COMMERCE AND FINANCE

Otago Daily Times, Issue 20869, 8 November 1929, Page 7

COMMERCE AND FINANCE

LOCAL AND OVERSEAS MARKETS.

THE SHARE MARKET.

DUNEDIN STOCK EXCHANGE.

Business was reported in New Zealand Breweries on the Dunedin Stock Exchange yesterday at 88s. That price was afterwards offered, but sellers would not accept less than 88s 9d. British Tobaccos were reported to have changed hands at 46s 6d. Kildares also found a buyer at 3s Bd, at which price they were in demand on 'Change, sellers asking 3s 9d. The quotations for all classes of stocks were numerous. Sales Reported.—British Tobacco. 40s 6d; New Zealand Breweries, 88s; Kildare (after last call), 3s 8d; Commercial Bank (after last call), 27s 9d. The following are yesterday afternoon’s buyjng and selling quotations, which are subject to the usual brokerage:— BANKING. Australian Bank of Commerce —Buy 31s, sel 32s 6d. Bank of New South Wales—Buy £4B 7s 6d. Bank of New ZeZaland —Buy 60s 6d, s@l 61s Bank of New Zealand (long “D”) Buy 28s 6d. Commercial Bank—Buy 27s 6d, sel 28s. E. S. and A. Bank—Buy £7 I4s. Union Bank—Sel £l4 12s 6d. INSURANCE. National Insurance Co.—Sel 16s 6d. New Zealand Insurance Co.—Buy 465, eel 46s 6d. Standard Insurance Co.—Sel 655. SHIPPING. Burns Philp—Buy 41s. Huddart, Parker (ord.) —Sel 43s 6d. Huddart, Parker (pref.)—Buy 20s 3d. P. and O. Deferred Stock—Sel 595. Union Steam Ship Co, (pref.)—Buy 20s Od. COAL. Pukemiro Colleries—Buy 695. Westport Coal Co. —Sel 34s 6d. LOAN AND AGENCY. Dalgety and Co. —Buy £l4 15s. , Golclsbrough, Mort —Buy 435. Perpetual Trustees—Buy 68s. Trustees, Ex. and . Agency—Buy 605.MEAT PRESERVING. New Zealand Refrigerating (cont.) Buy 5s lOd, sel 6s Id. ' MISCELLANEOUS. ; Brown, Ewing (ord.) —Buy 30s. Brown, Ewing (pref.)—Buy 20s 6d. D.I.C. (ord.) —Buy 11s 3d. D.I.C. pref.)—Buy 21s 3d. Dominion Investments —Buy 245. ' Dunlop Perdriau Rubber—Sel 25s Od. Eclipse Petrol—-Sel 14s. Kaiapoi Woollen ford.)—Sel 13s 9d. , Kaiapoi Woollen (cont.)—Sel 4s 3d. Kaiapoi Woollen (pref.)—Buy 14s 6d. Milburn Lime and Cement —Sel 375. Mosgiel Woollen Co. —Buy £7 15s, New Zealand Drug Co. —Sel 74s 6d. New Zealand Farmers’ Fertiliser—Buy 21s 9d. New Zealand Paper Mills (ord.) —Buy 20s, sel 20s 9d. Otago Daily Times —Sel 735. Whitcombe and Tombs—Buy 70s. Wilsons (N.Z.) Cement—Sel 445. Auckland Gas—Buy 24s Bd. BREWERIES. ' New Zealand Breweries, Ltd.—Buy 88s, sel 88s 9d. \ New Zealand Breweries Debentures— Buy 28s, sel 28s 9d. Staples Brewery—Buy 53s 3d, sel 54s 6d. _ ' Dunedin Brewery—Sel 33s 6d. MINING. Kawarau Gold Mining Company—Buy sd. sel 6d. Nokomai Sluicing—Buy 15s. Waihi—Buy 12s Sd. Electrolytic Zinc (pref.)—Buy 34s 9d, sel 35s 9d. Electrolytic Zinc (ord.J—Buy 34s 3d, sel 35s od. , Mount Lyell—Buy 40s 6d, o el 41s 6d. Big Beach—Sel ss. Kildare—Buy 3s Bd, sel 3s 9d. Okarito—Buy Is prem, sel Is 9d prem. Winding Creek—Buy 9d prem. Winding Creek (paid)—Buy Is fd prem, sel Is 9d prem. Stony Creek—Buy 3d prem, sel Sid prem. WAR BONDS. 41 per cent. Bonds, 1938—Buy £IOO. 41 per cent. Bonds, 1930—Buy £IOO sel £IOO 10s. ’ 41 per cent. Bonds. 1941 —Buy £IOO. 51 per cent. Soldiers' Bonds. 1933 Buy £IOO 10s. 4J per cent. Inscribed, 1938—Sel £IOO /s 6d. 41 per cent. Inscribed, 1939—5 el £IOO 7s 6d. - 51 per cent. Inscribed Bonds. 1941 — Buy £99 7s 6d. 51 per cent. Bonds, 1938—Buy £lOl. •;51 per cent. Inscribed. 1936—8uy £lOl. 51 per cent. Bonds, 1933—8uy £99 10s. 51 per cent. Inscribed, 1933 —Buy £99 10s. 51 per cent. Bonds, 1037—Sel £IOO.

