KAIAPOI WOOLLEN CO.

New Zealand Herald, Volume LXIV, Issue 19721, 22 August 1927, Page 7

KAIAPOI WOOLLEN CO.

NO ORDINARY DIVIDEND. SLIGHT INCREASE IN PROFITS. [By TELEGRAPH.—OWN CORRESPONDENT. ] CIIRISTCHURCII, Saturday. No dividend on ordinary shares will be paid this year by the Kaiapoi Woollen Manufacturing Company, Ltd. The directors, however, recommend the same course as was followed last year, viz., that a dividend of 6 per cent, be paid on cumulative preference shares. The directors' report, to be presented at the annual meeting on August 31, states: "General business conditions prevailing during the year have been unfavourable, and though the company's turnover shows an increase, severe competition has affected the rate of profit. "Properties and plant have been thoroughly maintained and full provision made for wasting assets. Your directors recommend that £3500 be provided for depreciation. "The sale of the Wellington warehouse and a small section in Auckland have realised £7756 9s 3d over their values as on the company's books. This sum has been placed to a contingency reserve and is included in the item 'sundry creditors. "Stocks have been carefully taken and ample discounting provided where necessary. Warehouse stocks are reduced by £30,000, but the stock of raw material is necessarily larger on account of the requirements for the new worsted plant. "The balance-sheet shows a credit balance of £3383 18s 7d, less deduction of £3500 depreciation. Your directors recommend that a dividend of 6 per cent, on cumulative preference shares be paid, absorbing £3Oll 8s lid, leaving a sum of £972 9s 8d to be carried forward." One of the retiring directors, Mr. F. M. Warren, has decided not to seek reelection.

The profit and loss account shows the balance transferred from warehouse and manufacturing accounts at £76,682, which is £5903 more than last year, but the ex penses have increased by £3161 to £68.678. The credit balance of £8383 18s 7d includes £362 19s Id brought forward from last year. Last year's credit balance was £4274 Bs, plus £IOOO provided for depreciation. The contingency account, to which the profit on the sale of properties has been placed, is included in the item "sundry creditors and depositors," shown on the liabilities side of the balance-sheet. This item is now £228,061, a decrease of £16.925 since last year. The value of the company's property and plant, after writing off £3500 for depreciation, is £171.595, compared with CI 77.658 a year ago. The stocks are shown at £9524 less than last year. THE LONDON MARKETS. FROZEN MEAT. (Received August 21, 5.5 p.m.) A. and N.Z.-Sun. LONDON, Aug. 20. Sheep.—Canterbury : Light, 6 3-8 d ; medium, 5 5-8 d; heavy, North Island : Light, 6d; medium, s£d; heavy, 5 l-8d; New Zealand ewes, 4*|d. Australian : Firsts, 4^d; seconds, Argentine: Light sid; medium, 4|d~; heavy, Patagonian: Medium, 4J>d. Lambs.—Canterbury: Heavy, 8 l-Bd. North Island: Firsts, 83d. Patagonian: Seconds, none offering. t Frozen Beef.—Argentine fores, 3^d; hinds, 63d. Chilled Beef.—Argentine fores, 4 l-8d; hinds, 7 3-Bd. Others unchanged. COTTON. RUBBER, HEMP, ETC. (Last week's prices in parentheses.) Cotton —September delivery, 10.37 d (10.14 d) per lb. Rubber.—Para, 16d (15|d) per lb; plantation aud smoked, 17jd (17gd). Jute August-September shipments, £35 5s (£34 10s) per ton. Hemp August-October shipments, £35 (£35) per ton. Copra. August-September shipments, £25 7s 6d (£25 10s) per ton. Linseed 0i1.—£32 5s (£32) per ton. Turpentine.—4ls 6d (40s 0d) per cwt. AMERICAN COTTON BOOM. * BUYING RUSH AT NEW YORK. (Received August 21, 5.5 p.m.) A. and N.Z. NEW YORK, Aug. 20. Another boom in cotton buying to-day sent prices to new high levels for the season. This was due to what is described as the most "bullish" boll weevil report ever issued by the Department of Agriculture. Prices rose £1 a bale and held most of that gam to the close of the rush. Buying was broken only by the closing goi'gThe boll weevils in Western Arkansas are reported to be more abundant now than since 1923. Weevils have also increased in Alabama, North and South Carolina, Texas and Louisiana. The in testation ranges as high as 67.6 per cent., and the pest'has destroyed the entire crop in some section of Alabama. DAIRY PRODUCE PRICES. LONDON MARKET VALUES. Joseph Nathan and Co., Ltd., have received the following cablegram from their London house. Trengrouse and Nathan, Ltd., London: —New Zealand butter, 168s to 170s. Cheese, 91s to 925. Both markets are quiet. TIMBER PRICES. CHANGE IN CHRISTCHURCH. A readjustment of timber prices in Christchurch has been made by the Canterbury limber Merchants Association. limber dehveied in the city yards or within a two-miles radius of the Chief Post Ollice has been increased in price, lor most classes, by from 2s to 4s 6d per lQOi't. On, the other hand, the association has reduced prices for special truck orders of which the purchaser takes dolivery at the railway station by Is 6d. to 3s per 100 ft, N The now prices are on all fours with those ruling prior to June, 1926, when strong competition induced merchants to make a cut. It is thought likely that the increases will not find favour with sawmillers, whose organisations made representations to the Tariff Commission for a higher tariff on imported timbers. The' reduction on truck lots, which is also subject to a discount by sawmillers, appears to bo the result of competition, there having been undercutting. The price changes .in Christchurch appear to be due to purely local conditions, Canterbury is not a timber-producing district, and practically none of the Christchurch merchants are millers, as most Auckland merchants are Auckland timber prices have been practically stable since September of last year and no indications have been given of any change.

CHICAGO WHEAT MARKET. (Received August 21, 5.5 p.m.) A. and N.Z CHICAGO, Aug. 20. Wheat. —September, 1 dollar 403 cents per bushel; December, 1 dollar 44J cents; March, 1 dollar 47| cents.