made entirely in Groat Britain by British labour and with British capital. A section of the building had also been set apart for a British motor show similar to the lines of the British Court. The principle behind both the efforts was to focus public attention on the excellent goods and machinery made in Great Britain, and to urge the public to. support the Empire. Negotiations had also been in hand for an Australian court, and it was expected that the plans and proposals which had been submitted would be completed shortly. BASE METALS PRICES UNITED STATES INFLUENCE Commenting on the recent higher values for base metals, the Melbourne ‘Argus’ states; “The connection between _ the rise in prices and the devaluation of the United States dollar is evident, but few can state with assurance that the improvement will be maintained, or that the demand lotbase metals will improve because of the new monetary conditions. The United States, as the greatest user of metals in the world, occupies an important position iu the markets, but the demand for metals must depend upon the degree of recovery of activity in business in the United States attained by virtue of the latest development of the recovery plan.”-

THE WOOL MARKET SYDNEY SALES Press Association—By Telegraph—Copyright. SYDNEY, February 7. At the wool sales 12,005 bales were offered and 10,211 sold, while 1,794 were disposed'of privately, Best-conditioned, deeply-grown, good merino fleece wools and all descriptions of skirtings ruled firm, but the irregularity hitherto noted for fine descriptions lacking length and ordinary good free wools was accentuated, these being quoted 5 per cent, loner. Comebacks and cross-breds maintained late rates, and greasy merino sold to 31Jd for five bales from the New England district. NEXT WELLINGTON SALE CATALOGUES OFFERING The third Wellington wool sale of the season will be held on February 15, commencing at 9 a.m. The following are the brokers’ offerings in the order of sale:— Bales. Murray, Roberts, and Co. Ltd. 3,83-1 Levin and Co. Ltd 7,715 N.Z. Loan and Mercantile Agency Co. Ltd 3,675 N.Z. Fanners’ Co-op. Distributing Co. Ltd. ... 4,179 Wnirarapa Farmers’ Co-op. Association Ltd. ..- 1,346 Abraham and Williams Ltd. and Wright. Stephenson, and Co. Ltd.' 3,411 Dalgety and Co. Ltd 5,840 Total 30,000 ADDINGTON MARKETS [Pkk United Pkess Association.! CHRISTCHURCH, February T. At the market at Addington to-day the highest price of the season to date was seemed for store ewes—namely, 33s 9d for two-tooth half-breds. Interest in the store sheep sale was extremely keen, although the prices were slightly below the basis of last week. All other major sections showed an advance on late rates or a firmer tendency. Store Sheep.—The large entry of young ewes was in keen demand. Store lambs sold very keenly, but wethers were slightly easier, partly due to a general lack of condition. Extra good two-tooth half-bred ewes brought, from 33s 6d to 33s 9d ; good, 26s to 29s 9d; ordinary, 23s 6d to 25s 3d; small, 19s (Id to 23s 9d; good four-year, 21s 3d to 2os; sound and failing-mouth, 16s 9d to 19s. 6d; inferior half-bred, 10s 7d to 13s 7d. Extra good two-tooth Gorriedales brought to 335; good, to 275; good two-tooth cross-bred brought to 29s 6d; ordinary four, six, and eight-tooth cross-bred, to 18s 9d; inferior, 8s 6cl to 11s Id; ordinary twotooth Romney, 23s to 25s 6d; good four and six-tooth Romney, to 29s 3d; average four, six, and eight-tooth Romney, 20s to 22s 3d; good two-tooth three-quarter-bred, to 275; ordinary, 20s to 22s 6d; ordinary, four, six, and eighttooth three-quarter bred, 17s to 19s lOd; inferior three-quarter-bred ewes, !)s 6d to 12s 9d; good two-tooth halfbred wethers, 18s 3d to 19s (id; ordinary, T4s 3d to 16s 3d; good four anti six-tooth half-bred, to 19s; six and eight-tooth half-bred, 13s 4d to 18s 3d'; forward half-bred ewe lambs, ISs 2d to 211 s 6d; medium, 16s 9cl to 18s Id; backward, 14s to 15s 6d; medium crossbred ewes, 14s 3d to 16s 9d; forward Down cross-bred, to IBs Id; average to good mixed sexes, 16s 9d to 19s. Fat Cattle.—The entry of 290 he.ad was the smallest for some weeks. The market responded with a sharp advance of £1 to £1 15s per head for prime sorts. Cattle were forward from the West Coast, Southland, and Otago Best beef made from 24s to 27s 6d per 1001 b: good, 21s to 235; heavy-weight, 17s 6d to 20s; medium quality, 16s to 19s; and rough, down to 12s. Values: Prime heavy steers. £9 to £lO 15s; prime medium-weight. £8 to £9 15s; ordinary, £5 10s to £7 10s; light, to £5; prime heifers. £5 to £7; medium. £3 10s to £4 15s; light, to £3; prime cows. £4 10s to £6: medium, £3 to £4: light, to £2 12s. Fat Lambs.—The entry of 2.700 was much smaller than the recent average offerings. There was a brisk auction with an advance of 6d to Is per head. Values were; Extra prime, to 26s 4d; prime, 22s 6d to 24s 6d; medium. 