BUSINESS WORRIES

Evening Star, Issue 23377, 21 September 1939, Page 9

BUSINESS WORRIES

WOOLLEN INDUSTRY MORE ORDERS RECENTLY Addressing shareholders in the Kaiapoi Woollen Manufacturing Company in Christchurch, the chairman of directors, Mr Arnaud M‘Kel!ar, said that new awards, which provided in many instances for increased rates of wages and extended holidays on full pay, had again increased manufacturing costs. “It is becoming particularly difficult to absorb, these extras into a working week of 40 hours, which is frequently reduced to 32 hours by paid holidays,” he added. “ A steady demand would assist greatly in this matter, and there .are indications that at the present time such conditions may be expected to prevail. “ We have been entrusted with a larger volume of orders more recently, which are.no doubt the result of the Government’s new policy of import selection, and, provided a reasonable time for deliveries is allowed, and we 1 are not pressed to complete too many military orders at short notice, the directors have no doubt that the company will meet the situation in a satisfactory manner. Taxation, however, presses heavily on a company constituted such as ours with a large capital and the amount required under this heading closely approximates the amount required to pay the dividend on ordinary shares.” In seconding the motion to adopt the accounts, Mr J. H. Rhodes urged an extension of working hours to meet the present emergency arising out of the war. MINES AND METALS REPORTS AND RETURNS GREY RIVER The Grey River dredge has recovered 2920 z of gold from 84,504 yards in 128 J hours. MOUNT MORGAN OUTPUT Mount Morgan Ltd. reports on operations for four weeks ended August 23. as follows;—Total material mined, 150,293 tons at 2s s.lid a ton (progressive average 2s 3.66 d). Material delivered to treatment plants: Sulphide mill, 38,520 tons; oxide mill, overburden, 13.546; old dump material, 16,212; total, 68,279 tons. Estimated value of production and operating costs for four weqks ended August 23, value, less cost of ' realisation, £50,466; estimated operating costs (including 81,991 tons of overburden discarded). £42,692; estimated working surplus £7,774. Metal prices: Gold £A9 5s an oz; copper. £A6O a ton. In arriving at the working surplus no provision has been made for depreciation, overhead expenses of £2,600, and preference share dividend of £1.231. Capital expenditure for the period amounted to £2,210. Shareholders must accept the above figures as estimates only. Production was continuous in all departments. PARA RUBBER COMPANY NET PROFIT UP, DIVIDEND STEADY A net profit of £4,460 against £4,311 in the previous year is shown in the accounts of the Para Rubber Company Ltd., for the year ended April 30, 1939. The profit is struck after allowing £1,699, _ against £1.783 last year, for depreciation of plant and buildings. With a carry-forward of £706, the sum available for distribution is £5,166. Of this amount, it is proposed to set aside £1,600 for income tax and social security taxation, to place £I,OOO to the general reserve, making this fund £16,000. and to pay a dividend of 6J per cent. (unchanged), absorbing £2,064, and leaving £502 to be carried forward. The paid-up capital of the company is £27,555. FOREIGN EXCHANGES Press Association—By Telegraph—Copyright.

JONES NEVIS SLUICING CLAIM TO BE LET ON TRIBUTE COMPANY'S INDEBTEDNESS NOW £1,600 Advising shareholders fo accept an offer by a tribute party of debenture holders to work the claim, the directors of the Jones Nevis Sluicing Company Ltd., in the sixth annual report and balance sheet, point out that the company’s indebtedness now amounts to £1,601. Unpaid interest on debentures is £630, directors’ fees and the secretary’s salary £869, and cash loans by the directors £lO2. Gold won totalled 60oz, netting £468, while the year s operating loss was £2BO. _ Operations on the claim consisted mainly of cleaning in the bottom wash left over from the previous season, but when this was completed the ground ahead showed very poor values. Work was therefore stopped. The scarcity or experienced nozzlemen willing to work in the Nevis Valley made for difficult conditions. After visiting the claim, the directors were convinced that it would be necessary to transfer the mining operations to the southern end, which meant the removal of claim plant and the opening up of a new paddock, the minimum cost being about £4OO. This expenditure being beyond the resources of the company, a conference took place with a representative of the debentureholders,'Mr Frank Jones, sen., as it was realised' that they could have taken possession of the company’s assets because of its failure to pay even its interest. Mr Jones offered to take the claim on tribute for a period of two years, with a right of renewal for a further term of two years. If such operations resulted in a loss, then the loss would be borne by the Jj'hute party. If the results are profitable the company will receive 25 per cent, of the profits after payment of current debenture interest at the rate of £2lO per annum. The directors recommend that this course be followed. AUSTRALIAN STOCK EXCHANGES BETTER TONE EVIDENT Press Association —By Telegraph-Copyright