northern exchanges. {Per U»ix£a Press Association.) „ Allowing business was done on Changes yesterday:—

_ Auckland.—Sales; Inscribed Stock (1938) 4J per cent., £IOO ss; Mount Eden Borough (1960) SJ, £lOl 5s (late sale Wednesday); Bank of Australasia, £l3 15s; Commercial Bank of Australia, 27s Od; new issue fully paid, 27s 6d; New South Wales, £4B 12s 6d (Sydney register) ; New Zealand insurance, 46s 2d, 46s 3d; South British, 65s 4d; Goldsbrough, .Mort, 445; Renown Collieries, 17s (two parcels); Ohinernuri, 10s 7d; Waihi, 12s sd; Farmers’ Trading (ord.), 9s 2d. Wellington.—Sales reported: New Zealand Breweries Bonds, £1 8s sd; Bank of Australasia, £l3 15s; National Bank of Australasia (£5), £9 (two parcels); New Zealand Government 51 per cent, stock (1936), £lOl 12a 6d and £lOl 15s; National Insurance Company (cum div,) 16s 4d (on 'Change); Staples and Co., £2 ,13s 3d and £2 13. s 6d; South British Insurance Company, £3 5s 4d. Christchurch.—Sales; New Zealand Breweries (bonds), 28s sd, 28s 5d (two parcels) E.S. and A. Bank (cum div,), ,f 7 I4s Bank of New Zealand, (Us (odd lot) Goldsbrough, Mort, 43s 7d, 43s 6d; New Zealand Breweries, 87s 9d; Death and Co. (Is paid), 8- 7d (two parcels); British Tobacco. 465, 45s lOd, 45s 9d (two parcels); Electro Zinc (ord.), 34s Id. Sales reported; National Bank of Australasia (£5 paid, cum. div.), £9 Is; Union Bank of Australia, £l4 10s; Goldsbrough, Mort, 445; British Tobacco, 46s (two' parcels); Mount Lyell, 41s.

CHICAGO WHEAT PRICES. (United Press Association.) (By Electric Telegraph—Copyright.) NEW YORK,, November 6. Chicago wheat prices broke again near the close to-day after a midday rally had raised prices above those of yesterday. The break is attributed to weak stock at the close and the Canadian pool’s announcement that it was unable to make payments on the 1928 wheat, showing that it still had a surplus. The nearness of the December price to the limit set by the Farm Board had a stabilising effect. The export sales were reported to be larger. Wheat closed: December, 120 J cents per bushel; March, 127 J; May, 1302.

AUSTRALIAN MARKETS. (United Press Association.) (By Electric Telegraph -Copyright.) SYDNEY, November 7. (Received Nov. 7, at 10 p.m.) Wheat: At country stations, 5s 2d. Flour, £l3. Pollard, £B. Bran, £8 10s. Potatoes: Tasmanian, £27 to £3O; Victorian, £27. Onions, £lO to £l3. Oats; White, 4s 9d; Algerian, 4s 6d. Maize, 5s 9d per bushel. ADELAIDE, November 7. Wheat. 5s sd. Flour, £l2 15s. Oats, 4s 9iL

SHARLAND AND COMPANY,

(Special to Daily Times.) WELLINGTON, November 7. The annual general meeting of shareholders of Sharland and Co., Ltd., was held at the company’s office to-day, Mr W. Watson, chairman of directors, presiding. In moving the adoption of the report, the chairman said: “At the extraordinary general meeting held on March 18 last resolutions were passed enabling the board to proceed in acquiring the business of the Youngs Chemical Company as from April 1, and our doing so is accountable for the larger figures in both sides of the balance sheet. The stock is £9852 higher than last year, which will strike you ns not being a very large addition consequent on the amalgamation, but in view of that event we reduced our buying from other sources. Book debts are higher pwing to the greater sales made since April 1, and the temporary increase in cash on hand is due to the same cause. The larger figures shown on the other side of the balance sheet are on account of the amalgamation and the necessary expenses attending it. The goodwill to be paid to the owners of the Youngs Chemical Company does not appear in these accounts, as it will not be exactly ascertained until April, 1931. It is based on certain increased sales due to the amalgamation for two years from April 1, 1929, and I have pleasure in stating that so far these have come up to expectations. We believe that the extra profits will enable the company speedily to write off the goodwill. Business generally does not appear to. have much improved throughout the country during the past year. Importers, such as this company, have had to face a sharp rise in exchange as well as the addition to the primage duty, and all expenses tend to increase. There is little room for expansion in the ordinary course of business, and consequently amalgamations to reduce overhead expenses are the order of the day both in Australia and here. It is to be hoped that the removal of unemployment will be of a lasting nature. I now move the adoption of the report and balance sheet, which carries with it the payment forthwith of a 4J per cent, dividend, making 7 per cent, for the year.” The report and balance sheet were adopted. Mr J, H. Owen was re-elected a director, and Messrs James W. Jack (Wellington) and Alexander Grierson (Auckland) were reappointed auditors.

