Page 9 Advertisements Column 3

New Zealand Herald, Volume LXVII, Issue 20602, 28 June 1930, Page 9

GRAMOPHONE SHARE VALUES The Tariff schedule lately adopted by the Federal Government of Australia has two main purposes. Primarily, it is a revenue producer, and, secondly, it is the means by which fiscal protection is afforded to manufacturing industries. The growth of industry in Australia to date has been due solely to the encouragement given by tariff restrictions. Great British manufacturing companies have recognised the necessity of local manufacture, and large and prosperous factories now operating throughout Australia attest the wisdom of the encouragement given to industry. The stocks of the industrial companies which stand in highest favour; with investors, are in nearly every instance those which have founded their prosperity under the beneficial provisions of tariff restrictions. It is only necessary, to name the British f Tobacco Company, the Australian Glass Manufacturers, Bryant and Mays, the Broken Hill Proprietary, Ltd., and Dunlop Perdriau to show the great rise of industrial investment iu Australia under the policy 'of protection. By the new and extended fiscal schedule lately adopted by the Federal Government, more local industries are on the threshold of great prosperity: some are already well established. In tha latter class is the manufacture of gramo-i. phone records, etc. The new tariff practically prohibit!# imports of 'gramophones and records. These lucrative markets are now open to Australian manufacturers, and Vocalion (Australia), Ltd., is ready, to meet its share of the new demand. The growth and development of the gramophone record industry in Great Britain is an outstanding feature of modern commerce. To-day that same growth and development is transplanted from Great Britain to Australia. And, because Vocalion (Australia), Ltd., is already well established, and because, in policy and management, it is the replica of the great English gramophone manufactories, it is bound to prosper. The English Gramophone Companies have proved for their fortunate shareholders to be the finest of investments. So attractive did their profits become that share values were forced by insistent demands to high levels. Tha shares in the Gramophone Company, Ltd, (His Master's Voice), were quoted iu 1926 at £3 9s for £1 shares, whilo Columbia Gramophone shares were quoted at £3 for shares of the nominal value of 10s. With Gramophone shares, qs with practically the whole of the quoted stocks, price levels rose in 1526 in rapid movement, until, in 1929, they reached unprecedented heights, far in excess of their economic values. Yet, in spite of the slump in share values, and the disruption caused by the Hatry and other failures in April last, the London Stock "Exchange quoted Columbia shares at .over 100 per cent, advance on 1926 prices,■ and the Gramophone Company shares at over 40 per cent, advance. Hie Vocalion Gramophone Company, which only started trading in 1926, showed results comparable with His Mas-* ter's Voice and Columbia Companies. Its profits shown in accounts for the veal's 1927-28 and 1928-29 aggregated the" sum of £192.064. During ihe period Jannarv 1, 1928, to July 2, 1929, this Company distributed by way of dividends the sum of £161,800. Such was the growth of the Company, which, in the -initial stages, spons6red the business now controlled by Vocalion (Australia), Limited. At latest advices, owing to intensive' competition, this, Company anticipates .profits less than the record for tho year 1928-29, yet it forecasts that substantial profits will be shown. Tho outstanding statement in such report was tho fact that,' notwithstanding the intensive competition, the measures taken by the Directorate were such that any setback during the- earlier part of tho financial year had been practically recovered in the latter part of the year. During the" last three months of tho year sales showed an increase of nearly 20 per cent, over tho corresponding period of the Company's record year. . The whole of the matrix service of tho Vocalion Gramophone Company and tho American Record Corporation, which is tho basis of this wonderful record of sales so recently experienced in England, is at the disposal of Vocalion (Australia), Limited. This service, tho Management and public estimation should assuro the future of Vocalion (Australia), Limited. The full range of prices of the three loading Gramophono Companies' shares during 1929 was as follows:—Vocalion, highest, £3 16s;:3ii; lowest, 13s. Gramophone, highest,' £l3 12s 6d; lowest, £3 15s Columbia, highest, £lB 6s 3d; lowest, £3 12s'6d. Tho Financial Times. London, of May 3, quotes Columbias at £6 15s, Gramophones around £5 ss, and Vocalions at lis. This article is not an invitation to apply for shares, but is intended to set out for tho benefit of investors authentic information in reference to share values of English Gramophone Companies, and, in particular, the profits made and distributed by the Vocalion Gramophone Company,, Ltd., of London. . . CAMPBELL PATERSON,; : Sharebroker, ' 38, Shortland Street Auckland. (Published by Arransersent.) in