Commerce, Mining, Finance

Evening Star, Issue 22956, 13 May 1938, Page 6

Commerce, Mining, Finance

Taupiri Mines Accounts Increased Dividend- From Tooths A slight decline-in New York yesterday on a moderate turnover had little effect on New Zealand markets. Movements remained restricted, although some Commonwealth industrials displayed a fractional rise. The directors of Mount Morgan propose to pay a dividend of 3d a share on July 20. The Taupiri Coal Mines Ltd. earned a net profit of £9,363, £450 up on last year, during the 12 months ended March 31. The dividend has been maintained at Is a share. Tooth and Co. Ltd. has declared an interim dividend of 5J per cent., which compares with last year’s corresponding payment of 5 per cent.

EMPLOYMENT CHARGES COMPANY DIVIDENDS GUIDANCE FOR TAXPAYERS INCOME FROM AUSTRALIA Information concerning the employment charge on overseas income is being circulated by the Employment Tax Division of the Land and Income Tax Department. Section 25 (5) of the Employment Promotion Act, 1936, provides that “ income derived elsewhere than from New Zealand shall be exempt from the employment charge, if tod so far as the commissioner is satisfied that it is derived from some other country within the British dominions, and that it is chargeable in that country with a special tax levied in respect of unemployment.” . Australia is the only other British dominion which, is known at the present time to levy a special unemployment tax and it has been ascertained that Victoria withholds no such tax from dividends remitted to absentees nor is there any unemployment tax on the gross profits in that State. CONDITION FOR EXEMPTION. It has been ruled that, as the employment charge is a personal tax, an exemption can be claimed only when the actual dividend warrant has sustained a tax, and no exemption can be claimed by reason of the fact that the company has paid an unemployment tax on its gross profits before .distributing the whole or part of same to the shareholders. This ruling applies, therefore, to dividends from Queensland, South Australia, Tasmania, and Victoria. In New South Wales the companies are required to withhold from dividends remitted to absentees the special unemployment tax._ This does not apply to companies which, although trading in New South Wales, do not have a snare register situated in that State. For example, Goldsbrough, Mort, and Co. Ltd. trades in New South Wales, but as it has no share register in that State no unemployment tax is levied on its dividends by the New South Wales State Government. TAX IN NEW SOUTH WALES. To assist taxpayers in preparing the correct declarations of - income other than salary or wages derived during the year ended March 31 a list of companies showing the percentage of dividend taxed in New South Wales has been prepared. The proportion of dividends not taxed in Australia must be declared for employment taxation purposes in New Zealand. The following companies, with the percentage of dividend taxed in New South Wales shown, are of interest to New Zealand taxpayers:—Amalgamated Wireless, 53 per cent.; Australian Iron and Steel, 98; Bank of New South Wales (if on register outside New South Wales), nil; Bums, Philp, 20.88; Colonial Sugar, 18.14; Felt and Textiles. 44.18; General Industries, 62.72; Anthony Hordern, 100; Mort’s Dock, 100; Queensland Insurance, 29; Selfridges (Australasia), 100; Tooheys, 100; Winchcombe, Carson 60.53; Woolworths Ltd., 58.41. LAND COMPANY SHARES Press Association —By Telegraph—Copyright LONDON, May 12. (Received May 13, at 1 p.m.) The’ New Zealand and Australian Land Company has declared no interim dividend on ordinary shares.

