COMMERCE AND FINANCE

Otago Daily Times, Issue 20191, 31 August 1927, Page 7

COMMERCE AND FINANCE

THE SHARE MARKET. DUNEDIN STOCK EXCHANGE. A transaction in 5J Dunedin City Debentures (1934) at par was reported on the Stock Exchange yesterday. For Aew Zealand Breweries shares 42s 6d was offered, but sellers asked 445. Jluddart, Parker ordinary shares had a buyer at 47s P. and O. Deferred Stock was m demand at £2BO, sellers asking £290. Inquiry at 28s for the old issue of Milburn Lime and Cements failed to attract a seller, and there was also no response to an offer of 4s Gd premium for the ndw shares. _ Bale Reported—sJ per cent. Dunedin City Debentures (1934), par. , The following are yesterday afternoons buying and selling quotations, which arc subject to the usual brokerage:— BANKING. s Bank of Australasia —Sel £l3. Bank of New South Wales—Sel £44 15s. Bank of New Zealand— Buy 58a, sel 58s «d. Bank of New Zealand (D issue, paid) Buy 265. Commercial Bank —Sel 27s lOd. E. S. and A. Bank —Sel £B. National Bank of N.Z. —Buy £6 14s. P. and 0. Bank—Buy £9 ss, sel £9 17s 6d. t Union Bank —Sel £ls 2s. BREWERIES. N.Z. Breweries, Ltd. —Buy 42s fid, sel 44a. „ „„ N.Z. Breweries Debentures —Buy 23s 6d. Staples’s Brewery—Buy 38s fid. INSURANCE. National Insurance Co.—Buy 765. N.Z. Insurance Co.—Sel 40s 9d. Standard Insurance Co.—Buy 60s fid. SHIPPING. Huddart, Parker (ord.)— Buy 475, sel 47s 9d. Huddart, Parker (pref.)—Buy 20s 9d, cel 21s 3d. P. and O Deferred Stock —Buy £2BO, .■el £290. Union Steam Ship (pref.)—Sel 20s 4d. COAL. Westport Coal Co. —Buy 33s 3d, sel 33s fid. Westport-Stockton (ord.) —Sel Is lid. LOAN AND AGENCY. National Mortage—Sel 655. N.Z. Loan and M. (ord.) —Buy £OO. Perpetual Trustees —Buy fils. Trustees, Ex. and Agency—Buy 58s. MEAT PRESERVING. Gear Meat Co.—Buy 365. N.Z. Refrigerating (paid)—Buy 13s 3d, ■el 14s. N.Z. Refrigerating (cont.) —Sel 6s sd. South Frozen Meat (ord.) —Sel 31s 9d. MISCELLANEOUS. Auckland Amusement Park (pref.) Buy 18s. British Tobacco—Sel 55s 3d. D.I.C. (pref.)—Buy 20s 9d. Dominion Investments —Buy 225. Dominion Rubber—Buy 38s, sel 425. Dunedin Stock Exchange Ppy.—Sel 90s. Eclipse Petrol —Buy ss, sel 10s. Milburn Lime and Cement—Buy 28s. Milburn Lime and Cement (new issue).' —Buy 4s fid preni. Mosgiel Woollen Co.—Buy £6 3s. M'Leod Bros.—Buy £25. National Electric—Sel 13s fid. N.Z. Milk Products (bonds) —Buy 21s 9d. N.Z. Paper Mills (ord.) —Buy 15s 9d, ■el 16s 4d. N.Z. Sugar of Milk—Buy 20s fid, nel 225. Otago Daily Times—Sel 755. Wilsons (N.Z.) Cement—Buy 34s 4d. MINING. Kawarau Gold Mining Co.—Buy fid, sel lid. Nokomai Sluicing—Sel 32s fid. Waihi—Buy 19s 4d, sel 19s lOd. Upper Nevis—Buy 245, sel 25s fid. WAR BONDS. ii per cent. Bonds, 1930—Buy £97 10s. 4i per cent. Bonds, 1938—Sel £O6 10s. 5i per cent. Soldiers’ Bonds, 1033—Buy £IOO 12s ’fid. 44 per cent. Inscribed, 1933—5 el £O6 10s. 5J per cent. Soldiers’ Inscribed, 1933 Sel £IOO 17s fid. 5 ;per cent. Postal Bonds, 1027—Buy £99. r £99 Per Cent ‘ I>ostal Inscribed > 1027—Buy 5 per cent. Postal Inscribed, 1929—8uy £OB ss. 5* per cent. Bonds, 1930—Buy £IOO 10s. NORTHERN EXCHANGES. (Per United Press Association;) , following business was done on Changes yesterday : Sales; N.Z. Breweries (debs.;, U Bank of Now Zealand, 58s 3d ; „ Guarantee Corporation (ord.), 9s. 1® 1 Northern Steamship (cent), 6s 7d • Wilsons Portland Cement. 355; Alburnia 03. ’ u cll^l to i?V~ Sai £ 3 , reported: Commercial Bank, 29s fid. Sales, Commercial Bank. fci s 9ci. Christchurch.