COMMERCE AND FINANCE.

Otago Daily Times, Issue 20190, 30 August 1927, Page 7

COMMERCE AND FINANCE.

THE SHARE MARKET. DUNEDIN STOCK EXCHANGE, Business was quiet on the Stock Exchange yesterday. The new issue of Milbum Lime and Cements was wanted at 3s Hd premium, but none was on offer. Inquiry was made for New Zealand Drugs at 65s 9d, sellers asking 64s fid- Sugar of Milks, which changed hands recently a 21s ficl, had a buyer at -20 s and a seller at 21s 9d. , The following are yesterday afternoons buying and selling quotations, which are subject to the usual brokerage: BANKING. Bank of Australasia —Sel £ls- - of New South W ales—Sel £45 ss. Bank of New Zealand —Sel 58s fid. Bank of New Zealand (D issue)—-Buy 5s Commercial Bank —Buy 27s 4d, sel 28s. E.S. and A. Bank—Sel £B. E.S. and A. Bank (new issue)—Buy 30s prem* . _ National Bank of New Zealand Buy £6 14s fid. P. and O. Bank—Buy £9 7s fid, sel £9 17s fid. Union Bank—Buy £l4 18s, sel £ls 2s. BREWERIES., N.Z. Breweries, Ltd. —Buy 425, sel 43s fid. N.Z. Breweries Debs, —Buy 23s fid. INSURANCE. National Insurance Co. —Buy 76a 3d, sel 77a. ■ „ South British Insurance Co.—Buy 57s fid. Standard Insurance Co.—Buy 60s 9d. SHIPPING. Huddart, Parker (ord.) —Sel 47s 9d. Huddart, Parker (pref.)—Buy 20s lOd, sel 21s 3d. , _ P and 0. Deferred Stock—Buy £278, sel £285. U.S.S. Co. 1 (pref.)—Sel 20s 4d. COAL. Westport Coal Co.—Buy 55s 3d, sel 33s Bd. Westport-Stockton (ord.) —Sel Is lid. Westport-Stockton (pref.)—Buy 2s 2d. ' LOAN AND AGENCY. National Mortgage—Buy 62s fid. N.Z. Loan and M. (ord.) —Buy £9O. Perpetual Trustees —Buy fils. Trustees, Ex. and Agency—Buy 58a. Wright, Stephenson (pref.)—Buy 15s fid, sel 16s fid. MEAT PRESERVING. Cear Meat Co.—Buy 365. N.Z. 'Refrigerating (pd.)—Buy 13s 7d. N.Z. Refrigerating (cont.)—Buy 6s Id, sel 6s fid. . Southland Frozen Meat (ord.)—Sel 31a fid. MISCELLANEOUS. Auckland Amusement Park (ord.) —Buy 15s fid. , Auckland Amusement Park (pref.)—Buy 18s. British Tobacco—Buy 54s fid, sel 55s 3d. Bruce Woollen Co.—Sel 10s. D.I.C. (pref.)—Buy 20s 9d. Dominion Investments—Buy 225. - Dominion Rubber—Buy 38s, sel 425. Milburn Lime and Cement—Buy 27s 9d. Milburn Lime and Cement (new issue) — Buy 3s lid prem. Mosgiel Woollen Co.—Buy £6 3s. M‘Leod Bros.—Buy £25. National Electric—Sel 13s fid. N.Z. Drug Co. (£2 pd.)—Buy 63s 9d, sel 64s fid. • , v N.Z. Express (ord.)—Sel 21s. * N.Z. Guarantee Corn.—Buy 9s. - N.Z. Milk Products (bonds)— Buy 21s 9d. N.Z. Paper Mills (ord.) —Buy 15s 9d. N.Z. Sugar of Milk—Buy 20s, sel 21s 9d. Otago Daily Times—Sel 755. Whitcombe and Tombs—Buy 69s fid. Wilsons (N.Z.) Cement—Buy 34s 3d. MINING. Kawarau G. M. Co.—-Buy fid. sel lld, ; Nokomai Sluicing—Sel 32s fid. Waihi—Buy 19s 3d, sel 19s 9d. V ; - Waihi Grand Junction—Buy Is 3d. Mount Lyell—Sel 27s 3d. Molyneux Electric—Buy 10s fid. Upper Nevis—Buy 245, sel 25s fid. Big. Beach—Buy 2s dis. WAR BONDS. 4£ per cent. Bonds, 1930 —Buy £97 10s. 41 per cent. Bonds. 1938 —Buy £96, sel £96 12s fid. 5i per cent. Soldiers’ Bonds, 1933—8uy £IOO 12a fid. 4i per cent. Inscribed, 1938—Buy £96, sel £96 10s. 5 per cent. Postal Bonds, 1927—8uy, £99, 5 per cent. Postal Inscribed, 1927 —Buy £99. 5i per cent. Inscribed, 1936.—5 el £lOl. NORTHERN EXCHANGES. (Peb United Pbesb Association.) The following business was done on ’Changes yesterday:— ' • , Auckland.