Commerce, Mining, & Finance

Evening Star, Issue 22687, 29 June 1937, Page 6

Commerce, Mining, & Finance

DAIRY FINANCE NATIONAL ASSOCIATION PROGRESS DURING YEAR Steady progress is disclosed by the accounts of the National Dairy Asso<ciation of New Zealand Ltd. for the year ended April 30. The directors state in their report that there is a distinct advance in the volume of business done, and the finances are in a very satisfactory condition, due in no small measure to increased support by member shareholders. After deducting from gross receipts all expenses of management, £1,528 depreciation, £264 for expenses o,f the National Dairy Conference, £466 superannuation subsidy, and £391 for mortgage redemption on the Wellington premises, a credit balance of £505 remains. The association’s subscribed capital amounts to £22,272, added to which is the Wellington premises mortgage of £20,000. Sundry creditors at £22,118. and sundry items make the total of liabilities £89,629. The principal assets held against this amount are sundry debtors at £31,922, goods in stock £28,572, and) Wellington, premises £22,700. The rebate on purchases from the company by contributing shareholders during the year will be increased from 1 per cent, to 2 per cent., states the report. For this purpose the sum of £2.400 has been allocated to the rebates adjustment account. AUSTRALIAN STOCK EXCHANGES Press Association—By Telegraph—Copyright SYDNEY, June 28. Tho general tone of the market reflected the financial end of the year in tho conditions on the Stock Exchange to-day. There was a moderate turnover at round late levels. £ s. d.

MELBOURNE EXCHANGE. MELBOURNE, June 28. The demand for Barriers continues. Industrials were quiet, but steady, to-

PRICE OF GOLD Pi ess Association—By Telegraph—Copyright LONDON, Juno 28. (Received June 29, at 1.15 p.m.) Fine gold is quoted at £7 Os 8d per ounce. THE SEARCH FOR GOLD MATAKI RETURN (Pee United Peess Association.] AUCKLAND, June 28. The Mataki return for the week ended June 27 was 17oz for 131 hours’ work. A total of 7,oooyds was treated. MINING NEWS PUKET TIN A net profit of £10,551, after providing for depreciation, was earned by Puket Tin Dredging Limited 1 , Siam, for the year ended December 31, 1936, against £12,011 in the previous year. This has been added to the balance brought forward from last year (£553), making a total of £11,104. The directors have decided to write off £5,161 to the property account and £4,770 to administration account, leaving £1,173 to be carried forward. The general manager’s report states that lack of rainfall adversely affected the year’s working, and owing to a shortage of paddock water the dredge operated only 42 per cent, of the possible time, two months’ normal working being lost. The difficulties are now being overcome and water conditions arc better than last year. In view of the poor running time during the first half of the year and the fact that the dredge was in a poor patch, it was not possible to obtain the quota during this period, although it was obtained over tho full year in spite of delays. The dredge was idle for practically the whole of December owing to excessive rain, which flooded tho valley.