—Sales: , New Zealand Government 54 per cent. Inscribed, 1933, £IOO r?o ’ Bank of Australasia (£5 pd ) £8 9s; National Bank of New Zealand, io los 6d (two parcels); South British Insurance, S7s lid ; Westport Coal 33s £d (thre^ parcels); N.Z. Drug Co. (cum. div.). MINING. MOLYNEUX ELECTRIC COMPANY. The drodgemaster of the Molyneux Elec*«o Gold Dredging Company, Ltd., reports that the dredge reached bottom again on Saturday morning. As a result of hard irosts, the river has fallen rapidly, and the quantity of drift travelling is negligible. Tho buckets came off the bottom tumbler on Saturday,_ and a day or two will bo lost in replacing them. MILBURN LIME AND CEMENT COMPANY. The report of the directors of the Milburn Lime and Cement Co., Ltd., for the year ended on July 31 states that, after depreciation has been written off and provision made for income tax for the current year, the profit and loss account shows a credit balance of £18,507 9s 3d. including the sum of £2882 6s Id, carried forward from last year. An interim dividend at the rate of 74 per cent, per annum absorbed £4886 ss, leaving a balance of £15,621 4s 3d to be dealt with. The directors rccomr.iendcd that this should oe dealt with as follows: —Add to Employees’ Provident Fund, £500; add to Accident Insurance Fund. £1000; payment of dividend of 74 per cent, per anr.um on fully paid shares, £4886 ss; payment of bonus of 24 per cent, for (he year on fully paid shares. £3257 10s; payment of dividend on contributing shares for six months at the rale of 74 per cent, per annum and bonus at the rate of 24 per cent, per annum £371 ss; to carrv forward, £3105 4s 3d. BRADFORD MARKET. (Press Association—Bv Telegraoh—Copvrighf.) LONDON, August 29. The Bradford market is quiet. The report of the opening of tho Sydney wool sales produced a firm undertone, but no* much burincss resulted.—A. and i.N.Z. Cable. DAIRY PRODUCE. Messrs A. S. Paterson and Co.. Ltd., have received the following cablegram from London, dated August 29: Butter. —Firm; 1745. Cheaw. —Better; 945.

LOCAL AND OVERSEAS MARKETS.

RABBIT SKIN SALES. The Dunedin Woolbrokers’ Association (Messrs Dalgety and Co., Ltd., National Mortgage and Agency Company, Ltd., New Zealand Loan and Mercantile Agency Co., Ltd., Otago Farmers’ Co-operative Association, Ltd., Donald Reid and Co., Ltd., Stronach, Morris, and Co., Ltd., and Wright, Stephenson, and Co., Ltd.) reports as follows: Catalogues were small at yesterday’s sale. Competition was very keen and all good winter sorts showed an advance over last sale’s prices of from 2d to 4d. There was a very keen demand for outgoing docs, and those ■ appreciated in some cases rather more. Spotted sorts and off-season skins were firm at last sale’s rates. The following is the range of prices: W’eevily, 204 dto 48d; second broken, 443 d to 52d; autumn broken, 44d to 46d; first winter broken, 58d to 62d; runners and suckers, 18d to 274 d; summers, 28d to 293 d; summer bucks. 28d to 29d; light racks, 37d to 41d; prime racks, 404 d to 41£d; dawny autumn, 48id to 50d j early autumns, S7sd to 64d; autumn, 70d to 78d; second incoming, 65d to 734 d; incoming winter, 83£d to 90d; early winter bucks, IOOd to 108 d; early winter does, 96d to 104 d; first spotted winters, 74d to 94d; second winter bucks, 88|d to 105 d; second winter does. 9bjd to 1083 d; first winter bucks, labid to 124 id; first winter does, 117 id to H9id; prime bucks, 126Jjd to 12?|d; prime does, 124 id to 1253d;.'.second : potted winters, 66id to 78d; outgoing does, 70d to 90id; springs, 43d to 48-id; milky, 37d to 47^d; tawn, 50id to 84idj winter fawn, 116 d to l2oid; summer black,- 34d to 36d; autumn black, 52jd to 86d; first winter black, 114Jd to 119fd; second winter , black, 80d to 115 d; hareskins, 51 Jd to 74id; horsehair, 20d to 224 d. CO-OPERATIVE DAIRY COMPANY. The output for the past season of the Co-operative Dairy Company lof Otago totalled 775 tons. This output makes the factory the second largest in the South Island' the old-established- Canterbury Central Factory, of Christchurch, being the largest. The local company has had a very successful season, and it will distribute £12,000. as a bonus to its suppliers on September 15. ■■ „ t WALLACETOWN STOCK SALE. (Special to Daily Times.) INVERCARGILL, August 30. To-day’s yarding at the Wallacetown stock sale was a bigger one than that 01 a fortnight ago, but the supply was not greater than the demand, and, as a result. the good prices ruling of late were fully maintained. This was largely due to the activities 'of a northern buyer, who purchased 370 fat wethers tor Canterbury, and had he not been operating it is fairly certain sheep values would have depreciated by 2s or 3s There was keen competition for. ail classes of store cattle, and good prices were also ruling for fats. Fat Sheep.