COMMERCE AND FINANCE

Otago Daily Times, Issue 19978, 21 December 1926, Page 7

COMMERCE AND FINANCE

GRAIN AND PRODUCE REPORT Messrs Donald Reid and Co. (Ltd.) re■port as under: Oats. —The market remains in a stagnant condition. Merchants arc striving to quit their present holdings, but very little br«siness is being transacted. Nominal valcws remain much the same as last week —vu \ Cartons, 2s lOd; B Cartons, 2s 7d, sa-fc.a extra, on truck, country stations. \Vht«t.—There is little to report in this market. Millers are not interested at present, but fowl wheat is commanding a little attention, and is selling at 7s 6d per bushel, ex store, Dunedin, sacks extra. Chaff/— Very little is coining forward, but as the demand is correspondingly small values do not vary much. An improved demand can be looked for after the, holidays, when the bulk of old chaff still available is generally disposed of. Prune chaff is to-day worth from to 5s to £5 10s, ex truck, with a little extra for choice lines. Other grades are practically unsaleable. Potatoes. —The season is about finished now, with an odd small consignment still coming to hand. The market, which was firm at the beginning of the week, collapsed towards the end, and value to-day is about £4 per ton, ex store, sacks in. Messrs Dalgety and Co. (Ltd.) report as follows: — Oats.—The market is still very quiet, with values, if anything, easier. Northern merchants, who are holders of oats in store here, are anxious to quit these, but as the demand is very poor they are not meeting with much sucess. Nominal values are: —A Gartons, 2s lOd; B Cartons, 2s 7d per bushel, on trucks. Wheat.—During the week the price ot flour was reduced 30s per ton, due to competition from Australia. This, of course, will affect the price of milling wheat. At present local millers are not buying, as they have sufficient stocks on hand. Owing to the unsettled state of the market millers are not inclined to buy forward. The citv is being supplied with fowl wheat landed ex s.s. West Henshaw from Canada. Any lines of local fowl wheat coming on the market can be disposed of at up to 7s Od per bushel, ex store, sacks extra. Potatoes. —The demand for old potatoes is just about over. New potatoes in everincreasing quantities are coming to hand from the North Island and the Peninsula, and are all of good quality. Any bneg old potatoes coming to hand freshly picked end in good condition can be disposed of at £4 per ton, ex truck, sacks in. Chaff. —The chaff market is quiet, with a small quantity coming to hand. No shipping is bsing doHG, and with all th. 6 store space being wanted for wool, sales have to be made ex truck. Only prime lots are meeting with any demand, all other qualities being neglected. We quote: Prime oaten sheaf, £5 5s to £5 10s per ton (sacks extra). OIL AND WATER COLOUR PAINTINGS. Messrs Park, Reynolds and Co. have at present on view in their rooms in Manse •treet a comparatively small but good collection of oil and water colour paintings by several leading artists The collection consists of about 50 works, practically ail of which possess merit—in some instances very high merit. There is one oil by M'Whirter, A.H.A., that easily cornea into the forefront. It is a depiction of a torrent coming over a rocky face, and is an artitic production. J. B. Smith is another prominent contributor and there is on view from his brush a fine oil colour. Mr Cole, R.A., contributes something good in a picture depicting a long, calm stretch of river scenery. Mr Cole has a second oil colour of a quiet village homestead, distinctly English in character, that has oeen very eectffively painted. Sheridan Knowles, R.A., supplies a very pretty study m foliage and flowers. Amongst other works in the collection are paintings by such well known artists as Nerli, Butler, and J. F. Scott. These works of art will be offered at public auction in the rooms of Messrs Park Reynolds and Co. this afternoon. DAIRY PRODUCE. The National Mortgage and Agency Co. of Now Zealand (Ltd.), has received the following cablegram from Messrs A. J. Mills and Co. (Ltd.) London:— Butter.—The market is quiet but steady. Control prices now are 170 sto 1725; stored 164 s to 1665. Cheese.—The market is quiet and prices are unchanged. Scott Bros., produce merchants and commission agents, agents for the Egg and Poultry Growers* Association (Dunedin), report; Eggs—To-day, stamped guaranteed Is lOd, fresh Is 9d. Butter—Dairy pats lid to Is per lb, bulk Is. Honey—Wanted; prime bulk per lb; 101 b tins 5s 6d each. Beeswax —Is 3d to Is 4d per lb. Fat— 2s to 26s per cwt. Poultry —Good demand; hens 5s to 6s per pair; ducks (good) 3s to 4s each; geese 4s 6d to 6s 6d each; turkeys, hens Is, gobblers Is 2d per lb. Pigs—Prime baconers 8d to per lb; porkers 8d to Sid per lb; overweights 4d .per lb Potatoes —North Island 2d, local 2|d to 3d, Oamaru 2|d to 3d, old potatoes no inquiry. Chaff—Prime oaten sheaf £4 15s to £5 5s per ton, sacks extra. Whole fowl wheat —7s 9d per bushel. Canadian onions—First grade 20s per crate. Maize —Bs per bushel. Oats—3s 9d per bushel, sacks extra. Straw —Pressed wheaten £3 10s, oaten £4 ss. clover and rye grass nay £4 15s per ton, ex store. Please note— Pigs and poultry must arrive not later than Wednesday of this week. Consignors are advised to forward all perishable goods as early as possible before the, holidays. Our premises will remain open between Christmas and New Year. December 20, 1926. COMPANY BALANCE SHEET. THE NATIONAL TOBACCO COMPANY (LTD.). Paid-up Net Dividend Capital. Reserves. Profit. Pref. Ord. Tear ended. £ £ £ p.c. p.c. 31 Oct, 1924 ... 14,737 1174 2031 8 12 31 Oct, 1923 ... 28,733 4373 5164 8 12 31 Oot, 1026 ... 35,703 0357 8252 8 134 This company is concerned with an industry which has great possibilities in it, and the development of which may exert a considerable influence in the welfare of the Dominion. Apart altogether from its financial career, the novelty of the enterprise has much to commend itself to all interested in the country’s prosperity. During three years, groat strides have been miyde and the above figures show the results of a flourishing industry. The profit for 1925-26 works out at 23.05 per cent on the paid-up capitah as against 17.97 per cent, for the previous 12 months. Roughly, the ordinary shares stand to the preference in the relation of two to one, and the dividends recommended are 12i per cent, and 8 per cent, respectively. A sum of £3500 —practically equivalent to the total dividend—is suggested for transfer to reserve, leaving a balance of £1225 to add to the undivided profits. The gross profit from tobacco sold is mounting up in a marked degree, the increase recorded on each previous year being in excess of that of the prior one. Charges, for which, with the exception of depreciation, the figures for the separate headings are not made out, ore not rising proportionally as the under-noted columns show—viz.:— Charges. Gross Profit. Ratio. p.c. 1023-24 £10,465 £12,546 83.41 1934-25 £11,323 £16,417 68.97 1025-26 £13,951 £21,971 63.50 Thn extensive reduction in the relative positions that took place in 1924-25 has been followed by a further drop. With the gross profit increasing by 75 per cent, -in two years, this result Is not surprising. Depreciation or. buildings and plant has been provided for and a-reserve of £1273 for income tax been established. The fixed assets comprise £16.576 after being subjected to the depreciation allowance. They have been materially added to during the past 12 months, a sum of approximately £IO,OOO having been expended. New factory buildings are doubtless chiefly responsible for the greater value, which, however, does not show a depreciation allowance to correspond to tnat of the year jjg/,25. At the buildings are new it may