WILSON’S CEMENT HIGHER NET EARNINGS IMPROVEMENTS TO PLANT Further improvements to the, company's plant, in conformity, with the long-established policy of keeping it continuously abreast of modern progress in the technique of cement manufacture, were described at the annual meeting of Wilson’s (N.Z.) Portland Cement Ltd. RISE IN SALES AND COSTS. The net profit for the year, £59,889, represented an increase of £6,660 on that of the previous year. Over 28 per cent, of it had been derived from sources other than the manufacture of cement and lime, more particularly from investments and the sale of electricity. A second and final dividend of 9d a share, making Is 6d,- was recommended, leaving a balance of £27,241 to be carried forward. Sales throughout the year had continued to show an upward trend, and the increase over the previous year was approximately 25 per cent., said the Chairman. The net return per ton at Portland, however, was less than last year, _ owing to increased costs of materials, higher wages, shorter hours, and reduction in selling price. These conditions, it should be noted, bad not operated during the whole of the past year, and would affect the current year to a greater extent. Throughout the year the uniformly high quality of the company’s products had been maintained. The number of tests had been increased, the laboratory plant had been added to, and further testing machines were duo to arrive shortly. NEW PLANT INSTALLED. By arrangement with the Cement Marketing Company Ltd., one of the, large group of British Portland cement manufacturers, the company would shortly manufacture and market a water-repellant, or waterproofed cement, which would be of great advantage in many types of construction, and would do away with the uncertainty attendant on the use of added waterproofing compounds. Two British Roma coal mills had been installed and were giving satisfactory sendee, and a third would bo delivered within a few months. The Oliver filter for reducing the water content in the raw slurry had also been completed, and trials showed that it effected a marked saving in coal. The policy of the company since its 1 inception had been to keep its works up to the highest standard of efficiency. Valuable machinery, at many stages had been scrapped and replaced at considerable cost. The output capacity had' been increased to meet the growth of demand, and supplies had always been assured for normal requirements, with ample margin for some years ahead. Indeed, the output capacity of the three coment companies new operating in the Dominion was practically double the quantity actually manufactured and sold in the year 1936-37, On to-day’s cost, to construct a mill at Portland of the same capacity and efficiency as the present mill, together with wharves, stores, houses, etc;, would require considerably over £600,000. If the Wairua hydro-electric plant were included, a much larger sum would be necessary. COMMODITY PRICES PART PLAYED BY UNITED STATES In the fall which has occurred in prices of shares and commodities, conditions in the United States have played an important part. At present the position is complicated by the strikes in American industries. The forward movement of business in the United States was checked in April to the extent that prices of securities and staple commodities declined, sharply, and new buying slackened in the industries. The break in the market gave rise to. a variety of rumours and purported explanations. The National City Bank of New York is of opinion that the best explanation for the fall is the simplest—namely, that the preceding rise had been too fast. The bank continues: — “ In the commodity markets the congestion which forced prices up was intensified by speculation and by temporary difficulties in increasing output, and it has been relieved in the natural way, through resale of speculators’ holdings and a rising trend in production. The reaction is wholesome. The advance in these prices in the last quarter of 1936 and the first of this year was sensational. Moody’s index of 15 staple commodities rose from 181 on November 2 (December _ 31, 1931, 100) to a peak of 228 on April 5, a rise of 26 per cent. This rise was due at first to increasing consumption, and it gathered momentum by inducing forward buying, and by giving a strong stimulus to business. Temporarily demand increased above the capacity of producers to supply. Stocks dropped rapidly and deliveries were delayed. “ However, it turns out as usual that the demand was augmented by speculation, and when speculators turn sellers the situation is reversed—the supply is augmented by their sales. Moreover, the rise has stimulated production. It has led to the removal or lightening of restrictions on the output of copper, tin, and rubber, to the reopening of mines closed by the depression, and to planting of increased acreages for this year’s crops. In most cases the new supplies of staple raw materials coming on the market during the second halfyear will be the-.largest since before the depression, and ample for all requirements. Given average growing weather, crops of all kinds will be well above any recent year. “ The decline in Moody’s index from the peak of 228 to a low of 210 on April 28, or 8 per cent, within the month, reflects these changes in the situation. This drop will hurt few people except speculators who miscalculated, for the greater part of the trade buying during the rise was done in its earlier stages.” DOLLAR AND FRANC Press Association—By Telegraph—Copyright LONDON, June 28. (Received Juno 29, at 1.15 p.m.) The dollar is quoted at 4.93 f. The franc is quoted at 110 9-16.

