AMERICAN FINANCE

New Zealand Herald, Volume LXXV, Issue 23029, 5 May 1938, Page 11

AMERICAN FINANCE

STIMULUS TO INDUSTRY HUGE DEBENTURE ISSUE STEEL CORPORATION'S MOVE (Received May -1, S p.m.) NEW YORK, May, l The United States Steel Corporation announces that it will place on the market in June 100.000,000 dollars (£20,000,000) of ten-year debentures to liquidate bank loans and complete its modernisation and expansion programme. N This represents the largest issue of new public financing by any industrial concern since 1929. Financial quarters accept it as evidence of the unshaken confidence in the future of the management of the corporation. It is predicted that it may bring about a revival on the capital markets. One of the largest organisations of its kind in the world, the United States Steel Corporation lias an authorised capital of 1,(3.">0,000,000 dollars, in shares of 100 dollars each. The issued eapital amounts to 1.230,600,U00 dollars, of which 870,325,200 dollars is ordinary stock and 300,281,000 dollars preferred stock. The funded debt at December 31, 19.'J.3, consisted■ of 269,000 dollar*, in ."iO-year •> per cent yold bonds, 93..>31,890 dollars of bonds of subsidiaries maturing on various dates, ami 1-3,02.3.700 dollars of subsidiary companies' purchase money maturing over 2.J years, substituted for pre\ iously existing mining royalties. The corporation owns 388 si col works and 19.3 rolling mills, in addition to numerous other subsidiaries, it possesses extensive areas of iron-ore and timber land*. including 102 developed iron-ore mines in Lake Superior anil southern ore regions, Its controlled companies include the Chicago. Lake Shore and Eastern Railway Company.

DONAGHY'S ROPE LOWER NET PROFIT FINAL DIVIDEND OF !/- ; [nv TKI.KRRAPIt —mv.v CO II It KS I'O XI)KM'] DI'XEDJX, Wednesday A not profit of £1229, compared with ioSt]7 lust voir, is shown in the accounts of Donagh.v's Hope anil Twine Company, Limited, cordage and twine manufacturers, for the year ended March 31. The sum of £3746 was brought forward. and, less the previously declared interim dividend ol 9d a share amounting to £2203. £'."72. is available for distribution. The directors recommend that a final dividend ol Is ;i share, absorbing £2937, should be paid, and that £'2885 be carried forward. Depreciation amounting to £3780 lias been written off buildings and plant. Results during the past three years compare as follows: 1030 i»:i7 Rrouflit forward . £3,.*>■_>•_» £3 ,yjn £3 7 til Net profit .. 5,»17 ... ~ , i.'!),■_»•->» £U,410 ~IT,U7F> Dividend .. .1,700 4,700 0,1 !<j Employees benefit 1,000 1,000 Carried forward . £3,520 £3,710 £2,835 WESTPORT COAL COMPANY INTERIM DIVIDEND UNCHANGED [nv TELEGRAPH'—PRESS ASSOCIATION*] DUXEDIX, Wednesday The directors of the West port Coal Company, Limited, have- declared an interim dividend of 6d a share, payable on May 27, The rate is unchanged.

STABILITY OF GOLD WISE CONTROL POLICY CONFIDENCE IN FUTURE The stability of the price, of gold and confidence in the future were two leading points in the address of Dr. Anderson, president of the Transvaal Chamber of Mines, at the annual meeting m Johannesburg a few weeks ago. In the past two years, ho said, due m no small measure to the wise policv of control of the authorities, the extreme variation between the highest and lowest price was not more than about 4 per cent. The steadiness of gold in spite of all the disturbing political and financial difficulties in the world was proof of a continuing basis of stability in an otherwise unstable economic world. The fact that the annual world production of gold was only about. 5 per cent of stocks, and that gold had recently beep bought for hoarding at a premium of nearly 2s above tne exchange parity, was the answer to suggestions of the prospect of* over-produc-tion. or that the world would, if it could, do without gold. AUSTRALIAN INDUSTRY REMARKABLE DEVELOPMENT MANY NEW SCHEMES In a summary dealing with the extraordinary development in Australian secondary industries' "within the past three years, the Minister in charge of Trade and Customs. Mr. T. W. White, announced that the additional capital investment involved in some of the projects amounted to £14,610,000. Broken Hill Proprietary lias led the way, its most recent step being the .vstablixlimcnt of a blast-furnace at Whyalla (South Australia), close to the enormous iron deposits there. Imperial Chemical Industries (Australia) is erecting factories at Deer Park and Yarraville. The new alkali plant , at Port Adelaide, involving a capital of £1.000,000, is also one of its activities. Other new industries established within the last year, not referred to by Mr. White, are the Shale Oil Scheme at Newnes (New South Wales), with a capital of more than £600,000, and the ham-canning factory at Sydney, which started in May and now cans about 2000 hams a week. In July the Minister stated in Parliament that, as the result of the Governmeht's trade diversion policy, introduced a year ago, now capital of £.3,0;i2,000 had been' or would bo invested in Australian secondary industries.

Authority to incrcnso the borrowing powers of the State Electricity Commission up to £10,500,000 "for the Kieawn Valley hydro-eleqtric undertaking, and another generating station at Newport will be. sought :in the State Electricity Commission (Financial) Bill to be introduced in the Legislative Assembly soon. The bill is complementary to the State Electricity Commission (Extension of Undertaking! Bill, which has already been explained to Parliament, and confers authority on the commission to proceed with the 14-yenr task of harnessing tho Kieawa River.