WOOLLEN INDUSTRY

New Zealand Herald, Volume LXXV, Issue 23146, 19 September 1938, Page 7

WOOLLEN INDUSTRY

KAIAPOI DIFFICULTIES

EFFECTS OF NEW LAWS POSITION NOT ENCOURAGING [liv Tur.rcci it a t'ti —own couuksi'onwknt] CHRISTCHURCH, Saturday In discussing the operations of the Kaiapoi Woollen Manufacturing Company, Limited, at the annual meeting in Cliristeliurch on Friday, the chairman, Mr. A. MeKellar, said compared with the previous year gross profit had i declined by £(5-1(34. It was a matter of interest, however, that it was £lO higher than in and with expenses as they then were, the surplus that year was suflicient to provide full dividends on both classes of shares and permit of carrying to special reserves a sum of £7500. "The increasing costs of operating the company are causing the directors considerable concern," said Mr. MeKellar. "Apart from heavy increases in manufacturing accounts during the last two years, increases in expenditure in the trading division have reached the enormous total of £12,093. The amount paid in graduated land and income tax lastyear was £11,709. "In .the event of the Social Security Act coining into operation, the company will have to carry a further and unexpected burden in tho social security tax, which, on tho third reading of the bill, was made applicable to companies. If the tax becomes applicable, We propose to pay it by deducting tho amount of it from dividends. "Lt is the opinion of tho directors that rigidly-controlled commerce will not work out to the satisfaction of tho shareholders of our company. The, increases in wages and other expenditure are not favourably reflected in the output. In fact, in some divisions of tho company's business tho position is assuming serious proportions. With tho shorter working week and the general conditions as.they are to-day, tho position is not encouraging. "Tho serious decline in greasy wools also, we admit, has had some-,effect on the results of the year now being re-' viewed. From the extremely favourablo price level which tho grower received for his clip in the previous year, prices fell last year" abruptly to a level which could not be regarded as satisfactory, and when such a steep decline occurs in one year it is exceedingly difficult for the company to recover from its productions the prices paid for tho wool the previous year."

FOREIGN EXCHANGES FLUCTUATIONS IN LONDON British Wireless RUGBY, Sept. 17 The following • rates on foreign exchanges are current, compared with the cabled quotations yesterday and par:— Sept. 17 Sept. 16 Par Montreal, dot... 4.82% 4.82%- 4.860 New York, dol. 4.70% 4.80% 4.80 Paris, tr. .. 178'/; I7SV IO 179.00 Brussels, belga. . 28.41 28.41 35.00 Geneva, fr. . 21.28% 21.25'/i 25.22 Amsterdam, gr. 8.02% 8.92% 12.10 Milan, lire .. ot%„ 'JI% 02.00 Berlin, r.m. .. 11.00 11.00% 20.43 Stockholm, kr... 10.40 10.30% 18.150 Copenhagen, kr. 22.40 22.10 18.150 Oslo, kr. .. 10.00 10.00 18.159 Vienna, sch. . . 26%t 26%t 31.585 Prague, kr. . . 130% 13!)% 164.25 Helsingfors, mark 226% 226% 193.23 Madrid, pes. . 551 551 25.221 Lisbon, escu. .. 110y 16 110%, 110 Athens, dr. .. 547% 5-17% -375.00 Bucharest, lei... 665 665 BJ3.G Rio de Janeiro, m. 2 l %«d* 2 1 /' K .d* 5.899 d Buenos Aires, pes. 19.01 19.01% 11.15 Montevideo, dol. 20d 20d 51 d Bombay, rupee.. t7 2 /j a d lT'Vied I.Bd Shanghai, dol.. . B%d B%df Hongkong, dol. 15d 15d Yokohama, yen ltd ltd 24.55 d Batavia, gr. . . 8.90% 8.90% 12.10 Belgrade, din... 211 211 270.31 Warsaw, zloty. . 25.2 25.2 43.38 'Sellers. NEW ZEALAND QUOTATIONS The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates on Saturday, on a New Zealand currency basis, subject to alteration without notice: — Selling: United States Canada T.T :i.83% 3.86% - On demand . . 3.84 3.80% Buying: Onl demand . . 3.88 7 / 19 3.0iy,„

