COMMERCE AND FINANCE

Otago Daily Times, Issue 20583, 5 December 1928, Page 6

COMMERCE AND FINANCE

THE SHARE MARKET. DUNEDIN STOCK EXCHANGE. . . Three parcels of Mabakipawae changed hands at Is 3d on -the Stock Exchange yesterday, quotations closing with a buyer 8-t Is 4(1 and a seller at Is Bd. Union Banks were inquired for at £ls Bs, but sellers did not come forward. -A stronger demand was made forB.S. and A. Banks, buy.-.,, offering £8 11b. Sellers, however, asked £8 14s. For National Insurances buyers were prepared to give 16a 3d, but sellers would not accept less than 16s 6d. Sales: Mahakipawae, la ,3d (three). The following are yesterday afternoon's buying and selling quotations, which are subject to the usual brokerage:— BANKING. Australian Bank of Commerce—Sel 345. Bank of N.S. Wales—Sel £SO 10s. Bank of New Zealand—Buy 625. Bank of New Zealand (D issue)—Buy 27s 9d. ■ Commercial Bank—Buy 30s 2d, sel 30s 6d. > Commercial Bank (new issue) —Buy £l7 to 6d. , E.S. and A. Bank—Buy £8 11s, sel £8 145. : /' - ’ National Bank of N.Z. —Buy £7-2s, sel £7 to. Union Bank—-Buy £ls "Bs. - BREWERIES. N.Z. Breweries, Ltd.—Buy 545. N.Z. Breweries Debent.—Buy 255. ‘ • INSURANCE ■ National Insurance Co.—Buy 16s 3d, sel Tto fld. N.Z. Insurance Co. —Sel 47s 3d. Standard Insurance SHIPPING. Howard Smith—Buy 235. t Huddart, Parker (ord.)—Buy 48s, sel 48s Od. Huddart, Parker (pref.)—Buy- 21s. P. and O. Deferred Stock—Buy 54s 3d. U.S.S. Co. (pref.)—Buy 20s 9d. . ' COAL. , , Kaitangata—Sel 4s die. Westport Coal Co.—Sel 31s. Westport-Stockton lord.)—Sel 3s sd. Westport-Stockton (pref.)- Sel 4s 9d. LOAN AND AGENCY. Dalgety and Co.—Buy £ls. Mqrt—Buy 51s 9d, sel 52s National Mortgage—Sel 91s. Perpetual. Trustees . Trustees, Ex. and Agency—Buy 58s. MEAT PRESERVING. (Paid)—Buy 19s 9d. i o Z> J“ f ««erating ’ (cont.)—Buy 9s 6d. Id vs Bd. South Frozen Meat; (ord ) —Buy 38s. ! South Froz, Meat (pref;)-—Buy -38 b. ‘ MISCELLANEOUS, i/uek. Amusement Park (ord.)—Buy 3s. British Tobacco—Buy 44s fld, sel 45s flu. ■ - .. Brown.-Ewing Ipref.)— Buy 20s 3d. (^.)—Buy lOs nrem. D.I.C. (pyef.)—Buy 20s 9d. Dominion Rubber—Se! 28a. Donaghy’s Rope; and Twine—Buy 33s fld, - Dunlop Rubber—Buy 235. Eclipse Petrol—Sel I2s, Kaiapol Woollen (ord.)-r-Buy 13s 7d, fel 14a 3d* I i«^9d' aP0 * ooben (cont.)j— Buy 4a, sel Kafap'oi Woollen (pre!.)—Buy 14s fld.' Milburn Lime and Cement—Buy ,35s 3d. Mosgiel Woollen Co.—Buy £7 3s. National-Electric—Sel Us 9d. N.Z. Drug Co. (£2 paid)—Buy 71s. N.Z. Guarantee Corp.—Buy 8s sd, sel to 9d. N.Z: Paper Mills (ord.)— Scl lfls fld. Otago Daily Times—Sel /77s fld; . . Wilsons (N.Z.) MINING. ■' Waihi—lSel15s 3d.-' 1 Waihi'Qrand Junction—Buy 9d. Electrolytic (pref.)