—The yarding was a large one, and included a lot of unfinished wethers, most of which were taken by graziers. On the whole, the quality ot the stock was good, and the demand for all classes was keen, values being quite up to those at the' last sale. I rime wethers realised 52s 3,1, good heavy wethers from 46s to 50s, meaium-weight wethers from 40s to 44s fid, and lighter sorts from 33s to 365. Fat ewes brought up to 40s, good ewes from 30s to 355, and lighter sorts up to about 22s fid. Store Sfyeep. —The number of store sheep yarded was 162 more than at the previous sale, and was comprised mostly of hoggets. The competition for hoggets. particularly Romneys, was spirited, and Id ewes of good quality found a ready market, while other classes met with a fair demand. Wether hoggets realised from 23s to 25s fid, ewe hoggets from 30s to 33s 9d, and old lines from 15s to 28s fid. ~ ~ , ... Fat Cattle. —The yarding ot fat cattle was smaller by 50 head than the previous sale’s tally, and included more wellfinished bullocks, which realised prices that were an improvement on those ruling for some time. A number of prime cows and heifers, were forward, and there was also a fair proportion of medium and unfinished stuff. The 'sale was a good one throughout, and the whole yarding was cleared at auction prices, showing a firming tendency to the extent of about 2s fid per lOQlb all round. Extra prime bullocks brought up to £l7, medium prime bullocks from £l3 to £ls, and lighter sorts from £9 to £ll. Extra prime heifers sold up to £l3 ss, medium weights from £8 10s to £lO 10s, and lighter sorts from £5 10s to £7 10s. Extra prime cows realised up to £l4 ss, medium weights £7 to £9, and lighter sorts from £4 10s upWa £ small yarding of vealers sold at current rates. , Store Cattle. —There was an increased yarding of store cattle, and all classes met with a keen demand. The quality was not of the best, but good prices were obtained. Two-year-old empty heifers brought from £2 19s to £3 15s, and a pen of two-year-old rising steers £4 os. There was also a big yarding of all sorts of dairy cattle, and anything showing quality and being close to calving brought from £7 10s to £lO. Poorer conditioned cows sold from £4 to £0 10s, and r;ood springing heifers from £5 10s 6d to 17 10s. BUTTER, FOR CANADA. FIRST SHIPMENT OF SEASON. (Per United Press Association.) AUCKLAND. August 30. The first of this season’s butter to be exported to Canada was taken to-day by the Aorangi. The consignment is about 5000 boxes, of which 500 are destined for Shanghai, transhipment to take place at Honolulu or Vancouver. The local ir chants expect to do a muth larger trade with Canada this season than in past years. It is still early for Canada to import much butter, but larger consignments will go forward in steamers for the western provinces. Regular shipments have been arranged to arrive between October and March, the price being Is 4d per lb, f.0.b., and upward. One Auckland firm is reported to have sold 100,000 boxes, and the trade this season is expected to be so considerable as to afford much relief to the London market. LONDON METAL MARKETS. (Press Association—By Telegraph—Copyright.) LONDON, August 29, (Received August 30, /at 8.55 p.m.) 'Copper: Spot, £55 la 8s 9d. Lead: Spot. £22 13s 9d; forward. £25 Spot, £27 17s fid; forward, £27 13s 9d. Tin, £289 12s fid. Silver: Standard. 253 d per oz; fine, 27 4 d. —A, and N.Z. Cable. KING SOLOMON CONSOLIDATED GOLD MINES. An abridged prospectus of King Solomon Consolidated Gold Mines, Limited, is published in this issue. The company is being promoted to acquire and work a special alluvial gold mining urea of about 474 acres at Winding Creek, Switzers. The capital is £IO,OOO divided into 200,000 shares of one shilling each. LONDON MARKETS. (Press Association—By Telegraph—Copyright.) LONDON, August 20. (Received August 30, at 7 p.m.) Wheat cargoes are quieter owing to the wer American quotations and the finer weather in Europe, but prices are unchanged. Parcels have small inquiry at 3d down, Liverpool futures: October. 11s 113 d; December, Ilf?T March, 10s lid; May, 10s 9d.—A. and N.Z. Gable.

