COMMERCE AND FINANCE

Otago Daily Times, Issue 20901, 16 December 1929, Page 5

COMMERCE AND FINANCE

THE SHARE MARKET.

DUNEDIN STOCK EXCHANGE. Two parcels of Commercial Banks changed hands on the Stock Exchange on Saturday morning, the market closing with - .a buyer at 25a 8d and a seller at 26s A sale of New Zealand Drugs ’ was reported at 745, buyers’ best offer on ’Change being 73s 6d, whilst sellers required 74s 6d. There was little movement in the quotations as a whole, few changes of any moment being recorded. Sales: Commercial Bank, 255.9 d (two). Sales reported: New Zealand Drug Co. 745; Farmers’ Fertiliser, 22s 3d. The following are Saturday morning’s buying and selling quotations, which are subject to the ustial brokerage:— BANKING. Bank of Australasia—Buy £l2 9s. ’ Bank of New Zealand—Sel 595. Bank of New Zealand (long “ D ”) — Buy 28s. Commercial Bank—Buy 25s Bd, sel 20s. E.S. and A. Bank—Sel £7 Bs. ■ INSURANCE. National Insurance Co. —Sel 15s 6d. SHIPPING. Huddart, Parker (ord.)—Buy 41s 9d, ■el 42s 3d. Huddart, Parker (pref.)—Buy 20s. U.B.S. Co. (pref)—Buy 20s 9d. COAL. Westport Coal Co.—Sel 31s fid. LOAN AND AGENCY. Dalgety and Co. —Buy £l2 sel £l3, Goldsbrough, Mort (rights)—Buy 4s 6d ■el 5s 3d. National Mortgage—Buy 84s, sel 80s. N.Z. Guarantee Corp.—Sel 8s fid. Perpetual Trustees—Buy 68s. Trustees. Ex. and Agency—Buy 60s. MEAT PRESERVING. N.Z. Refrigerating (pd.)—Buy 10s. N.Z. Refrigerating (cont.) —Sel 5s 3d. South Frozen Meat (pd.)—Sel 395. MISCELLANEOUS. Brown, Ewing (ord.) —Buy 30s. Brown, Ewing (pref.)—Buy 20s. Bruce Woollen Co. (ord.) —Buy 9s. D.I.C. (ord.) —Sel 12s 6d prem. D.I.C. (pref.)—Buy 21s 4d. Donaghy’s Rope and Twine —Buy Sss «d. Kaiapoi Woollen (pref.)—Buy 14s Od. Milburn Lime and Cement —Buy 35s 3d Mosgiel Woollen Co. —Buy £7 10s. National Electric —Buy 10s fid. N.Z. Drug Co.—Buy 73s 6d, sel 74s 6d, N.Z. Farmers’ Fertiliser —Buy 22s 3d, ■el 22s Bd. N.Z. Paper Mills (ord.) —Buy 20s 3d. Smith and Smith (pref.)—Buy 19s 4d. Auckland Gas —Buy 24s 9d. BREWERIES. N.Z. Breweries, Ltd.—Buy 86s Gd. N.Z. Breweries debts. —Buy 27s 9d. Staple’s Brewery —Sel 53s 6d, Dunedin Brewery—Sel 335. MINING. Kawarau G. M. Co.—Sel 54d. Nokomai Sluicing—Buy 15s. Waihi—Sel 13s 7d. Waihi Grand Junction—Buy Is. Meant Lyell—Buy 40s 9d, sel 41s Dd. Obinemuri—Buy 10s Od. Kildare—Buy Is Bd, sel Is 9d. Okarito—Sel la 7d prem. Winding Creek—Sel Is 3d prem. Winding Creek (Is pd.)—Sel 2s. Stoney Creek—Buy 3d, sel sd. Paddy’s Point —Buy 4s, sel ss. WAR BONDS. 4i per cent. Bonds, 1941—Buy £IOO. 4J per cent. Inscribed, 1038—Sel £IOO U 6<L

NORTHERN EXCHANGES.

