Commerce, Mining, & Finance

Evening Star, Issue 22816, 26 November 1937, Page 8

Commerce, Mining, & Finance

London Markets Irregular Local Undertone Slightly Weaker Wellington Exchange President’s Review London markets are quiet but more irregular owing to tbe approaching end of the week and on account of the setback on Wall Street overnight. Nevertheless, the undertone is confident. Australian mining staged another setback on the local Stock Exchange this morning, a disappointing feature after yesterday’s increase. The decline was not great, averaging 9d per share, but until the market indicates some stability no great business can be recorded. Speculation in Mount Lyells continues and four sales took place on ’Change, one at £1 11s and three at £1 10s 9d. Quotations closed at £1 10s 8d and £1 11s. Apart from this speculative business the call-over was quiet. An interesting review of present market conditions was given by Mr Andrew Hamilton, chairman of the Wellington Stock Exchange, in reviewing the year’s operations at the annual meeting. If it had not been for the American debacle prices of good investments would be around those figures ruling earlier in the year. Only a few months ago investors discovered that the setback was not due to fears of war. but to an American business recession.

WAITAKI FARMERS’ FREEZING NET PROFIT UP £3,741 DIVIDEND DISTRIBUTION RAISED An increase in the net profit of £3,741 to £9,201 and a raising of the dividend rate by 1 per cent, to 6 per cent, is recorded in the annual accounts of the Waitaki Farmers’ Freezing Company Ltd. The stock dealt with for the past three seasons was as follows: — \ 1936. 1936. 1937. Sheep ... 63,229 39,876 33,183 Lambs ... 326,069 334,350 320,992 379,293 374,226 354,175 The directors express their appreciation of the support accorded the works during the past season. After providing for depreciation and income tax, t}ie profit and loss account shows a surplus of £9,201 4s 2d. To this has to be added £2,374 3s Id brought forward from last year, making a total to be dealt with of £11,675 7s 3d, which the directors recommend should be appropriated as follows: —To pay 6 per cent, dividend £5.741 5s 11a, transfer to reserve account £5,000, carry forward £934 Is 4d. The directors placed on record their deep regret and sense of personal loss in the deaths of Messrs J. R. M'Culloch and R. W. Trotter, whose services in the interests of the company were of much value to the shareholders. The vacancies on the board were filled by the appointment of Mr W. E. Aubrey (Georgetown) and Mr A. C. Inglis (Warrington). The retiring directors are Messrs .1. E. Austin, A. M'lnnes, and D. Williams, all of whom are eligible and offer themselves for re-election. The retiring auditor (Mr D. V. G. Smith) also offers himself for re-election. RABBITSKIH SALE FAIRLY SATISFACTORY RATES Teh Dunedin Stock Agents’ and Wool Brokers’ Association reports as follows : The first summer sale was held yesterday, when the combined ■ brokers offered a medium catalogue to a full bench of buyers. The offering comprised principally summers, springs, and milkies, and, considering the depressed state of the overseas markets sold at fairly satisfactory rates. Outgoings and winter grades declined up to 18d, spring bucks and does 8d to 14d, summer broken sd, and summers sd. For a small parcel of first winter bucks 52Jd was realised. The cable report from London reiceived yesterday advises that skins are practically unsaleable, even at a 50 per cent, decline, and all catalogues were withdrawn. All orders at the moment are withdrawn, and America is right out of the market. The following is the official range of prices:—Small, lOjd per lb; runners. 10id; racks, 14Jd; summer does, 15}d to lo|d; summer bucks, 14|d to 15Jd; spring bucks, 20d to 23d; spring does, 16Jd to 20id; spotted winters, 30d to 32}d; first winter bucks, 52} d; first winter does, 36d; second winter bucks, 43d; second winter does, 30d; milky, 15Jd to 183 d; summer fawns, lOd; spring blacks, lOd; outgoing blacks, 12d; winter blacks, 18d to 24d; hareskins, 8d to 9|d. The next sale will be held on January 6, 1933. “PRACTICALLY UNSALEABLE.” Messrs Dalgety and Co. Ltd. report having received a cablegram dated November 24 from their head office at London, advising_ that rabbitskins at present are practically unsaleable even at a 50 per cent, decline. All catalogues are withdrawn. SYDNEY MARKETS Pre« Association—By Telegraph—Copyright SYDNEY November 25. The wheat market was weak in sympathy with overseas markets. New silo grain was selling round 4s 7d. bagged about 4s 10}d. Flour, £ll 10s. Bran and pollard, £7. Rota toes: Tasmanian, £4: others, £3 10s. Onions- Brown. £8 to £9. Maize.; Yellpw, and white, 4s 9d.