FOREIGN EXCHANGES

OH NEW ZEALAND CURRENCY BASIS The Bank of New South Wales, Dunedin, quoted the following rates for purchase and sales of foreign exchanges (all rates subject to alteration without notice) : —• Buying. Selling. Loudon—£loo slg. N.Z. ... ... T.T. £124 £124 10/ O.D. £123 10/ £124 8/9

The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates to-day on a Now Zealand currency basis. They are subject to alteration without notice: — U.S.A. CANADA. (Per £1 N.Z.) (Per £1 N.Z.) SELLING—

PIS INDUSTRY SUCCESSFUL OPERATIONS Figures to hand for the New Zealand Co-operative Pig Marketing Association Limited for the year ending May 31 indicate a satisfactory position, and gratifying greater progress. Altogether 153,000 pigs were handled, while over 167,000 bobhy calves were dealt with. The gross turnover of the association was £501,150, against £431,468 for tho previous year—an increase of £69,682. The company’s total cash payments already made to suppliers for pigs amount to £307,667, an increase of £33,313 on the same payments for last year. Cash payments to suppliers for bobby calves represent an increase of £31.147. The subscribed capital has increased to £23,348, and the surplus available for distribution to suppliers by way of final payment and cash shareholders’ bonus is £21,967. In accordance with tho company’s policy announced early in the season tho same final payment will be made on unexportable baconers as that paid on exportable baconers, which also received the same advance payment. The company’s killing and freezing charges for the year represent a relative increase for the treatment of its pigs through export works of approximately £15,000. This is entirely due to the general increase in killing _ and freezing rates, which took effect in the early part of the season.

SHARE MARKET

DUNEDIN STDCK EXCHANGE AUSTRALIAN MINING MONOPOLISES BUSINESS Although the' market as a whole continued . firm this morning, interest was focussed on the Australian mining section. Values of all shares quoted in this section were marked up, and business was recorded in practically all the leaders. Banks were steady at recent ruling rates, while industrials were quiet, and steady. The banking section was quiet, and received poor support. New Zealands were wanted at the improved price or £2 4s 6d, and the Long “ D’s ” at £1 6s. Commercials and other Australian shares remained steady at recent rates. National Insurances continued to climb, and after reported business late yesterday at 17s 6d, had buyers this morning at 17s sd, with no declared sellers. Broken Hill Proprietary were firm, and had three transactions at £4 0s 9d, the market closing 9d on either side of that figure. The contributing shares were on offer at £3 16s 6d, but buyers were not interested. G. J. Coles continued their fluctuating movement, but had a closer market at £5 Is and £5 2s 6d. Woolworths (N.Z.) were inquired for at £5, a 10s drop on yesterday’s quotation. , New Zealand Breweries (rights) ware quiet at buyers £1 2s, with no declared sellers. The Australian mining section was very active, a total of eight transactions being recorded in the room. Mount Morgans improved further' to business at 12s 8d and 12s 9d, the market closing at 12s 9d and 12s lOd. Mount Lyells bad three transactions, buyers at £2 Is lOd being answered at £2 2s Id. Barrier companies also hardened, Broken Hill Souths changing hands at £2 8s 9d. Local gold mining received poor support, Clutha Rivers dropping back sharply to buyers Is 6d. Government loans were firm, with a good inquiry. SALES REPORTED. —Late Yesterday.— Hume Pipe, 19s. National Insurance, 17s 6d. —This Morning.— New Zealand Drug, £3 14s 3d. New' Zealand Refrigerating (paid), 19s Id. Mount Morgan, 12s Bd, 12s 9d. British Tobacco, £2 10s. SALES ON ’CHANGE. —This Morning.— Broken Hill South, £2 8s 9d (2). Mount Lyell, £2 2s Id (2), £2 2s. Mount Morgan, 12s 9d. SALES AFTER CALL. —This Morning.— Broken Hill Proprietary, £4 0s 9d (3).