—Sales: Auckland Harbour Board 5J per cent. 1940 Debentures, £9B 10s; National Bank of New Zealand, £6 150 6d; Bank of New Zealand, 58s 3d; Northern Steamship (cont.), 6s 7d; Alburn?', 3s Id, 3s. Wellington.—Sales reported: 4J per cent. Stock (1938), £96 ss; per cent. Stock (1939), £96 ss; Union Bank, £ls; Christchurch Gas, 23s 4d; South British Insurance. 58s. Christchurch. —Sales reported: Bank of Adelaide, £8 14s; Australian Bank of Commerce, 33s 3d; Union Bank, £ls; Beath and Co., 32s 6d. Sale: Staples Brewery, 39s 6d. DAIRY PRODUCE. (Bbb United Paras Association.) AUCKLAND, August 29, The Dairy Produce- Board has received the following market report from its London agency dated 'August 26: Butter. —New Zealand salted, 170 s and 1725, up to 1745; unsalted, _l74s to 178 s. The market is firmer with indications of a further improvement shortly. Australian salted, 168 s to 170 s; unsalted, 170 s to 1745; Argentine, finest unsalted, 166 s to 170 s; Irish creamery, salted, lo2s to 1645; unsalted, 166 s to 168 s; Dutch unsalted, 166 s to 170 s; Esthonian. salted, 162 s to 1665; unsalted, 168 s to 170 s; Latvian, salted, 160 s to 1645; unsalted, lfi4s to 1665; Siberian, 144 sto 148 s; Danish, 175 sto 1765. The quantity of Danish and others is diminishing. Germany is absorbing increasing quantities. Continental retail prices.—Danish, Is 9d: New Zealand, Is 8(1. Cheese.--New Zealand white and coloured 92s to 94s and 90s to 935. The market is firm. Canadian white, 93s to 965; coloured, 94s to 96s and 92s to 945; English, finest farmers, 112 s to 118 s, and 112 s to llfis. The retail prices are unchanged. Scott Bros., produce merchants and commission agents. Agents for “ The Egg and Poultry Growers’ Association,” Dunedin. Report. Eggs—The market continues steady at last week’s rates. Butter—Dairy pats wanted Is 2d: bulk, Is 2d to Is 2sd per lb. Honey—Prime bulk, 5d per lb; 101 b tins, 5? fid each. Beeswax. Is 5d to Is fid per !b. Fat, 18s to 30s per cvvt. PoultryHens, good, Ss fid per pair. Ducks, good, 5a to 7s per pair. Geese, 3s fid to 4s each. Turkeys—Hens, Is 2d; gobblers. Is 3d ner lb. Pigs—Prime baconers, 130’s to ISO's, 7d per lb; porkers, 7d per jb; over-weights, 4d per lb. Potatoes —Quiet, best tables, £5 5s per ton, ex truck. Chaff —Prime oaten sheaf, £4 15s per ton, sacks extra. Whole fowl wheat, fis 9d per bushel. Onions —Victorian prime, £lO per ton. Partridge peas. 8s 9d per bushel. Maize, 8s per bushel. Oats, 3s 3d per bushel, sacks extra. Straw—Pressed uneaten, £3 10s; oaten, £4 10s; clover and ryegrass hay. £5 per ton, ex store. Pleast Note.—Pigs and poultry must arrive not later than Thursday in the week We shall be pleased to quote for the following lines:—Pareora Meat Meal, oyster shell grit, Star Brand Chicken Food, norizc.'fal egg crates, quotations on application. PROPERTY SALE. Messrs Alex. Harris and Co., acting under instructions from Mr R. Rutherford, offered at auction, at their rooms, 'yesterday two freehold properties. An eight-roomed residence, with over half an acre of land, situated in College street, Cavcrsham, was sold to Mr M'Kay for £I2OO, and a block of land in Factoryroad, Mosgiel, failed to reach - the reserve, mid will be sold privately.

