COMMERCE AND FINANCE

Otago Daily Times, Issue 20793, 12 August 1929, Page 12

COMMERCE AND FINANCE

THE SHARE MARKET. DUNEDIN STOCK EXCHANGE. Business was, fairly quiet on the Dunedin Stock. Exchange on Saturday morning,, the only- transaction to take place being a sale , of. Mount Lyells' at 43s 3d. Later inquiries at 43s failed to attract a seller under-43s 6d. The offer for National Insurances was 16s 2d, with- a seller at 16s 4d. Wright, Stephenson ordinaries were asked for at 25s 9d, but sellers were asking 275. Bruce Woollens had-a buyer'at 11s 9d, but no seller came forward. The demand for Government i War Loans'remains firm, practically all classes having inquiries. Sale: Mount Lyell, 43s 3d. The following arc Saturday’s buying and. selling quotations,' which arc subject to the usual brokerage:— , BANKING. Bank of Australasia—Sel £l4 16s. Bank of N.S. Wales—Buy £6l 7s 6d, sel £52. Bank, of New Zealand (long “D”) — Buy 28s 7d. E.S. and A. Bank—Sel £3 10s, National Bank ofN.Z.—Sel £7. - National Bank of Australia (cont.) Sel-£9 15s. Union Bank—Buy £ls, INSURANCE. National Insurance Co.—Buy 19s 2d, sel 16s 4d. N.Z. Insurance Co.—Buy 475, sel 4Sa 6d. A.P.A. Insurance—Buy 13s 6d. SHIPPING. Huddarl, Parker (ord.) —Buy 465, sel 465.; Huddart. Parker (pref.)—Buy 21s. U.S.S. Co. (pref.)—Buy 215.-, COAL. , Westport Coal Co.—Buy 335, sel S3a 6d. LOAN AND AGENCY. Perpetual Trustees—Buy 675. Trustees, Ex. and Agency—Buy 60s. Wright, Stephenson (ord.) —Buy 25s ffd, sol 27a. Wright, Stephenson (pref.)—Buy 18s MEAT PRESERVING. New Zealand Refrigerating (cont.)—Sel 7s 6d. MISCELLANEOUS. Brown, Ewing ford.) —Buy 31s. Brown, Ewing (pref.)—Buy 20a 6d. Bruce Woollen Co. (otd.)—Buy 11s 9d. D.LC. .(ord.) —Buy. 11s prem. D.I.C. (pref.)—Buy 21s 3d. Dominion Rubber-~-Buy ; 30s. Donaghy’a Rope and Twine—Buy 365. Dunlop Perdriau Rubber—Buy 27s 3d. Kaiapoi -Woollen -(ord.)—Buy 14s, sel 14s_6d. Kaiapoi Woollen (cont.) —Buy 4s, lOd. Kaiapoi' Woollen ’ (pref.) —Buy 16s 3d. Kami Timber—Sel 18s 6d. Milburn Lime and Cement—Buy 395, scl 40s. N.Z. Drug Co.—Sel 77s 6d. N.Z. Farmers’ Fertiliser—Sel 24s 6d. N.Z. Guarantee Corp—Buy 9s, N.Z. Paper Mills (ord.) —Buy 20a, sel Otngo Daily Times—Buy 71s 6d. Regent Theatre—Buy 26e. Smith and Smith (pref.)—Buy I9s. Victoria Nyanza Sugar—Buy 46s 6d. Wilsons (N,Z.) Cement—Buy 44s 9d, sol 455. . ' , BREWERIES. N.Z. Brcwerjcs, Ltd.—Buy 83s, sel 84s 6d. _ N.Z. Breweries Debent.—Buy 28s 3d. MINING. Kawarau GAI. Co.—Buy 5d Nokomai Sluicing—Buy 15s. Waihi—Buy 12s Id. Electrolytic Zinc (pref.)—Buy 39s 6d, eel 40s 6d. cum div.- , Electrolytic Zinc ' (ord.)—Buy' 395, sel 40s cum-div; : Mount Ly’elJ—Buy 435, se! 43a 6d. Oliinemtin—Buy 10s 2d, sel 10s sd. ■ Kildare—Buy. 4s lOd, sel 5s 2d, :■ Okaritor—Buy. Is Sd- prem., sel. Is lid prem. ■ . Winding Qreek4-Sel>ls 7dprem. ;.■ ;W^:BONDS|; 4i per : cea'i’’ Bonds;. sel £IOO as. ■ . : 4J per ocnt.’.Bonds, 1939—8uy £IOO, , 5J per cent.’ Soldiers’ Bonds, 1933 —But £lOl. .a, '.A ■ ' ' 41 per cent: Inscribed, 1938—Buy £IOO. per cent.- Inscribed, 1939—8uy £IOO, 51 'per cent. Inscribed Bonds: 1941—Buy £99. . 54 per cent.' Bonds, , 1936—8uy £lOl 5s per cent.-. Inscribed, 1938—Buy £lOl. < per cent. ; Bonds, 1933—8 by £99 ss. 5.1 per cent. Inscribed; 1933—8uy £99 ss. ... NORTHERN EXCHANGES. (Per tIKiTOD Peess,'Association.) ’ The following, business ■ was done on ’Changes on- ". Auckland.—-Sales: North' Auckland Farmers’, Co-op. (,6, pref,), 12s '6d'; Auckland Gas, 24s Id;-Electrolytic Zinc (pref.),,39s Od; Farmers’ Trading-Company, 9s; N.Z. Farmers’, Fertiliser, 23s 6d (two parcels); Northern Boot, and Shoe, 12s 6d; AVilsons Cement, 44s 9d_ (two parcels); Ohifiemuri, 10s 3d, 10s 2Jd. ■ Wellington.—Sales: Union Bank % £ls Is; New Zealand Breweries, £4 4s 3d,’