19s 6d to 225; light, 16s to 19s. Fat Sheep.—-There was an'entry of 3.000 only. The auction was steady at late rates. Values were: Extra prime heavy wethers, to 29s 7d ; prime heavy, 24s to 265; prime medium-weight. 22s to 23s 9d; ordinary. 19s 6d to 21s 6d : light, 16s to 19s. Show ewes brought to 32s lOd: extra prime heavy ewes, to 26s 7d; prime, 31s to 23s 6d; medium-, weight, 17s to 20s 6d; ordinary, 14s 6d to 16s 6d; light, 11s to 14s. Fat Pigs.—There was a good demand for baconers and light-weight porkers. The over-supply of heavy-weight porkers caused the market to recede. A few light-weight porkers of 601b.t0 801 b were bought for export, but anything over-weight was practically unsaleable.. Values Choppers, 30s ■to £4 8s ’ 6cl; baconers, 47s 6d to 54s 6d•; heavy, £3 to £3 12s 6d ; extra heavy, to £3 19s 6d; -porkers, 26s 6d.t0.32s 6d; heavy, 33s 6cl to 38s 6d (average price per lb, 4Jd to 54-d).

CHILLED BEEF EXPORT SECOND AUCKLAND SHIPMENT MORE VESSELS TO LOAD. The second shipment of chilled beef from Auckland for England was despatched by tho Blue Star Line steamer Avclona Star, which sailed for London on Saturday aiternoon. The vessel has on board over 2,000 carcasses of chilled beef, about 7DO more carcasses than were despatched by the Sultan Star, which left Auckland for London on January 12 In addition :o chilled beef, the Avclona Star had a very large quantity, of other New Zealand produce, includiivr refrigerated meat, butter, cheese, wool, and other gereral items. The cargo was loaded at Gisborne, Napier, Wellington, and .Auckland, and when she sailed on Satuiday her holds were full. She is scheduled to reach London about March 10. Farther shipments of chilled beef will be despatched from Auckland by the Tuscan Star aid the Doric Star, which are en route from London to New Zealand in baling;. The Tuscan Star is due at Napier on February 19 and the Doris Star at Gisborne on February 28.

THE SEARCH FOR GOLD TUAPEKA MINING NEWS (From our Lawrence Correspondent.! A report was in circulation at the end of Inst week that a couple of young men, at work under the unemployment mining relief scheme, had struck a payable lead of gold on the west side ot the borough reservoir on the ridge overlooking tlie Wctherstones cement basin. It turned out that the two had been fossicking at the foot of the reservoir by-wash, and in an hour or two had panned off nearly an ounce of gold. The news of the find travelled quickly, and several of the relief men at work in the Wctherstones neighbourhood cherished the fond hope that something akin to Gabriel’s Gully (into which the by-wash water flows) of the early ’sixties would be the outcome. '1 he lucky fossickers have marked off and applied for a two-acre extended alluvial claim, and will lose no time in an attempt to discover if (here is a payable lead of gold in the neighbourhood. The number of unemployed relief miners at Blue Spur and Munro’s Gully has almost reached vanishing point. One family of three (father and two sons), who spent some time at Bine Spur, is now quartered at Waitahima Gully, where decent patches ot the precious metal are still to be found. Many of the older generation of miners cling to the belief that there are possibilities of still striking " something worth while ” in the direction of Table Hill and the Waitahima Heights. That country certainly abounds in quart/, reefs. Four prospecting licenses for areas on the Molyneux River, each covering about 100 acres, and approximating 24 miles in length, with an average width of about live chains, starting about five chains below the Clydevale punt site and following the stream downward, have been applied for through the Lawrence Warden’s Court, the date of hearing being fixed for February 19. The applicant is Douglas W. Wilson, ot Caversham, and his occupation that of a dredgemaster. It is very questionable if at any time a dredge has dperated on this long stretch of the Molyneux. Another application which comes before the same court on the same date is for a prospecting license of 100 acres for quart/ mining at Jacob’s Gully, on run 170, held by the owners of Beaumont Station. Mr Andrew Donaldson, of Beaumont, miner, is the applicant (or the quartz claim. In his day Mr Donaldson has not been a stranger to prospecting work in the back country. It is to men of his stamp that we are greatly indebted for pioneering “ away back ” in parts that appeal not to the town dweller. A party of Lawrence residents, most of whom are interested in mining, left early in the week on a motor excursion to the West Coast. Their intention is to have a look round on as many of the dredging and sluicing propositions on the Coast as circumstances will permit. They expect to be away for ten days. NEW GORHISH POINT MINES The following