CAPITAL AND COTTON.

New Zealand Herald, Volume LXIII, Issue 19417, 27 August 1926, Page 9

CAPITAL AND COTTON.

A VERY SERIOUS POSITION. INDUSTRY "IN A MORASS." The serious situation in the cotton industry, which he declared to be "bogged in a morass from which is seems impossible to extricate it," was emphasised by Mr. F. W. Birchenough, of the Cotton Spinners' Amalgamated Operatives' Association, in his presidential address at the annual meeting of the General Federation of Trade Unions at Dover last month. One of the great obstacles to prosperity, he said, was over-capitalisation, particularly in the American section of the trade. This was one of the evil eSects of the war. During what was known as the boom period, financiers who were utterly ignorant and desperately careless of the conditions and needs of the cotton industry swooped down upon Lancashire, and in a wild struggle to amass fortunes without productive effort bandied the industry from pillar to post. The ordinary processes of speculation were fanned until they blazed into flame. The result of tho speculative madness was seen in Lancashire's present situation. Her industry was strangled, and her people, among the most independently minded in the world, were faced with the necessity, to them deplorable, of seeking public relief. " Studying the industry to-day," proceeded Mr. Birchenough, " one" sees it bogged in a morass, from which it seems impossible to extricate it. Huge bank overdrafts and enormous loan accounts bear disastrously upon these refloated companies, and these are each year sucking from the industry millions of pounds sterling in the shape of interest and bank overdraft charges." The obvious remedy, added Mr. Birchenough, would be to call up all unpaid share capital , and use this to pay overdrafts and loans, and thus relieve the industry of interest charges, and to follow this up by writing down the watered capital to its real value. They felt justified in applying the harshest condemnation to the financial adventurers who took advantage of a period of national emergency to promote schemes out of which they made great fortunes; who got away with the money, and were now revelling, often vulgarly so, in the wealth they abstracted. " DAIRY PRODUCE PRICES. LONDON MARKET VALUES. The New Zealand Loan and Mercantile Agency. Company, Limited, has received the following cablegram from its London house, dated August 25:—Butter: New Zealand choicest. 172s to 1745, market slow; Danish, 178s: Australian, 168s Cheese: White,, 88s to 89s; coloured, 85s to 86s; market steady. KAIAPOI WOOLLEN, CO. PROFIT OF £4274 SHOWN. A profit on the year's operations of £4274 is shown by the annual report of the Kaiapoi Woollen Company for the year ended June 30. Payment ef the preference dividend of 6 per cent, will absorb £3911, leaving £363 to be carried forward. For the fourth year in succession the company has been unable to pay a dividend on its ordinary shares. According to the profit and loss account, the balance transferred from warehouse and manufacturing accounts was £70,773 15s sd, as compared with £10,397 in the previous year, and £BO,IBO in 1923-24. Expenses were reduced to' £66,517 (including £IOOO depreciation oh plant), as against £75,327 in the previous year. The balance of £4274 compares with a loss of £91,449 hi the* previous year. The net deficit of £55,105 was extinguished last year by writing capital down by 3s a share, to the amount of £67.500, thus creating reserves of £12,395 The directors' report states that tho year's trading conditions have been unfavourable to the New Zealand woollen manufacturing industry. The flood of overseas imports has continued unabated and the unsatisfactory national financial position created by the huge excess o f imports over exports has adversely affected business. The report also states tha> adequate provision has been made for all wasting assets, and that warehouse stocks have bsen conservatively valued. The company holds a somewhat larger stock of wool than last year. Mr.' W. H. Clark has given notice that he will move at the annual meeting that the number of directors should bo fi?e instead of seven. The directors propose to take the decision of the shareholders on this matter before the election of directors. AUSTRALIAN PRODUCE. Australian and N.Z. Cable Association. (Reed. 8.35 p.m.) SIDNEY. Aug. 2G. Following are to-day's quotations on the Sydney produce market:— Wh®at,—The market is lifeless. Farmers' lots, 6s lid ex trucks Sydnoy; parcels bagged, 7s 4d to 7s 6d. Oats.—Tasmanian, Algerian.—ss; white, 5s 3d. Maize.—Yellow, 7s; white, 7s. Potatoes.—Tasmanian, £ll 10s to £l6; Now Zealand, £ll. Onions.—Victorian, £2l; Japanese, £22. Adelaide prices are Wheat.—Growers' lots, 6s 4dj parcels, trade, 6s 9|d. Oats.—3s, LONDON TALLOW SALES. Australian and N.Z. Gable Aasooiation. (Reed. 8.85 p.m.) LONDON, Aug. 25. At the London tallof/ sales 1367 casks were offered and 420 sold. Prices were unchanged, MELBOURNE HIDES SALES. Australian and N.Z. Cable Association. (Eecd. 12.5 a.m.) MELBOURNE, Aug. 26. At the Melbourne hides sales strong light kips were • a full farthing higher. Other grades had excellent competition and fgild in sellers' favour. CHICAGO WHEAT MARKET. Australian and N.Z. Cable Association. (Reed. 5.5 p.m.) CHICAGO. Aug. 25. Wheat. —September, 1 dollar 35g cents por bushel; December, 1 dollar 39| cents; May, 1 dollar 44f cents. PROPERTY SALES. William A. Home. Ltd., will offer art auction. at their auction rooms, corner High Street and Vulcan Lane, at one o'clock this afternoon, on instructions from the publio trustee in the estate of the late E, A. Vine, cottage of two rooms and conveniences, on i-acre section. Sheriff Road, Milford: also one acre three roods, subdivided into three seaside sections in Ostend Estate, Waiheke. Samuel Vaile and Sbns. Ltd., will hold an auction sale at their rooms, 83, Queen Street, at iwo o'clock to-day, when a property at No. 85, Great North Road, GreyLynn, between Pollen and Surrey Streets, comprising a freehold section 40 x 115.6, with S-roem&d house, will he offered. T. Mandenn Jackson. instructed by the mortgagee, and under conduct of the registrar: ef the Supreme Court,, will offer at auction at their rooms, 9. Commerce Street, at 11 o'clock this morning freehold farm of 93 acres with 6-roomed house and farm buildings, 4i miles from Wollsford; also a dairying or grazing fans of over 615 acres with match-lined where, 5 miles from Awakeri railway station and 3 miles from Te Teko School. Messrs. Rutherford, Robinson and Austin will offer at auction to-day at 12 o'clock, 81 their rooms. Lister Buildings. Viefnna Street East, five home sites in the Westmere Estate. They will be sold without reserve in order to wind np the estate.