Commerce, Mining, Finance

Evening Star, Issue 23451, 16 December 1939, Page 7

Commerce, Mining, Finance

MINES AND METALS BROKEN Hill PROPRIETARY INCREASE OF CAPITAL PLANNED An extraordinary general meeting of shareholders of the Broken Hill Proprietary Company Ltd. is tailed for January 5 to sanction proposals to widen and make modern the memorandum and articles of association, and to increase the nominal capital from £13,000,000 to £25,000,000. The bonus issue 0f'£4,459,790, already announced, on the basis of 64 new shares for every 100 shares now held, representing capitalisation of share premiums paid on new issues, will also be proceeded with when these proposals are sanctioned. In determining the number of shares to which each shareholder is entitled, fractional parts of less than one share will be disregarded. The increase in the nominal capital by the creation of 10,000,000 new shares of £1 each is made necessary because the new share issue of 64 for 100 will absorb the major portion of the company’s present unissued share capital. The Broken Hill Proprietai-y Company Ltd. was formed primarily to engage in the business of mining. When it embarked on steel manufacturing 25 years ago amendments _ were made to the memorandum, but it has been, found that the objects and powers contained therein do not give sufficiently wide scope, having regard to the great development in recent years. AUSTRALIAN STOCK EXCHANGES Press Association —By Telegraph— Copyright SYDNEY, December 15. Reaction was noticeable on ’Change to-day, and metal shares eased, while activity in the investment market was restricted. .

MARGARINE PRICES BUTTER MARKET FUTURE A private letter dated London, November 15, received by a local provision distributing firm from its representative, contained the following paragraph:—“Rationing, although supposed to came into operation in January, 1940, has been postponed, and it m.ay not come in at all. Dutch, Danish, and Baltic butters are arriving, and come to hand fairly regularly, thanks to the vigilance.of the Royal Navy. The retail-price is high at Is 7d maximum, but generally Is 6d. These prices have drastically curtailed consumption of butter and diverted attention to margarine, the sale of which is unrestricted. Prices are 4d to 8d per lb. The 8d quality is really good stuff. “ If the general public get a liking for high-quality margarine, we may have some difficulty in restoring the demand for butter for some years after the war.”

PROFIT OF £4,130 TIMARU WOOLLEN COMPANY POSITION GREATLY IMPROVED A net profit' on the year’s' working of £4,130 17s 3d was made by the Timaru Worsted and Woollen Company Ltd., states the report presented to shareholders, who at the annual meeting paid!: a tribute to the time and energy the directors had devoted to the work of the company to_ improve its position so much in comparison witn last year. , In moving the adoption or the report and balance sheet, the chairman (Mr W. H. Walton), reviewing the balance sheet, said that ?»■ the' liabilities side, the share capital, £84,71U, was the same as- in 1938, and'the reserve at £730 8s 7d was unaltercd.The liability to the bank was £20,278 8s 7d, more tljau £B,OOO less than in 1938. On the assets side, freeholu land ®nd house property appeared at cost P r j??= £3,250 and £4OO respectively. Buildings, after writing off £515, appeared at £24,727 Is 3d. and machinery, after writing off £2,085. appeared at £40,003 17s 3d Sundrv debtors at £11,337 ys 7d were greeted by £5.283 7s 2d, which reflected the improvement in sales, and he would like to compliment the staff on the low percentage of bad debts incurred, the directors having found it unnecessary to increase the existing reserve 0f.£250 for that purpose. • The profit and loss account showed, a net profit of £4,130 17s 3d which was a great improvement in the position compared with last year, ine directors recommended! that the sum be applied in reduction of the appropriation account, which would then total £7,653 6s lid. Subject to auy dislocation that might arise through war conditions, and subject also to an increased turnover during 1940, which at the present time promised to surpass last year’s figures, the directors felt conndent that the balance in the appropriation account might be extinguished during the current year. As the profit in the last year could be set off against the loss of the previous year for income tax purposes, no income tax was payable on the profit earned for the year, but social security tax was payable, and £221 0s 6d had been provided for that purpose. . , At the last annual meeting shareholders were advised to retain their shares and not to accept offers to sell at low figures. ' Unfortunately, some shareholders had disregarded that advice, which was not lightly given. That advice was repeated on _ even stronger grouhds than were_ possible a year ago. The mill was working efficiently at full capacity. Certain small additions to the plant were on order before the outbreak of war, hut owing to shipping difficulties delivery had not yet been made. . '• WOOL GUP THE TIMARU APPRAISAL 3D ADVANCE ON LAST DECEMBER (Pub United Pbess Association.) TIMARU, December 15. The first Timaru wool appraisement under the. British Government’s purchase scheme was concluded yesterday, entailing the examination of 13,326 bales. The prices on the average show an advance of between 2d and 3d on the proceeds of the December sale last year. Tho wool generally was lighter in condition than last year, and a fair,proportion was wasty and tender. The top price, 173 d, went to a line of fine halfbred, while . a choice' line. of merino hogget brought 17id. Super, menno made to 16d, as against 14d m December, 1938. At the opening sale last year extra super, half-bred brought up to 15d, whereas this week this class of wool was appraised at 17$d —a rise or An increase of 2fd was noticed for super, half-bred, while the average increase this year is 3d. Medium halfbred as against last year’s price shows an increase of 3Jd. The following is the range of prices:— , , d. a.