ELECTROLYTIC ZINC DIVIDENDS DECLARED [Pee United Press Association.] WELLINGTON, November 25. The Electrolytic Zinc Corporation has advised the Stock Exchange Association that the following cablegram has been received from its head office, London:— The directors declared a second half fixed preferential dividend of 2s on preference shares for the year ended December 31, 1937, less English income tax of 2s lOd in the £l, also an interim participating dividend of 4s per share on both preference and ordinary shares in respect of the year 1937, less English income tax of 2s lOd in the £l. Both dividends will be paid on January 1 in English currency sterling. Metal prices in 1937 have been as follow (lead, spelter, and fine silver respectively) :— January to June, £26 17s 6d, £25 2s 4d, Is 10.05 d; July to September, £22 9s lOd, £22 15s Bd, Is 9.47 d; to date, £lB 5s 9d, £l7 16s 9d, Is 9.5 d. AUSTRALIAN STOCK EXCHANGES Press Association —By Telegraph—Copyright SYDNEY, November 25. The Stock Exchange was fairly active, with a generally steady tone for industrials. Mount Lyells were much easier.

STOCK AND SHAREBROKERS. INVESTMENT SERVICE. Economic 'changes arc now so rapid and far-reaching that the holder of even the best securites must keep informed on current hnancial happenings. Wo aro constantly providing investors with Unancial information necessary for a proper selection and supervision of securities. We invito you to consult our Investment Advisers. The Securities Corporation (N.Z.) Ltd., 20 CRAWFORD STREET. Phone 11-777 (4 lines).

ASSOCIATED NEWSPAPERS PROFITS FOR THE YEAR Press Association—By Telegraph—Copyright SYDNEY, November 25. Associated Newspapers Ltd. net profit for the year was £238,365, compared with £184,551 last year. The dividend on both preference and ordinary shares in the past year was increased from 6 to 7 per cent., the interim dividends of 4 per cent, being supplemented by a final payment of 3 per cent., the full distribution requiring £179,452. ZINC CORPORATION Press Association—By Telegraph—Copyright LONDON, November 25. (Received November 26, at 11 a.m.) The Zinc Corporation has declared a second half fixed cumulative dividend on its preference shares, also an interim participating dividend of 4s on both the preferences and ordinaries. CO-OPERATIVE PIG MARKETING ASSOCIATION INTERIM PAYMENT The chairman of directors of the New Zealand Co-operative Pig Marketing Association Limited, Mr W. A. Phillips, announces that his board has decided to make the usual interim payment on all pigs supplied on consignment from the beginning of the current season to October 31. This payment will reach suppliers ■within the next few days, and will be as follows: Porkers.—Exportable (all ranges), Id per lb; unexportable (all ranges), per lb. Baconers. —Exportable and unexportable, |d per lb. Choppers.—Exportable, Id per lb; unexportable, £cl per lb. These payments are exclusive of share credits and shareholders’ bonuses on qualified supply, which are usually made with final settlement at the dose of the season. Mr Phillips mentioned that, while production generally throughout New Zealand was very backward this season, he was pleased to state that, compared with the corresponding period last year, the pigs handled by his company to which the interim payment would apply was approximately 1,000 pigs greater. COMPANY NEWS SHOWS MEN'S WEAR The statutory report of Snows Men’s Wear Ltd., to be presented to shareholders at the statutory meeting on November 25, shows that of the 205,000 shares allptted 105,000 have been allotted for the purchase of the following assets of John Snow and Co. Pty. Ltd.: Freehold property (less mortgage £75,000), £40.300; stock, £22,700; fixtures and fittings, £17,000; goodwill, £25,000. Cash received in respect.of shares allotted wholly for cash is £25,000. Expenditure includes £6.930 for fixtures and fittings and plant for branch stores, and £5,830 for establishment expenses. Preliminary expenses are estimated at £1,550. UNITED STARR-BOWKETT A meeting of members of the United Starr-Bowkett Building Society was 1 held in the secretary’s office last evening to dispose of £2,800. A ballot was held for the 101st appropriation in No. 6 group, and cluster No. 1, hold by one member, was drawn. The 102nd appropriation in No. 6 group was a sale of £SOO, but there being no buyers, a ballot was held, cluster No. 11, held by three members, being drawn. A ballot for the seventy-fifth appropriation in No. 9 group resulted in cluster No. 49, held by one member, being drawn; while a sale for the seventy-sixth appropriation in the same group attracted no buyers. A further ballot in this group resulted in cluster No. 36 being drawn. A sale was then held for the fortieth appropriation in No. 11 group, £BOO being sold at £25 per £IOO. MOBGIEL INDUSTRIAL CO-OPERATIVE SOCIETY ANNUAL MEETING OF MEMBERS. The sixteenth annual meeting of members of the Mosgiel Industrial Cooperative Soeiety Ltd. was held on Monday, Mr D. Connor, presiding. The profit and loss account showed a surplus of £340 9s lOd, and the auditors (Messrs W. A. Mitson and Co.) and committee recommended that members should receive a dividend of Is in the £ on all goods paid for during the six months. This dividend, together with the 6d in the £ already paid, would make a total pay-out of is 6d in the £ on purchases. The report and balance sheet were adonted. The auditors complimented the society on the increase in trade and its sound financial position. Messrs .1. Hicks. D. Connor, and G. Rutherford retired according to the rules, and were re-elected. Mr Connor was re-elected chairman, Mr H. Johnston treasurer, and Mr G. Gibson secretary. Votes of thanks were passed to the directors, manager, and staff.

