HOWARD SMITH, LTD.

New Zealand Herald, Volume LXXIII, Issue 22393, 14 April 1936, Page 5

HOWARD SMITH, LTD.

SLIGHTLY HIGHER EARNINGS RESERVE FUND STRENGTHENED The net earnings of Howard Smith, Limited, Sydney, investors in shipping, coalmining and sugar businesses, for the year ended December 31, totalled £84,570, an increase of £591 on thoso for 1034. In the latter year not. profit rose to £83,970 from £47,16W in 1933. The 6 per cent preference dividend requires £15,000 and the ordinary dividend, which is unchanged at 2i per cent, absorbs £50,000. The directors have transferred £25,000 to reserve fund from the £26,307 brought forward from 1934, and £20,877 is to be carried forward. Following is a summary of the company's results and appropriations over the past tliree years:— 1933 1934 1935 Brought forward .. £ls. IG(I £17,328 £'20,307 Net profit . . . . 47.108 83.979 84.570 £02.328 £101.307 £110,877 To reserve . . . . Taxation reserve . . Dividends— Pref.. 0 p.c. . . 15.000 15,000 15.000 Ord. . . . . 1» 2J 2 * Amount .. .. 30.000 60,000 50.000 Carried forward .. £17,328 £20,307 £20.877 The earnings of Australian Steamships Proprietary, Limited, a subsidiary, were affected by. strikes in August and December. Because of keen competition, no dividends were received from the company's large investments in coal.

BANK OF ADELAIDE PROFIT AGAIN INCREASED ADVANCE IN DEPOSITS The net profit of the Bank of Adelaide for the year ended March 30 amounted to £57,973, an increase of £2772 on that of the previous year. With £28,996 brought into the accounts there is £86,969 available for distribution. The year's dividend of 4 per. cent absorbs £50,000, leaving £36.969 to be carried forward. The results and appropriations for the past three years compare as follows: — 1934 1935 1936 Brought forward £44.297 £48,795 £28.996 Net profit# .. 54,498 55.201 57.973 £98.795 £103.996 £86,969 To reserve .. Dividend, p.c. . . 4 4 4 Amount .. 50,000 50,000 60,000 Carried forward £48,795 £28,996 £36,969 Total assets amount to £9,188,598, against £8,925,919 last year. Liabilities to other than the bank's shareholders total £6,876,628, against £6,621,922. The increase is more than accounted for by the advance in deposits from £6,372,597 to £6,713,967, which is the outstanding feature of the liability side of the balance-sheet. The bank has a paid capital of £1,250,000,

FINANCE COMPANY'S YEAR HIGHER PROFIT EARNED The net profit of £2788 was earned by the New Zealand Investment, Mortgage and Deposit Company, Limited, Wellington, for the year ended March 31, as against £2518 in the previous year. The directors recommend an unchanged dividend of 5 per cent for the year, absorbing £1065, and an appropriation of £IOOO to reserve, which will increase this account to £14,000. The amount to be carried forward is £2264, as against £2250 brought into the accounts.

WOOL AND STAPLE FIBRE PROGRESS IN BLENDING SUBSTITUTE FOR COTTON There is every indication of values in the wool market being maintained nt recent levels, according to the latest review of Winchcoinbe, Carson, Limited, Australian brokers. Private sales effected in Sydney have been made 011 full recent figures. In England, it is stated, progress is being made in the blending of staple fibre with wool in the process of top making. Staple fibre is artificial silk cut into short lengths, chiefly for the purpose of spinning into yarn by itself or with wool or cotton. The price of staple fibre suitable for the worsted trade is lid per lb. in English currency. The mixture yarns are cheaper to produce than similar yarns of fine wool, and their use in many cases adds to the appearance and handling of the goods turned out. In Great Britain some authorities consider that staple fibre will probably prove more of an assistant than a competitor with wool. It is regarded as likely that staple fibre will be most freely used as a substitute for Egyptian cotton. It is only slightly dearer than the cotton, and an attractive finish can be secured without the mercerising which is necessary with cotton for the production of certain types of fabrics. As linings, artificial silk or rayon materials are finding extensive use in Bradford, particularly for use in the cheaper classes of apparel sold by the multiple stores. Judging by tho keen demand for Merino this season, staple fibre cannot so far bo displacing that class of wool to any appreciable degree.

While the season is more favourable in Queensland and over a ilargo part of New South Wales than, a year ago, tho coming clip is not expected to show much change in size on the current season's production. Millions of sheep were lost in Queensland owing to drought and the heavy rain of last July, causing deaths among large numbers of weak sheep off shears. Some time will elapse before lambings replace those losses with stock cutting the weight of wool produced by fully grown sheep. Increased supplies of Merino wool ana consequently not likely to cause an easing in competition.

CANADIAN EMPLOYMENT YEAR OPENS FAVOURABLY In spite of a reduction of nearly 6300 workers since the first of the year, the index of general employment in Canada showed a gain of 4 per cent on February 1 over the same date of last year. Heports received from 9394 firms show 927,006 persons at work on February 1, 1936. On February 1, 1935, the payrolls of 5992 firms aggregated 885,556 workers. The index of employment in manufacturing plants recorded an increase of no less than 9.3 per cent. The addition to the working forces in lumbering operations was 20.5 per cent. The paper industry employed 5.5 per cent more men. Employment in tho textile industry was nearly 10 per cent greater. The number employed in the manufacture of agricultural implements showed a gain of 24.8 per cent, and in spite of the activity in the automobile industry during the last quarter of 1935, the gain over tho first of February, last year was no less than 9.2 per cent. Metallic mining showed a gain of 12 per cent, and the number employed in building operations was up about 24 per cent. *