BASE METALS CONTINUE TO SHOW WEAKNESS U.S.A. INDUSTRIAL SLUMP RECESSION'S FAR-REACHING EFFECTS In view of world-wide rearmament, it is only natural that investors should be wondering why it is that base-metal markets are so weak. . It seems to be agreed by most authorities that, following the acceleration of armament programmes early last year, the likely demand for metals was greatly overestimated. It is_ true that preparation for war necessitates the use of increased quantities ‘of base metals, but the level to which prices rose last year is not a true indication of the increased consumption which might reasonably have been expected to follow speeding-up of rearmament. Nevertheless, in the < long run, the great sums of money being employed in the manufacture of arms must be accounted a “ bull ” factor in the market. But, as the ‘ Financial News pointed out recently, the long-term nature of this factor must be emphasised, and it must be realised also that a recovery in the United States is far more important for commodity prices than any European arms race, short of an actual major war. And here lies the key to the situation —the great falling off in demand for base metals in the United States recently as a result of the exceptionally severe business recession which has persisted now for about nine months. The United States is the largest individual consumer of base metals in the world (it takes more than 50 per cent, of the world tin output). Therefore, even relatively slight variations in the level of business activity there tend to have a far-reaching effect on prices of metals, and, indeed, most commodities. In the case of copper, the market outside of the United States is generally strong, with consumption in excess of production, but the general price level is being kept low by the failure of American consumers to enter the market to any appreciable_ extent. The reimposition of restriction on December 1 last has had the effect of keeping production outside of the United States under control, and stocks have tended to decline. The figure of 203,610 tons on February 28 was no more than it was six months before, and it covered current requirements for two months only. The market for tin continues to weaken. The latest sterling quotation of £167 12s 6d a ton compares with an average of £242 6s 7d for 1937, and with £l9l 17s 6d at the beginning of the year. Although export quotas were drastically reduced from 110 per cent, of the standard tonnages in the last quarter of 1937 to 70 per cent, in the first quarter of 1938, and 55 per cent, in the second, it has apparently not been sufficient to_ meet the sharp fall in consumption which has taken place since last year. In addition, the proposal for a buffer pool, which is still under consideration, has proved very disturbing to the market. As production of both lend and spelter is not subject to restriction, the future of the markets for these metals tends to be a little more obscure. Although stocks of both lead and spelter are rising, particularly those of spelter, the statistical position of neither may he considered to be unsound. Prices a ton of copper, tin, lead, and spelter in sterling are compared in the following table;—

FRUIT AND PRODUCE HEAVY VEGETABLE SUPPLIES EGG VALUES RECEDE Reilly’s report that the supplies of apples coining forward are sufficient for the demand. Some fine consignments of Delicious, Sturmers, and tree-ripened Jonathans are now being received, while the market is well supplied with cooking apples. Some nice quality Winter Cole and Winter Nelis pears are arriving. Owing to the mild season the market is well supplied _ with flowers. Hothouse tomatoes are in demand and realising good values. A shipment of 1,845 cases of Isjand oranges transhipped by the Wainui from Auckland arrived during the week and are on sale at reasonable prices. Bananas are still in over-supply; sales, "however, have been slightly better during the week. Transhipments of Californian oranges, grapefruit, and lemons came to hand during the week. Jam melons have a better inquiry at increased values. Fairly heavy supplies of vegetables have been coming on to the market. Cauliflowers are still short of the demand : other lines are in ample supply. Marrows are realising slightly better values, but pumpkins are still low priced. Good quality lettuce has a satisfactory inquiry, and there is a

NEW YORK SHARE INDEX DOW JOKES AVERAGES

COMPANY NEWS TAUPIRI COAL MINES NET PROFIT £450 UP DIVIDEND UNCHANGED AT 5 PER GENT. - A net profit of £9,368 is recorded in the thirty-ninth annual report of the Taupiri Coal Mines Ltd. for the year ended March 31. Last year the net profit amounted to £8,913. Dividend is unchanged at 5 per cent. Reference to the profit and loss account for the year shows, after making allowance for depreciation of assets, there is a net profit of £9,362 19s Id, to which must be added the sum of £3,323 17s sd, making a total of £12,686 16s fid. Preference share dividends have been paid amounting to £1,280, leaving a balance to be dealt with of £11,406 16s 6d. The directors recommend that this be appropriated as follows: —To pay a dividend of Is a share on ordinary shares (£6,500), and to carry forward £4,906 16s 6d. TOOTH’S BREWERIES INCREASED INTERIM DISTRIBUTION DIVIDEND, OF 5i PER GENT. The directors of Tooth and Company Ltd., a New South Wales brewing concern, have declared an interim dividend of 5J per cent. Last year the company paid an interim of 5 per cent., which, -with the final of*sJ per cent., made 10J per cent, for the year. MOTORING ORGANISATION TO BE CONVERTED INTO PUBLIC COMPANY CAPITAL OF £500,000 [Per United Press Association.] WELLINGTON. May 12. It is reported that one of the largest motoring organisations in the Dominion, with a turnover approaching £1,500,000, is shortly to be converted into a public company with a capital of £500,000.