FRUIT AND PRODUCE WORLD.

Radiys report:—Steady sales. The demand at the moment is for eggs, table poultry, bacon pigs, fruit trees, flowering shrubs,' and herbaceous plants. We received and .soldi—Violets, 3d, 4d. Paper while narcissi, 3d, fid. Sol-de-or, la, Is ."d; Trumpets. Is, * Section' honey: Choice, ]os 6d; medium, Bs. ' Cabbage. 2s 6d, 3s 6d. Cauliflower, Ss,- 10s. Lettuce, 4s to ,8s : 3d dozen, - Eggs, -Is 7d, Is 8d; preserved,' Is 4d.; Mutton birds: Extra large, ios 6d.- Rose,trees, 12s to 48s per dozen. Tomatoes,- la 3d, Is 6d, Butter: Pats, bulk,-Is ,4d,. Is Bd, • .Bacon: Choice. Is Id. Peanuts. sd. Walnuts, 10cl. Is. Cheese: Medium. 9id. Tea: Orange Pekoe, 2s 6d. , Beeswax. Is Bd. Horsehair, to Is 9d.. Bacon pigs; Prime, 74d; porkers, 74d; heavy-weights 4d, fid; choppers, 3d lb. Honey: Bulk, 4}d, sd; 10Jb tins, 5s 6d. Apples: Delicious, 7s 12b Cd; Jonathans, 6s, 7s; Stumers, 6s, 10s; others, Ss, 7s; cooking, 4s, 7s. Dessert pears: Winter Coles, 8s; inferior. 2s, 4s: Winter Nelis, 8s; other varieties, 2s, 4s 6d:, oyer-ripe, unsaleable. Passions: Australian., 20s 6d. American,valcneias 38s. Victorian navels. 225. Lemons; Missions. 57s 6d; 'Australian. 22a 6d; New Zealand, ‘2os. Mandarines: Choice, 235. Cvjjpnfruit. 335,. ■ Poormana, 7s, 10s. Bananas: '-Ripp, 30s. Potatoes: Canterbury. Oamarus, Outrams, £8 10s ton; repicked. . 10s cwt. Onions; Canterbury*. 10s, 12,5. , Oyster grit. 8s 6d. Special pippa grit. 9s Gd, Tallow, 18s. 27s 6d cwt. Hedge plants, ]Bs to 40s. Tagorira lucerne plants. 50s. Fencing posts, from £5 to £8 10s per 100, Black leaf, “40”: iplb .tins. 545; 21b tins, 13s 6d; 41b, 5s 3d. Valle prepared white oil: A sure killer of codlin moth eggs, from 7s to 9s per gallon. Wheat: . Fowl. 6s, 6s 6d. Molasses. 5s fid per tin. Oats: A Cartons. 3s-,9f1; B. 3s fid per bushel. Special oystozon rose manure, 7g fid per cwt. Bran, ;t7 10s. Pollard, £O. : Oatsheaf chaff, £6 10s per ton.' Cow chaff. £4 10s. Lucerne hay,' £o'los., Poultry: 321 hens at 4s"2d to 245:'65 pullets,' 5s Bd. Tfis; 63'cockerels.! 6s 2d. 245; 2 ducks, 10s 2d; all at- per pair; 4 turkey gobblers, from Is ssd per lb:totls fijd. ; REILLY’S CENTRAL PRODUCE MART. LTD., . ’Dunedin. NEW ZEALAND APPLES. ftTnlied Press Association.) {By Electric Telegralph:—Copyright) 1 LONDON, August P. . The -Port Nicholson's New Zealand apples realised: Stunners. 14s to 22s 6d; Dougherty's. ICs to 225; Rokcvvnods. 14s to 225. The large sizes made the lowest prices.—Australian Press Association.

