COMMERCE AND FINANCE

Otago Daily Times, Issue 20960, 25 February 1930, Page 14

COMMERCE AND FINANCE

/ THE SHARE MARKET. \ DUNEDIN STOCK EXCHANGE. Business was done in National Electrics yesterday for the first time for a , considerable period, -a sale being reported v©n the Dunedin Stock Exchange after last call at 10s 6d. There was a buyer at the close of the market at 9s 6d, but sellers would not take less than Us. National Insurances eased a little, buyers offering 14a 4d, with sellers at 14s lOd. There was:a fair demand in the other sections. Sale reported (after last call); National Electric. 10s. 6d. The following are yesterday .afternoon’a buying and selling quotations, which are subject to the usual brokerage:— BANKING. Australian Bank of Commerce—Buy 24a Od. sel 25s 6d. Bank of Australasia—Buy £ll IBs. Bank of N.S. Wales—Buy £4O ss, sel £4l. Bank of New Zealand—Buy 575, sel 58s Commercial Bank—Biiy 22s 6d, sel 23s National Bank of N.Z.—Buy £6. sel 16 2s. Union Bank—Buy £ll 195,,5e1'.£12 sa. . INSURANCE. ’ National Insurance Co.—Buy 14s 4d, sel 14s lid. N.Z. Insurance Co.—Sel 45s 6d. ■ South British Insurance Co.—Sel 61s 6d. SHIPPING. Burns Philp—Buy 355. Huddart. Parker (ord.)—Sel 30s 6d. U.S.S. Co, (pref.)—-Buy 20s. . ■ 'COAL. . Westport Coal Co—Buy 30s, sel Sis. LOAN AND AGENCY. _ Goldsbrough, Mort—Buy 325, sel S2s - *d. , Perpetual Trustees—Buy 68s. Trustees. Ex, and Agency—Buy 60s. . Wright, Stephenson (ord.)— Sel 25s 3d. MEAT PRESERVING. N.Z. Refrigerating (pd.)—Buy Us, sel 13a. , N.2, Refrigerating (cent.) —Buy 6s 6d, •el 6a 3d. . MISCELLANEOUS. ' . British Tobacco—Buy 41s, eel 425. Brown, Ewing (pref.)—Buy 20s. Bruce Woollen Co. (ord.) —Sel 13s 3d. Crystal Ice "Co.—Buy 22s 6d, sel 275. DJ.C. (pref.)—Buy 21s 3d. > Dominion Rubber-tSs! 28s. Milburn Litne and Cement—Buy 355, . tel 365. National Electric—Buy 0s 6d, sel Us. N.Z. Drug Go;—Buy 71s, sel 735. N.Z. Farmers’ Fertiliser—Sel 21a 3d. NjZ. Paper Mills (ord.)—Sel 20s 6d. Wilsons (N.Z,) Cement—Sel 40s BREWERIES. A N.Z. Breweries, Ltd.—Sel 83a 6d. N.Z. Breweries Debs.—Buy 21s 6d. N.Z. Breweries Stock—Buy 21s fid, , Staple’s Brewery—Buy 475, sel 40s. MINING. Electrolytic Ziuc (pref.)—sfel 30s 6d. Electrolytic Zinc (ord.) —Sel 30s. Mount Lyell—Sel :33s 9d. Big Beach—Buy 4s 6d, sel 3s 6d. Kildare—Buy 7d- ; Okarito—Sel Is 7d prem. Stoney Creek—Buy 2d prem. Paddy's Point—Buy 3s 6d, WAR BONDS. 41 per cent. Bonds, 1038—Sel £99 6s. 44 per cent.,Bonds, 1939—5 el £9O 6s. 4J per cent. Inscribed, 1038—Sel, £9O 3a. 4J per cent. Inscribed, 1939-*-Sel £9O 6a. Si per cent. Inscribed Bonds, 1944—5 el . £9B 15s. ’ NORTHERN EXCHANGES. (Peb United Pbess Association.) 1 The following business was done on 'Changes yesterday;— . Auckland.—Sales: Inscribed Stock , (1937) per cent., £95 17a 6d; Bank of ! New Zealand, 67a 6d; South’British, 61s; Pukemiro. 60s’6d; Auckland Gas, 23 s 4d; New Zealand Breweries, 83sj New Zealand Farmers’ Fertiliser,: 20s 9d: Mount r " Lyell, 33s od. Wellington.—Sales: Bank of New Zealand, £2 17s XOd;. Kauri Timber, Iss; New Zealand Guarantee Corporation (ord.). Bs.—-Sales reported: New Zealand Government 4i per cent. Stock 6d; Bank of Australasia, £l2 Is 6d; Bank of New Zealand, £2 17s Ipd; Union Bank of Australia, £l2 2s; ' -Bank of New South Wales, £4O 10s. Christchurch.—-" Sales: Commercial Bank of Australia, 22a 9dj Commercial Bank of , Sydney, £2l 12s 6d (five parcels); Bank of New-Zealand, 67s 4d (two parcels); New Zealand Breweries, 82s 6d; Tooth’s Brewery,A9s 9d; Electrolytic Zincs (pref., eum dm) 29s 7d; Mount Lyell. 33s 9d; New Zealand Drug Company, 72s (two l«lanFl7~w le lT repo^te ? : Bank of New Zealand, 57s sd; New Zealand RefrigeratIS* 3d° S Pald ’ 58 10d; ' Timaru" Brewery,

