COMMERCIAL.

Otago Daily Times, Issue 20282, 15 December 1927, Page 15

COMMERCIAL.

WAITEMATA POWER BOARD. The ratepayers of the Waitemata Electric Power Board district recently sanctioned the floating of a loan of £BO,OOO to further the board’s operations. The Wnitemata Electric Power District is a large one, comprising 627 square miles, ami embraces the whole of the Waitemata County, the Boroughs ol Devouport. Takapuna, Northcotc, and Birkenhead, and the town districts of Helensvillo, Henderson, and Glen Edenall part of the inner area; together with the town district of New Lynn, which is the only outer area within the power district. The total capital value of the power district is £11,500,000,. and the population 40,000, The board was formed in l!Lo, when a loan of £200,000 was raised to carry out the proposals. The work was expeditiously proceeded with, and although the scheme was designed to occupy three years in construction, it was completed in almost half that time, the board pushing along with the work in order to bring the capital outlay to a revenue-producing stage at the earliest possible moment. Pending the linking-up of the Waitemata Power Board transmission hues with the Hora Hora system, the New Lynn, Glen Eden, and Henderson areas were enabled to receive the benefit ol a supply of electricity some months in advance of the rest of the board’s district, as the result of a satisfactory arrangement with the Auckland Power Board, to supply current from the King s wharf steam generating station. Thus a load was being built up in those districts while reticulation elsewhere was in progress. The hydro-electric current was made available throughout the Waitemata Power District from the Hora tiora station towards the end of December last. From that period substantial advances have been recorded week by week in the growth of the business. The consumers now number 5060. ... In order to cope with the growing business, and the demand for extensions ot the board’s lines as further areas become payable propositions, additional capital expenditure was found necessary. ihe board therefore decided to ask the ratepayers within the area to sanction a loan of £BO,OOO. Debentures of £IOO, or multiples are now being offered, the interest being £5 12s 6d per centum per annum. TIMARU WOOL SALE. (Per United Press Association.) TIMARU, December 14. The first wool sale of the current season in Timaru will lie held to-morrow, commencing at 7.30 p.ml The catalogues total 9847 bales. The offerings are smaller than was expected, on account of persistent rain having delayed shearing operations.' IN LIQUIDATION. FARMERS’ FREEZING COMPANY. (Per United Press Association.) TAIHAPE, December 14. At a meeting td-day of the shareholders of the Taihape Freezing Company, a resolution was carried —“ that the company go into liquidation,” and Mr J. D. Brico was appointed liquidator, with two dnectors who are also guarantors as an advisory committee. The freezing works have ceased operations for some time, and stock has been consigned to Feilding under an agreement which expired last July. Ino company has been losing money for some time. Last year’s losses amounted to JB2OOO. The decision arrived at by the meeting will mean the passing of another farmers’ co-operative .concern. CANTERBURY FROZEN MEAT COMPANY. (Special to Dails Times.) CHRISTCHURCH. December 14. The forty-sixth annual meeting of the Canterbury Frozen Meat and Dairy Produce Export Company, Ltd., was held to-day. Sir George Clifford, the chairman of directors, presided. The report and balance sheet disclosed a net profit for the year of £21,362.0s Bd. which, with the amount, brought forward from last year, made the amount^ at credit of profit and loss account £25,795 10s lOd. Out of this a further addition was made to the renewals reserve fund, and alter such apportionment and deducting the dividend paid at the there remained a sum of £12,295 10s lOd, out of which the directors recommended the payment of a further dividend of 3 per cent, on preference and 4 per cent, on ordinaly shares (making 6 and 8 per cent, respectively for the year), absorbing £7500 and leaving £4795 10s lOd to be carried forward. , t In moving the adoption of the report and balance sheet, the Chairman referred to the, effects of the coal strike in England and the competition of South Amencan meat at t( cut v prices, aiid also home* killed meat, which would be a recurring factor each year. Sir George stressed the need of guarding against monopolists or speculators by keeping the companies controlling the outlet of frozen stock in the hands of the local pastoral and farming industry. Sheep growers should endeavour to uphold the quality of our meat. The report was unanimously adopted. Messrs Herbert Elworthy and J. H. Grigg, the retiring directors, were reelected. SYDNEY WOOL SALES. (Press Association —By Telegraph—Copyright.) SYDNEY, December 14. (Received Dec. 15, at 11.30 p.m.) At the wool sales there was good competition for superfine descriptions of merino. All other fleece wools were 5 per cent- lower compared with the close of last series, and competition was somewhat restricted. Skirtings were in good request, and. realised full values. Comebacks and crossbreds made late rates. Greasy merino sold at 3Dd. COMPANY BALANCE SHEETS. OTAGO BUILDING AND INVESTMENT , SOCIETY AND BANK OF DEPOSIT. Members’ Debra- Mortgage Amouat for Oct. Shares. hues. Hesorve. Credited- cent.