COMPANY BALANCE SHEETS,

SHARLAND AND CO., LTD

Paid-up Capital—l9lß-10, £75,000; 1920, £106,250; 1921-29, £125,000.

General Gross Net Dividend Aug. 31 Reserves Profit Profit p.c. £ £ £ 1018 36,995 52,929 13,781 f7i 1919 41.588 55,883 12.093 tTi 1920 17,797 59,466 13,178 8J 1921 12,661 51,430 126 G 1922 *14,995 53,651 9,794 6 1923 *14,753 54,014 8,549 7 1924 *13,415 49,329 7,412 7 1925 *16,139 52,194 11,474 7 1926 *16,431 50,887 9,043 7 1927 *16,985 51.499 9,304 7 1928 *16,451 - 50,171 8,215 7 1929 *17,950 53,660 10,250 7 * Including provision for income tax. t Excluding special dividend of 6d per share.

When the customary 7 per cent, was declared in dividend 12 months ago, the net profit was insufficient to meet it, and reserves were called upon to furnish the difference. The optimism shown on that occasion has apparently been justified by the trading results‘for the past year. The net profit of £10,250 has been exceeded on only one occasion since 1920. After the dividend and the allocation of £6OO to doubtful debts reserve are met, there is a sum of £9OO, which is to be added to the undivided profits, but is subject to income tax. The practice of carrying forward the income tax, applicable to one year, to the following yeat, renders it impossible to ascertain the actual net surplus from the published accounts, The larger net return is not due to any reduction in charges. The total disbursements have risen to £43,410, but in relation to the gross profit they work out at 80.90 per cent., as against 83.63 per cent, a year ago. The rise is mainly in the general group which, although detailed in the heading, does not give the respective amounts. Bad debts (£809) and depreciation (£396) collectively come to practically the same as before, but the opportunity has been taken to form a .doubtful debts reserve .with an instalment ol £6OO. It may be asked why some such provision is not made annually for income tax.

Reserves show an appreciable increase. The general account remains at £12,000, but the formation o! a doubtful debt reserve has made a new outlet for surplus funds With the larger floating balance, the aggregate of general reserves is brought to £17,950, subject to provision for income tax. How far there may be further reserves contained in the group of miscellaneous liabilities cannot be discovered. The total of the group has risen to £63,019, which, when sums on mortgage are added, brings the aggregate of liabilities to £76,019, No details are imparted regarding the extent of, the bank overdraft, or how much may be comprised by sundry creditors, so the cost in interest to the company of the general indebtedness cannot be estimated. Mortgages stand at £23,000. They have not varied greatly in recent years, and, as their cost is presumably under 7 per cent, per annum, they constitute a convenient method of financing. It is gathered that they form a charge over the assets of the undertaking, out possibly a second charge after the bank is protected. In this connection, it would seem that the balance sheet would be more lucid, if it gave the total amount on loan and did not group creditors regardless of their respective positions in relation to their special indebtedness.

Stock on hand continues to rise. At £105,906, it absorbs approximately 47 per cent, of the total assets. As it amounts to almost double the gross profits figure, considerable importance is attached to its valuation, which, as the report states, has been taken at saleable prices. As book debts and bills receivable aggregating £62,940 have also risen, there is a further tying up of funds, an effect which is reflected in the larger indebtedness, ibe formation of a doubtful debts reserve having been entered upon, it may be assumed that it will be improved upon as occasion offers until it amounts to a reasonable percentage of the book debts and bills receivable outstanding. Among the assets cash at bank appears at £5592. How this is reconcilable with the amount mentioned as owing to the bank on the other side may well puzzle a shareholder, nor do the printed accounts throw light upon the matter.

The fixed assets total £50,157, divisible between freehold properties and plant and fixtures. The freehold properties remain at £42,460, and, as the depreciation provision of £396 does not apply to them, they are evidently considered as standing at no more than their market value. \\ hatever deterioration the buildings may be undergoing is possibly more than compensated for by appreciation on land. FJant and fixtures are reduced to £7897 by an allowance virtually equivalent to “ P®r cunt. A 3 the fixtures may not admit of so rapid a rate of depreciation the allowance may be considered generous. A reserve may easily be contained in the assets, which, if necessary, could be utilised.

Possibly the figures for the period under review have been swollen by the taking over of Young’s Chemical Company. The progress that has attended the first year after the absorption augurs well for the future.

MELBOURNE HIDES MARKET. (United Press Association.) (By Electric Telegraph—Copyright ) MELBOURNE, November 7 (Received Nov. 7, at 11.50 p.m.) Hides are generally id to id lower notably heavy kips and mediums. '

' * ROMAN CATHOLIC CENTENARY IN LONDON. Twenty thousand people gathered in the grounds adjoining' Westminster Cathedral for the centenary pontifical high mass, part of the celebration of Catholic emancipation.