is the report from the mine manager of New Cornish Point Alines Ltd. for the week ended February 3; — For the past week the “ incline tunnel ” has been advanced 22ft, making the total distance of 87ft from No. 1 chain peg. The country driven through consists of coarse gravel intermixed with layers of sand and fairly solid. Samples taken from the country driven through are much the same value as the previous week. Is per yard. The timber for the construction of the wash bin has been placed on order, and the work of installing the pump for supplying the water from the river to the wash bin for sluicing purposes is under way. BELL-HOOPER MIKE A report on the Bell-Hooper mine for the week ended February 3 states that all men were engaged on blocking out stopes and blocking out work. The No. 3 cross drive west was commenced again towards the boundary, and advanced 18 feet, being now 20ft from the boundary line. This drive is being continued so as to prospect the northern side of block M. The north drive in block C was advanced 15ft, and it will connect with the No. 1 stope west next week. The centre stope through blocks Y F was continued to the old Ball-Hooper drive. Blocking out work is now in progress in block F. Blocking out work was in progress in block K. -which block is now near the finish. Sufficient mine timber is now on the claim to keep the work continuous, and if experienced and reliable miners were available a small midnight shift was to be commenced on February 5. In No. 2 tunnel the contractor up to February 3 has completed a distance of 123 lineal feet, giving a progress distance of 27ft for the week. He has been given notice to carry on with three shifts next week in accordance with this contract. The gold won for the week was 340 z Bdwt 2lgr. REPAIRS AT CHARLESTON Reporting on' the progress of the repair work being carried out at the Charleston Sluicing Company’s claim at Croninville, the mine supervisor states that two breaks in the water race had been completed. The first had involved driving tunnel in the blue reef of 70ft. and the other was open ditch. A start had been made on laying rails in the tunnel. nUEENSLAND YIELD The Queensland gold yield for December was 8,391 fine ounces, valued at £35.642, compared with 4,6020 z, valued at £19,548, for December, 1932. . MAHAKIPAWA LTD. The resident director’s report for the period January 8 to 28 is as follows for Alahakipawa Goldfields Ltd.: South-east drive; Driving has now ceased here for the time being, as bottom rock has risen sharply, suggesting proximity of east sidling. Driving north of south-east drive has been carried a distance of 30ft through payable wash. Driving south has been carried on for 35ft through good grade wash; the bottom rock is now rising in this fqee. These drives have proved that a fair amount of blocking out. can be carried out. North of south drive. off south-east drive and south of north drive off south-east drive in payable wash. During the month it is proposed to, extend east cross-cut to connect with north drive off south-east drive. North

end of mine: No work has been carried out here daring the month, and will cease temporarily mehnwhile. The machinery at the mine is in good order and everything working satisfactorily. A total of 357 cubic yards cf wash was sent to sluice boxes, which returned 1250 z 17dwt melted gold. BENDIGO GOLDLIGHT DREDGING PROGRESS REPORT. The dredge at Waikaka purchased by the company has been entirely dismantled, and the machinery and as much of the timber as-will be used in the rebuilding lias been forwarded by rail from Puliar to ' Cromwell. The cartage contractor at Cromwell is transporting the material from the rail head to the claim, a distance oi approximately twenty miles. Several loads have keen delivered, but there,is not yet sufficient timber on the claim to enable a start to be made on the actual rebuilding of the pontoons. In the meantime the framing on which the pontoons will he built has been prepared, and huts and tents to provide accommodation have been erected. Several of the larger contracts have been let. These include the supplying of the new timber required, the manufacture of the bucket line for the dredge, overhauling and repairing the dredge machinery, and the supply of a Ruston 63 horse-power oil engine. The boiler of the dredge is in excellent order, and will be utilised in the reconstruction, together • with the Ruston engine, so that the dredge will have an ample supply of power. The construction of a storage dam On the Bendigo Creek and the excavation of the paddock for launching the dredge into are now receiving consideration. Negotiations were recently completed for the purchase of additional water and mining rights. The present indications are that the estimates of expenditure will, in the aggregate, not be exceeded.