FORESTRY INDUSTRY

New Zealand Herald, Volume LXXIII, Issue 22434, 2 June 1936, Page 5

FORESTRY INDUSTRY

TESTING PERIOD NEAR

THE MARKETING ASPECT PACIFIC COMPANY'S AFFAIRS With Whakatane Paper Mills, Limited, building a cardboard and pulp mill and New Zealand Perpetual Forests, Limited, considering its next marketing move, the New Zealand afforestation industry is approaching its testing period. The Sydney Bulletin comments that tliere wore never any doubts that the trees could be grown, but it has still to be demonstrated that thev can be marketed profitably. A rise of 10s to about CI in the market value of the company's scrip over the past month has drawn attention to Pacific Forests, Limited, which has forestry interests in New Zealand. Since commencing finance operations in 1025, the company has relied on shares, no bond capital having been issued. The issued capital at October 7, ] 935, was £209,427 in £1 shares, the amount paid up being £227,715. It owns 14,005 acres, all but 000 acres planted, on its own account, and 3823 acres through a subsidiary, the Waratah Pulp and Paper Company, formed in October, 1028. All the land is in the Rotorua district. Including the implanted 900 acres, the company's own holding, with trees, stands at an average of £l2 .'is an acre in the books, including cost of land, mostly £3 5s an acre, planting, maintenance, plant, buildings, brokerage, preliminary and all other expenses. It was originally estimated that £ls would be sufficient

The company owns 99,970 of the 100,000 £1 shores in the Waratah Company, tlie holding being paid up to £74,977. Assuming that the capital has been expended and that the subsidiary lias no liabilities, the average cost of the 17,888 acres in which Pacific shareholders, are interested, directly and indirectly, has been £l3 14s an aero to date.

ROBINSON ICE CREAM

REDUCTION IN PROFITS DIVIDEND OF 6 PER CENT The accounts of the Robinson Ice Cream Company, Limited, for the year ended April 30, show a net profit of £3773, against £4036 earned in the previous year. The profit is struck after providing £3616 (against £5191) for depreciation and £1164 (against £2112) for income tax. The balance available is £BIB6, including £4413 brought forward. The directors recommend payment of a dividend of 6 per cent, against 7 jht cent paid in 1935 and 6 per cent in the previous two years. This will require £2160. The report states that during the year £11,515 was spent on additions to the factory and plant. The vacancy on the board caused by the death of Mr. .1. \Y. Bentley had been filled by the appointment of Mr. W. Harrison. The retiring directors were Mr. Harrison and Messrs. J. McGregor and J. Savegh, there being no further nominations. Total assets are £371 higher at £45,973. Investment in fixed assets is reflected in the increased valuation of land, buildings and plant. Combined fixed assets are £7900 higher at £42,288. Bank account has been reduced by over £7OOO to £2415. Paid capital is unchanged at £36.000, the only outside liabilities being creditors, £537, and estimated income tax, £1250.

COMMODITIES IN BRITAIN

TIN AND WHEAT DECLINE BUTTER STILL IMPROVING LONDON, May 31 The feature of the commodity markets has been heavy declines in tin and wheat. Confidence in the outlook for tin disappeared as the decision of the International Tin Committee to postpone fixing the quota was announced on account of the dissensions df various producers. The improvement in butter continues, l'ooley Street merchants consider the market is heading definitely toward higher prices. .Main activity is concentrated on New Zealand descriptions. Australians are rather quiet. Arrivals of fruit are again very heavy and the proximity of the Whitsun holidays resulted in easier prices.

AUSTRALIA'S OUTLOOK

CHEERFUL VIEW TAKEN MARKED INDUSTRIAL "REVIVAL A cheerful view of the outlook in Australia was taken by Mr. S. Picket-, son, chairman of the National Reliance Investment Trust, Limited, in his address to shareholders at the annual meeting of the company in Melbourne. He said that with the present favourable seasonal conditions in most parts of Australia, the sustained demand and higher prices of Australian products oversea, and the definite industrial revival both in the Commonwealth and in Great Britain, he was convinced that the limit of profit-earning by Australian companies had not yet been reached. Almost every balance-sheet issued showed a rise in earnings, and it seemed that the soundly established companies might be expected to continue on the patli of recovery. An indication of the great improvement in the general economic position in Australia was supplied by a scrutiny - of company bal-ance-sheets. Of 350 companies whose shares were listed on Australian stock exchanges, and whose accounts wore issued in the 12 months ended March 31, no fewer than 219 disclosed increased net profits. Of these companies, 112 raised their ordinary dividend rates, while only 37 made lower distributions. Mr. Rieketson referred to the resentment that was felt among British investors at the complicated and irritating system of taxation of absentees, which had been an important factor in keeping British capital out of Australia for many years. Taxation concessions to absentees wore recently announced bv the Federal Government, and these should help toward removing this feeling. «

GOOD PRICES FOR PICS PEDIGREE STOCK SOLD [from our own correspondent] HAMILTON, Monday Buyers from all parts of the Dominion were present at the third annual sale today of the "Mountley" line of pedigree pigs offerer} by Mr. A. T. Rogers, Ngnniawnhifl. Bidding was keen and good prices were realised. Top price was Signs, paid lor a Berkshire sow in farrow to Mount - ley's Pleasant Boy Rt.li, other sows in tl,is class bringing from 12igna to 15biih. Berkshire boars sold at up to Situs In the Taniworth section sows in farrow to the Knglish champion bour, Bcrkswell Up-to-date sth. sold at up to •J7sns. and hoars at. up to 'i'>inis. There was practically a total clearance of older piirx, the passings being a little more freauent for young sows. The pale was conducted at. the Claudelands Show Grounds by the Farmers' Cooperative Auctioneering Company, Limited,