KAIAPOI WOOLLEN CO.

New Zealand Herald, Volume LXVIII, Issue 20968, 3 September 1931, Page 5

KAIAPOI WOOLLEN CO.

LOSS OF £30,272 FOR YEAR.

PREFERENCE DIVIDEND ONLY.

[Br TELEGRAPH. —OWN CORRESPONDENT. 1

CHRISTCHURCH. Wednesday.

The 43rd annual report of tho Kaiapoi Woollen Manufacturing Company, Ltd., shows a loss for the year ended July 19 of £33.272.

The report states: '.'The world-wide fall in the prices of raw products, together with reductions in wages and the general low level of wholesale prices prevailing for woollen manufactures, has affected our trading results. The loss sustained through the disastrous earthquake m Hawke's Bay has also adversely affected the year's results. Properties and plant have been maintained in first-class order and additions costing £8695 have been nude to keep the plant up-to-date." The directors recommend that £SOOO bo provided to write down properties arid plant, leaving the amount of these assets standing in the company's books at £183,188. Stocks have been substantially reduced this year. These have tfeen written down to the basis of present-day values of wool ard lower labour costs.

The profit and loss account for the year shows a loss of £30,272 after providing £SOOO for writing off and £2700 for bad and doubtful debts. The directors make the following recommendations: —Transfer from general reserve, £20,000; transfer from land and income tax reserve, £10,500; transfer from bad debts reserve, £2700; making a total, with the balance brought forward' from last year, £.1339, of £34.539; write-off loss for year, £30,2!72; payment of a dividend on preference shares at 6 per cent., £3911; carry forward £356.

After an interval of five years without dividend, the ordinary shareholders received 3 per cent, in 1928 and 4 per cent, in 1929 and again last year. The company v;rote down its capital in 1925 by 3s a share. Subsequently its profits increased as follows:—l 926, '£4274; 1927, £4521; 1928. £11.692; 1929, £13,631; 1930, £13,603. The allowance for depreciation was £IOOO in 1926, £3500 in 1927 and £S(X)D annually since then.

AUSTRALIAN BANKING.

THIE LATEST AMALGAMATION.

ASSETS EXCEED £100,000,000.

The sharp rise in. the market, quotations for shares in' the Australian Bank ol Commerce, from 14s 2d to l&j according to a cablegram published yest<!rday, indicates that the terms upon which it is being amalgamated.with the Bmk of New .South Wales have made a very favourable impression upon the investing public in Australia. Shareholders are to receive two shares in the Bank of New South Wales for 69 shares in the Bank of Commerce, the' total number of shares to be issued being 64,000. The Australian Bank of Commerce "was :ormed in Sydney in 1909 as a reorganisation of the Australian Joint Stock Bank, liabilities of the.old bank being converted into inscribed deposits, which were subsequently redeemed in cash cr converted into ordinary shares, this phase of the reorganisation being completed in 1927. In 1917, the City Bank of Sydney was absorbed and from that time the bank's progress was rapid. Net profits were £62,477 in 1917, the dividend was 3 per cent, and the reserves £116,759. .By 1929 the profits had increased to £218,545, the dividend was 8 per cent, and the reserves £1.115,550. Profits declared by the bank in the last two years have shrunk considerably. They were £180.693 in 193(1, when the dividend was reduced to 7 per cent., and £84,904 this year, the dividend being 4 per cent. The chairman stated at the annual meeting that the earnings had been adversely affected by the exchange situation and the necessity of providing large sums in London to meet Government requirements. The bank's sotirce of profit from exchange had in consequence been considerably weakened. Afiier payment of dividend, reserves totalled £1,138.267, against the paid-up capital of £3,208,000. Assets amounted to £15.265,676.

The bank's operations have been mainly in New South Wales, the greater proportion of the balance being *in Queensland. For several years there have been rumours of proposals for its 'amalgamation with a larger institution. These reports have included suggestions that 4 a merger "was being sought by Barclays Bank, of London, as a means of entering the Commonwealth in the same way as it has already extended its activities to Canada ana South Africa. The present, directorate of the bank comprises Sir Murk Sheldon, chairman, and Messrs. F. N. Yarwood,. James Ivell, H. R. Lvsaght., G. J. Sly and T. A. J. Plavfair. "

The Bank of New South Wales, the oldest and strongest in Australia, was established in 1817 and has emerged from all, the troublous periods of Australian history without injury to its fabric or its prestige. For over a century the bank declined to enter into amalgamations or mergers of any kind, but in 1927 it absorbed the Western Australian Bank,' whose assets exceeded £5.000.000, thus gaining strong representation in that , State. The capital and reserves of that bank amounted to £2.010.851, and shareholders accepted 43,750 shares in the Bank of New South Wales in payment for their interests.

The present capital of the Bank of New South Wales is £7.500.000, reserves at September 30. 1930. including undivided profits, were £6.316.928. and total assets were £89.228.378. When the amalgamation is completed the bank's assets will exceed £100.000,000. HOWARD SMITH, LTD NO ORDINARY DIVIDEND. The directors of Howard Smith, Limited, Sydney, announce that, consequent upon the general industrial depression, which continues to affect adversely the company's interests, no dividend can be paid on the ordinary capital :ior the halfyear ended June 30. The usual quarterly dividend to September 30 on the cumulative preference shares will -be paid. The company's year ends s;t December 31. No ordinary dividend has been dec'ared since the first, half of 1929, when 2 ] s per cent, was paid. v SEARCH FOR OIL. * ' « ANSWER TO CRITICISM. A suggestion that it was futile to spend money in searching for oil in Australia and New Zealand when there was already excessivo production of oil in the United States of America is criticised by Mr. Colin Fraser, the well-known mining engineer, of Melbourne, in a Melbourne newspaper. Mr. Fraser says: "That productive oilfields will be found in Australia and/or New Zealand,, is the considered opinion, after close first-hand study, of more than one of the world's foremost oil geologists. To say, therefore, that those who recognise the hazards df the oil search, and can afford to speculate, are not justified in contributing to finance well-directed efforts to test the regions indicated bv these experts, is to underrate the intelligence and enterprise of the Australian and New Zealand people. If the rich, although rather thin, oil shale seams of New South Wales occurred in the United States or Canada, and the prices of oils in those countries were as...high as in Australia, those shales would be worked at a profit." .