HIGHER STEEL PRICES

New Zealand Herald, Volume LXXV, Issue 22933, 11 January 1938, Page 5

HIGHER STEEL PRICES

AUSTRALIAN COMPANIES INCREASE CRITICISED GOVERNMENT TO INQUIRE [from our own correspondent] SYDNEY, Jan. 7 The two largest stool manufacturing companies in Australia, the Broken Hill Proprietary Company, Limited, and Australian Iron and Steel, Limited, which, thanks to a high protection tariff, hold a virtual monopoly in the industry, have increased the wholesale prices of mill steel from 5s to 20s a ton. Uncompleted orders which have been in for some months will be affected by the increases. Tho Sydney manager of the Broken Hill Proprietary Company, Limited, Mr. Bell, said the increase was due to the increases recently made in wages in the industry. Prices of steel in Australia were affected very little, if at all, by the prices of steel in Britain or other oversea countries. The new prices will mean an increase in turnover, of more than £300,000 to Broken Hill Proprietary Company, Limited. The amount is calculated on an average increaso of 10s a ton on the company's output of 783,138 tons of steel ingots of varying grades for the year ended May 31, 1937. About two years ago Broken Hill Proprietary acquired ( the controlling interest in its largest competitor, Australian Iron and Steel, Limited. Broken Hill Finances The company's position is shown in the following table:— Profit Rate /Mayfll Capital Net Profit Div. on Capital ! a £ ■ p.c. p.c. 1(131 2,987,708 229,588 TO 14 1935 (unaltered) 070,4-12 10 22 3»36 4,219,851 850,361 12Vi 24 1937 4,982,014 1,183,170 12Va 20 The present capital of the company is £5,521,549. Part of tho increase was immediately passed on by leading stee] companies supplying fabricated steel for building construction. Steel companies which have given firm quotations for structural steel for current city contracts estimated that they would have to carry a loss of about £(3000 on the city jobs because they could not pass the mill increases on to the building contractors. Steel fabricators will appeal -to the mills with which th<jir orders were placed to bear at least a proportion of the loss.

The companies decided to continue the practice of Riving n firm quotation to building contractors for the duration of an}- particular contract, and to request* the Federal Government to remove sales tax from fabricated steel. Should this be done, the increase in steel prices would be borne by the fabricating companies, and not passed on to the building contractors. Building and motor body building association representatives and Government and city council officers adversely criticised the increase. The New South Wales Cabinet will discuss the rise in prices next week. The president of the Master Builders' Association, Mr. Grant, said that Broken Hill Proprietary and Australian Iron and Steel Limited formed a powerful monopoly. "It is hard to see how a rise is justified," he said. "We know there is a monopoly in the steel industry, and a strong one, but we cannot stop it. All we can do is try to find a substitute for largo quantities of structural steel. More reinforced concrete buildings will replace the usual steel frame type." Defence Steel Orders

The Minister for Defence, Mr. H«. V. Thorby, snid that defence costs would be higher in the future, but would not immediately nft'ect the programme. "If the increases arc considered to bo an undue exploitation of the public, the Federal Government can take action in two ways," he said. "Protective duties \inder the tariff could be revised. and defences steel orders could be placed abroad." Mr. Cramer, of the Sydney County Council, said: "I am certainly not going to allow this steel combine to get its tentacles around the county council without a fight. I would be lendy to suggest a boycott of the local steel combines rather than allow them to filch more money from the pockets of the public. It is just another instance of steel companies getting together and holding a gun at the heads of public supply bodies. The State Government has spent to date just on £1,750,000 to improve Port Kembla, where Broken Hill Proprietary, Limited, and Australian Jron and Steel, Limited, have big works. The sum includes authorisation since last September to spend £IBI,OOO on a jetty near the Australian Iron and Steel Company's works. COX BROS. (AUSTRALIA), LTD. CAPITAL FOR EXPANSION To finance expansion, the directors of Cox Bros. (Australia), Limited, Melbourne, have decided to make a new issue of 5s ordinary shares at par to ordinary shareholders in the proportion of one new share for every two held. At the annual meeting in September, it was explained that tho building programme in Adelaido would bo begun early this year. Since then tho company has announced tho purchase of a property in Hobart, and the building of a new shop on that site will be begun on March 1. It has also been announced that the company lias acquired a new business in Newcastle. Tho hew shares will rank for dividend from March 1.

PUKEKOHE PRODUCE ONION VALUES DECLINE [FROM OUR OWN COItKKSI'OXDIyNTj PUKEKOHE, Monday A further fall in the value of I'ukokohe onions has occurred since the beginning of last week, to-day's price being 10s per ewt., f.0.r., Pukekohe, | as against lis a week ago. The crops are now ripening off, and supplies are increasing. The quality generally is very good. Pukekohe potatoes liiaintnin Inst week's value of lis 6d per ewt. and there is a steady volume of business. The drv weather has clipped supplies of green vegetables, but the rain at the week-end moistened the ground thoroughly and will greatly assist the second crops of potatoes anil greens that have yet to mature. Cabbages were quoted to-day at 4s and os a sack, green peas at 6s Gd a sugar bag*, French beans at 6s a sugar bag. marrows at 5s a dozen, rhubarb at 3s 6d a dozen»bundles, lettuce at 5s a case and tomatoes at 5s 9d and 6s 6d a case. EGG PRICES UNCHANGED The Auckland Egg Marketing Committee announces that wholesale egg prices are unchanged, as follows: Hen: First grade, Is (ijd a dozen; B grade, Is o|d; C grade, Is O.Jd. Duck: First grade. Is 4Jd; B grade. Is 3.Jd; C grade, lljd. Country .storekeepers' minimum buying prices. far first grade eggs are:—Hen, Is 2d a'dozen; duck, 18,