DIVIDENDS DUE. Morris Hedstrom final, 3£ per cent., making 5| per cent, per annum June British Tobacco interim, quarterly, 2 per cent., at 8 per cent, per annum June J.O. Williamson —half-yearly pref. at 6 per cent per annum ... June Blackwater —interim, Is, and Consolidated Goldfields, 6d (sterling and tax free) June Zinc Corporation, participating 3s fid, pref. and ord. (less English income tax), making 6s per annum; also half fixed cum. div., 2s on pref., for year ended December, 1937 (less English income tax) ... July National Mortgage and Agency—interim, at 5 per cent, per annum ... ... ... , July Goodyear Tyre (Aust’asia) Ltd.— half-yearly pref. *t 8 per cent. per annum ... ... ... July Queensland Insurance—interim half-yearly at 8 per cent, per annum July Cash Orders Amalgamation—interim pref. at 10 per cent, per annum July James Stedman, Henderson’s Sweets—first prof, half-yearly, 10 per cent July H.M. Arcade and Theatre Co., Auckland—interim pref. 2 3-5 per cent.; ord. 3 per cent. ... July National Bank of New Zealand—at 4- per cent, (sterling) per annum July Dominion .Brewery (old) —final 5 per cent., making 9 per cent, per annum July Argo Gold Dredge—ld per share July Union Theatres Investment Ltd.interim half-yearly pref. at 5 per cent, per annum July Howard Smith Ltd.—quarterly . pref. at 6 per cent, per annum Mount Morgan—4|d (Australian) July Hume Pipe (Far East) Ltd.—lo per cent, per annum July Woolworths (N.Z.)—interim, ord., 5 per cent July Woolworths Ltd.—interim, ord., 2 per cent, July G. J. Coles Ltd.—half-yearly pref. at 8 per cent, per annum ... July 30 30 30 30 1 1 1 1 1 1 I 3 3 5 7 7 10 12 15 15 IS

Bank of Now South. Wales 35 15 0 Commercial Bank of Sydney 22 3 0 Colonial Sugar ... 47 2 (3 Associated News ... 1 3 0 (prof.) 1 3 9 Burns Philp 3 14 0 British Tobacco ... 2 10 3 .Tooths lo 9 Dunlop Pordriau 1 2 TO* Goldsbrough, Mort 1 15 9 Commonwealth Wool 1 0 4£ Newcastle Gas (A and C) 0 12 0 Wunderlich 1 2 0 Victoria Nyanza ... 0 18 3 Woolworths 7 0 0 Selfridges JL iU 6 Mount Lyell Jj Z JLU* Electrolytic Zinc (prof.) 2 2 u 18 3 3 North Broken Hill 3 14 0 llawang Tin Larut 0 12 0 19 li 74 Tonkah Harbour 0. 3 3

day. Gold shares were irregi lar £ s. d. Commercial Bank of Aus. 0 18 6 National Bank (£5 paid) ... 7 5 0 G. J. Coles 5 3 0 Drug Houses • 1 G 9 Australian Iron and Steel (pref.) Australian Glass ... v . ... . i e 4 12 6 6 Dunlop Perdriau ... ... ■■■ (pref.) j. 1 2 11 16 9 General Motors 1 4 3 Felt and. Textiles 1 15 3 Mount Morgan ... 0 12 9 Mount Lyell ; Broken Hill Proprietary ... 2 4 2 1 9 9 6 9 Souths 2 Norths ... Emperor Loloma ••• 3 ia 0 15 0 19 9 6 6 Satupulo i ID 6

