AIRCRAFT SHARES

New Zealand Herald, Volume LXXIII, Issue 22392, 13 April 1936, Page 5

AIRCRAFT SHARES

GOVERNMENT ORDERS WARNING TO SPECULATORS NO LAR'GE PROFITS Recently there has been a boom in aircraft shares in England, probably due to a belief that the companies would "reap large profits from Government orders. That belief was not confirmed by Sir Harold Snagge, chairman of directors of D. Napier and Son, Limited, in his address at the annual meeting of the company held at Acton. Sir Harold said: "There is a popular impression that large Government contracts are necessarily synonymous with large profits for the contractors, but I think the public should understand that in these days, when the Government very properly exercises a rigid supervision ever all matters relating to costing by their suppliers, anything in the shape of what was called profiteering during and after the war is out of the question. To judge from recent Parliamentary reports it appears that even members of Parliament require to be reassured on this point. " In my view a serious responsibility rests at the present time upon directors of what are called 'aviation' companies, and I am sure that the chairmen of other firms share my feelings. There is just now a great and urgent national need calling for a supremo effort on the part of a comparatively new industry at the expense of the taxpayer, and profiteering will not bo tolerated. " That aviation shares should at this juncture become the most active counter in the speculative share market is perhaps natural and inevitable, but it is none the less to be d'eplpred. Prices and values have got hopelessly out of touch with each other. Fanta tic capital appreciations are reported daily, and gamblers are no doubt making fortunes as fortunes have been made and lost before in American railways, in diamonds, in gold, and in rubber."

WHEAT IN AMERICA WINTER CROP ESTIMATE MUCH BELOW EXPECTATION (Received April 12, 5.5 p.m.) WASHINGTON. April 11 A winter wheat crop of 943,000,000 bushels is indicated according to crop conditions on April 1. The Department of Agriculture announces that this compares with 433,000,000 bushels harvested in 1935 and the preceding five years' average of 618,000,000. The estimated crop is considerably below what had been expected. The department's report states that about 21 per cent of the acreage seeded for winter wheat last autumn was abandoned.

About 40,500,000 dollars will be distributed among winter wheat growers under the 5 per cent planting curtailment contracts entered into before the Agricultural Adjustment Act was invalidated. This is on a basis of 21 cents a bushel instead of approximately 40 cents, as was contemplated. The money must come from the general Treasury funds, as the tax on processors has been over-ruled by the Supreme Court.

AUSTRALIAN IRON AND STEEL PREFERENCE DIVIDEND ARREARS In discussing dividend arrears on preference shares in Australian Iron and Steel, Limited, at the annual meeting of shareholders in Melbourne recently, the chairman, Mr. H. G. Darling, said the question was no doubt continually in the minds of preference shareholders. One shareholder had asked that an explanation should be given at this meeting as to the non-payment of the arrears. All that could be said was that the necessary cash was not available at present, but it was hoped that the course of business would bo such as would enable greater profits to be earned, in which case the question of arrears would have the consideration of the board. The directors were pleaded to have been able to pay two half-yearly dividends on preference shares during the last yejy, and to be able to recommend payment of a dividend on the same shares for the half-year to May 1, 1932. , HOSIERY MANUFACTURE NEW ZEALAND OPERATIONS" The operations of the New Zealand subsidiary of Lustre Hosiery, Limited, were commented upon by Mr. W. G. Forsyth, chairman, at the annual meeting of shareholders of the parent company in Sydney., While the results of the company's operation in the Commonwealth during the past year had been very, satisfactory, Mr. For-, syth stated, New Zealand had not proved a profit-earning centre. Howover, fresh arrangements were being made with regard to the subsidiary company there, which should lead to a substantial reduction in expenses, so that it might confidently bo anticipated operations in New Zealand would show a fair profit within a reasonable time. deferring to the large stocks of raw materials which the company had on hand, the chairman said toward the end of last year, in view of unsettled conditions abroad, the directors had felt that there was a risk of supplies of raw material being interfered with and judged it wise to increase their orders and expedite delivery of contracts. The fears had not been realised, but the stocks purchased had simplv been in anticipation of requirements and should shortly be reduced to normal proportions.

BROWN TOP GRASS This season's brown, top grass harvest has proved rather disappointing to the South Otago farmers, who generally sow an area, for seed production. At the beginning of the new year the prospect of a high yield was very bright, but the winds and tho rains that were later experienced caused considerable damage to the crops in some localities. The result is that only half a off op will be saved in the district. CALL AND DIVIDEND LIST Dividends— Duo \Voolworths (N.Z.)—int., pref., 4J p.c. . . . . . . . . April 15 "Woolworths (Syd.)—final, 6} p.c. and bonus. 5 p.c. . . . . April 15 G. J. Coles—-int., quarterly, 2J p.c. .. _ . . . . April 15 Dominion Pictures—int., pref., 3 p.c.; ord., 2J p.c. .. .. April 30 Timaru Brewery—final, 3J p.c. April E., S. and A. Bank—int., 2} p.c. May 1 Aus. Iron and Steel—pref., halfyear to May 1, 1932, 32 p.c. May 1 Bank of Adelaide—int., 4 p.c. . . May G Sharland and Co.—int., ord. and pref.. 2J p.c. _ May 11 Mosgiel Woollen—int., 4 p.c. .. May 13 Calls— Mt. Morgan—new issue, 2s 6d a share April 15