—Buy -358 ’(id. Electtolytia Zinc (ord.)—Buy 34s 3d. Molyneur-/Electric—Sel 11s, 1 Upper Nevis-r-Sel 10s. Big Beach—Buy 4s,i sel 6s fld. Undaunted—Sel 18s. Kildare—Sel 2e 34, r.: Jlahakipawa—Buy .Is 4d, sel Is fld. WAR BONDS, P?r cent. Bends, £99 ? 8 , P e f cent - Bonds, 1939—8uy £99 73 7b 4 | Per cent. Inscribed,' 1938—Buy £99 f' 4 L p W' cent - Inscribed, 1939—8uy; £99 ,78 6d.y lS ; " 1 :,i \ \ £9B cent - Poabal Inscd., 1929—8uy £oß i ss PCr •• Inse ‘ Bonds «- 1941—Buy 5i per dent; Bonds, 1930—Buy £93 10s. ■ 10s P6r ° • In6Cribed > 1933—5 el .£99 NORTHERN EXCHANGES. (Pes United Press Association.) following business was - done on 'Changes yesterday:— . ” Auckland.—Sales: National Bank of New Zealand, £7 2s; South British Insurance, 64s 9d; New Zealand Breweries, Ltd., 55s (two sales); Colonial Sugar, £57 ss; Waihi, 14s Ifld, Christchurch.—Sales on 'Change; Bank of AdeJaide, £10; Bank of New South Wales, £o0; National Insurance, Ids 4d; New Zealand Breweries, 54s lid (two par- • 5 42s 9d; r Holden’s Motors, 2to;. Mahakipawa, Is 3d (six parcels). Is 4d. Sales reported; New Zealand Refrigerating Co. 6J per cent. (1935), £lOl os; New Zealand Breweries, ,65s (three parcels); Electrolytic .Zinc (pref.), 36s Cd (two parcels)'. AUSTRALIAN BUTTER. (British Official tireless,} - (By Electric Telegraph— Copyright.) if- December 3. _ mp the Commonwealth Dairy, Export Board’s supervisee, has arrived. He was gratified. to find that the reputation of Australian butter was improving, He proposes investigating direct shipment Schemes to Hull, Liverpool, and ulasgow,—Australian Press Association. . . \ RUBBER MARKET. / ■ ■ (United Press Association.) (By Electric Telegraph—Copyright.) _ . LONDON, December 3, Rubber stocks, 1685 tons.—Australian Press Association. , P. AND 0. COMPANY. (United Pres* Association,) (By Electric Telegraph—Copyright) ■m-i-o j December 3. 'soonlrt * Company, after adding ei^orwinn 0 rcßerve . and Betting aside £1,000,090 aa premium received for the issue of new deferred stock for n<?w tonn# I Pom aoo Uc T? ehowa a credit balance of £923,029. It is proposed to deal with this amount as follows:—Reserve for the redemption of debentures, £103,132; Provident Good Service Fund, £20,000; and LONDON. METAL MARKET. (United Press Association.) (By Bleotrio Telegraph—Copyright.) LONDON, December 4. (Received Dec. 4, at 11 p.m.) , Copper: Spot. £6B 14s 4id; forward, £69 3g l)d. Hlefctrolytic:- Spot, £74 IBs; forward. £76 ss. Wire bars, £75 ss. ‘ ■ Lead; Spot, £2l 15s; forward, £22 Is w« Spelter. Spot, £26 Is 3d; forward, £26 8» 9d. Tin: Spot, £241 7s fld; forward, £239 12s fld. Silver: Standard, 36 9-lBd; fine, 28|d per ounce.—Australian Press Asociation.