LOWER SHARE VALUE “AMERICAN DEBACLE" EFFECTS OF LEGISLATION ECONOMIC EXPERIMENTS ” If it wore not for 1 lie American ilchaclo wc should in all probability Imvo .seen (lie prices of good investments ranging around the figures ruling in the earlier part of tlic year,” said Mr Andrew Hamilton, chairman of tho Wellington Stock Kxchange, in reviewing the .year’s operations at tho annual meeting of the Exchange last week. ** With the beginning of the decline in prices at the end of tho lir.st quarter of the year,” Mr Hamilton continued, 11 investors at this end of the world were inclined to believe tho falling off was duo to fear of war, and it was not until some two or three months ago that it was realised that the disturbed state of American industry and tho American financial market was (he real cause of tho set-back, • So far as any possibility of war is concerned, it has gradually become apparent that there has been probably less .likelihood of a clash than there was just prior to Italy’s invasion of Abyssinia. NEW TAXES IMPOSED. “ Unfortunately America has made probably the poorest post-depression recovery of any of the leading nations of tho world. With her failure to come through the struggle with anything approaching the measure of success achieved by Britain, resort was had to Governmental economic attempts, to cure her ills. “ The repercussions from these untried theories have made thcmslvcs sadly felt during the last few months, The undivided profits tax has closed tho avenue to long-term investment in companies which are debarred from conserving in prosperity reserves to tide them over lean periods. A plain illustration of this is shown in Germany, where a similar tax has caused companies to pay out practically all profits and depart from the sound procedure of building up reserves. “ Further serious American legislation in tho form of the tax loophole Act has dealt a blow to short-term profits which now incur full normal tax and surtax, while losses can be offset against other income to the negligible extent of a maximum of 2,000d0l only. In the highest groups of income those over 5,000,000d0l surtax reach 75 per cent. Even the retention of the securities for a number of years lightens tho load but little, as securities held for over one year are taxable to about 80 per cent, of the profits, while holding them for 10 years brings a redaction to only 30 per cent. The result is that the substantial investors are removed from the short-term market, as it is useless investing with such odds against them, DEFINITE MOVE AWAITED. “ It is considered in certain reliable quarters in London that Mr Roosevelt can mend the present situation at any time. Measures such as the desterilisation of gold, open market operations, reduction of margin requirements (already effected), relaxation of the Securities Exchange Commission, regulations, reduction of the capital gains tax, repeal of the undivided profits tax, are at his disposal, but it is dfficult to know whether he is willing to act at once or is withholding action with the view of obtaining some popularity for recovery prior to the Congressional elections next year. In the meantime traders are withholding normal operations awaiting some definite move from Washington. “ The outstanding feature of the tragic upheaval of the big American market as the result of economic experiments should prove an arresting illustration. Economics is yet far from an exact science, and in matters of finance, which is undoubtedly one of the main foundations' of any country, the reasoning part of the community would prefer to see the authorities collaborating with and accepting the guidance of sound and experienced banking and business men rather than have those views jettisoned in favour of the lure of totally untried experiments.” THE RESERVE BANK ASSETS AND LIABILITIES [Per United Press Association.] WELLINGTON, November 25. The ‘ Gazette ' issued to-night contains the following statement of liabilities and assets of the Reserve Bank of New Zealand as at the close of business on November 22. The figures at the close of the previous week_ are given for purposes of . comparison, shillings and pence being omitted: — LIABILITIES.