MINING NEWS BULOLO DREDGING MAINTAINS DIVIDEND RATE Bulolo Gold Dredging Ltd., which operates in New Guinea, has declared an interim dividend (No. 10) for the year ending May 31 of Idol 50 cents (Canadian) a share, payable from all offices on June 10, less Canadian absentee tax of 5 per cent. Books will close on May 19. This rate is unchanged compared l with that of the previous distribution, made, on December 10. Each dividend of Idol 50 cents (approximately 7s 2d Australian) requires 1,500,000d0l (£A375,000). The two distributions in the preceding financial year were of Idol 40 cents and Idol 50 cents respectively. PLACER DEVELOPMENT Placer Development Ltd., the parent company of Bulolo Dredging, has declared an interim half-yearly dividend for the year ending April 30, 1939, of 60 cents (Caandian), less Canadian absentee tax of 5 per cent., payable on June 10, plus exchange as at May 31. Books close on May 19. Rate unchanged. The distribution equals approximately 2s lOd a share (Australian), and requires 350.000d0l (£A87,500). USE OF ALUMINIUM WIDER DEMAND FOR ALLOYS Evidence of the widening uses of aluminium was given by Mr U. VV. Cooper at the annual meeting of the British Aluminium Company in London. In addition to the aircraft demand, alluminium alloys are now finding increased application in the construction of road vehicles. Other outlets which are being successfully developed include the manufacture of aluminium foil, as well as boxes and tubes, for retail packing. To cope with the expansion in its business, the company embarked on the Lochaber power scheme, which, Mr Cooper said, is the largest hydro-electric development of its kind in the United Kingdom. The British Aluminium Company was interested, with the Electrolytic Zinc Company of Australasia Ltd., in the formation of British Aluminium (Australasia) Proprietary Ltd., for tho purpose of manufacturing aluminium in Australia.

NEON SIGNS (A SIA.) INTERIM DIVIDEND PASSED Neon Signs (A’asin) Ltd. will not pay an interim dividend for the current financial year. Last year the company paid 10 per cent, -in, interim and final distributions of 5 per cent. each. The directors report that the interim balance sheet to December 31 shows satisfactory results, but in view of the present unstable conditions prevailing generally and in the interest of. the company, they have decided not to pay an interim dividend as in the past, and the funds are being used in the business. They state that the company has had to meet very keen competition, but they have made economies in accordance with a specially prepared plan, and only business showing a stipulated margin of profit has been accepted. This has been achieved by keen selling, and figures for the first three months of 1938 show a greater margin of profit. WHAKATANE PAPER MILLS TO OPERATE IN AUGUST The statement that Whakatane Paper Mills Ltd. would be in a position to enter into production early in August was made by Mr Theo Marks, of Sydney, chairman of directors, who has been in New Zealand on the company’s affairs, prior to leaving Auckland for Australia. Mr Marks stated that the change over from the native-grown timbers at Matahina to insignis on the island of Matakana had made it possible for the company to complete the installation of plant that would permit of the use of one class of timber. The amount of timber available at Matakana Island would provide sufficient pulp timbers for at least five years. 13y that ';ime the company’s own forests would be more than ample to provide for the full requirements of the company. The manufacture would be under the control of specialists who had been engaged from overseas, these men being experienced in the operation of similar ■plants in Sweden.