LOCAL' AND OVERSEAS MARKETS.

THE TIN MARKET. i (United Press Association.) (By Electric Telegraph—Copyright.) m . , LONDON, December 3. Tm: Visible, 21,431 tons; spot, 1609 tons; afloat, 3851 tons; deliveries, 3081 tons. —Australian Press Association. LONDON WOOL SALES. (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, December 3. At the .wool soles 10,008 bales were offered, of which 3001 were Italian and 2877 _ New Zealand. There was a small offering of greasy merinos, a large supply of scoureds, and an excellent selection of slipes, with a large offering of secondhand greasy crossbreds. There was good competition for all- descriptions at full late rates, ■ The Bradford market is dull and somewhat easier, business being exceedingly small.—Australian Press Association. i LONDON WHEAT MARKET. (United Press Association.! (By Electric. Telegraph—Copyright!) LONDON, December 3. - Cargoes are steady on better American cables, and mostly 3d higher, but there is little business. Parcels are harder, but there is small /trading. Liverpool futures: December, 9a Old; March Os 2|d; May, 9s 3d;'. July, 9a 3§d. —Australian Press Association. QUEENSLAND FROZEN BEEF. DEFROSTING PROCESS. (United Press Association. l (By Electric Telegraph—Copyright.) LONDON, December 3. A : number of Smithfield experts Witnessed the defrosting- of. 10 quarters of Queensland frozen beef by the AngloAustralian Defreezing Company's process. The consensus of oninipn was that the process -is likely to prove satisfactory. The excellent colour of the meat and the almost complete absence of moisture aroused favourable comment.—Australian Press Association, f . SYDNEY WOOL SALES. . •-(Pro** ■ Association.) (By Electric. Telegraph—Copyright.) ’’ (Received Dec. 4. at IT tun.), At the wool sales the bales sold totalled 11,648. There was good'general competition, and the market was" firm at late rates for superior. lines, but irregularity was noticeable in the case of dusty offerings. Comebacks and crossbreds sold freely, and greasy merino made 31d. DAIRY PRODUCE. .Messrs A. 8. Paterson and' Co. are in receipt of the following cablegram from their principals, London, dated December Butter,—The market has gone very quiet. Danish, 198 s; New Zealand, 176 s to 1745; Australian : salted, 170 s .to 1735; unsalted. 182 s to 186 s; Argentine, 170 s to 180 s. Expect improvement next week. Cheese. —New Zealand is demoralised, 98s to 100 s; Canadian steady, 'loßs to 112 s. MINING. OKARITO FIVE MILE BEACH GOLD DREDGING COMPANY, LTD. ; The statutory meeting of the Okarito Five Mile Beach Gold Dredging Company was held oh Monday-’in the Chamber of. Commerce board room] some -50 shareholders bejhg present. „ The chairman, Mr Robert Lee, in movmg the adoption of the statutory, report, referred to the rapid -manner in which the company was floated, the whole Of the contributing .capital offered having been Over-Subscribed by some 10,000 shares within four days from the time printed prospectuses became available. This helped materially to reduce the establishment expenses which, including-brokerage7' amounted to only 4J per cent, on the company’s issued capital. The chairman also stated that to ensure of the best quality of materials being used in the •company’s pipe line and to ensure that the plate would be shipped by the British, manufacturers before Christmas,' . the directors had already placed the order for puddied iron plate, .and tenders had already been called for its manufacture into iron pipes. The following wore elected to the direct torate:—Messrs Robert Lee, J. M. Stewart, J. E. Wheeler, G. W. Bowron, A. Ellis, and J. A. Mathewson. Mr C. E. Richards was appointed the company’s auditor. / After the completion of the formal business of the meeting, Mr R. T. Stewart addressed the. shareholders on the general prospecting operations,carried out by the promoting company, and samples of the gold already secured by primitive methods during prospecting operations were exhibited. In order the company’s dredge could treat its maximum quantity of auriferous ground, a wide spread of tables on the dredge, with' an fall, was being provided, and by such methods an even greater percentage of gold would be saved from the ground to be treated. . A vote of thanks to Mr Stewart for his interesting address, and a vote of confidence- in the directors concluded the business of the meeting. ELECTROLYTIC ZINC COMPANY. The. Electrolytic Zinc Company of Australasia, Ltd., has - issued the following production statement for the four weeks ended November 14, 1028, the'figure f o r tnß four weeks ended October I7j 1928, being given in parentheses :—Zinc (tons). 3811 (3808), of-which the quantity used at the works, was 70 (80); silver lead product for shipment to Port Pirie for realisation: Lead (tons), 510 (506); silver (ozs), 56,000 (59.000). PRIMARY PRODUCE. TWO VALUABLE CARGOES. (Special to Daily Times.) AUCKLAND, December 4. Two exceptionally valuable cargoes of primary produce will leave Auckland for England early next week on the motor ship Karameq. and on the steamer Hertford. respectively. The two vessels are taking about 18,000 bales of wool sold to overseas buyers at the Auckland wool sale last week and valued at about £441,000, as well as 117,366 boxes of butter of a total value of about £460,464. In addition, the Kararaea will have 23,700 crates of cheese lalued at about £118,500. The aggregate value of the dairy produce and wool to be forwarded overseas by the two vessels is approximately £1,028,964, and they will also carry a considerable quantity of frozen meat and general produce. PROPERTY SALE. Messrs N, and E. S. Paterson offered at auction yesterday three properties—a dwelling and freehold in Clyde street, a dwelling in Massey avenue, St. Clair, and two sections in Opoho, none of which attracted a purchaser. There was a good attendance of the public at the auction sale of sections held last evening. Bids were offered for nearly all the sections, but the majority failed to reach the reserve. One section in the Glen estate was sold for £ll7 10s, one section at Anderson’s Bay for £BO. and another in Balaclava township for £lO5.