LOCAL AND OVERSEAS MARKETS.

be considered that deterioration has not yet began to operate to any extent, but a fuller provision seems called for in the future. As the fixed property is grouped, the constituent amounts are not disclosed, but machinery forms a part, and no allowance for its wastage appears to have been made. , , , Stock forms the largest of the liquid assets. Its value of £12,502 is virtually the same as 12 months ago. Including as it does both raw material and the finished article, with the intervening stages, its quantity may be larger or smaller according as to which predominates. Looking to the results, it may be inferred that it chiefly consists of the unfinished article, with a consequent larger quantity. Cash amounts to £10,148, of which £6OOO represents fixed deposits earning 4 per cent. Unless it is wanted for further extensions, it looks as if part of this might be invested outside the business, and thus employ a section of the reserves. The proposed dividend is amply provided tor. Sundry debtors at £8475 look large, but as it is stated that the dealings are almost exclusively with wholesale houses, possibly they mainly consist of large sums spread over a small number of customers. Advances on mortgage and on purchases have been made to cover £39oß—an item which is apparently responsible for the interest of £221 received and entered m the piofit and loss account. The chief liability is sundry creditors (£1238), a small sum when compared with the sundry debtors on the other side. Another liability is the accrued charges of £SO, while suspense account shows £l-to, whatever it may represent In any case the assets show a surplus of over £50,00 . At October, 1925, the excess was £ Jo,ooo. With £7059 of additional capital placed in the business, the surplus has increased £15,000, or more than £2 for each £l, m 12 months. . A noticeable feature is that reserves have not been sacrificed for dividends. The prudence shown in the initial stages in this respect will react to the company s benefit later, although meanwhile some shareholders might desire to see a larger part of the surplus distributed in dividend. A reserve fund of £6500 has already been built up out of profits, and there is an addition of £737 from Premium on shares. When the undivided profits are included, the total comes to £9857. After three years’ trading, all debentures have been cleared off, and there is a reserve equivalent to 27.54 per cent, ox the paid-up capital. This seems an enviable position to reach in such a short time, and suggests that the home-grown tobacco trade is one that has a great future-beiore it. THE SHARE MARKET. DUNEDIN STOCK EXCHANGE Sales of the ordinary issue of Auckland Amusement Park shares at 5s premium were reported on the Dunedin Stock L. change yesterday. Further lo * s wanted at 4s Bd. A parcel of Bank of New Zealand rights was turned oyer at 6s lOd, other lots being offered at -bat price. The best offer for Kawaraus was 2s lid, sellers asking 3s Id. Sales Reported— Auckland Amusement Park (ord.), 5s prem (2); Bank of New Zealand (rights), 6s lOd. ; The following are yesterday afternoons buying and selling quotations, which are subject to the usual brokerage, banking. Bank of Australasia—Sel £l4 ss. Bank of New South Wales—Buy £45. Bank of New Zealand — buy 58s 6d, sel 59 | a nk of New Zealand (rights)—Sel 6s Commercial Bank —Buy 31s 6d, s<ff 325. National Bank—Buy £7 Is, sel £/ 3s. National Bank of Aus. (cont.)