COMMONWEALTH LOAN.

New Zealand Herald, Volume LXIV, Issue 19727, 29 August 1927, Page 7

COMMONWEALTH LOAN.

SUCCESS OF LATEST ISSUE.

GOOD AUGURY FOR FUTURE. (.Received August 28, 5.5 p.m.) A. snd N.Z. NEW YORK. Aug. 27. Owing to the unqualified success of the flotation of the Commonwealth loan of about £8.000,000. obsei vers express the conviction that the price of the issue will rise and should, within the of a few months, reach 98.5, possibly more. Australia's credit , is excellent and a re ceptive market is assured for further Commonwealth issues which are expected to be placed in New York in the future Best-informed people, however, ,u«.- in ehned to believe that New York will not supplant Lonrlor. as the market for Aus tralian loan flotations but rathe that both markets will tend to become equally important to the Commonwealth. Both should even grow progressively better for Australian issues. No surprise is telt that the latest loan ni!- underwritten by J P Morgan and Company Somt time after it became known that the Commonwealth wa.- enter mg the market, the belief was expressed that Morgan and Company would no oubt get the issue It is pointed out, however, that whereas ■he last £15,000.000 loan was officially underwritten by .Morgan and Company alone this issu< .s under the aegis of 'he National City Company am a group >f other bankers althoug 1 thi tatter are all 'known to be affiliated with Morgan and .Company AUCKLAND COMPANIES. ONE NEW REGISTRATION. Details ot a new private company registered in Auckland are as follows: Keane s Furniture Limited. To acquire the present business of Milton Barnard Keane. Capital, £SOO in £1 shares. Subscribers Elizabeth Keane, 150 shares. Harold Keane, 325 shares: Milton Keane, 25 shares. DAIRY PRODUCE PRICES. LONDON MARKETS FIRM. A. H. l'u i n bul l and Co. has received the following cablegram from its principals, Messrs W. Weddel and Co., Ltd., dated London, August 26: —Danish buttei, 175s to I7bs, New Zealand unsalted buttei, 174s to 178s; New Zealand salted flutter, 170s to 1745: market firm. New Zealand cheese (white and coloured), 92s to 945: market firm. Canadian cheese, white 93s to 965. coloured 94s to 965. AMERICAN COTTON MARKET. HARDENING IN PRICES. (Received August 28, 5.5 p.m.) A. and N.Z. NEW YORK, Aug. 27. Cotton futures advanced 12s bd a bale to-day, and reaihe-l a new high level. This was due to firmer Liverpool prices and a wave of buying from American and foreign sources The demand is attributed to the trade being influenced by'reports of a change in the weather outlook for the cotton belt BROKEN HILL MINE. ANNUAL MEETING HELD. A. and N.Z. MELBOURNE. Aug. 27. Speaking at the annual meeting of the shareholders of the Broken Hill Pro nnetnrv the chairman if directors Mr H. Darling, said that unless the price of lead materially increased in the next three or four weeks, it would be necessary to close down the mine. Mr Darling said the increased cost ot nroduction was due to New South Wales legislation such as the Workers Com nensation Act. the Child Endowment Act. ■ind the 44 hour week. This and overseas competition had brought about the exist* ai'T critical situation. The secretary ot another largt mine known as Block Fourteen announces that all operations in that mine will have to be suspended within a few months for similar reasons. DUNLOP RUBBER COMPANIES. A PROVISIONAL AGREEMENT. A circular has been issued bv the directors of the Dun lop Rtihber Company of Australasia, Limited, amplifying the statement recently made respecting tho provisional figreement entered into with the Dunlop Rubber Company Limited, of England and stating that resolutions for th*-' confirmation of such agreement will be submitted at an extraordinary meet ing of shareholders The arrangement provides for the immediate purchase by the English concern of 500.000 of <he company's unissued ordinary shares at 25s a share, and the granting ot an option to it to take up an additional 500.000 such shares at 30s a share

The option is for four vears. but it is. not to bp exercised before December 31. 1028. unless thp Australian company in timntes that it requires capital, and after that date the English company agrees to rrivc reasonable consideration to thp financial condition of the Australian companv. prior to pxercising its option in whole or in part Such option shares are not to he salcahlc by the English companv for a period of ten venrs. except» with the approval, given by resolutions, of the directors ,of the Australian concern Should snch consent bp given f he scrip is in the first place to bp offered for sale in Australia to all ordinary shareholders on the Australian com panv'= register nro rata to their hold 'ngs The Australian companv is at all times r< remain a Commonwealth concern, but the English companv can nominate three directors out of eight directors so lone jt.s holding. inMnding the option serin is 1.0n0.000 shares If lose than 1.000.000 shares it can onlv nominate two dire*" tors, and if less than 500.000 shares, one director PROFITS FROM WHISKY. DIVIDEND OF 20 PER CENT. A little over two years ago the Distillers Company, Ltd (D.C.L.), acquired the Buchanan Walker-Dewar interests The accounts for the yeai ended Mav 15 last show gross profits amounting to £2.323.609, as compared with £2,367.537 in the previous year, a decline of £43.000 After paying income-tax £188,386. deben ture interest £30,960, and adding £230.000 to the reserve, there remains a balance of £1.995,847. which includes £121,554 brought forward Out of this £IOO,OOO is applied to writing off the remaining onet third of the amalgamation expenses. The dividend on the preference shares absorbs £105,600. and the dividend on the ordin ary shares at the rate of 20 per cent per annum absorbs £1,657.945. leaving €132,302 to be carried forward. It is stated in the report that the -directors have made an offer for the whole of the ordinary shares of White Horse Distil lers, Ltd., and the transaction is to be on a purely cash basis.