MINING. NOKOMAI COMPANY’S CLAIM. .Some interesting figures regarding mintag speculation were given in evidence at tbe Gore Warden’s, Court recently, when the Nokomai Sluicing Company, Ltd. in «?i Un f^° n Wlt £ Siamese tin Syndicate, Ltd., applied for a resumption of ♦inr, are TT.° f W on the Glefalla station. The land belonged to the trustees cf the estate of the late Donald Angus freehold’ ° Ppose(i the - c,ain b and *' as . ¥ r ,, H - J- Dixon was on the bench, ana tbe applicants were represented bv Messrs John MacGregor and J. Sim, of Dunedin, and Cameron’s trustees were rePiesented by Messrs W. A. Stout and jK. tf. Uannerman. Evidence was given to show that the 40 acres under dispute were not indispensable to the station, and Kum Pay, nf +£? w l ?’ ga^e , al ? interesting resume ° f . , tke Nokomai claim. His father, he «aid, started working there in 1894 carrying on until 1898, when the new company known as the Nokomai Hydraulic Sluicing Company was formed with a iUm A In lm another five fhi 63 ™ 0 ! raW and A wo 6 VPhons to carry s®, 7 i tor i across the Sallies were conI7 ed m* a f cost of, £6OOO- This, with r -? cc a l leady in use, made a tota] of 23 pules of race. His father Thl g r- n - £17 ’ 000 in ™V aid *P shares" TD2B c °™pany carried on until forme/ h tk Inother,1 nother , company was lormed. . The land was bored and the average worked out at 2s per yard, which was equivalent to £12,009 per acre. The £1 ooonnn °1 c l aim would represent • BoM. The average 83 P feet orklngs , approximately I® 6 11*1 a^> e Srcat difficulty of workitig the claim was the working of tftp fee> rb fw n ’i ave raged about 70 feet, there being about 10 feet of wash Fn h 'm? P 3 f ? rmcd in 1920 started work J? * ® n “- ln a quarter-acre paddock !t took out a good 400 oz of gold, P but the £IOOO° £ Th°nv kl n lf? r - B " lte , d a loss of £IOOO. They experienced great difficulty ?ni h . 6ee i pa8 f at the bottom, this amountto about six or seven heads of water, f ,? present system of working had resulted in a loss of £2OOO in 12 months iand yak l e me thpd of working the" ] a “ d either by suction pump of dredgmg. Personally he considered dred-dne was the only payable method. The company had concluded negotiations with the Siamese Tin _ Syndicate, Ltd., and had given an option over the claims. That syndicate proposed working the place with a large dredge costing about £100,009, which would treat 150,000 cubic yards per month, representing about one acre per month. Ho was unable to say what the running costs of the dredge would be. i<rom bores he had made he considered land Cad 8 ° wcnt trough Cameron’s. Mr Scott, managing director in the i f'. aßt of the Siamese Tin Syndicate, said bis company would not take over the I c .' a in? unlesa > it got a considerable bifeck i of Camerons land. He detailed the work the syndicate proposed doing if it took the claim. The case was adjourned to allow the opponents c£ the claim to call evidence.