MERCHANDISE MARKET,

LONDON MARKETS,

LOCAL AND OVERSEAS MARKETS,

44 per cent. Inscribed, 1939—5 el £IOO 2s 6d. 5i per cent. Bonds, 1936—8uy £lOl. 54 per cent. Inscribed, 1936—8uy £lOl s|. per cent. Inscribed, 1933 —Buy £99

(Peb United Press Association.) The following business was done on 'Changes on Saturday:— Auckland.—Sales: Bank of--New Zealand, 58s; National Bank of New Zealand, £6 14s. £6 13s 9d; Farmers’ Co-op. Auctioneering (A pref.) (late sale Friday), 18s 6d; National Timber, 8s Od; Mount Lyell. 41s 3d.

The Manuka is expected to land supplies of dates and walnuts short shipped from Melbourne on the vessel’s previous voyage from that port. Sardines one-sixteenths are again available. . _ A parcel of new season’s Sicily almonds .is due to arrive ex the Manuka. Eno’s fruit salt shows an increased cost. Flag brand pickles are quoted at 14s 6d per dozen. The next sugar boat is the Kurow, due on December 17. The Ruahine has landed supplies ot Wright’s coal tar, Adams's furniture fiolish, cream of tartar, C and B essences, ucca oil, and Clarence and Craven A cigarettes. The Wairuna, from San Francisco, lue here during the week, is bringing additional supplies of prunes, seeded raisins, new season’s salmon, browr, craft paper etc. A parcel of drained cherries is expected by the Karetu, transhipped ex .the Mol davia at Sydney. Crystallised cherries are now in lull supply. Packings of Hawaiian pineapples :ontinue short on the local market. It is understood that a parcel of Fiji pines will come forward early in the New Year The New Zealand agents report that the Hawaiian packers have sold out the whole of their stocks. The local market is now being supplied with Westfield beef in 21b tins, in addition to the lilb and 12oz packings. The 21b tins are quoted at 19s per dozen. The Golden Coast has brought new season’s Californian seeded raisins, prunes, and tinned tomatoes. Old prunes are practically sold out of merchants’ hands.

(United Press Association.) (By Electric Telegraph—Copyright.) LONDON, December 14. (Received Dec. 15, at 5.5 p.m.) Sheep; North Island—medium 6id, heavy s|d; New Zealand ewes, 44d; Australian; —firsts 4jd, seconds 4}d; Argentine—light Sid. medium sd, heavy 4Jd; Patagonian, not offering. Lambs: Canterbury—heavy 7|d; other selecteds—North Island, not offering; Patagonian, not offering; others unchanged at Friday’s closing prices. Cotton; January, 9.18 d per lb. Rubber; Para, sjd; plantation smoked, Bd, Jute: December and January, £27 15s. Hemp: Little offering with inquiry negligible. High point fair, nominally £33. Copra; December and January, South Sea, £2l; plantation Rabaul, £2l ss. Linseed oil. £45. Turpentine, 42a 9(L

SOUTHLAND MARKETS,

(Fbom Oub Own Cobeespondent.) INVERCARGILL,' December 14, During the week business in oats has been at a standstill, as one and all nave had their attention taken up with the Royal Show, and half-days have been the rule in business during the week. The paucity of oat stocks makes business trom Bluff now well nigh impossible, and nominal -values only on that account can be quoted—3s9d for A grade, 3a 7d for B grade, f.0.b., s.i. There have been numerous inquiries from the north for both prompt and forward delivery Apri; to September, but the latter does not appeal much to local merchants, as the new crop is an unknown quantity. There is a constant demand for ryegrass, more particularly from the North Island, for heavy-weight seed, but stockiare now in smajl compass, and merchants find they have in many cases insufficient for their own distributing trade. Prices rule round about 7s tier bushel for machine-dressed seed weighing 201 b to 311 b, f.o.b. Bluff, sacks extra. The crested dogstail market is dis tinctly firm, due largely to the fact that it is evident the incoming crop will be of smaller dimensions than this year Values between merchants for the local trade are on the basis of 71d for ordinary, up to 8d per lb for prime seed of Inch germination and purity.