During its lifetime of six years, this society has achieved steady progress as the above columns bear out. While its advance has always continued, its rate of doing so has varied. If the number of shares taken by members is a criterion of its prosperity, it would seem to have reached its apes during its fourth year. Like other financial undertakings, however, it is contingent on the many and varied influences to which tho sensitive money market is susceptible. Tho stringent con tions rulin'.' throughout the year, arc said to have had their effect in the heavy increase of withdrawals, and in tho comparatively small increase in tho number of shares taken up. The number of shares at (ho close was 4403 held by 430 shareholders. Five years ago the respective figures were 1177 and 191. , Interest the main source of revenue, has risen’ to £3160. When the sundry items are added, there is a total of £3419. Tho charges to no placed against that sum aggregate £1429. Interest also is the heaviest item on this side. Tho ratio of charges to revenue for the six years works out as under, viz.: — ChnrjL'c?. TVvoniif'. T?ntio. J’rofit.

'flic tondonev is for the percentage of charges to fa‘ll as the revenue rises. Aficr a certain stage is reached it can scarcely I be expected that tho annua! growth in tho 1 revenue will continue to increase, and the ! reduction of expenditure provides materiel • assistance. For some reason, the profit Vnd loss account is not entered with the wealth of detail that has _bccn a noticeable feature on previous occasions, i The main asset is advances, almost en- ! tirely on mortgage, amounting to £51,800. i As the revenue in interest is slightly over i 6 per cent, on that figure, and as, a certain portion of the loans could have only been earning interest for a part of the year, the actual return must be something higher. From th" statement of receipts ami expenditure it is scon that £5030 of the capital sura was repaid during 1926-27, or £1590

more than in the prior year. Apparently, tho stringency in the money market did not prevent tho repayment of obligations to any largo extent. Tho assumption is that the demand for mortagages , was all the greater on account of the stringency. The sum of £13,085 has been expended in advances which is tho second largest recorded for any one year of the company s existence. The advance of £3647 has been made in members’ shares, bringing them up to £31,904. Tho prevailing financin' conditions in this ease would have tho opposite effect from the other and possibly a consequent restriction in activities would bo the result. Shares of the value of £2841 were withdrawn, while ? tho matured camo to £3946. Those figures were considerably in excess of those of tho prior year, tho cause of which must bo ’ partly ascribed to a growing business. It would seem that the ideal conditions for the society’s operations would bo neither when money is scarce nor when it is plentiful, but some stage between tho two with perhaps a loaning towards tho latter. Debentures have reached £19,468 after a steady rise. When added to the members’ shares, the aggregate (£51,372) is practically equivalent to advances. More than half the financing is thus caniied i through by this method. As the borrowing power is two-thirds of the amount on current mortgage, there is a considerable margin still available. Tho interest paid totals £963 with £305 to meet the claims of debentures not matiired, tho rate of interest presumably varying according to the duration of the loans. B v its latest addition, mortgage reserve is brought up to £778 or 14 per cent, on advances.' It is proportionally gradually overhauling tho advances, and, unless these increase faster than at present, the reserve should reach its limit of 24 per cent, in the course of a year or two. When that point is reached, the effort required to maintain the position should result in large proportion of the surplus being handed to shareholders. The society, however, is still young, and its lifetime of six years is scarcely long enough to indicate how it is going to shape, but its progress in the past is sufficient to hold out high hopes as to the dimensions it may ultimately attain.

£ £ £ 1022 l.Sl.'l 20 n.3 5 inca 7,446 3,31 5 83 234 5 1024 13,504 6,880 204 541 nJr 1025 21,160 13,801 300 004 5$ 1026 28,257 15,371 403 1380 6 1027 31,004 in, -168 770 1600 6i

£ £ TVr cent £ 1021-22 £01 4 7.20 100 i'122-2:1 ... XiG rr; ■'2.‘JO 07 1CT-J [ ... 4^1 1G”' 42,7.1 no 4 l!i24-2-'. ... i:u:i .(fl.OD If)2.v2fi ... 1241 £7M 41.37* 10*7 U)2G-27 ... 143'J ;iU!( 41.0) UOO