LOCAL AND OVERSEAS MARKETS.

The crop must necessarily increase until the full area planted comes into bearing, but a turnover of much larger dimensions is required before a reasonable profit can be made at present selling prices. The cash assets represent £14,063, of which £7767 consists of investments in Government securities. Had it not been for the revenue derived from those investments, there would have been little or no profit to show for the past year. At their book value, they' exceed, the amount of reserve account by over £2200, illustrating that little money is required to be retained in the business when part °£.,tbe undivided surplus can be thus utilised. The cash balance of £6296 is inewj«ent to meet the sundry creditors outstanding, but before settlement is completed, doubtless proceeds of part of the eu S,l on k an< * WI M been received. no further liabilities beyond tae sundry creditors standing at £7674. These may be all regarded as items of indebtedness, although the provision for income tax that is included may be approxi?l» .with the sundry debtors (£102), the sundry creditors look large, but from the nature of the business, wmch. is apparently on a cash basis, j, h S e ' lß J,^ tle money tied up in book debts. This procedure is all to the benent of the company and is reflected in the comparatively, large cash assets. Other liquid assets.are general stocks and stores and rubber on hand valued'at £460 and £l9lO respectively. As there are 62,0491 b of the raw product carried forward, their value has been taken at a ■ conservative ngure. „

COMPANY BALANCE SHEETS. THE DOMINION RUBBER COMPANY. LTD. Paid-up capital, £50,000.

The depression that is apparent in other industries has extended to rubber, the past season showing prices to have touched what must surely be their nadir. A selling price averaging 9 l-5d per lb does not. allow much tor the cost of production if any profit is to be made, and the net profit in this case works out at approximately id per lb on the crop raised. It is proposed to add the net return of ■ £443, which is equivalent to a return 0f'.89 per cent, on the paid-up capital, to the. floating balance, leaving shareholders for the second consecutive year to be disappointed in their hopes of a dividend. . The actual output for fhe past year is not stated in the report, but assuming that the carry-over was 36,5001 b, the crop works out at 460,3971 b. As that quantity compares favourably with prior years, it is no lack of productiveness on the plantation’s part that is responsible for the small margin of profit. While receipts have diminished, expenditure can scarcely be expected to show a corresponding reduction if the property is to be maintained in good condition. General exposes have risen by over £IOOO from those of the preceding season, which were, however, the lowest for some years. When the crop is taken in conjunction with the acreage and general expenses, the following figures result:—

The fixed property remains virtually as before. The land is entered at its former yalue of £44,155, in spite of its producing an increasing revenues more acres are tapped. It is leasehold property, but is eeemingly held on long lease as no funking fund is shown to meet the time of expiry. : The buildings are also entered at their previous figure of £3339, .the depreciation mentioned.having apparently been effected in earlier years. The machinery group has risen io £2611. The depreciation provision of £lB6 would seem to apply entirely to that group in which case there has been a capital expenditure of soma £4OO upoff' it. The fluctuation of the rubber industry causes some irregularity in the distribution of profita. but the policy'seems to be to divide the profits as they are made and disregard provision for the future in that respect. .. During the past nine years, no > dividend has been, declared on five annual occasions, yet the total amount paid away m dividend has been equivalent to <BO per cent, on the paid-up capital. The average rate for the period accordingly works out at approximately 9 per cent, per annum to those who have held shares for the whole time. Those who take up such snares as an investment must be prepared to exercise patience.

RIVERSDALE SALE. (From Opr Own Correspondent.) .... ' i t CORE, February 22. Although stock sales in the Eastern District of Southland have been quiet so far this season, there was a fairly good entry at the monthly .stock sale held at Riversdale on Friday, and a fair attendance of fanners and buyers. Sheep.—The market was slack and it was apparent that prices had not reached a level at which buyers and sellers were prepared to do business. Although several lots were sold a fair proportion of the yarding was passed in. Most of the sales made were in respect of lambs which sold at prices which should yield a satisfactory return to those who have feed for fattening, A pen of fat ewes realised 15s. Store lambs were sold at prices ranging from 14s 8d to 18s, and cull lambs up to 12s 6d. A few pens of young ewes were forward, but no business >. was transacted, while old ewes changed hands at from 5s to 10s. .Store wethers made from 16s 5d to 225. • Cattle.—A fair number of cattle were on ofter for which there was" a fair inonjry Fat cows made from £7 to £9 I*3 6d,.and fat heifers £9. Mixed year" lings made £4 Is, mixed calves £2 6s, and bulls to £5 10s.