FRUIT AND PRODUCE WORLD,

Reilly’s report:—Some very _ choice lines coming forward, all of which' are meeting a good demand. We anticipate full supplies of all fruit and produce being available for the Christmas trade, and we particularly ask those who are wanting anything in the shape of fruit, vegetables, poultry, etc,, to let us have their orders immediately. During the week we sold: —Spring onions, 9d Spinach, Is 6d. Radishes, la per dozen bunches. . White turnips. Is. Section honey: Choice, 10s 6d. Cabbages, 2s 6d. 6s. Cauliflowers, Bs, 16s. . Lettuce, 9d. Is 6d; inferior unsaleable. Eggs. Is, guaranteed; C.P.M., Is -2d. Mutton birds, 10s 6d. Strawberries, lOd, Is 6d. Cherries, 6d, Is 9d. Black currants, s*d, 6d. Red currants, 6d. Cherry plums, 2d, sd. Local grapes, 4s OH. 5s 7d. Asparagus. 9s, 10s 6d; Outram, 18s. Cucumbers, 6s, 10s. Butter: Pats, bulk, Is 2d, Is sd. Bacon: Choice, Is 2d. Peanuts, sd. Walnuts, 9d, Is. Cheese: Medium, Old. Tea. Orange Pekoe, 2s 6d. New potatoes, 3d, 3Ad. Auckland potatoes, lid, 2d. Tomatoes: Locals, Is 2d, Is 6d; Canterbury, Is Id, Is 4d; Nelsons, Is Id. Green peas. 3Jd. 54d. Beane. 3d, 4Jd. Mushrooms. 3d. 104 d lb. Rhubarb. 21d lb. Gooseberries, 2d, 3d; jam, lid. Beeswax, Is Bcl. Horsehair, Is sd. Bacon pigs: Prime, Old; porkers, 81d; heavyweights, 6d. Honey: Bulk, 41d; 101 b tins. ss. Gs. Apples: Sturmers, Bs. 16s; Canadian Delicious, 21s, 22s Cd. Dessert pears: Winter Coles, 14s 6d; Winter Neljs, 15s 6d. American grapes, 265. American Valencias. 42s Gd; Australian Valencias. 20s. Mission lemons, 70s; New Zealand, 225. Grapefruit. 40s. Bananas; Ripe, 30s. Coconuts. IGs. Old potatoes. Repicked, os cwt. Pig potatoes, 2s 6d cwt. Onions: American crates. 20s. bags, 17s: Victorians, 13s cwt (to arrive). Manuka tomato stakes, 23a per 100. Strawberry and cherry pottles, 60s, 65s per 1000. Special pippa grit. os. Oyster grit. Ss 6d. Tallow. 18s, 27,s Od cwt. Woodwool. 28s bale. Fruit wraps, 3s 3d ream. Vallo giraffe lime sulphur: Cases 4 gallons, 2a 9d; barrels. 2s gallon. Black leaf “40”: 101 b tins, 545; 21b tins, 15s Od; lib, 5s 3d. Semesan; slb. 555; lib, 7s 6d; 2oz, 2s 3d. C.M.W. knapsack " sprayer: Vermorel type, £3 3s. Vallo prepared white oil. a sure killer of codlin moth eggs, from 7e to 9s per gallon. Palmer’s chick food: 101 b. 2,s fid; 251 b, 6s 3d; 501 b, lls; 1001 b. 20s. Wheat, os, 7s. Crushed peas, 20s sack, Karswood spice, lib. Is; lib. Is lOd; 71b, 12s Gd. Bran," £7 10s. Pollard, £9. Oatshcaf chajf, £6 10s per ton. Poultry: 455 hens, 3s to 9s 6d; 153 cockerels, chickens. Is, 8s; 131 ducks, 4s Bd, 11s 2d; 89 chickens, 4d, Is Sd (all at per pair). REILLY’S CENTRAL PRODUCE MART. Queen’s Warehouse, Moray place, Dunedin.

GORDON AND GOTCH.

BLACKWATER MINES. LTD

The following is the return from the Blackwater Mines, Ltd., for November: —Crushed 3200 tons, yielding 1315 fine ounces of gold valued at £5584; working expenses, . £4815. In addition, the furnace treated 101 tons concentrates for a return of 110 fine ounces of gold valued at £467; working expenses, £136; capital expenditure, £145; development expenditure, £602; profit over all, £353.