SYDNEY, September 20. A better tone and renewed strength marked the dealings on the Stock Exchange to-day. Investors are awaiting with keen interest the outcome of the neutrality discussions in the United. States Congress, which will take place shortly. Tin shares are in active re-

DIVIDENDS AND CAUL LIST. DIVIDENDS PAYABLE. Auckland Farmers’ Freezing Co. — 6 per cent, per annum Sept. 23 North Broken Hill—Quarterly, 6d a share (August 29) Sept. 87 George Farmer, Sydney —Ord., 2) per cent, per annum Sept. 29 Felt and Textiles—s per cent., making 10 per cent, per annum Sept. 30 British Tobacco Co. Ltd. —Quarterly ord., 2 per cent. (September 9) Sept, 30 Dunlop Perdriau Rubber —Finals cum pref., 5 per cent., making 10 per cent., and ord. per cent., making 7 per cent, per annum respectively (September 14) Sept. 30 Barnet Glass Rubber—Finals cum pref., 6 per cent., and ord., per cent., making 10 per. cent, and 12£ per cent, per annum respectively ... ... ... Sept. 30 N.Z. Newspapers Ltd.—lnterim, 8d a share Oct. 2 Wairarapa Farmers’ Co-op.— Pref. 3J per cent, per annum Oct. 2 Hume Pipe (Australia) Ltd.— Final ord. and pref., 3J per cent, per annum, making 7g per cent. Oct. 2 Nestles and Anglo-Swiss Condensed Milk (Australasia) Ltd. —Quarterly pref. at 8 per cent, per annum, ... Oct. 2 Bank of Australasia—lnterim 3s 6d per share (less British income tax, September 11) ... Oct. 6 Woolworths (N.Z.) Ltd. —Halfyearly pref., 9 per cent. (September 24) Oct. 15 Woolworths Ltd., Sydney—Halfyearly ord., 6 per cent. (September 24) ••• Oct. 15 (Dates in parentheses signify the closing of transfer books and registers.) CALLS DUE. G. J. Coles—los a share, making £1 paid Jan. 15

LONDON, September 20. (Received September 21, at 1.30 p.m.) New York, dollar to £1 ... 4.03 Paris, franc to £1 176i Montreal, dollar to £1 ... 4.43 to 4.47 Amsterdam, florins to £1 ... 7.55 to 7.62 Switzerland, franc to £1 ... 17.55 to 17.85 Stockholm, kroner to £1 ... 18.70 to 16.9C Athens, drachmae to £1 ... 540 Lisbon, escudo to £1 1101 Kobe, pence to yen — Hongkong, pence to dollar 15 Shanghai, pence to dollar 4 Brussels, Belgas to £1 ... 23.30 to 23.60 Rome, lira to £1 76 i

quest at firm rates. £ S. d. Bank of N.S.W. ••• 27 3 0 Commercial Bank of Sydney 17 4 0 Commercial Bank of Aust. 0 14 3 National Bank (£10 paid) 11 15 0 United Insurance 10 0 0 Associated News ... ... ••• 0 15 6 Australian Guarantee Corp. 1 0 0 Howard Smith ... ... ... 1 0 6 Burns, Philp (South Seas) 1 3 11 British Tobacco Tooth’s ••• 2 5 6 2 9 6 6 6 Tooheys 1 Carlton Brewery ... 3 5 3 Wool worths 1 U XUS (New Zealand delivery) I 0 v* 1 0 104 Aust. Consolidated Indus. 1 12 7i (rights) 0 3 9 Dunlop Perdriau ... ... 0 17 0 Anthony Hordern 0 12 10 General Industries 0 16 6 Meggitts 1 1 0 6 i 9 3 6 Atkins Gash Orders ... 1 14 Gordon and Gotch 2 7 9 9 Goldsbrough, Mort 1 0 Morris Hedsbrom 1 4 4 Mijlaquin Sugar 2 0 9 Fairymcad Sujjar 1 13 6 Electrolytic Zinc ... ••• (pref.) 2 2 13 13 9 6 Broken Hill Proprietary ... 3 6 6 North Broken Hill 2 7 6 South Broken Hill 1 8 3 Emperor 0 9 3 Mount Morgan 0 9 4 Mount Lyell 1 10 6

MELBOURNE, September 20. Commercial Bank of Aust. 0 14 4 Carlton Brewery ... 3 5 0 Union Bank 6 14 0 Australian Paper Mfrs. (pref., ex div.) 1 i 6 G. J. Coles 3 7 9 1 Herald and Times •> 18 0 Broken Hill Proprietary ... 3 6 9 North Broken Hill 2 8 0 South Broken Hill 1 8 6 Mount Lyell ... 1 10 3 Mount Morgan ... 0 9 4 Electrolytic Zinc (pref.) ... 2 15 3 Loloma 1 2 9