Scott Bros., produce merchants and commission agents, agents for Dunedin Egg Suppliers’ Association, report:— Eggs: Wholesale to-day; storekeepers Is sd; guaranteed. Is 6d per dozen, Rutter; Dairy pats, Is to Is Id; bulk. Is 2d per lb. Honey; Bulk, 41d to 5d per lb; 10]fa tins, 4s 6d to 4s 9d each. Beeswax, Is 5d to Is 6d per lb. Fat, 19s to 21a 6d per cwt, Poultry: Hens 3s to 3a 6d per pair, heavy breeds 4a per pair, ducks 2s to 3s each, geese 4s to 5s each, turkeys—hens, Is per lb, gobblers Is 2d per lb. Rigs; Prime baconers. 8d to SJd per Ibpovkers, 7Jd to 8d per lb. Potatoes: Locals, Oamaru, and Outrams, 0s to 6s 6d per cwt. Onions: Aueklands, S s 6d per cwt.; Canterbury, 6s 6d. Table carrots, 7s 6d per cwt. Green peas, lid to 2d per lb. Chaff: Prune oaten sheaf, £6 to £6 10s per ton, sacks extra. Whole fowl wheat, 6s 9d to 7s per bushel. Partridge peas, 5s 6d per bushel. Maize, 8s 6d per bushel. Oats. 4s to 4s 2d per bushel, sacks extra. Straw: Pressed wheaten, £3 15s; oaten, £4. Please' Note; Pigs and poultry must arrive not later than Thursday in the week.

Wo also stock the following lines:— Meat meal, charcoal, leg rings, oyster grit, chicken food, egg crates, quotations on application. February 24, 1930.

NEW ZEALAND BUYING ORDERS. Buying on behalf of New Zealand interests was primarily responsible for a sharp advance which occurred in quotations for bank shares to-day (says Sydney Sun of February 11). Bank of Australasia rose 15s, National Bank 6s, Bank of New South Wales 2s 6d, and E.S. and A. Bank la 6d, though Bank of Commerce cased 3d to 25s 9d and Commercial Bank of Sydney 4s to £22 6s, due to profittaking. New Zealand investors have invariably shown a partiality for Australian trading banks, as they recognise that the capital. employed is well secured, whilst there is always the prospect of accretion to capital arising from new issues. An added attraction at the moment is the comparatively good immediate return on the money invested. New Zealand orders were on the market also for Colonial Sugar shares, which moved up 5s to £44 7s 6d. GRAIN AND PRODUCE MARKET. Messrs Donald Reid and Co., Ltd., report as under:— Oats.—The oat market right throughout the country is very firm, and with a bare market to receive consignments, it is probable that prices will, remain firm right through, the season. The harvest, with the exception of a few autumn grown lines will be later than usual. To-day’s values, based on a shipping parity, are as follows:—A grade 3s 3d, B grade 3s, sacks extra, on truck, country stations. Wheat.—Odd samples are arriving on thjs market from Upper Central Otago. This wheat is of good quality. In the lower portion of the Central frost has taken heavy toll,’ and very little wheat will be threshed in that locality. Milton and Taieri crops are backward, and a lot will depend on the weather as to whether satisfactory yields are obtained. Millers are offering 5s 9d for Tuscan, 5s lid for Hunters, and 6s 2d for Velvet, sacks extra, on truck.

Chaff.—There is not a great number of consignments _ arriving, but on the other hand, . there is generally a poor demand at this season of the year. Hay is in abundance, and green feed of all kinds is also plentiful. Prime oaten sheaf is worth up to £6 ss, sacks extra, ex truck, Dunedin, and sales hard to effect. Medium and inferior qualities are quite unsaleable.