At £65,319 profit of Gordon and Gotoh (Australasia), Ltd., for the half year ended September 30 last was £3012 greater than the sum cleared in the preceding business period, and £8644 in excess of the earnings disclosed in the account for the corresponding half of 1928. Deducting taxes of £12,364, £10,732, and £9786, net profits were £52.955, £51,575, and £46.389 respectively. Dividend on the preference capital at the rate of 8 per cent, per annum requires £4OOO, and the usual 10 per cent, per annum plus bonus of. 2 per cent, on the ordinary shares accounts for an additional amount of £30,000. The general reserve was increased to £200,193 by an allocation of £II,OOO from the half-year’s profit; and the reserve for contingencies to £31,000 by .an appropriation of £SOOO. the employees gratuity fund benefiting to the extent of £IOOO, Allocations in all instances were similar to those approved in respect of the March half year. The carry-over from the period last completed amounted to £2866, as against £9ll brought in from the preceding six months. Exclusive of £31,437 for taxation, reserves aggregate £216,676. Although the bank overdraft at £85,666 was increased by £59,873 during the six months under review, the total on September 30 last was only £1515 greater that at even joV lo2B ' ot . ller creditors were owed £132,485 as against £122,510 on March 31. and £132,532 12 months ago. Fixed assets include freehold valued at £2OB 546 subject to a mortgage of £8571 on buildtoWo a i lda stan< fing in the books at £23,J62. less a reserve of £1482, Plant. f vos run £SO - 9 ? 0 - and stocks at £293,046. reflecting an increase of £BB2 ™ tbe and £22,136 in the half £386997 ~ alanco , s . moving from £386,927 to £359,571, and then to £388,719 sf mid 2 « m 0i 8 : fitments are sfown at £24.448. of winch £19.700 comprises re--5074 ' G ° odwill is vetained at

LONDON STOCK EXCHANGE.

COMPANY BALANCE SHEET.

THE NATIONAL ELECTRICAL AND ENGINEERING COMPANY, LIMITED,

The past year’s operations have resulted in a marked improvement on those of the preceding two years. The net profit, after estimating the relative income tax, comes out at £8145 or equivalent to a return of 6,89 per cent. Out of this, shareholders receive 6- per cent, while the balance is retained in the business. In view of the company’s experience over the last-few years, shareholders are generously treated, as the directors would have been quite justified in allotting a larger portion to reserves until they could see how far the recovery is likely to be maintained. The enhanced profit is due more to a cutting down of expenditure than to a rise in revenue, although both have played a part. The retrenchment in expenditure during the past two years has resulted in a reduction of 25 per cent, approximately, - excluding income tax. If disbursments had continued on the scale of those of 1925-26 and 1026-27, the past season’s trading would have shown a balance on the wrong side. The relation of expenses to gross profits has been as under: —

Liabilities to outsiders stand at £27,138. Of these, the bank claims £2733, which IILl I Li :0, ? slderably less than at October. 1928, but on the other hand the aggregate of creditors is not reduced by as much as £6OO. On this occasion the London agency is a debtor for £4421 instead of there being a sum of over £3OOO due to it, but fliafc money may be all required where it is. It has to be mind that income tax estimated at £-810 has still to be met, while mortgages form a deduction of £12,000 from the lixed assets. In view of the amount ot indebtedness it would not have caused surprise if the management had seen fit to recommend a lower rate of dividend than 6 per cent. The fact of the reduction being effected in the bank overdraft instead of among the general creditors may mean, however, a smaller bill for interest, but that depends upon th-e nature of the sundry creditors. ■ ne , re . of the past year’s trading is to bring reservs up to over £IO,OOO. t • account now stands at £9OOO ot which it may be said £SOOO is in- °; lts, j e ,' , A n , approximate sum adde d to the floating balance, y.hich, when taken in conjunction with the income tax reserve, carries the aggregate up to five figures. When th e unresults of the past few years are considered attention might be devoted to strengthening reserves further, even dividend lt mny niCan some sacrifice in Distinction is drawn between the different fixed assets in the balance sheet. k ulldi "P s . (leasehold) absorb £11,273, after allowing for a deduc- *’,° n ?L £1 “-' 000 - t Tlj . e assumption is that t ,e r , c il l i c *' l ? ri ,°I tbe capital value by over £2OOO is due mainly, if not entirely, to writing down, which, with mortgages diminished by £IOOO, has brought Sown the equity by over £IOOO. There is nothing however, to indicate how far depreciation has been applied to the property and buildings, but as th-e matter has been duly attended to the extent of the annual allowance will depend on the length of the unexpired portion of the lease. Ao mention is made at this time of any realisation. Plant, mar^Krr rj ’ I“ rmture » aa d fittings comprise £4666. and motor cars £1279. the combined value having fallen considerably during the 12 months. This movement may be attributed partly, at any rate to a wastage provision. ’ A reflection of the reduction in th=> fixed assets is found in the larger stocks £83,248, they have risen some £19,000, and represent over one-half of the total assets. The comparatively large