CANTERBURY MARKETS,

(Per United Press Association.) CHRISTCHURCH, August 30. Late on Friday afternoon potato values commenced to sag and the development was much more pronounced the next forenoon. The cause was the appearance of a Wellington operator who sold liberally on a basis of £4 10s. f.0.b., s.i., per ton for August, a drop of 5s a ton on week-end quotations. However, on Monday, the market steadied up and to-day the earlier week-end rate of £4 15s was restored. At the moment, Septembers are also at the earlier value of £5 2s 6d to £5 5s a ton. The gyrations of the market are due to the operations of the paper element in the business. Both the Waipiata (from Timaru) and the Wingatui (from Lyttelton) have been put back. The latter is due to sail on Thursday instead of to-day, which will mean an addition to her cargo. How®ver, a shortage in Auckland is probable by the time these boats arrive. Generally, the position is not so depressed as last week for other products. Wheat is firmer in price, and is quoted at 6s 4d for Tuscan on trucks, whilst fowl wheat is worth 6s fid, f.0.b., for September and a pennv move for October. Oats are very dull, there being no inquiry from anywhere. . Chaff is also hard of sale and the limit of offers on trucks is £3 to £3 ss. There is no change in the values of seeds. Cowgrass maintains a value of 110 s to 112 s per cwt, for dressed super quality. GOVERNMENT LIFE INSURANCE DEPARTMENT. Investment fluctuation Administration Funds. reserve. •Revenue. expenses. Dec. 31. £ £ £ £ 1900 . . 5,542,553 288,686 730,808 03.219 1921 ... 5,726,356 288,730 755,619 101,071 1902 ... 5,922,825 288,773 778,648 BMB3 190-1 6 222,485 207,024 814,63!) 91,02 a 1324 T 6^448,658 203,247 854,691 95,396 1905 6 731,118 204,323 910,148 99.690 1926 ... 7,029,584 206,099 951,897, 99,540 »Alter deduction oi land and income tax and property expenses. The revenue continues to mount up steadily and, although the increase of £4l 749 is not as groat as that recorded by the prior year, accumulated funds have benefited by £298,466, or some £15,000 more During the past six years, the to tho funds has been nearly £1,500,000, the tendency for each annual increase ue:ng upward. , ~ Perhaps the most noticeable feature m the revenue account is the decrease in the largest two disbursements. Claims by death, at £179.660, are some £2400 less, while the endowment assurances matured are down by nearly £15,000. Concurrently there is an increase in the aggregate of ne\v and renewal premiums received of about £27,500. The advantage gained is neutralised to the extent of some £32,000 by the larger claims through surrenders. The fact of loans released in that way having jumped from £36,582 to £61,986_ in 12 months may not be an unreliable indication of the financial trend at the present time. Comparing premium income with all claims gives the following relations since 1919—viz., Premium income. Claims. Ratio. £ £ P-c. 1920 ... 460,798 - 450,041 102.39 1921 ... 471,438 468,000 100.73 192“’ ... 483,734 493,964 97.93 1923 ... 499,214 499,741 99.89 1924 . 622,741 631,921 98.27 1925 ... 660,365 626,833 106.36 1926 ... 