Potatoes.—Blight appearing on the stalks, is inducing farmers to dig before the disease attacks the tubers. Consequently the market is oversupplied with potatoes not yet ripe enough for keeping purposes. Values have eased accordingly, and £6 ex truck is being paid for best quality" tables, sacks in, ex store. Messrs Dalgety and Co., Ltd., report as follows; x

Oats.—Very few samples have so far come to hand, and . present quotations based on shipping values are largely nominal at ■3s 3d on trucks, sacks extra, for A Gartens 1 and Ss for B’s, The market is very firm, and growers are not keen sellers at these prices. Wheat.—-Crops generally are looking well, but in some districts early frosts have been experienced, which will affect yields considerably. Values remain ns follow:—Tuscan & 9d,. Hunters 5s lid. Velvet 6s 2d, on trucks, sacks extra Fowl wheat is in short supply,, and sales are being made at up to 6s 6d per bushel ex store. Chaff. —Consignments have come ’to hand freely during the last week or two, and sales are slow. Only best quality is inquired for, and this is selling at from £6_tb £6 5s per ton, ex truck. Potatoes.—The presence of blight haa in sotne crops being dug earlier pan .usual, but sales have been difficult to effect. The local trade is slow, as many people are at present using their own potatoes. The current value is £6 per ton, ex truck. , THE BANK OF ENGLAND. NEW CONVERSION LOAN. (United Press Association.) (By Electric Telegraph—Copyright.) tT> . LONDON, February 23. (Received Peb. 24, at 6.5 p.m.) ihe Rank of England announces a new 44 per cent, loan issue at 96 redeemable 1940-44. ’ TERMS OF ISSUE. (British Official Wlrejess.) (United press Association.) (By Electric Telegraph—-Copyright.) m • j rtUGJBY, February 23. (Received Feb, 24, at 5.5 p.m.) «rm££nV Ca f 10ns are mvited by the Gov-: hLJTof f 4i a new caßh ’ and issue of 4i ner cent, conversion loan. Sf 95 e fl IB l ue subscribers is ±ao. Ihe first dividend payment of wmTP r bS ma w orL J T uly 1 a « d fbe loan will be repayable on July l. 7944 0 r on 1940 6 m w n n 8 not , ificati on after July 1 surv boS° a d H rS ° f t] ir per cenfc - Treasury bonds due on May 15, are offered rate e off?os%i Dt ? .u he new loan a * the each » tlle conversion loan for eqcii £IOO of Treasury bonds.. The list «ons will be opened next Wednesday. ( PROPERTY sale. Messrs John Reid asd Sons, Ltd submitted at auction - ’ r UD , term of |.,. n . yesterday the unexpired XXT tnx™ « n section 4, block ments £ m ° Duue . d . ln ’ with improveJ |he ti |S WSS a 8h ° P Vca rooms, etc There S ?. ,S?. od attendance at the sale hut the b.dd,» s d, d „ t „ Mh ae , sv „ se “r SYDNEY WOOL SALES. (United Press Association.) (By Electric Telegraph—Copyright.) (Eoc.i„d s i™ N f 4 x -jtr p *s ) 2i - America, and the Continent. A very strong market again rules, any change being m the sellers' favour merino made 16|d. Grcasy

Aqv. 30 Reserves Profit Profit Dividend General Gross Net £ S £ p.c. 1918 3,525 16,223 ♦169 1919 5,671 28,012 6,396 121 1920 4,102 21,630 931 5 1921 486 9,674 . »3,616 1922 518 12,287 : 32 _ 1923 3,170 15,014 2,651 ■ 1324 1,122 14,710 2,953 10 1925 (U89 39,749 20,066 30 1926 7,659 41,338 10,470 30 1927 7,669 22,356 5,010 10 1928 8,523 17,135 855 1929 S,'J«ti 17,808 * Loss. 443 ~

General Beturn General Expenses Crop per acre Expenses per lb. • lba. lbs. £ d. 191M8 237,050 447 15,740 15.933, 1918-19 299,782 • 428 20,770 16.62m 1919-20 313,208 447 19,565 14.990 1920-21 194,004 277 ' 12.624 15,617 1921-22 345,027 493 12,003 8.347 1922-23 268,775 298 12,287 11.179 1923-24 — — 11,435 1924-25 298,931 338 19,231 15,440 • 1925-26 488,187 488 24,325 11.958 1926-27 - •347,000 34T 17,185 11.089 1927-28 423,537 423 15,537 8.804 1928-29 460,397 425 16,591 8.649 • • Approximately. . f •