FRUIT MARKETS BUSY STRAWBERRY' CROP DIMINISHING Bray Bros, report:— The period for which milling wheat would be accepted by tho Wheat Committee expired at the end of last month, and from now onwards no wheat will be sold to millers until the new season’s crop is available. _ The fowl wheat market is steady. Stocks are not heavy and best quality is to-day worth 5s lOd a bushel, sacks extra, with small lots ex the store saleable at 6s 3d. . Wholesale prices are at fodows; — Flour: 200’s, £l3 15s 6d; 100’ s , £l4 2s 6d; 50’s, £l4 17s 6d; 25’s £ls 7s 6d. Bran, £5,5s a ton. Pollard, £6 15s a ton. Oatmeal: 2001 b sacks, £23 10s a ton; 25’s, £25 10s a ton. Little business is going through in the oat market. Light stocks arc now held in the stores throughout the South Island, but, on the other hand, there:is little demand for shipment to the North Island. Valuer for A Gartons remain unchanged on a bads of 3s 6d a bushel, f.0.b., s.i.; with B’s at 3s 3d, f.0.b., s.i. Inquiries are still being received for oats for delivery spread over nest season. These inquiries have been prompted following on the dry weather conditions seriously affecting the growing crops in Canterbury. Business in the chaff market Is still confined to sales of small lots to meet immediate requirements. The market is •■firm,, as supplies are not coming in from, the country. Lines of ary quantity are worth £5 ss, sacks extra, ex truck, but transactions on this basis are not plentiful. Most sales are being made in small lots, ex the stores, at £5 15s a ton, sacks extra. There is a good demand for potatoes, and a steady trade in the new tubers is now being experienced. ' Aucklandgrown potatoes are worth to 2Jd a lb wholesale, and locally-grown 3d to 3Jd. Supplies of locally-grown are increasing daily, and this will result in a slower demand for Auckland-grown, as these are hot of the quality of the southern tubers. . . A quieter period has set in in tho seed markets. The retail demand has fallen away, and, on account of a scarcity of stocks of most seeds, little wholesale business, is being transacted. With increasing supplies of fruit and vegetables coming to ■ the_ markets a busy week has been experienced. Small lots of Sturmer apples are coming forward from cool, stores, and high prices, are ruling. Supplies of apples are getting smaller, but there should be sufficient to last for tho next week or two. The announcement that tho Government is taking over this season’s crop of apples and. pears at 5s per case should, in the circumstances, prove satisfactory to the growers. So far, however, the position is not clearparticularly as regards the early Varieties such as Gravensteihs and Beauty _of Bath, and also as regards Bonchretien pears. These pears always realise more than other varieties. The fruit brokers do not know a great deal as to their position, but so far as can be gathered sales will bo made'through the existing channels. Details of the plan should be known within the next few days. A further shipment of Australian oranges was • received on Wednesday, and the fruit landed in good order and condition. Retailers are showing little interest and are. purchasing only their daily requirements. The warm weather ripened the last 1 shipment of Samoan bananas very quickly, and there will bo few available after next week. Another shipment is expected about December 20, and if warm weather conditions prevail there should be little difficulty in ripening the fruit in time for. the Christmas trade. The small shipment of Californian lemons which reached the market had to be rationed. The price was high (60s 6d per case of 360). Another small shipment is expected in about a week’s time, also a small lino of Jamaican grapefruit. A few cases of Jamaican grapefruit also arrived during tho week, and these, too, had to bo rationed. Strawberries are offering in small lots only, ns compared with the supplies in other years, and high prices continue to rule for choice, quality lines. The warm, dry weather has affected .the growth of the. strawberries, particularly in the Outram district, and growers there report that unless there is a good fall of rain_ their strawberry crops will be finished in about a week’s time. Pne Outram grower estimates his ’loss through dry weather at from 8,000 to 10,000 pottles. Particularly good prices have been ruling for cherries—much higher than usual for this time of the year. Supplies were more plentiful towards the week-end, and the market was a little easier. Tomato values have also been much higher than in other years, following on the later season. The market showed a weaker tendency at the week-end. Gooseberries are in heavy'supply. Prices for green peas have fluctuated daily according to the supplies reaching the markets. Supplies were heavy at'the week-end, prices being almost 100 per- cent, lower than those ruling at this time last year.. Supplies, however, are more than double: those coming to the markets ,at that time. It will be remembered that the flood conditions then prevailing caused a setback to.all crops. • . . Young carrots are realising very high prices. White turnips are in fair supply. Choice quality lettuce have a better demand. Cabbages are in heavy supply. New season’s cauliflowers are in better supply, andl the market has come back quickly. Wholesale prices are as follows.— Grapes, 30s, per case. Apples.—Sturmers, I2s 6d to 15s per case; Delicious, 17s to 18s 6d per case. Pears.—Winter Coles, 12s to 15s 6d per three-quarter case; 9s to 10s 6d per half-case. Rhubarb (loose), 2id to 2id. Leeks, 4d per bunch. Carrots, Is 6d to 2s 3d per dozen. Lettuce.—Large, 2s 6d per dozen; small, Is per case. Spinach, Is to Is 6d. Spring cabbages, 2s to 2s 6d. Cauliflowers, 3s to 3s 6d. Eggs, market rates. Tomatoes.—Christchurch, Is to Is 2d; locals, Is 3d to Is 4d. Asparagus, 6s to 9s. Potatoes.—Auckland, 2id ; locals, 3-^d., Peas.—Waimate, l£d. Strawberries,. Is 4d to Is scl. Cherries, Is to Is 2d!; small, 4d to 6d. COMMONWEALTtT STEEL A profit of £17,777 is reported by Commonwealth Steel Company Ltd., a Victorian concern in which Broken Hill Proprietary Company Ltd. holds a large number of shares. A dividend of 3 per cent, was recommended. The directors have decided to include in the company’s operations the manufacture of , stainless steel. Necessary plant is being jnstalkMl,