LOCAL AND OVERSEAS MARKETS.

GRAIN AND PRODUCE REPORT. Messrs Dalgety and Company. Ltd., report as follows: — . Oats.—There has been no change in this market during the past week. Owing to the small demand for oats being experienced from the North Island, local merchants are operating warily. Nominal values are:—A Cartons 2s 6d, B Cartons 2s 3d per bushel, on trucks, country stations. . Wheat.—Owing to the millers experiencing a poor demand for flour they are not offering above 6s per bushel, on trucks, country 'stations, for Tuscan variety. Farmers, however, will not sell at this price, with the result that practically no business is passing. Hunter and Velvet varieties are realising relatively higher prices, but practically none of these are being offered. Potatoes.—The market remains firm at late rates with the bulk of supplies being drawn from Canterbury. There is a fair demand for good conditioned lines which are saleable up to £5 5s per ton, ex truck, sacks in. Chaff.—Supplies during the week have been light and the market is firm at late rates. The only inquiry is for first-class lines, which sell readily up to £5 per- ton, sacks extra; light and inferior bringing £3 10s to £4 ss, according to condition. Messrs Donald Reid and Company, Ltd., report as under: — Oats.—This market varies but little. Merchants are not showing any interest whatever in the few lines that are offering. The seed demand is not up to that of previous years, and this can be taken as ah indication that farmers are not keen to grow oats at the prices that are now being realised. A grade Cartons are worth to 2s 6d, B grade 2s 3d, undergrade Is lOd, sacks extra, on truck, country stations. Chaff.—The continued wet weather has interfered with consignments, and the bulk of stored lines have consequently been disposed of. Prime quality is readily sold. Other grades are generally the reverse. We quote: Prime to £5 per ton, sacks extra, ex truck, Dunedin. Medium to £4 10s, inferior from £3, sacks extra, ex store, Dunedin. Potatoes.—The bulk of consignments are coming from the north, but the quality is not so good all round as the Stirling and Taieri potatoes. The best qualities are bringing from £5 to £5 ss, sacks in, ex truck. Wheat. —A few samples are offering from spring threshing, and Tuscan is being freely sold at 6s per bushel, sacks extra, on truck, country stations. This is the only variety offering with perhaps the exception of Velvet-ear, which ranges in the same grade as Tuscan. Velvet and Hunters- are rarely offered. The bulk of the wheats are sown in the autumn and are generally threshed and sold early in the following autumn. COMPANY BALANCE SHEETS. THE KAIAPOI WOOLLEN MANUFACTURING COMPANY, LTD. •?■■■ — Paid-up Not Dividend capital. Reserves, profit. pre(. ord. June 30; £ £ £ p.c. p.c. 1919 ... 300,000 184,663 49,717 9 10 1920 i ... 300,000 185,954 60,473 9 10 1931 ... 376,265 . 196,032 37,931 7 8 1922 ... 376,279 ‘ 66,765 *89,920 7 8 1923 ... 378,279 41,038 *21,125 6 1924 ... 375,000 40,945 5.282 6 1925 ... 375,000 1926 ... 307,500 12.778 4,274 6 1927 ... 307,600 13,777 4,621 8 • Loss. Since the paid-up capital was written down two financial years have been completed. -The year lately closed shows an improvement on its predecessor. After allowing £3500 for depreciation, it is able to meet the 6 per cent, dividend on the prefereice shares and add the sum of £6lO to the floating balance. The improvement, although slight, is gratifying under the present depressed condition of the woollen trade and the severe competition that exists. The gross profit has risen sorhe £6OOO, but the larger disbursements more than counteract the effect. The group containing taxes continues to be reduced, and its latest figure is the lowest foj a nlimber of years, but on this occasion the transfer of discounts to the other section must make a material alteration. In relation to the gross return, the former works out as under—viz.: Rates, taxes, ' etc. Gross return. Ratio. £ £ p.c. 1918- ... 