Commerce, Mining, Finance

Evening Star, Issue 23325, 22 July 1939, Page 12

Commerce, Mining, Finance

GENERALLY SATISFACTORY INVESTMENT GROUND GAINED HIGHER PRICES FOR SELECTED LINES ■lt would be difficult to measure the reactions and opinions of operators, speculators, and investors to market trends. Probably they can be divided into their name classes —investors would prefer a stable market, basing its movements on industrial reports, k and speculators would prefer a nervous market. Since Easter, therefore, each class has enjoyed its innings. For * several weeks the New Zealand market, a and London and New York as well, followed a straight course, varying. only fractionally as international problems were quieter. Caution at that time was the market catchcry. As opposed to that trend, however, the securities markets have shown welcome life during the last fortnight. Advances have been the rule for most transtasman industrials, but fresh political worries overseas fostered the reappearance of hesitancy yesterday, with a resultant readjustment of prices, i Gains over the past week must be considered satisfactory. Not only did they embrace Australian issues (a reaction of the bullish movement which developed in Wall Street early in the week), but a few strong New Zealand ■. issues made way. Uncertainty on Mon- '!■ day developed into a stronger market ’i on Tuesday, and strength was maintained until yesterday. High levels _ touched by Commonwealth industrials included that of £3 / 9s 9d by Broken Hill Proprietaries, j £SO 10s for Colonial Sugars, £4 Os 6d for G. J. Coles, £2 12s for British Tobaccos, and £1 4s Id by the slowi moving Sydney Woolworths. Metals made restricted advances, Lyells gaining .Is, Norths 6d, and Zinc ords. Is, but most of the ground was j later lost. Several Dominion issues showed out j in upward movements. Drugs were ■ sought at a higher valuation, as were 1 Milburn Limes, while New Zealand Woolworthfl gained good ground. Feature of the local sections was provided by Banh of New Zealands, however, which were marked up sharply to business in the north just below the £2 mark. ... . j. In this column last week there was •„ a warning note that international ; troubles might arise to upset investment calculations. That was a com-mon-sense deduction in view of the market reactions over the last year, and it is one that should be still borne in v mind by operators. Trouble over ’ Tientsin has grown more serious within ; the last week, while it must be remembered'tlmt tW Japanese military might ' take matters into their own hands and ■ ' provoke trouble, with Britain or any other foreign group in China. Tension in Europe shows little change. While a steady demand still exists for j overseas funds to meet outside 'commiti'. ments, there is uncertainty regarding , future developments in this connection as a result of the credits made available to New Zealand in London, as 1 announced in last night’s ‘ Star.’ Some rather substantial amounts for trading purposes have been dealt in during the past few weeks, while it is understood that some investors are now finding it difficult to make up ammults to meet forthcoming calls in Australia. W.A. GOLD MINES DEALINGS STOPPED ; The Committee of the London Stock Exchange has disallowed the appeal of Commonwealth Mining and Finance Limited, against the refusal of permission to, deal in the company’s shares. ■ The committee has also withdrawn permission to deal in Anglo-Australian Gold Development Limited, Beryl Gold) Corporation Limited, Great Boulder Mining and Finance Limited, Meekatharra Gold Mines Limited, Murchison, Gold Development Limited, North Kalgurli United! Gold Development Limited, and Southern Cross Gold Development Limited. The companies concerned are preparing a full - statement for shareholders. ’ Officials of Commonwealth Mining ind Finance Limited state that they are unaware of the reasons for the ban bn dealings, as the committee is empowered! ,t(K,act without explanation. The company,‘they add, has nothing to hide, and is prepared to offer full facilities for an investigation. , The ‘Financial Times’ says: “ Clearly there must be a thorough inquiry into the history of the position of all the companies, either by the Board of Trade of by the companies themselves, but it is clearly the Board of Trade’s duty, to take the initiative.” .:“.The committee,” it adds, “must he gravely dissatisfied with the conduct of the. affairs of the companies in some important .respect, .but .it is- impossible to say inbre’at the moment.” _ .The; ‘ Daily Telegraph ’ points out thati ■" the Stock Exchange Committee, has rarely taken such drastic - action. Lack of explanation' ' leaves the shareholders thoroughly discomfited, and perplexed; The situation ’demands prompt and full statements from the companies, as nominal capital of £3,500,000 is involved. Latest Sales. Dunedin sales since the last review have been as follows: N.Z. Government Loans.— 3i per cent. Stock, 1953-67, £9O 10s, £B3 ss; 4 per cent. Stock, 1954-58, £96 10s. Local Body Debentures,—Hastings Borough; 4i per cent., 1942, £IOO 10s; Waitaki Power Board, 4$ per cent., 1959, £99 10s (2). .Banking.—Australasis, £9 5s (2); New Zealand, £1 19s; National Bank of New Zealand, £2 ss. Insurance.—National, 16s 9s; Standard, £2 14s 3d (3). ’Meat Preserving.—N.Z. Refrigerating (cont.), 8s 2d. Coal.—Kaitangata, £1 8s; WestportStockton (ord.), 3s lid. Oil.—Taranaki, 6s 5d (2). Woollen.—Oaraaru, 15s 3d., Miscellaneous.—Australian Consoli- I dated Industries, £1 18s 6d; Broken Hill Proprietary, £3 9s; Donaghy’s Rope and Twine. £2 8s 3d (odd lot); G. J. Coles (ord,), £3 19s 9d; Hume Pipe, £1 Is 6d; Kauri Timber, £1 3s; New Zealand Drug, £3 9s; New Zealand Paper Mills, £1 6s; Woolworths (Sydney, ord.), £1 4s (2). ‘‘'-i. Breweries.—New Zealand, £1 17s, £1 17s 7d. Australian Mining.—Electrolytic Zinc (ord.), £2 13s 6d; Mount Morgan, 10s 6d, 10s sid. I