P- AND 0. EARNINGS,

amount of stocks held renders the valuation of them of primary importance, but, although the directors’ report states that they have been conservatively valued and full allowance made for depreciation, the auditors in . their report, as before, make ho direct reference to the stocks. When bills receivable are included with sundry debtors the aggregate is £53,915. In a sum of such amount, some allowance for bad and doubtful debts might be expected, but, if such has been made, it is not so stated. The effect of having over £135,000 tied up between stocks and sundry debtors, the tendency during the year being for the amount to increase rather than diminish, has caused a short> age in the working capital which renders any decrease in the company's indebtedness unlikely until some portion of stocks and sundry debtors can be turned into cash.

Accounts of the P. and 0.-Steam Navigation Company, Ltd., for the year ended September 30 last- reveal a balance of £943,966 at profit and loss. To. the' reserve for the redemption of debentures £90,000 was transferred, the provident Kood service fund was increased by “0,000, and after payment of dividends, *120,,864 was carried forward as against £121,930 brought in from the previous year. In its report the board states that freight and passage earnings reflected an increase on those.for the previous year, and there had been a considerable reduction in expenditure. Conditions in Australia had been “somewhat difficult,” but tne company had maintained its position. Lord Inchcape is chairman of the directorate of the company.

LONDON METAL MARKET.

(United Press Association.) (By Electric Telegraph—Copyright.) LONDON, December 12. (Received Dec. 13, at 11 p.m.) .Copper: Spot, £6B 16s 10Jd; forward, £OB 6s IOJd. / Electrolytic: Spot, £B2; forward, £B4. Wire bars, £B4. _Lead: Spot, £2l 6s 3d; forward, £2l 10s. Spelter: Spot, £2O; forward, £2O 11s od. Tin: Spot, £179 6s 33; forward, £lB2 Is 3d, Silver : Fine, 22 9-l6d per ounce; standard. 24 5-16 d.

BRITISH TOBACCO COMPANY,

LARGE PROFITS. . Annual accounts of British Tobacco Company (Ausfc.), Ltd., disclose net profit tor the period ended October, 31 last as £1,011,307, -which compares with £910,500 in the ■ previous year—the period followinp i econstruction, when inner reserves of £2,324.131 were capitalised, and the rate of preference dividend was increased from 6 to 64 per cent. Prior to reconstruction, the rate of dividend-was 12 per cent., but after the liberal capitalisation two years ago the nominal rate was reduced to 10 per cent., though the total disbursed was larger, by reason of the increase in capital. During the year under review 11 per cent, was paid on ordinary capital, absorbing £894.790, and the preference dividend • required £96,507, leaving £27,608 to he carried forward as against £7659 brought into the accounts. As the first interim dividend for the year current is at the rate of 12 per cent, per annum, the company is evidently making satisfactory progress. Payment at that rate on ordinary and 64 per cent, on preference capital would absorb £1,072.642 annually. Apart from an increase of a little more than £19,000 to £1,503,133 in debtors’ and debit items._ balance sheet figures underwent very little change during the year. The company has Commonwealth loans valued at £345.050 and cash at hankers of £14,252. whilst shares in subsidiaries appear at cost price of £7,722,192. The figures do not include the company’s interest in the reserves and undivided profits of its subsidiaries, which are believed to be considerable. External liabilities amount to only £2773.