COMPANY BALANCE SHEETS. THE NATIONAL TOBACCO COMPANY, LTD. Paid-up General Net Dividend Oct. 31. Capital. Reserves. Profit. Pref. Ord. 1924 , £14,737 £1,174 £2,081 ’g 0 ' 12* 1925 28.733 4,373 5,164 8 12 1926 35,733 9,857 8,252 8 12U 1927 35,793 23,167 19,160 8 12V, 1928 124,341 44,850 38,058 8 15 With a rapidly increasing volume of business, the net profit continues to mount. Its figure of £38,058 for 1927-28 is practically double that, of 1026-27, and represents over 100, per cent, on the paidup, capital as it stood at the close of the latter season. Owing to a watering of the capita] during the past year, and in a smaller degree to the issue of fresh shares, the return is reduced to the equivalent of 30.61 per cent,' on the . amount at the close. The ordinary shareholders receive a full share of the prosperity, their dividend being increased to 15 per cent., or, when the bonus shares issued are taken into consideration, to 30 per c ®bL ° n their older holdings. Preference shareholders also participate, their fixed rate of 8 per cent, being doubled similarly. A transfer of £22,245 to-reserve is recommended, leaving a sum of £4850 to carry forward to'the current season. Contrary to the usual custom, the ex-, penditure side of the profit and loss account is headed “ Loss,” with almost startling abruptness. As it is the porri on l “ ,e afrits to which probably the shareholder early turns his attention, the heading may at first 'glance have had a disconcerting effect. A second view would reassure him when he finds that cne total charges amounted to £45,351, or 54.37 per cent., of the gross profit. The nature of the different charges is given without the respective amounts, but from the balance sheet it lb seen that income tax accounts for £11,300 or nearly onefourth. With an enlarging turnover the charges have shown a downward tendency, as the under-noted columns indicate, viz.: Charges. Gross Profit. Ratio "iooj’ok £10,405 £12,546 83.41 1924-25 • 11,323 16.417 v r.B il’ono 21,971 63 ‘ 50 ipoyia 51,945 63.91-19.7-28 40.30 l 33,409 54.37

As the accumulated reserves were utilised in connection with the bonus share issue, a start has again been made ■with a general reserve fund. The 100 per on . the recent share issue Ot £17,755 formed a nucleus to which, if the directors recommendation is confirmed the £22,245 transferred from profits 18 L,, a uded. The allocation of £40,000 or 32.17 per. cent., of the paid-up capital in one year, augurs well for the future security of the company. So far, reserves are. .all employed in the business. The sum of £18,300, earmarked for income tax purposes, concerns two years, but it £ To t 9-7 £7oo ° applicable to 1927 is likely to be required for that Tear or is an over-estimate. , The sum of £4923 opposite sundry creditors may be taken to cover virtually all the liabilities. They have increased eonsiderab that, may be due to the building extensions. A £304, suspense account has varied little, its small nroportions attaching little importance to the vagueness of its designation.Building extensions are doubtless chiefly responsible for doubling, the value of the “* ed assets. No indication is given of £4O va i Uo8 ' but . th « aggregate of ® f * er . depreciation on plant has been provided, may be taken to consist largely of the factory and stores, for which no depreciation allowance appears to have been made. The machinery is said to be entirely up to date, and with a capacity sufficient to meet all present and future requirements. This may exf?r past s ,ear no provision fP peals t 0 have been made fo r depreciation on machinery, but attention,will require to be paid to the ordinary wear and r;;" Part from the risk o( absSescence, as tune goes on. J ber e has been a general expansion in t lC dlfferent balance sheet IT ;.. 1 ifc n ! a> ’ como as a surprise to find the- largest asset in a newcomergoodwill, patent rights, and trade marks £ i 5 ’ 701 A. 1t 'r oald be interesting to know how this valuation is arrived at, and what value is applied to each of , Excluding patent rights and marks, it seems -updesirable'tO' introduce; goodwill into a 'concern that has y t arS . I 5 exist ohce. Rather might it be treated as a secret reserve Stocks l at £36,403, are further evidence of business. The management stresses and has stressed, the point of wbili n +n atIODS ot tbe tobacco market, and than n l JA nCreafiC s f»cks is no more to be oS P ect ? d - it is not desirable to.find them becoming too large.’ A.I----$7 m- !! IDd Y dt 401 ' 8 have g risen to £-7,134, they have been displaced in their position as premier liquid asset. 41vancos on purchases (£15,364) and on r £l00 °) should both assist to swell the revenue, the,growth of the former being another feature of the increasing turnover. Cash in bank shows the in r oL SU v° f £ ? 6 .275, of which £16,000 is on deposit earning interest at 4f. r>er cent per annum. “ 1 c

The progress made by SUc h a voung IB r 1 16 best testimony to the efficiency of the management. The only n . ialk ? t 'T7 VIZ -> fbe local market—is; as shareholders continue to be reminded, restricted, and it may. be , due in no 1 small measure to the absence of compeS ii its ™r C C er mPaDy has been 80