34,201 114,.501 29.87 1919- ... 64,787 161,974 33.83 1920- ... 54,915 131,411 41.79 1921- ... 77,446 21,302 355.23 1922- ... 63,243 75,601 83.76 1923- ... 41,439 80,180 61.78 1924- ... 41,789 10,397 401.93 1995-26 ... 36.903 70.791 63.13 1926-27 ... 33,236 76,699 43.32 Notwithstanding the reduction in taxes, etc., the total disbursements are up by over £3OOO. The liabilities are practically all comprised under the one heading: “Sundry creditors and depositors, £228,601.” The miscellaneous nature of this group is evident from the directors’ report, which states that it contains a surplus on realisation of fixed' assets of £7756 placed to a contingency reserve. No distinction is drawn between general creditors and deposits, making it impossible to arrive at the cost of the deposits to the company. The assumption is that the bank balance —another interest-incurring item—is also included, as there is ■no mention of it elsewhere. The reduction of the aggregate by nearly £17,000 when it has been swelled by at least one reserve provision, may be taken as a hopeful sign. The highest valued asset—stock—is down to £285,566. It is stated that warehouse stocks are reduced by £30,000, but there is necessarily a' larger stock of raw material for the new worsted plant. In relation to the total assets, the valuation cannot be said to be excessive, as the under-noted figures show—viz.: Stock. ’ Total assets. Ratio. £ , £ p.c. 1918- ... 317,000 641,236 58.67 1919- ... 319,614 606,758 62.67 1930-21 ... 523,822 817,271 64.09 1921-23 ... 425 760 690,293 61.68 1932-23 ... 384,286 660,258 59.10 1923- ... 453,251 732,498 61.88 1924- ... 298,167 557,301 53.50 1925- ... 295,090 560,856 51.78 1926- ... 285,568 653,880 51.56 When the reduced valuation of stock coincides with ,an increasing turnover it may be taken that the book figure is a conservative one. At £92,623, sundry debtors, including bills receivable, remain at aboufc the same level as formerly. Of late years there has been remarkably little variation in the amount of this item, which, it may be assumed, makes allowance both for discounts and for bad and doubtful debts. Owing to, the existing severe competition, it may be taken that a larger number of individual accounts are concerned to maintain sundry debtors at their average figure, and more labour is involved by their collection in consequence. The bulk of the remainder of the assets is property and plant, which, after their growth by the installation, of the new worsted plant during 1925-26, are down to £171,596. Not only are no additions entered as having taken place during the period, but there has been realisation at Wellington and Auckland. The disposal of property burdened to the extent of £15.000, and the liberal allowance of £3500 for wastage, which, although mentioned only as a recommendation of the directors, has duly received effect, contribute to the reduced book value. For five successive years the holders of ordinary shares have been disappointed in their expectation of a dividend, and although some further patience may be necessary before their hopes are realised, they have the satisfaction of seeing indications of progress. KEMPTHORNE, PROSSER. AND CO. At a meeting of the board of directors of Messrs Kempthorne, Prosser and Co. s New Zealand Drug Company, Limited, held yesterday afternoon, an interim dividend of 4i per cent, for the half year ended July 31 was declared.