COMMERCE AND FINANCE

Otago Daily Times, Issue 20643, 15 February 1929, Page 12

COMMERCE AND FINANCE

NORTHERN EXCHANGES. (Peb United Press Association.) The following business was done on ’Changes yetserday:— Auckland.—Sales: War Bonds (1938), £100; 1939, £100; Inscribed (1939). £99; Breweries Debentures, 26s 7d; Union Bank of Australia, £ls 0s 6d; Melbourne Register,*£ls 7s 6d;- Westport, 31s 9d; Devonport Ferry, 245; Northern Steamship (contributing). Os 8d; A. J. Entrican (preference, 16s; Electrolytic Zinc, 36s fid; (pref.). 37s 3d; Farmers’ Fertiliser, 20e 6d; Waihi, 13s 9d, 13s lOd; Victoria Nyanza Sugar,' 455. Wellington.—Sales reported: 4J per cent. Government Stock (1938), £99 17s 6d; 4.V per cent. Government Bonds (1938), £100; Wellington Meat Export, l.’s fid; Union Bank, £ls 8s 6d. Christchurch.—Sales: Commercial Bank of Australia, 29a 2d; National Bank of Australasia (£5 paid), £9 13s Gd; Goldsbrougb. Mort, 53s 3d (two parcels); Kaiapoi Woollen (7s paid), 4s sd; Christchurch Gas (10s paid). 13s; New Zealand Breweries, 58s; Taranaki Oil, 4s; Mahakipawa, 10s (three parcels).

CHICAGO WHEAT MARKET. (United Press Association./ (By Electric Telegraph—Copyright.) NEW YORK, February 13. (Received Feb. 14, at 5.5 p.m.) Chicago wheat quotations: March. 127* cents per bushel; May, 131 5-8; July" 133*. —Australian Press Association. MELBOURNE HIDE MARKET. (United Press Association.) (By Electric Telegraph—Copyright.) MELBOURNE, February 14 (Received Feb. 14, at 11.30 p.m.l The hide market is irregular. Stouts are unchanged, lights and mediums £d lower, and inferiors *d. COMPANY BALANCE SHEETS. AUCKLAND GAS COMPANY, LTD.

It is a pleasing feature that the ratio has kept steadily diminishing during the eight years. There is apparently no, intention to build up reserves in the meantime. No reserve funds have been formed to replace those that were utilised some years ago to the extent of some £IOO.OOO, and, although, there has been a steady growth in the interval, it has' been duo to a gradually enlarging floating balance, which on this occasion has only increased by a few. pounds. There is a sum of £lO7l derived from premium on capital which could reasonably be included, but, if the dividend is. to be maintained at 8 per cent., there is not sufficient surplus to add materially to reserves. Loans, divided between debenture and temporary; make up the chief liability. During the year, the “B ” debenture loan of £150,000 has been replaced by the “C ” debenture loan of £200,000, bearing Cl per cent, interest, with a currency, of seven years. The effect has been to shift the burden to some extent, temporary loans being reduced to £93,014, or virtually by £50,000, while the debenture loan has correspondingly increased. As it may be expected that temporary loans do not cost 61 per cent., a larger interest charge may be looked for. Deposits by consumers have fallen to £3479, but, as they are unlikely to be incurring any charge,.'they are chiefly interesting as an indication of the extent of business. Sundry liabilities are a fluctuating item, the aggregate of £23.023 being a marked advance since December, 1927, when, with the inclusion of the bank balance, the total was £3795. Even when the bank balance of £3998 is deducted from the present sundry liabilities, they exceed £19,000.

The cash assets aggregate £42,698. Chiefly employed in New Zealand Government war loans, there is altogether a sum of £38,700, which adds £1717 to the revenue. It is not apparent why they arc used in that planner, instead for the reduction of the interest bill, by clearing off part of the temporary ".Jans unless they are earmarked for certain expenditure in the near future. Sundry debtors are represented by the considerable sum of £70,105, while stocks have risen to £158,026. The largest section of stocks is held in gas.fittings, etc. (£68,307). The sales from this source are not stated separately, but evidently they, represent a vital part of the business when, in comparison with the stock of coal, the stock of gas fittings, etc., occupies the position of approximately 7 to 4. The position of fixed assets to the total has been as under-:

The capital expenditure of some £32,000 during the year has meant some encroachment on the liquid assets, although it is considerably smaller than any ,'ecent annual outlay. Land has risen to £04,304 —a figure which gives some idea of the magnitude of the concern. The depreciation allowance of £20.250 may be taken to refer mainly to the plant which, with an ever-extending radious, continues to mount up. Plant, apart from machinery, is entered at £745,234. As it i- probably composed of units that are of an unevenly deteriorating nature, it is impossible to determine the adequacy or otherwise of the depreciation figure which occupies only a small proportion of the total when the book value of buildings and machinery is added. As buildings and machinery at £558,683 are the only\section of the fixed assets group to he reduced, it may be assumed that the depreciation allowance has been applied in considerable measure to them.

LOCAL AND OVERSEAS MARKETS.