LOCAL AND OVERSEAS MARKETS,

MERCHANDISE MARKET. Quotations for the new season’s Californian prunes, due in November, are now available. They show a substantial increase over last year’s figures. Local stocks of last season’s prunes are now getting into' short compass. .New season’s Grecian currants, due Noyember-Decemfaer, are quoted at Ad per lb lower than the prices ruling lasiTyear. ■ The wholesale market ia getting , bare °l ®helled walnuts. ■ The new season's knelled and pieces will not be available till November -or December. New season’s Jordan almonds are quoted, to arrive, at 2s 2d to 2s 3d per lb. - Stocks of Sicily almonds are getmg into short compass. These are quoted at 2s per lb. Gear pastes are quoted at 5s 9d per dozen tins. The quotations for the now season’s Californian muscatels show a further increase on the opening figures. The next sugar boat is the Waipiata, due on August 15. A shipment of -Japanese onions, due to arrive,ex Waikouaiti from Sydncv, is quottci at 18s 6d a crate. NATIONAL BANK OF NEW ZEALAND, ANNUAL REPORT. (From Our Own Correspondent.) LONDON, June 28. report of the directors of the National Bant of New Zealand states that the net profit as on the 31st March last, after paying a bonus to the staff of £II,BOO, providing for bad and doubtful debts, and including £165,572 Is 6d brought forward frota the previous year, amounts to £456,153 19s 9d. The interim dividend at the rate of 13 per cent, per annum, paid in January last, absorbed £120,000. The sum of £IO,OOO has been placed to premises account, leaving now available for distribution £326,153 19s 9d, which the directors propose to allocate as follows.—

In the payment of a dividend at the rate of 12 per cent, per annum for the half-year ended 31st March last, £120,000; in payment of a bonus of 2 per cent., £40,000, both free of income tax (£160,000); to pension and gratuity funds, £II,OOO. Balance to be carried forward, £155,153 19s 9d.

A branch of the bank has been opened at Waimate and, the agency at Papanui has been converted into a branch. Agencies have, been opened at Colombo street (Christchurch), Kelso, and Ngatea. The agency at Aramoho has been closed. The directors regret' to report the death of their colleague, Mr Robert Logan, for many years a director oi the bank. They have also to report, with Biuch regret, the death m November last, of Mr G, W, M'lntosh, general manager They have appointed Mr J. T. Grose to succeed- him.

DAIRY DIVISION. GRADING FIGURES FOR JULY. (Per United Press Association.) WELLINGTON, August 10, The dairy division grading figures for the 12 months ended July show an increase for butter of 0.27 per cent, at 31,650 tons, and for cheese an increase of 14.32 per cent, at 86,605 tons, as compared with the corresponding period of the pre-ceding-season. Reduced to terms of butterfat, the equivalent, gradings of dairy produce for the 12 months .show an increase of 10.88" per cent, over the gradings for the corresponding period pf the preceding season, 1 • SOUTHLAND, .MARKET REPORT. (Frosi- Our, Own Correspondent.) INVERCARGILL, August 10. There has been a decided briskness about the oats market'during the past 24’hours. Evidently over-sellers barb been caught short and are endeavouring to cover their commitments. Prices have improved and although there, are buyers at 3s 7d, f.0.b., s.i., sellers cannot; be found. It would be interesting- to know what has become of the Canterbury oats quoted at 3s sd. f.0.b., s.i. B grade Gartons arc also very short, and although buyers are plentiful at 3s 4d, sellers ; cannot; be found. Unde- grade oats, bordering on, B grade- have been sold at; 3s 4d, f.0.b., s.i. There is still a demand for heavy Duns, but these are now practically off, the market. Stocks.qf machine-dressed ryegrass are very limited and merchants are not prepared to quote under 6s for 261 b seed and Cs 6d for 311 b seed. Italian ryegrass is also in short supply, and is quoted .at 6s, f.0.b., s.i. Western Wolths is unobtainable. The dogstail market is quiet. .. Merchants are quoting export quality seed 1 at'from Sd to 8 jd,' f.0.b., s.i., while darker of good germination is being quoted from 7d to Bd. Owing to lack of interest in the Chawings Fescue market prices have eased a shade. Good quality seed is now being quoted round 04d. f.0.b., s.i. The 'stock market remains firm for all classes offering. There is a good demand for. fat cattle, the quality generally being gjiod. • Fat sheep are offering in mediumsized, numbers and store sheep are. still making good values. Store cattle are still being inquired for, the demand for these • having continued right through the winter - Fat Cattle.—Prime heavy bullocks, £l7 to £2O 10s; medium-weight prime bullocks, £13,10s to £ls; prime heavy heifers, £l2 to £14,105; medium-weight heifers, £9 10s.to.fl0 10s;,prime heavy cows, £ll 10s to £l4; medium cows, £8 10s to £10; vealers. 30s to ,£2 10a; runners, £3 10s to £5 10s; prime ox beef, 43s to 47s 6d per 1001 b; prime heifer beef, 45s per 1001 b; cow beef, 35s to-10a per 1001 b.

