COMMERCIAL.

Lyttelton Times, Volume CXXIII, Issue 15923, 8 May 1912, Page 11

COMMERCIAL.

' TTaltfS Pre«« Association —By- Eleotrio "Wheat. The total quantities. of 'wheat and flour afloat for the United -fon'gdom amount to 4,250, OOOquarters, and/or the Continent to 3,005,000 quar■ters- Atlantic shipments are 248,000 nuarters, and; from Pacific ports’ nil. The total shipments to Europe for the .’week. are 1,420,000 quarters, including Ifrom the Argentine 626,000 quarters, from Russia 270,000 quarters, from the Danubian provinces 55,000 quarters, from India 51,000. quarters, and from ..'Australasia- 70,000 quarters. ■ Silver.—2s 3 ■ 11-16 d per oz. . Shares.—Junction, 2os 6d to 26s 6d; Jalisman, ,42s 6d to 455.. [Per Press Association.] WELLINGTON, May 7. >■_ The Department of Agriculture has "(received tne: following cablegram from Buenos Aires:—The following shipments ’of produce were _ despatched from Argentine, to United Kingdom ports during April, 1912, the figures for April, 1911, being also given:— lsia ■ i9ii Frozen beef, quarters . . 133,000 147,153 Chilled beef,, quarters . 166,000 160,037 Proven mutton, carcases. . 152,000 173.753 Frosen. lamb, carcases . 37,000 - 61,203 Butter, cwta . . . 2,829 NEW ZEALAND LOAN AND MERCANTILE. i OF CAPITAL.' A.COMPLEX SCHEME. [From Our Correspondent.] LONDON, March 29. Those who have -any knowledge of the almost insuperable difficulties which have had to be overcome in connection with ,tlie. reorganisation of the capital account.of the New Zealand -Loan and Mercantile Agency Company will appreciate the success with which all obstacles have been overcome in the scheme which the directors placed before shareholders and debenture-holders . this -week.

Considerations of space preclude the publication of the scheme and its accompanying circulars in their entirety, but mam points in the scheme of capital. reorganisation may bo summarised intelligibly within reasonable limits. s,As regards the merits of the scheme, . there will no doubt bo a certain amount of. discussion regarding minor points, but the general view in financial circles seems to be that there can be no two opinions ,as to the soundness of the course submitted for removing the nnomaly of a debenture debt of £3,296,000; as against a paid-up share capital of / £1357000, carrying an unpaid liability * of ‘£l,7/5,000. To have called up any substantial portion ,of this latter sum peremptorily would have been productive of serious inconvenience to the persons concerned. On the other hand, the outstanding liability could not be cancelled without the consent of the dobehture-holders, and this was difficult, at any rate as regards the entire amount. Thus the directors were in a quandary, and more than once the solution of the problem appeared impossible. - The scheme now issued provides for a call- of £5 in respect of each £9 share (10s paid); making the latter £5 10s paid. The shares will then be divided as'to £2 103 into preference stock, the balance; of £3 being converted into ordinary stock. The proceeds of the call Will be .applied in redeeming prior lien debenture stock, which will bo reduced to £1,000;000. The existing £383,541 of third debenture stock will be cou--1 verted into agreed proportions of pre-

ference and ordinary stock, and; having accomplished so much, the directors will then cancel the remaining liabilty of-£3 10s on the existing shares. These terms aro more favourable than had been . generally anticipated, while the position of the third dobenturo stockholders may bo gathered from the fact that tli'o price of this issue stands at 152 as. against 117 twelve months ago. As regards the call of £5 per share, the company will declare a special dividend of 15s per share, to he paid out of the existing reserve for the express purpose of assisting in meeting the call; out should the shareholders for any reason elect to rotain their shares, but at the same tyne not wish to pay the call, the dividend Will be credited to thorn in reduction of their liability. Alternatively, should they be willing to pay half the call, .then .they will receive half the dividend, while for the benefit of those who do not care to adopt either of those courses, arrangements have been made whereby they may transfer their entire liability, together with their dividend rights, to certain guarantors who'have consented to take such shares.

Those who adopt this course will then receive 10s of ordinary stock in the reorganised capital in exchange for the existing 10s paid share. ' A most important point in the whole scheme is the recognition accorded to the rights to further participation in net profits enjoyed by the third debenture stock-holders. For each £IOO of this issue there will be given £IOO in new fully-paid: 5 per cent preference stock, while the right of participation in surplus profits will he met by the allocation of a further 25 per cent of fully-paid preference stock, together with 60 per cent of ■ fully-paid ordinary stock. ,

These terms are considered by some critics of .the scheme as. unduly generous, but it is understood that they were submitted to impartial authorities of the highest ability,, and have been adjudged a fair compromise. These are the main points in a scheme of capital reorganisation; which lias solved the difficulty ;of cancelling "uncalled capital pledged to" the debenture-holders. Commenting favourably on the scheme, the “Financial Titnes ” thinks. that if it is adopted by the various intertsts it will probably find imitators among other Australasian ; land .• companies similarly situated.

I The-British-New . Zealand Meat and Produce Company, Limited, has reeciv- : ed the following message from its London office:—Canterbury wethers,.4B-561b 4Jd per lb, 56-641 b 4Jd per lb. 64-721 b .4d per lb; North Island, 48-561 b 3Jd I per lb. 56-641 b ,3£d per lb; Canterbury ilamb, 28-361 b sfd per lb, 36-421 b s|d per lb, over 421 b 5Jd; North Island, 28-361 b 5Jd per lb, 36-421 b s?d per lb. Beef, average price all weights—New Zealand hindquarters 4Jd per lb, New Zealand forequarters 3£d per lb. STOCK EXCHANGE OP CANTERBURY. ■ The following are latest quotations:

Buve rs. Sellers. 1 £ t. d. S b. d. BANKS— New Zealand 11 15 0 FINANCIAL— .. National Mortgage 4 0 0 GAS— ! Christchnrcli " . . 9 0 0 INSURANCE— . National of N.Z. . • . I 16 9 New Zealand . . 4 19 0 Standard of N.Z. 1 10 0 MEAT— British-N.Z. Meat (15« paid) '•:.'■■ 0 16 0 Christchurch Meat Co. O£10 paid) . IS 7 6 COAL— ! Westport . . . 1 9 0 Westport-Stockton-0 2 8 -MISCELLANEOUS— " • N.Z. Drug Co. a io 0 i N.Z. Farmers' Co-op. . 9 9 0 N.Z. Fanners' Co-op (preference) « 8 0 I N.Z. Paper Mills . . 1 2 0 12 6 ■ MINING— 1 Talisman . • : . 9 4 8 "Waitangi . • 0 1 0 0 1 i