PRICE OF PETROL.

New Zealand Herald, Volume LXV, Issue 19956, 26 May 1928, Page 12 (Supplement)

PRICE OF PETROL.

MOTORIST'S OPINION. Referring to the question of petrol prices, dealt with in these columns an Auckland motorist writes, taking the view that consumers have themselves to blame. His opinion is that motorists who insist on the convenience of batteries of pumps must pay for the facilities. Concerning case petrol he states that first grades cannot be obtained much under 10s f.6.b. American ports. Handling charges, duty, one week's storage, etc., amount tc 4s 6d a case, so that before adding profits or providing for overhead charges or bad debts the outlay for a case of eight gallons is up to 14s 6d. With a retail price of 16s a case there is accordingly only a small profit for the importer and retailer. These points do not appear to corroborate the suggestion that the heavy capital outlay in bulk equipments is keeping the price up. Rather do they show that case petrol, however excellent, could not be sold much cheaper with reasonable profit. Three oil companies would not have undertaken bulk distribution in New Zealand without being convinced that handling charges would be reduced. The question as to whether the huge capital outlay in bulk plant would outweigh the saving effected by cutting out the cost of canning and casing must have been very exhaustively considered. If the overall cost of petrol of all grades imported into New Zealand is considered it is evident that the price to the consumer has not fallen in proporti°n. The following statistics from the Mercantile Gazette relate to the Dominion's imports for the two months. January and February, 1926, 1927, and 1928: 1926 1957 1528 imported 119 .. 6.671J33 7.901.280 7.81746 C T c t ost de ? kred . *48.687 397.613 244.12? ' A ; e e r r ag g e all°on .. 1/4 1/' 8d Wholesale price per gallon . • 1/10 I' 7 1/® •Plus tax 4d NEW 1100 C.C. OAR. Huge power outputs from tiny engines are being obtained by Continental cai designers. One of the latest productions is a French sports model with an 1100 c.c. engine which develops 60 brake h.p. at 5000 revolutions. The engine is a four cylinder supercharged model with a bore o! 61 m.m. and a 92 m.m. stroke. This diminutive bore gives a rating oi 9.2 h.p. by the R.A.C. formula. The maximum output is thus more than si's times the formula rating. The car has a maximum of 100 m.p.h. with the supercharger. The normal sports model has a guaranteed speed of 87 m.p.h. MOTOR TRADE ITEMS. The death has occurred in America of Mr. J. W. Packard, founder of the wellknown motor-car company. The Shell Company's bulk installation at Lyttelton is ready for use. Five tanks are intended for petrol and a sixth will hold kerosene. The largest tank is 118 ft. in diameter. The New Zealand Motor Trade Association has now a membership of 1100 garage proprietors, petrol, accessory and motor-cycle dealers. Nearly 680 garages are now in the organisation, and in ac fdition 129 petrol sellers and 135 tyre retailers are members. A 1928 Cadillac arrived in Auckland last week. No radical mechanical changes have been made, but an interesting detail is the operation of the radiator shutters by a thermostat. When the engine is cold the shutters remain closed, and immediately a running temperature is reached the opening is automatic. The annual report of the General Motors Corporation for 1927 shows net earnings of £48,000,000. About £2,000,00 C ■was required for preferred stock dividends and debenture interest, leaving about £48,000.000 as earned by the common stock. Profits are in advance of over 20 per cent, on the 1926 total. Adopting a course designed to conserve its reasources, the B. S.A. Company decided to pay no dividend on ordinary shares for the year just ended. The company has a capital of £5,000,000 and owns the Daimler factories. The year's trading shows a credit of £202,063 which ■with the amount brought forward fronr last year provides £491,776. After paving .preference share dividends, £336,825 was carried forward for 1928-29. The report of the directors of Morris Motors (1926), Ltd., shows a profit on trading and interest for the year amounting to £1.334,907 after making full provision for depreciation of assets and ull possible contingencies. After meeting the dividends on the preference shares and income tax, there is a balance of (profit of £918,922, to which is added the balance brought forward from last year, £30,858. giving a total disposable undivided profit of £949,781. The whole of the available profits were used to strengthen the positior of the company. This is done by transferring to reserve fund £725,000, making the fund up to £1,100.000, and by carry ing forward to next year the balance oi £224,781. The report of the Dunlop Rubber Co., Ltd., shows profits for the 12 months ended December 31, 1927, of £2,793,951. From this is deducted interest on debenture siock, debentures, income stock and loant, leaving a net profit of £2,379,502. Including the amount carried forward from laart. year, £665,456, the total amount availab-e is £3,044,959. Of this sum £386,970 is transferred to general reserve, dividends on A, B and C preference shares absorbs £187,500; the board pro poM payment of dividends on the A, E and C preference shares for the six month* ended December 31, 1927, absorbing £187,500. and a dividend of 25 per cent, oo th* ordinary shares absorbs £1,704.408 leaving a balance of £578,580 to be carried forward.