MORNING SALES. £ 8. d. Tooths I,,. ... ... ... ... 2 13 6 Anthony Hordern 0 14 1 (pref.) 0 18 9 British Tobacco ... 2 7 6 Broken Hill Pty. 3 17 3 Cash Orders ... ... ••• ... 0 15 M Colonial Sugar ;.. ... ... 49 5 0 AFTERNOON SALES. Colonial Sugar ... ... ••• 49 5 0 Coles ' .. 3 18 3 British Tobacco .. ... ... 2 7 6 J. Fielding ... ... 4 9 0 Lustre ... ••• ... 0 18 0 W. H. Soul ... ... ... ... 4 16 0 Felt Textiles f. ... 1 16 9 Henry Jones 2 15 6 Electrolytic Zinc 2 17 9 Broken Hill Pty. ... ... 3 17 6 (new) 1 0 10 Arahura ... ... 1 13 9 Emperor ... .. ... ... 0 12 0 Taranaki Oil ... ... 0 4 3 MELBOURNE, December 15. £ s. d. National Bank (£5 paid) ... 5 17 0 (£10 paid) 12 3 .0 Claude Neon 1 7 0 Metropolitan Gas 13 16 0 Coles ... ... ... ... ... 3 13 6 Broken Hill Pty. 3 16 9 Mount Lyell ... 1 8 9 Electrolytic Zinc (pref.) ... 2 18 6

Merino — Super. 15 to 16 Average 12 to 14 ' Inferior ... 9 to H Fine haifbred, 56-58 — Extra super. — to 17-4 Super. 15 to 16i Average 13 to 14J Inferior 9 to. 12 Medium half-bred, 50-56— ■ Super, 15 to, 16 Average • ••• 124 to 14 Fine cross-bred. 48-50 — Extra super '• — to 164 Super. ... : .... ••• 14 to 15 Average ... ... ... 12 to 134 Inferior ... ... 10 to 112 Medium cross-bred, 46-48;-Extra super. ... ... —' to 14-4 Super. 13 to 132 Average ... ••• 12 to 122 Inferior 11 to 112 Coarse cross-bred, 44.-46— Super. ... ... — to 134 Average Hi to 124 Inferior ... 94 to 11 Cross-bred, 40-44— Super. ' ... 10i to 12 Average ... ... Olto 102 Leicester io to 13 Hogget merino; — Super. 14 to 172 Medium 11 to 134 Half-bred— Super ... 154 to 17 Medium ... 134 to 15 Inferior ... 12 to 13 Fine cross-bred— Super. ... ... ... 15 to 164 Medium ... 13 to 142 Inferior ... 12 to 122 Cross-bred-Super. 13 to 144 Medium ... Hi to 12i Necks— Merino ... 12 to.134 Half-bred Hi to 152 Fine cross-bred ... 10 to 134 Pieces— Merino 9i to 11-2 Half-bred 9 to 14 Fine cross-bred! 9 to 124 Cross-bred ... ... 8 to 114 Bellies—• Merino ... ... ... 9 to 104 Half-bred ... ... 84 to 114 Fine cross-bred 8 to 104 Cross-bred ... ... 7 to 82 Crutchings— Merino ... fi to 8 Half-bred ... ... 7 to 94 Cross-bred 7 to 94 Locks— Merino 44 to 64 ‘Half-bred 4 to 6-J gr<t$s-bred -ito 9i