MOUNT MORGAN DIVIDEND OF 3D PROPOSED The Dunedin Steel? Exchange has been advised that the directors of Mount Morgan Ltd. are issuing a circular to shareholders regarding increased production. The company is also proposing to pay a dividend of 3d a share on July 20. Earlier this year the chairman of directors (Mr Eric Campbell) announced that dividends would he resumed soon after the shipment of accumulated concentrates had begun. Difficulty in securing freight accommodation for concentrates to America caused the company to seek fresh capital for the installation of a new smelting plant at the mine, but it is not expected that the plant will he in operation for some months yet. Early last month 5,000 tons of copper and gold concentrates, valued at approximately £190,000, and comprising the largest single shipment in the history of the company (and believed to be an Australian record), were sent to the United States for treatment. FRENCH BANK RATE FIXED AT 2i PER CENT. Press Association—By Telegraph—Copyright PARIS, May 12. (Received May 13, at 8 a.m.) The French bank rate has been fixed at 2i per cent.

M'KENZIES STORES Following the preliminary statement of dividend and profits by M'Kenzies Department Stores Ltd. for the year ended March 31 (published last week), come the balance sheet items both for this company and for J. R. M'Kenzie Ltd. and subsidiary companies. The trading companies earned net (profit of £85,352 in the 12 months, compared with £80,006 a year ago. During the year the trading companies paid interim dividends amounting to £36,114, of which M'Kenzies Department Stores received £36,000. At March 31, 1938, the trading companies had available for dividend purposes £97,486, and since that date dividends amounting to £45,700 (of which M'Kenzies Department Stores received £45,699) have been declared. The accounts of M'Kenzies Department Stores show the dividends received from the trading companies and the amount now available (£53,865) for dividend purposes. A final dividend of 9 per cent, will absorb £45,000, leaving £8,865 to be carried forward. BRADFORD MARKET Press Association—By Telegraph- -Copyright LONDON, May 12. (Received May 13, at 1 p.m.) The Bradford market is firmer in tone, but quiet. Users are well covered. Merinos: 70’s, 27$d; 64’s. 26d; fid’s, 25d. Cross-breds; 58’s, 22d; 56’s, 20d ; 50’s, 17 id; 4G’s, 17d (nominal); 44’s, 17d (nominal).

sound demand for King Edward table potatoes. The inquiry for seed potatoes has now commenced. Canterbury onions have firmed in values. Mutton birds are selling satisfactorily at higher prices. Honey sales have been satisfactory. Some very fine quality clover honey is now arriving. Owing to the increased demand and the consequent accumulation of supplies, egg values have dropped 6d during the week, guaranteed now realising 2s 6d dozen. There was a fairly heavy penning of poultry for the weekly sale, with good quality pullets netting satisfactory prices.

1937. 1938. 1938. Average. Jan. 4. May 11. £ s. d. £ s. d. £ s. d. Copper, elec. 60 1 7 44 0 0 42 15 0 Tin 242 6 7 181 17 6 167 12 6 Lead ... 23 4 U 15 5 0 14 15 1-i Spelter 22 4 0 14 13 U 13 0 7i

Railroads. Industrials. Turnover. May 12 ... 23.48 118.35 600,000 May 11 ... 23.48 118.52 980,000 May 10 ... 23.19 117.93 1,040,000 May 9 ... 23.50 119.43 1,020,000 May 7 ... 22.64 117.21 560,000 May 6 ... 22.90 117.16 1,020,000 May 5 ... 21.57 113.46 690,000 May 4 ... 21.51 113.88 550,000 May 3 ... 21.45 112.70 470,000 May 2 ... 20.95 110.09 350,000 Apl. 28 ... 21.21 111.98 540,000 Apl. 27 ... 27.73 115.25 420,000 Apl. 26 ... 21.83 113.94 440,000 Apl. 25 ... 22.09 116.23 400,000 Apl. 21 ... 21.33 115.40 600,000 Apl. 20 ... 2126 114.90 780,000 Apl. 12 ... 22.40 113.88 600,000 1938. Highest ... 32.33 134.35 Lowest ... 19.00 98.95 1937 Highest ... 64.86 194.40 Lowest ... 28.01 113.64