DOLLAR m FRAHO Press Association—By Telegraph—Copyright LONDON, November 25. (Received November 26, at 11 a.m.) The dollar is quoted at 4.995. The fraac is quoted at 147 8-32.

TIMBER MILLS’ PROFIT TARINGAMUTU DIVIDEND FIRST PAYMENT SINGE 1924 A profit of £10,495 is shown in the accounts of Taringumutu Totara Sawmills Limited, Wellington, for the year ended September 30. This compares with £6,673 a year ago and £2,271 in 1935. The amount brought in was £383, making a total credit in the appropriation account of £10,878. Provision lias been made for income tax for the year ended September 30, 1936, payable in February, requiring £1,229, while £5,191 is set aside for the past year’s income tax requirements, leaving £4,458 available. The directors recommended a dividend of 3 per cent., absorbing £I,BOO, leaving £2,658 to be carried forward. This is the first distribution since 1924, when a net profit of £B,lOl allowed a dividend of 10 per cent. The directors draw attention to the fact that the company’s farm contributed £2,149 to the past year’s profit and that alone had enabled the recommendation of a dividend. The company has a capital of £60,000 in £l. fully-paid shares. Its assets, which total £75.329, include properties at Palmerston North and Puketapu. FRUIT AND PRODUCE INCREASING SUPPLIES AND LOWER VALUES HEW POTATOES DEARER Iteilly’s report that supplies of fruit anil vegetables aro arriving in increasing quantities, and values tor most lines are lower. Good apples ex cool store command satisfactory values. Increased supplies of strawberries arc now coming to hand from the Otago Central, Waiumle, and Outram districts. Heavy supplies of cherries are also being received. Prices for both cherries and strawberries are rather disappointing. Values for Christchurch and local hothouse tomatoes remain firm, fair supplies being received. Increased quantities of gooseberries are corning to hand and meeting with a fair demand. Oranges are in short supply, the Waikouuiti having been delayed, and her shipment will not come to hand until tho end of the week. There have been good bookings for supplies by the Maunganui, due next week. Californian lemons and grapefruit are in demand, and high values are being obtained. The Monterey was due at Auckland to-day with further supplies of Californian -grapes, grapefruit, and lemons. Better values are obtainable for New Zealand-grown lemons. Transhipments received ex the Hauraki consisted of island tomatoes, cocoanuts, and mangoes. A further shipment of Niue and Samoan bananas came to hand during the week, the fruit being in prime green condition. Small consignments of rhubarb are still arriving. Supplies of vegetables are increasing, with a fair demand for cabbage and lettuce. Large quantities of cauliflowers are available, but values remained firm. During the week new potatoes have been very short of the demand, values firming considerably. Increased supplies of Oamaru and Taieri grown are now being received, and, with the beneficial rains experienced, heavier supplies should be coming forward. Small lines of old table potatoes are still coming to hand and selling well. Heavier consignments of green peas are also arriving, and prices have dropped during the week. Further shipments of Canadian onions have been received. These are of very fine quality, and have a good inquiry. Very little whitebait is coming to hand, and values are firm. Prices of eggs remain unchanged. There was a medium penning of birds for the weekly poultry sale, good values being secured for all lines.

PETROL PRICES ADVANCE OF ONE PENNY 1 DUE TO INCREASED COSTS As from this morning tho wholesale and retail prices of petrol in Dunedin were advanced by Id a gallon. The new prices at the bowsers are 2b a gallon for ordinary petrols and 2s Id for, super, grades. For some months wholesale firms have been selling below cost, it was officially explained. The increase of costs in all directions could be offset only by an advance in the price, but the Government would not consent to an increase when it was first proposed. Proof of their original contention had been given to the Government, which now permitted the rise in price. THE SEARCH FDR GOLD GOLDFIELDS RETURN [Per United Press Association.] TIMARU, November 25. The Goldfields Dredging Company advises a return for the week of lloz 2dwt. MOSSY GREEK DREDGE [Per United Press Association.] GREYMOUTH, November 25. The Mossy Creek return was 440 z 7dwt for 114 hours’ dredging and a yardage of 6,777. (OMAN MINES PROMISING ASSAYS. The manager of the Rexman Mines Ltd. reports as follows for the week ended November 19: —No. 1 block, No. 1 reef, is opening out into a fine face of pay ore 12ft wide. The tip of box sample assayed 15dwt. The work in the prospecting tunnel proved that the east branch reef is a loop off tho middle branch. A winze was started on the middle branch and samples taken from 2ft below the floor of the tunnel assayed. Blue quartz, 3dwt 12gr; fine quartz, 18dwt; oxidised quartz, 3oz sdwt 7fx.