Fat Sheep,—Extra prime heavy wethers. 50s to 545; prime heavy wethers, 40s to 455; medium-weight prime wethers, 35s to 37 s Cd; lighter wethers, 30s to 32s fid; prime heavy ewes, 30s to 355; medium ewes, 26s to 28s; lighter owes, down to 20s.

Store Sheep.—-Wether hoggets, 20s to 245; ewe. hoggets, 27s to 31s Cd; two-tooth wethers. 28s to 325; two-tooth ewes, 38s to 42s fid; four and six-tooth ewes, 38s to 40s; sound-mouthed ewes. 30s to 355; failing-mouthed ewes, 25s to 27s Cd; old ewes, 16s to 20s.

Store Cattle,—Three and four-year steers, £lO to £l2: two-year steers, £7 to £9; yearling steers, £4 10s to £6; calves, £2 10s to £4 10s.

LONDON MARKETS. , (United Press Association.] (By Electric Telegraph—Copyright.) ‘ LONDON, August IC. ("Received August 10, at 5.5 p.m.) .Cotton: September, 9.71 d per lb. Rubber; Para, ll4d; plantation smoked, 10 11-16(1. Jute: August-Septemher, £32. Hemp: High Point Fair July-August, £33 10a. Copra: September-October, £2l 15s. Linseed oil, £37. ‘ Turpentine, 42s 6d. .Sheep: Canterbury light, CJd; North Island light, 6Jd; New Zealand ewes, 44d: Australian—Light, 43d;' medium, 4|d; ewes," 4|d; Argentine heavy, 4Jd. Lambs: Canterbury—Light 7Ad, medium °cl, heavy 7Sd, seconds 8d: other sciectcds—light S3d, medium 8d; North Island—First light

B|d, seconds SJd; Argentine seconds 7Jd; Patagonian firsts—Light 7£d, medium 7Jd, seconds 7Jd. Frozen beef: Australian hinds, 5 s>l6d. Chilled Argentine; Fores 4J.d, hinds 7|d; others were unchanged. Hides; Meat works dry salted—Queens-, land 35 to 461 b B|d, 30 to 40lb 88d, 23 to 351 b 9d, 20 to 301 b 9d; New South Wales—same weights, 9Jd, 9Jd, . Jd, lOd; wet salted—Queensland 50 to 601 b 61d, 40 to 501 b 63d; New South Wales 7Jd, 7Jd; Victorian abattoirs 50 to 601 b 7d, 40 to 501 b 7|d. —Australian Press Association.

BUTTER AND CHEESE. The South Island Dairy Association, Ltd., has received the following market report from the New Zealand Produce Association, London:—Butter: New Zealand, slow, 16Ds to 1725; Danish, 170 s to 1725. Cheese: Quiet; white, 85s to 86s; coloured, 80s to- 90s. COMPANY BALANCE SHEETS. THE WELLINGTON WOOLLEN MANUFACTURING COMPANY, LIMITED.

_ The directors’ recommendation for division of the surplus at this time is the same as those of the previous three annual occasions—viz., to bring the full dividend for the year to 10 per cent, and to add £2OOO to reserve fund. As the balance available for disposal is £1455 short of the amount required for the appropriation, recourse is made to reserves in the form of the undivided profits brought forward, to furnish the shortage. Thus it is not upon shareholders that the effect of the diminished earnings falls. While the distribution of 10 per cent, to shareholders does not overdraw the net surplus, the margin left has narrowed com siderably from that of 12 months a£o. In view of the emphasis lai 1 on the report on the business depressioi existing in the Dominion, it might not have caused surprise if a cut had been made in the, dividend rate.