— Buy £9 E. S. and A. Bank—Buy £8 2s. Union Bank —Buy £ls 3s. BREWERIES. New Zealand Breweries (Limited) Sel 52 9d. INSURANCE. National Insurance Co. —Buy 73s 3d, New Zealand Insurance Co.—Buy 36s 6d, sel 37s 6d. „ „ „ South British Insurance Co.—Buy o6s, sel 56s 6d. SHIPPING. Burns Philp—Buy 38s 2d. Huddart, Parker (ord.) —Sel 47s 6d. P and O. Deferred Stock (ex div.) Sel £247. . „ , Union Steam Ship Co. (pref.)—Buy 20s 4d. COAL. Westport Coal Co.—Sel 365. Westport-Stockton (ord.) —Sel Is 9d. LOAN AND AGENCY. Dalgety and Co. —Buy £ls, sel £ls 10s. New Zealand Loan and M. (ord.) Buy £9l. Trustees, Ex., and Agency—Buy 58s. Wright, Stephenson, ord.) —Sel 225. Wright, Stephenson (pref.)—Sel 17s. MEAT PRESERVING. New Zealand Refrigerating (paid) Buy 14s 6d, sel 15s 3d. New Zealand Refrigerating (cont.) Sel 7s. MISCELLANEOUS. Brown, Ewing (ord.) —Buy 30s. Brown, Ewing (pref.)—Buy 20s 6d. Bruce Woollen Co.—Buy 16s, sel 18s. Colonial Sugar—Sel £55 15s. D.I.C. (ord.) —Buy 9s prem. D.I.C. (pref.)—Buy 20s 6d. Dominion Rubber—Buy 465, sel 495. Eclipse Petrol —Buy 7s 6d, sel 12s. Kaiapoi Woollen (ord.) —Sel 11s 9d. Kaiapoi Woollen (cont.) —Buy 2s 6d. Milburn Lime and Cement—Sel 30s 6d. Mosgiel Woollen Co. —Buy £6. National Electric —Buy 17s, sel 18s. New Zealand Drug Co.—Sel 71s 6d. New Zealand Express (ord.) —Buy 21s. New Zealand Express (pref.)—Buy 17s. New Zealand Hardware (ord.) —Buy 7s 9d, sel 8s 6d. New Zealand Paper Mills (ord.) —Sel 18s 6d. Taranaki Oil—Buy 9s. Wellington Woollen (ord.) —Sel 17. Wilsons (N.Z.) Cement—Buy 33s 3d, sel 33s 9d. Auckland Amusement Park ord.) Buy 4s 8d prem, sel 5s 3d prem. Auckland Amusement Park (paid) Buy 245, sel 26s 6d. MINING. Kawarau G.M. Co.—Buy 2s lid, sel 3s Id. Nokomai—Buy 4s 6d, sel 6s. Electrolytic Zinc (pref.)—Buy 375, sel 38s. Electrolytic Zinc (ord.)—Buy 36s 3d, sel 375. Mount Lyell—Buy 27s 3d. Kawarau High Levels—Sel 6d prem. Mount Isa. —Buy 21s. Upper Nevis—Buy 4s 3d prem, sel 6s 6d prem. Alburnia —Buy 3s 4d. St. Bathans (A issue) —Sel Is prem. St. Bathans (B issue) —Sel Is prem. WAR BONDS. per cent. Bonds, 1930—Buy :07. 4J per cent. Bonds, 1938—Buy £96 12s 6d. 5J per cent, Soldiers’ Inscribed, 1933 £lOl. 4i per cent. Inscribed, 1938—Sel £97. 5j per cent. Soldiers’ Inscribed, 1033 Buy £lOl. NORTHERN EXCHANGES. (Peh United Pbess Association.) The following business was done on ’changes yesterday:— Auckland.—Sales: Bank of New Zealand, 595; rights 6s 9d (two parcels),; Union Bank, £ls 5s 6d. Wellington.—Sales reported: Bank of New Zealand, £2 10s 3d; Goldsbrough, Mort, £2 9s. Christchurch.—Sales reported; Goldsbrough, Mort, 495; English, Scottish, and Aust. Bank, £8 ss. Sale; National Insurance, 73s 6d.

PROPERTY SALE. Messrs Janies Samson and Co. held a sale yesterday of Maori Hill freehold residential properties and two vacant sections in Dundas and Swan streets. The sale attracted a considerable number of buyers, and the two vacant sections were sold to clients at satisfactory figures. The Maori Hill properties failed to reach the reserve, and are now for nrivate sale.