Following are the latest rates for purchases and sales of foreign exchange quoted by the Bank of New South Wales, -Auckland. They are subject to alteration' without notice:

To CI N.Z. T.T. On Demand Currency Selling Buying Selling U.S.A.. (101. . 3.845 i) 3.8815) 3,8469 Canada, dol. . . 3.8088 3.9100 3.8li!)8 Kelpriurii, belpra 122.73 0 123.101 1212.7124 Czecho'vakia, cr. 110.05 Denmark, kr. . 17:803 18.263 17.805 Finland, Fin. ms. 170.00 185.80 170.70 France, fr. . I I'2.'JO Germany, r.m. . 9.56-1 Greece, drachmas 430.74 Holland, fl. .. 7.120 7.310 7.122 Italy, lire .. 73.1-10 Java, fl. .. 7.007 7.257 7.099 Norway, kr. .. 15.802 16.242 15.805 Noumea, fr. .. 140.51 Papeete, fr. .. 140.66 Sweden, kr. .. 15.489 15.81 L 15.492 Switzerland, fr. 17.008 17.383 17.010 3ST.Z. pence to — Chefoo, dol. . . Nominal Hongkong, dol. .18 53-64 18 27-64 18 53-64 India, rupee . . 2213-32 22 3-32 2213-32 Ceylon, rupee . 2213-32 22 3-32 2213-32 Japan, yen .. 17 0-1(5 17 0-10 Manila, peso . 30 31-32 30% 30 31-32 Shanghai, dol. Nominal Singapore, dol. 35 3-6-1 31 5-16 3o 3-61 The cost in New Zealand curiency of tho pound sterling, and ot the principal overseas units, on the latest quotations, is as follows: • Present Price Par sds - d I London, pound .. 2-1 10.(55 20 0.00 Australia, pound .. 10 11.10 . 20 0.00 | Fiji, pound . .. 22 5.00 20 0.00 ! New York, dollar .. 5 2.20 4 1.31 I Montreal, dollar .. 5 1.72 4 1.31 ; Paris, franc . .. 0 1-67 0 1.34 Berlin, reichsmark-.. 2 0.89 0 11.74 Copenhagen, krono . . 1 1.32 1 1.22 Yokohama, yri . . 1 5.41 2 0.5S CUSTOMS EXCHANGE RATES Finally declared rates of exchange ruling at the date of departure of vessels named are shown in the follow- j ing table: — * Clydebank, Canada, dollars .. .. 4.00 Clydeliank, America, dollars .. .. 4.87 Kozan Maru, Japan, yen .. .. 14d Niagara, Canada, dollars .. .. 4.86 Niagara, America, dollars .. .. 4.88 COMING lIONEY SEASON PROSPECTS 'IN CANTERBURY [ISY TKMCG ItA I'll —OWN C< >H LKKSI'ON DKN'i'] -CHIUSTCHUKCir, Saturday "JJeeause of the improved weather, beekeepers have had an opportunity to examine their hives, and in most eases the bees have been found to have conie through the winter in an exceptionally good condition, ' stated 31 r. W. •!. Kix. apiary instructor in Canterbury for' the Department of Agriculture, yesterday. "Although the winter was extremely cold, the bees were not affected adversely. "In view of the heavy rainfall during the winter, the coming season in Canterbury should prove good, but, of course, it is yet too early in the season to make a forecast as everything depends on the weather during thf summer months," continued Mr. Kix. "In the Canterbury Province, beekeepers rely mainly on clover for feed, •and practically 80 per cent of the crop comes from tin's source. As the nectar secretion of clover is governed to a great extent by the general weather conditions, it will be seen that it is very (liflicult to estimate the crop at this early stage.

".Beekeepers generally seem to he perfectly satisfied with the marketing conditions and prices received for last year's erop on tiie local market," he concluded.