Owing to the manner in which tire paidup capital has, varied since 1919, a comparison of the annual net return is interesting, the figures being as under—viz..

The striking feature in the above columns is that the growing capital amounts have not been accompanied by proportionate net profits, the highest profit having been attained when the paid-up capital was virtually one-half of '.La present figure. The liability to the bank,- which stood at £56,700 at June, 1928, has been fur--1 tber reduced to £38,458. Concurrently sundry creditors at £74,499 have not risen sufficiently to counteract the reduction, although the relatively large amount grouped under that beading leads to the assumption that there may be a wide variation in the nature of the individual items. The balance sheet does not disclose -how far the miscellaneous liabilities may be interest-incurring, but as deposits amounting to £3724 have been accepted from employees, it seems a reasonable inference that similar loans may also have been accepted from shareholders to effect a reduction in the bank overdraft and a consequent saving in interest.

The general ■ reserve account has been raised by its latest addition of. £2OOO to ; £56,000. The effect has . been to . make a specific appropriation of £1435 out of the ■ accumulated annual surpluses and give a net gain of £545 to‘reserves. The aggregate .of the general, reserves, is brought up to £68.020, the growth' that 'haa taken place since their depletion spine five years ago being maintained, but ’ait ‘a lessening vigour. Their position in relation to the. paid-up capita] is approximately 23 per cent. Ten years ago the relation was slightly over 66 per cent.' The great bulk of the liquid funds are sunk in-stock in its- different stages of production. In this way the sum of £216,082 is absorbed, or practically the same as at June, 1928. As this'figure is three times and a-half that of the gross profit, it is seen how great a bearing the valuation has, upon the- trading results. The fact of manufactured goods not .possessing any special tendency to' depreciate through time, may be'discounted by the effect of the fluctuations in the'wool mar T ket upon the raw material, which doubtless occupies a fair percentage of the total. Sundry debtors, including bills receivable, total £59,545. The reservation of over 10 . per cent, made for bad debts and discounts appears a generous one, however it may be allocated between these two items;' , Together, stock and sundry debtors represent a net aggregate Which 'considerably exceeds the fixed assets, and amounts approximately to 90 per cent, of the paid-up capital. Unless stock is materially reduced, it is difficult to see how the liabilities to outsiders can be substantially lessened without application for a further infusion of capital into the business.' Among the fixed assets, the buildings, plant, and fittings have again received, a depreciation allowance of £SOOO. As that figure outweighs the capital expenditure for. the year, the book value is brought down to £218,407. The wastage allowance of approximately 2k per cent, may not appear on the generous side! when the deteriorating tendency of, the - machinery is considered, but as that item is not specified separately, a reasonable estimate cannot be arrived at from the printed statement. An appreciable addition to the revenue is contributed by the buildings, an income of £3610 being received from rent and transfer fees. Freehold land continues to stand at £11,433; bringing the total of the fixed assets to £229,840.

It is somewhat unusual to find the preference holdings participating in the profits equally with the ordinary, ns long as the latter receive a dividend of not less than 6 per cent. In that event it might be gathered that the protection, attached to the preference shares, is not of as wide a nature as the designation usually implies. When the time comes for increasing the paid-up capital, it seems scarcely probable that an addition will bo made to (ho preference shares on the existing terms.

Dividend. General Gross Pref. Orel. June SO. Reserves. Profit. p.e. P.c. 1913 .. £76,276 £39.011 13 13 , 1920 .. 94,480 86,824 13 13 1921 .. 98,023 81,924 13 15 1932 .. 00.733 82,773 14 14 1933 . . 92,896 83,031 14 14 1934 .. 56,436 71,177 13 13 1925 .. 60,811 70,346 10 10 1926 .. 63.201 68,393 . 10 10 1927 .. 64,083 65,378 10 10 1928 .. 07,375 63,906 10 10 1929 .. 68,020 61,857 10 10

Paid-up Xet Capital Profit Rcturii 1918-19 1819.20 1921S 115,350 e 29.403 jft. 119,830 179,932 200,000 30,526 28,848 19,404 16.03 9.70 1922-23 200,000 249,470 264,887 iS 29,932 sss 11.30 1925-23 279,918 29,454- . 10.52 1926-27 294,930' 29,487 9.09 1027-28 300,000 33,200 11.09 1928-29 300,000 . 30,543 10.18