PROFITS IN TOBACCO.

New Zealand Herald, Volume LXV, Issue 19860, 2 February 1928, Page 9

PROFITS IN TOBACCO.

CARRERAS' BALANCE-SHEET. » DIVIDEND OF 50 PER CENT. Carrei'ss, Ltd., the London tobacco merehanus, for the year ended October 31, made increased profits, these appearing at £1,258,847, compared with £1,027.944 for 1825-26. Capital during the year was increased by £300,000 by means of a bonus issue, but the ordinary dividend was maintained a.t 50 per cent. The sum appropriated to income tax reserve was £55,000, to superannuation fund £23,295 was allotted, and £1,203,607 was carried forward, compared with £621,153 brought into the accounts. To provide for the expanding business of the company 2,0ti0,000 "B" ordinary shares of 2s 6d each are to be cijated. Of these 1,800,000 are to be offered to existing ordinary shareholders at 10s a share in the proportion of two new shares for every one ordinary share, held. Addressing shareholders at the annual' meeting, held in London on December 19, the chairman, Mr. Bernhard'Baron, stated that as the company was called upon for over half the period to bear an additional duty of 8d a lb. placed on tobacco, the large increased profit earned by the company for the year was only possible by a very largely" increased turnover. With continued expansion in the company's business, limited factory space had created difficulties, and it had not been possible to fulfil all the demands made, for the company's products. The company was still behindhand with its orders, but in thu current year it was hoped that difficulties of this nature would be overcome bv the completion of new premises. On the chairman's motion a dividend of 35 per cent., free of income tax, on the ordinary and "A" ordinary shares, wai .declared, making, with the interim dividend of 15 per cent., paid las', June, 50 per cent., free of income tax, for the year. DUTY ON POTATOES. INCREASE IN AUSTRALIA. IMPORTS FROM NEW ZEALAND. [FROM our own correspondent.] SYDNEY, Jan. 26. The enthusiasm of the dairy farmers of Australia, particularly those in New South Wales, when it was decided to increase substantially the duty on imported butter, was remarkable. One would have imagined that this alone was needed to sa.ve the industry from ruin. Thanksgiving meetings have been held and New Zealand has been roundly condemned for insisting upon its rights—six months' notice. Now the Tariff Board has made another recommendation aimed at New Zealand--this time at- the potato growers. The existing duty is £1 a ton and the application wa." for an increase to £4. The board compromised by recommend ing £2 10s. and incidentally criticised tho inefficiency of the industry. The board states that the evidence placed before it indicated that the only means available to growers to recoup themselves for losses suffered owing to drought and disease in crops was to take advantage of high prices brought about by a shortage of supplies. Half the potatoes;. consumed in New South Wales had been, and still were, supplied by Victoria and Tasmania. A shortage of production in Tasmania or New South Wales would mean higher prices for . the Victorian growers. Similarly the failure of the crops in Victoria would mean better returns for the Tasmanian growers. Fears were expressed that unless the duties were increased growers in New Zealand; would take advantage of . the favourable market and ship quantities of potatoes to Sydney, thus depriving the Australian grower of the higher market. As bearing on th« position, thn report points out that the average yield to the acre in Tasmania for the period 1915 to 1925 was 2.56 tons, as compared with a corresponding average of 5.58 tons in New Zealand. However, the board frankly states that in its opinion low prices in the past have been dufi, not to importations from overseas, but to competition within the Commonwealth. It is said that the unsatisfactory position of the growers is brought about to a very great extent by lack of organisation and somewhat inefficient methods of production, especially in Tasmania. Instead of growers in one State eagerly looking forward to adverse conditions in another State, there should be an organisation which could arrange for the disposal of the potatoes in a systematic manner in the respective! States at' prices that would assure a reasonable profit* THE TEXTILES INDUSTRIES. OUTLOOK IN BRITAIN. [FROM OUR OWN CORRESPONpBNI'.] LONDON. Deo. 2d. Instability of raw cotton prices is blamed for the more hesitant tone on the Manchester market, whera much of the inquiry still remains unworkable on account of the low hids attached. The prices taken by many manufacturers are exceedingly low, and in some cases they involve a fairly serious loss. In drapery and clothing reports concerning the progress of Christmas trade are favourable. Wholesale clothing manufacturers have sufficient orders on their books U> keep machinery occupied for some time to come. At the moment the outlook for the wool textile industry of the West Riding is very uncertain. That the wages question has not vet come to a head is mainlv because of the recent trade revival and the anxiety of firms which have suffered serioulsv fpr a couple of years to take full advantage of the opportunity to make up a little leeway. There is also a .wages problem in the dyeing industrv which will affect'the cotton trade as well as piece-dyed worsted goods. In this case it is the operatives who haw given notice to terminate tho present agreement on January i 3. DEARER SHOE LEATHER. NEW SOUTH WALES PRICES. [FROM OCR OWN CORRESPONDENT.] SYDNEY, Jan. 27. New South Wales is never happy for very long over her secondary industries. There is sure to be a breakdown somewhere. A few days ago, for instance, the public was notified that boots and shoes made in New South Wales" were going up in pricis immediately. The increased cost runs from 2s up to about 10s a pair, according; to quality. Shoe manufacturers say the increase is due to an advance in the cost of hides. Russia has already had lots of things laid at her door, and, according to the shoemakers, Russia can be blamed, for this too. Russia used to be a big producer of hides, but she has long since ceased such activities, and instead has come .into the market as a purchaser. Added to this there are German and American buyers here in force, with the result that certain classes of sole » e ® ' sold in December at 2s 4d a . ' uow reached 3.t, and are still r ,3,n S- . As an indication of the state oMM market, it is impossible to get twine to book orders ahead. boxhide, which is ,v? P a foot isoaring in price, and Mann* last month has now men to g vjc . here to h thmk^ iona, which South ft sovere Ef and increase prices likewise.