DAIRY PRODUCE.

The South Island Dairy Association has received the following market report from the New Zealand Produce Association, Ltd v London:— , Butter: Slow; 160 s to 1645: Danish. 1765. to 180 s. Cheese: Slow. White, 88s to 80s; coloured. 87a to 88s.

COMPANIES REGISTERED.

g- H.°ffi r tihon?’K e J.‘ e»ph <ane ’n?' £■ ■^, an ® ome aU one s&are etc ’ objwstß: Business of financiers, T,r& mpßon ’ J Ltd. Registered as a private company November 28. 1929 Capital: £SOOO into 5000 shared of £1 eac^nno U n c s^ )erß: Dunedin—E. Thompson I‘J 1 ‘ J - N - ThOm> 2“ 1 * Objects: Dealers in boots and shoes and footwear of every description.

(United Press Association.) fBy Electric Telegraph— Copyright. LONDON, ite following are the latest December 12. Quotations for Government securities, compared with the rtry»« rating last week Last week. This week Imperial Console, 2J p. c . £ .. ft 2 B. 10 d 0 £ B. 52 10 d 0 War loan. 5 p.c., 192947 .. nn 16 0 100 0 o Conversion loan 3) p.c. 74 ft 0 74 10 0 Victory 4 p.c . oi 10 0 m 15 0 O’wealth 6 p.a 193141 os 10 0 9R 15 0 O’wealth 5i p.c., 1922-27 .. oi G 01 G N.Z 8 p.c.. 1935-51 ... .. 102 10 0 104 5 0 N-Z 4 p.c. 1929 .. 02 10 0 02 15 0 N.Z. 3i p.c.. 1940 .. 8ft 5 0 Bo 3 N.Z 3 p.c,, 1945 76 1 3 7B 17 6 N.S W 6J p.c., 1930-40 .. 101 a 0 101 0 0 tj.s.w 5 p.c.. 1930-40 .. 0$ j 6 97 15 0 N.S.W 6J p.c., 1922-33 97 0 0 97 0 0 N-S.W 4 p.c., 1933 ... ... 91 0 0 91 3 G N-S.W 3} p.c.. 1030-50 ... 83 15 0 63 12 G N.S.W 3 p.c., 1935 ... ~ 63 12 69 17 6 Vic. Si p.c.. 1930-40 ... ... 00 17 90 11 3 Vic 9 p.c., 1032-42 ... 8* 10 0 84 10 0 Vic 4$ p.c., 1940-60 ... „ 07 0 0 97 5 0 Vic 3J p.o 1929-49 _ ... 70 0 0 70 10 0 Vic 3 p.o.. 1929-40 ... — 67 0 0 65 10 0 Q’land 6 p.o. 1930-40 .„ ... 09 3 99 0 0 Q’land 3} p.a 1930 ... ... 67 0 0 G7 5 0 Q’land 3 p.a 1922-47 ... 90 0 0 08 1 3 S a 6) p.c. 193040 ... ... 101 0 0 101 0 0 S.A 3J p.c., 1939 .. 80 IS 0 B1 0 0 6-A. 3 p.a, 1915 or after ... 54 10 0 55 0 0 W.A. 8 p.a 193040 ... ... 97 0 0 97 2 6 W.A. 3i p.a 1020-35 ... ... 87 15 0 B7 6 3 W.A 3J p.o., 1915-35 .„ ... ss 0 0 85 10 0 Tas. si p.a, 193040 ... ... 101 0 0 100 10 0 Tan. si p.a, 1920-40 „ ... 79 15 0 79 10 0 Tu. t p.a, 192040 _ _ 75 0 0 76 0 a

Paid-up Capital, 1926-29, £118,270. Oct. 31 . Reserves Net Profit Dividend £ £ p.c. 1D26 9,989 11,047 7 1927 8,262 1,976 3 1928 8,862 870 . . 1929 •10,155 8,145 6 • Approximate.

* Expenses Gross Trouts Ratio 1925-26 £ 65,864 £ 71,451 P*c* 92.81 1926-27 68,551 70,453 97.30 1927-28 57,947 58,155 99.64 1928-29 51,348 62,301 82.42 •Excluding income tax.