Australia — £A to £100 N.Z , T.T. £101 £100 10/ Fiji£F to £100 N.Z T.T. £90 7/6 £89 Now York— Dollars to £1 N.Z. T.T. 3,9880 3.9511 O.D. 3.9980 3,9551 Montreal— Dollars to £1 N.Z. T.T. 3.9933 3.9584 O.D. • 4.0058 3.9624 Austria — Schillings to £1 N.Z. T.T. — 20.88 O.D. — 20.89 Belgium— Belgas to £1 N.Z. T.T. — 25.335 O.D. — 23.346 Czechoslovakia — Crowns to £1 N.Z. ... T.T. — 113.01 O.D. — 113.06 Denmark — Kroner to £1 N.Z. T.T. 18.203 17.893 O.D.. 18.263 17.899 France— Francs to £1 N.Z. T.T. — 88.58 O.D. — 88.62 Germany— Rcichmarks to £1 N.Z. T.T. 9.807 O.D. — 9.812 Holland— Florins to £1 N.Z. T.T. 7.307 7.157 O.D. 7.347 7.161 Italy— ' Lire to £1 N.Z. T.T. — 75.17 O.D. 75.22 Java — Florins to £1 N.Z. T.T. 7.283 7.133 O.D. 7.323 7.157 Norway— Kroner to £1 N.Z. T.T. 16.183 15.895 O.D. 16.243 15.899 Sweden— Kroner to £1 N.Z. T.T. 15.785 15.490 O.D. 15.845 15.496 Switzerland — Francs to £1 N.Z. T.T. 17.468 17.198 O.D. 17.573 17.203 Noumea— - Francs to £1 N.Z. T.T. — 87.21 O.D. — 87.27 Papeete— Francs to £1 N.Z. T.T. — 87.16 O.D. — 87.22 Hongkong— N.Z. pence to 1 dollar T.T. 18 3-32 18 17-32 O.D. 18 1-16 18 17-32 India and Ceylon— N.Z. pence to 1 rupee T.T. 22 3-8 22 21-32 O.D. 22 11-32 22 21-32 Japan— N.Z. pence to 1 yen T.T. • 17 15-32 O.D. 17 15-32 Shanghai— N.Z. pence to 1 dollar T.T. 17 45-64 18 9-64 O.D. 17 43-64 18 9-64 Singapore— N.Z. pence to 1 dollar T.T. 34 23-32 35 13-64 O.D. 34 5-8 35 13-64 Chcfoo — N.Z. pence to 1 dollar ... T.T. 17 45-64 18 19-64 O.D. 17 5-8 18 9-32 Manila— N.Z. pence to 1 peso T.T. 29 59-64 30 27-64 O.D. 29 53-64 30 27-64 DOLLAR RATES.

T.T. (dol) , ... 3.95 3-16 3.95 7-8 O.D. (dol) , ... 3.95 9-16 3.96 5-16 BUYING— O.D. (dol) , ... 3.99 3-4 4.00 9-16