MORNING SALES. £ s. d. Commonwealth Bonds— 4 per cent., 1938 103 1 3 4 per cent., 1941 ... ... ■101 8 9 4. per cent., 1959 ... ... 104 2 6 Tooths 2 13 3 Associated News ... 1 3 9 Anthony Hordern 0 18 6 Broken Hill Pty 3 0 6 Broken Hill Pty. (rights) 1 7 9 Electrolytic Zinc (:pref.) ... 2 9 0 Goldsbrough, Mort 1 11 9 Henry Jones ... ... ... 2 3 3 AFTERNOON SALES. iBank of New South Wales 33 2 6 Comm. Banking of Sydney 20 9 0 Comm. Bank of Australia 0 17 3 Bank of Adelaide 6 4 0 Colonial Sugar 46 15 0 Associated News 1 3 4} Associated News (prcf.) ... 1 4 0 Burns, Philp ... 2 14 6 British Tobacco (New Zealand delivery) 2 9 6 Tooths 2 13 0 Australian Glass 4 5 9 Australian Glass (New Zealand delivery) 4 5 9 Dunlop Perdriau (pref.) ... 1 17 0 Stcdmans ... 0 15 0 General Industries 0 19 0 Westinghouse 1 2 6 Cash Orders 0 16 3 Felt and Textiles 1 15 3 Felt and Textiles (rights) 0 13 6 Sargents 1 10 0 Meggitts 1 12 0 Standard Cement 0 17 6 Victoria Nyanza 0 17 3 United Provisions 0 6 9 Woolworths (ord.) 1 4 6 Wilcox, MofSin 0 10 9 Henry. Jones 2 8 0 Millaquin Sugar 1 18 0 Fairymead Sugar 1 12 3 Electrolytic Zinc 2 6 0 Electrolytic Zinc (pref.) ... 2 8 6 Mount Morgan 0 11 5 Mount Lyell 1 11 6 Broken Hill Pty. ... > ... 3 0 3 North Broken Hill ... *... 2 9 6 South Broken Hill ...' ... 1 15 4} Rawang ... 0 10 0 New Broken Hill Consolidated 0 13 1 Placer Development . 3 10 6 Sulphide Corporation 0 13 4 MELBOURNE, November 25. There was a better demand for longdated loans and industrials Barriers closed easier in expectation of an l oasier market in London, Comm. Bank of Australia ... 0 17 2 National Bank (£10 paid) 14 0 0 G. J. Coles 4 1 9 Australian Glass 4 5 0 Broken Hill Pty. (rights) 1 7 9 Australian Paper Manufacturers 1 5 6 National Reliance Investment Trust 0 11 0 Electrolytic Zinc 2 6 0 Electrolytic Zinc (p re L) ... 2 8 6 Mount Lyell 1 11 3 North Broken Hill 2 R 10} South Broken Hill 1 15 0 Emperor 0 12 4 Loloma ... ... ,... 0 17 1

Last week. . This week. £ £ I. General Reserve Fund 1,500,000 1,500,000 2. Bank notes 13,279,908 13,263,032 3. Demand liabilities—* (a) State ... 4,563,000 4,486,958 (b) Banks 7,095,866 7,438,766 (c) Other ... 720,265 553,136 4. Time deposit" — — 5. Liabilities in currencies other than New Zea* land cuncncv «»• ... 62,218 62,218 c. Other liabilities 157,300 158,606 Total £27,379,563 £27,462,719 ASSETS. 7. Reserve— (a/ Goin 2.801,701 2,801,7*1 (b) Sterling cxclange ... 16,670,179 10,552,343 (c) Gold exchange — • 8. Subsidiary coin 81,869 83,403 a. Discounts— (a) Commercial and agricultural bills ... (b Trea-'urv and local body bills 10. Advances— (a’ To State or State undertakings— (I* Dairy industry account 4,380,895 4,585,014 (2- tor of her pur* po*es 700,000 700,000 (b> To other public authorities ... _ (c) Other __ n. Investments ... 2,658,325 2.658,325 12. Bank buildings — 13. Other assets 77,505 81,781 Total £27,379,565 £27,462,719 Proportion of revive (No 7 less No. 5) to notes a nd otner demand Uabilkics 75.005% 74.943%