AUSTRALIAN MARKETS. . (United Press Association.) ,(By Electric Telegraph—Copyright.) SYDNEY, February 14. (Received Feb. ,14, at 11 p.m.) Wheat.—At country stations, 4s lid; ex trucks, Sydney, 4s B|d. Flour, £ll 10s. Pollard and bran, £6 10s. Potatoes.—Tasmanian, £l9; Victorian. £l9. Onions.—Victorian, £8 to £lO. Oats, 4a fid. ADELAIDE, February 14. Wheat. —Growers’ lots, 4s 74d, 4s Bd. Flour.—Bakers’ lots, £lO 12s 6d. Pollard, £6 17s 6d. Oats, 2s 6d to 2s Bd. DOMINION OIL SHARES. FURTHER SLUMP IN SYDNEY. (United Press Association.) (By Electric Telegraph—Copyright.) SYDNEY, February 14. (Received Feb. 14, at 11 p.m.) Following the official publication here regarding the Blenheim oil bore, a further shares slump occurred to-day, sellers reducing their limits to 40s without response. Taranaki shares dropped lid to 3s lojd. LONDON WHEAT MARKET. (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, February 13. Cargoes are firm in tone, and advanced 3d to fid. Indian inquiry .was sustained. Parcels were held for advances, but buyers at present are not responding. Liverpool futures: March. 9s 3 l-3d per bushel; May 9a 6d; July, 9s BJd. — Australian Press Association. SYDNEY WOOL SALES. (United Press Association.) (By Electric Telegraph—Copyright.) SYDNEY. Feb-aary 14. (Received Feb. 15, at 0.30 a.m.) At the wool sales there was strung general competition. All medium, to good wools ruled firm, comebacks and crossbreds were unchanged, and greasy merino sold to SOJd. A total of 11,162 bales was sold. THE TALLOW MARKET. (United Press Association.) (By Electric Telegraph—Copyright ) LONDON, February 13. (Received Feb. 14' at 5.5 p.m.) , At the. tallow sales, 674 casks were offered and 428 were sold, prices being unchanged to 6d advance. Quotations: For mutton —fine 445, medium 31s fid; beef—fine 43s fid, medium 39a fid. —Australian Press Association —United Service,

Paid-up Deben- Net DMDcc. capital: turos. Reserves, profit, dend. 31. £. £ £ £ p.c. 1018 .. 557,817 109,050 143,336 54,390 8J 1919 .. 559,226 109,050 143,621 55,484 9J 1920;.. 560,841 109,050 135,830 47,523 9J 1921 .. 830,858 258,550 31,241 61.G95 8 1922 .. 833.91G 259,050 ' 32.S54 68,202 8 1923 .. . 938,091 259,050 34.4G8 73,161 8 1924 .. 965,571 259,050 37,453 79,037 S 1925 .. 993,232 259,050 38,474. 79,305 8 1926 .. 1,056,618 259,050 39,311 83,393 8 1927 .. 1,111,029 259,050 40,274 88,327 8 1928 .. 1,118,080 309,050 40,282 89,321 8 The net_ profit continues to' mount, that for 1928 exceeding the previous best, that of 1927, by approximately £1000, so that in spite of the fresh money received for shares issued during the year, the return is slightly higher—-7.99 per cent., as against 7.94 per cent. Practically all the, profit is required to maintain the dividend at 8 per cent. The cutting down of expenditure, which was shown a year ago has been continued. The aggregate of £381,388, which includes the arbitrary figure for depreciation, is some £4800 under 'the corresponding amount for 1927. On the other side, sales are down and, with interest on war loans and debentures standing at about their former amount, the total receipts come to £470,708. Interest on investments is included in the working accounts, although its place, and also that of management expenses, might be more suitably found in the profit and loss account. Gas i.n its manufacture and distribution absorbs nearly 57 per cent. \of the sales, while. among the general charges, rates wl taxes, at £25,000, form the heaviest individual item providing an illustration for the chairman's remarks at the recent annual meeting regarding the handicap under which a private concern engaged in a more or less public undertaking is faced. Expenditure stands to receipts since 1919 as follows:— '.

Expenses. • Beceipts, Ratio £ £ per cent 1920 .. 321,223 307,082 87,51 1921 .. 381,170 441,124 86.41 1022 .. 394,253 460,736 83.57 1923 .. 406,855 478.3Q2 85.06 1924 .. 410,574 487,894 84.13 1925 .. 411,592 489,180 S4.14 1926 .. 404,800 486,483 83.21 1927 .. 380,180 474,507 81.39. 1928 .. 381,388 470,708 81.02

Fixed Total assets. assets. Ratio it . £ per eei 11120 .. 993,868 1,097,291 86.93 1021 .. 3,010,221 3,232,036 82,00 1922 .. 1,046,909 1,200,849 86.79 3923 .. 3,110,037 1,303,947 89.98 1921 .. 1,209,030. 1,403,793 86.13 1929 .. 1,274,364 3,478,648 86.18 1920 .. 1,321,781 1,560,094 84.73 1927 .. 1,396,348 1,637,349 82.84 1828 .. 1,368,220 1,639,429 83.40