IMPORT RATIONING SECOND PERIOD LICENSES APPLICATIONS MUST BE LODGED BY AUGUST 1 [Per United Press Association.] WELLINGTON, July 21. Applications for licenses to import goods during the second peripd of the present year must be lodged with the Customs Department not later than August 1. This was announced to-day by the Acting Minister of Customs (Mr Mason). Mr Mason said that, with a view to assisting in the arrangements being made by the Reserve Bank concerning overseas remittances and removing the uncertainty as to when overseas funds would be made available to particular importers, it had been decided to require that applications for licenses to import goods during the second period of the year should be lodged with the Customs Department not later than August 1 next. The Customs Department, he said, would make every endeavour to issue the licenses as early as possible, although it would be recognised that in some instances the necessary investigation might entail a little unavoidable delay. “ In the circumstances,” the Minister added, “I think the expediency of making immediate application will be fully appreciated by importers.” COMPANY LIQUIDATION REMEDY FOR ABUSES STATEMENT BY MINISTER [Per United Press Association.] WELLINGTON, July 21. The Minister of Justice (Hon. H. G. R. Mason), in an interview to-day, made an important statement relating to the liquidation of companies. He said that during the past few years many complaints had been addressed to him on this subject, and he thought it might be helpful if he were to outline what he considered to be the proper procedure in such matters. Mr Mason prefaced his remarks by saying he wished to make it clear that his statement had no reference to the wind-up of a company which failed through no fault of the directors or of its officers, or which was being wound up for some reason other than failure, and where both the conduct of the company and the winding up of the liquidator were satisfactory. Most people know, the Minister said, that there were formed every year a number of companies for the purpose,, not so much of carry-. inn out some genuine commercial or manufacturing enterprise, as of obtaining money from credulous investors. After the shareholders money was gone the company had to be interred, and, in order to save the reputation of the directors, to be interred as decently as possible. This was done by going into voluntary appointing as liquidators a nominee ; of the directors. . „ These abuses of the Companies Act, Mr Mason said, were not without their remedy. The principal remedy of the shareholders and creditors was to petition to have the company wound up by the court or wound up subject to the 'supervision of the court. If a creditor or contributor did not care to petition in his own name he could place a statement of the position before the Official Assignee of the district. Then the Official Assignee might petition to have the company wound up by the court. The court would not make an order unless it was satisfied that voluntary winding up could not be continued with

due regard to the interests of the creditors and contributories. The Minister then outlined the legal procedure for an investigation of a company’s affairs by the Assignee, the court’s powers in connection with such cases, and also the duties of the Minister and the department. Ho made it clear that proper machinery existed for the punishment of frauds on the public by abuses of the Companies Act. Everything in his power and in the power of the officers of his department would be done, he emphasised, to see that the machinery functioned as it was intended to function.