580,123 543,172 106.80 Owing to a falling away in the consideration r received for annuities, which during 1925 made a 100 per cent, increase, the. growth in the total premium income is reduced to some £20,000. It stands to the total claims in almost precisely the same position as that of 1925, which was a marked improvement on that of the preceding years. The premium income being more than sufficient to meet claims, tho unearned income is left free to meet the general expenses, and provide the annual surplus. With the invested funds growing apace, the revenue from interest and rent has rlson from £564,703 to £387,805, showing a larger increase than the premium income. Tho cash investments aggregate £6,958,059, while the landed and other property held amount to £145,523. The greater part of the money is placed with New Zealand Government securities and on mortgage admitting of a minimum fluctuation. It is not stated if the Government investments are taken at their purchase or nominal value, but over a sum of £2,231,680 an appreciation ,of even 1 per cent, amounts to a considerable sum. Loans on debenture to public bodies afford small scope (or fluctuation also, and, as presumably tho mortgages on property are secured with an ample margin, it looks as if the investment fluctuation reserve of £206,099 will not have any serious demands made upon it. Loans on policies, at £944,434, keep step with the enlarging business. The landed and house property at*. £130,751 is practically the same as before. No mention is made of a depreciation provision for the wastage that must have taken place in the buildings. The value of the land on which they stand may have risen to a more than corresponding extent, and hence an allowance may bo regarded as unnecessary. The small increase of approximately £ISOO in properties .acquired by foreclosure is remarkable in view of the large sum lent on mortgage. Overdue premiums and interest tend to become larger. This may only be the natural outcome of the larger sums involved, although the outstanding premiums due are slightly down. The arrangements on foot to reduce the bank balance to enable closer investment have not yet apparently had time to. take effect as, at £36,763. the cash is twice its figure of December, 1925. A large reduction in claims in course of settlement is responsible for the comparatively small increase in the balance sheet liabilities, he margin between assets and liabilities has grown during tho past three years, as follows —viz., Total assets. Liabilities. Surplus. £ £ £ 1923 ... 6,489,868 59,159 6,430,709 1924 ... 6,712,888 60,413 6,652,475 1925 ... 6,994,229 56,748 6,937,481 1926 ... 7,295,023 66,830 7,238,193 Deducting the aggregate of cash and fixed property investments from the latest surplus reveals a difference of some £150,000 which is required to be kept on hand for working capital, and brings in nothing directly in the shape of interest. The full extent of the liabilities is disclosed only by an investigation such as took place as at December 31 last, which demonstrated that the department has been making satisfactory progress during its latest triennial period. Tho increase in premiums gives a higher ratio than the increase in claims—l4.s6 _ per cent., as against 9.59 per cent. —while the net effective rate of interest has been steadily mounting until for 1926 it worked out at £5 11s Id per cent. The result is that the actuary has been in a position to recommend bonuses on a rate very much in excess of any in the past. To many, that is perhaps the most acceptable evidence of the department’s prosperity. FOREIGN EXCHANGES. (Press Association—By Telegraph—Copyright.) LONDON, August 30. The exchange rates on London are as follows : Par. Aug. 25. Aug. 29. Pans, (r to £1 21.224 124.00 124.00 Brussels, belgaa to £1 5 31.92 34.92 Oslo, tr to £1 - 18.19 18. ,0 18.71 Stockholm, kr. to £1 .. 18,159 18.11 18.11 Copenhagen, kr to £L* 18.159 13.15 18.16 Berlin, reichmkn to £1 20.19 20.42 20.43 Montreal, del to £1 ... 4.85) 4.86 1-16 4.85 13-16 New York, dot to £l.. 4.86 J 4.86 5-32 4.86 f Yokohama, st to yen.. 24.5 23 7-16 23,1 Hongkong, st. to d 01... * -‘3J 23| Calcutta, 6t to rpe. 16 lo gold £ l'l I7J Home, lire to £1 22.221 R!).2a 89.55 Amsterdam, guild to £1 12.107 12.13 j 12.13jj Batavia, guild to £1 ... 12.107 •Governed by price ol silver. —A. and N. 7. Gable.