Quotations as under:— Buyers. Sellers. £ S.d. £ s. d. BANKING— New Zealand (£1) ... 2 4 6 New Zealand, Long “ D ” (£1) ... 1 6 0 Commercial (10s) 0 18 0 0 18 5 National of Australasia (cont., £5) ... 7 2 0 Union of Australia Ltd. (£5) '. 10 14 0 — INSURANCE— National (7s) 0 17 5 Standard (£1) — 3 0 0 SHIPPING— Huddart, Parker (ord., £1) Huddart, Parker (pref., £1) 2 0 0 1 6 9 _ P. and 0. Deferred Stock (£1) 1 18 6 _ U.S.S. Co, (pref., £1) - - 16 ■3 — MEAT PRESERVING— N.Z. Refrigerating (paid, £1) 0 19 0 0 19 3 N.Z. Refrigerating (cent., 10s) 0 8 9 0 9 1 South Otago Freezing (£5) 7 16 0 - LOAN AND AGENCY— Goldshrough, Morfc (£1) 1 15 9 National Mortgage (£2) 2 13 0 National Mortgage “ B ” issue (£1) ... 1 9 0 1 11 0 N.Z. Loan and Mercan tile, ord. (£100) ... 45 0 0 46 10 0 N.Z. Guarantee Corporation (3s) 0 4 9 0 5 0 Otago Farmers’ Co-op. (3s 4d) — 0 4 6 Wright, Stephenson (ord., £1) ... ... 1 1 3 — COAL— Kaitangata (16s) 1 1 6 Westport (10s) 1 3 3 — Westport-Stoekton (ord., 10s) 0 2 0 0 2 9 WOOLLEN COMPANIES Bruce, ord. (£1) ... 0 10 0 Bruce (pref., £l) Mosgiel (£4) 1 1 6 — 10 2 0 Timaru (£1) • — 0 18 6 MISCELLANEOUS— Anthony Hordern (£1) British Tobacco (£1) 0 18 9 0 19 6 — 2 10 6 Broken Hill Proprietary (£1) .... 4 0 0 4 1 6 Broken Hill Proprietary (cont., 15s) ... — 3 16 6 Consolidated Brick (£1) 0 7 3 ■ — D.I.O. (pref., £1) ... 1 3 9 — Dominion Fertiliser t£l) 1 3 6 _ Dominion Fertiliser Debentures 104 0 0 Donaghy’s Rope and Twine (£1) 2 13 0 Dunedin Stock Exchange Proprietary (£1) 2 0 0 Dunlop Perdnau Rubber (£1) _ 1 2 4 1 2 7 General Industires (12s 6d) 0 1 0 6 G. J. Coles (£1) ... 5 1 5 2 6 Hume Pipe (£1) 0 18 11 0 19 3 Milburn Lime and Cement (£1) 2 0‘ 0 Moturoaj Oil (pref,, 5s) N.Z. Drug Co. (£2) 0 2 6 0 5 0 — 3 15 0 N.Z. Farmers’ Fertiliser (£1) 1 0 0 _ ‘ Otago Daily Times ’ (£1) 2 5 3 2 7 0 Regent Theatre (£1) 1 0 0 — Shillings Ltd. (£1) ... 0 17 9 — Smith and Smith pref. (£1) 1 1 6 _ Wilson’s (N.Z.) Cement (10s) 1 0 0 1 1 6 Woolworths, ord. (£1) 5 0 0 - BREWERIES— New Zealand 2 7 9 2 10 0 New Zealand (rights) 1 2 0 — Dunedin (£1) 1 8 6 — UNLISTED STOCKS— Mackintosh, Caley, Phoenix (£1) 0 7 0 Woolworths, Sydney, (ord., £1) ■ 7 1 0 Self ridges (£1) — 1 10 0 Jones Nevis 0 0 2 0 0 3 M’Kcnzie’s Department Stores (£1) ... 3 18 3 3 19 3 OVERSEAS MINING— Broken Hill South (5s) 2 8 0 2 9 0 Electrolytic Zinc (pref., £1) 2 18 0 Electrolytic Zinc (ord., £1) 2 15 9 2 16 6 Mount Lyell (£1) ... 2 1 10 2 2 1 Mount Morgan 2s 6d) 0 12 9 0 12 10 North Broken Hill (5s) 3 12 6 3 14 0 Rawang Tin (10s) ... 0 11 6 — Austral N.Z. Mining (Hs) , 0 14 0

GOLD MINING—! Dig Eiver (Is) 0 1 4 0 1 7 Clutha River (2s) ... 0 1 6 Consolidated Goldfields (4s) — 0 14 0 Lawson’s Flat (Is) ... —» 0 0 4 Maori Gully (Is) ... — 0 0 7 Sandhills (Is) — 0 0 2 Skippers (Is) — 0 0 4 VVaihi Grand Junction (2s) — 0 3 0 Waimurau Sluicing (Is) 0 0 6 — Waitahu (5s) “ 0 1 G N.Z. GOVERNMENT LOANS3j p.c. Stock, Nov., 1938-52 ...' 102 0 0 — 3j p.c. Stock, March 1939-43 101 10 0 — 34 p.c. Stock, Sept., 1939-43 101 10 0 — 34 p.c.. May, 1939-52 102 0 0 31 p.c. Stock, March, 1941-43 101 10 0 — 34 p.c. Stock, Sept., 1941-43 101 10 0 — 3j p.c. Stock, May, 1941-52 101 10 0 — 3) p.c. Stock, Nov,, 1941-52 101 10 0 — 4 p.c. Bonds, 1943-46 103 10 0 — 4 p.c. Stock 1943-46 103 10 0 — 4 p.c. Bonds, 1946-49 103 10 0 — 4 p.c. Stock, 1946-49 103 10 0 — 4 p.c. Bonds, 1952-55 102 15 0 — 4 p.c. Stock, 1952-55 102 15 0 — 3A p.c. Bonds, 1953-57 99 5 0 — 34 p.c. Stock, 1953-57 99 0 0