COMMERCE AND FINANCE

Otago Daily Times, Issue 21646, 17 May 1932, Page 5

COMMERCE AND FINANCE

THE SHARE MARKET DUNEDIN STOCK EXCHANGE There were sales of Gillespie’s Beach shares on the Dunedin Stock Exchange yesterday at par. They were on offer later at 3d premium, with no buyer forward. A parcel' of Golden Progress shares was turned over at la 3d. The close of the market found sellers offering these at, la od, no buyer being attracted. A sale of per cent. Bonds (February, 1937) took place at £9B 15s, and business was reported in the September Bonds at £9B 17s 6d. Both issues had further inquiries at £9B 15s, but sellers failed to come forward. Sales.—Gillespie’s Beach, par (two); Golden Progress, Is 3d; 5J per cent. Bonds (February, 1937), £9B 15s. Sale Reported.—sJ per cent. Bonds (September. 1937), £9B 17s 6d. The following are yesterday afternoon’s buying and selling quotations, which are subject to the usual brokerage:— BANKING. ' Bank of Australasia —Buy £9. Bank of New South Wales —Buy £25. Bank of New Zealand —Buy 44s Id, sel 44s Bd. Commercial Bank —Buy 13s 9d, sel 14s 2d. National Bank of New Zealand —Sei 68s. National Bank of Australasia —Buy £9 lss, sel £lO 6s. ‘ National Bank of Aust. (cont.) —Buy 14 15s. Union Bank—Buy £6 12s 6d, sel £7. INSURANCE. National Insurance Co".—Buy 11s. South British Insurance Co.—Buy 465. Standard Insurance Oo. —Buy 365. SHIPPING. Huddart, Parker (ord.) —Buy 21s 6d. Union Steam Ship Co. (pref.)—Sel 19s td. COAL. Westport Coal Co.—Buy 18s 6d, sel 21s. Westport-Stockton (ord.) —Buy 3d. LOAN AND AGENCY. Dalgety and Co. —Buy £7. Goldsbrough, Mort.—Sel 23s 9d. Perpetual Trustees—Sel 60s. MEAT PRESERVING. Canterbury Meat (ord.) —Buy 60s. Gear Meat Co. —Buy 255. New Zealand Refrigerating (paid) Buy 10s 3d. New Zealand Refrigerating (cont.) Buy 3s lOd, sel 4s 2d. South Otago Freezing—Buy 40s, sel TOs. MISCELLANEOUS. Australian Glass—Buy 325. D.I.C. (ord.)—Sel 12s Id. Dominion Rubber —Buy Is 6d, sel ss. Kaiapoi Woollen (ord.) —Sel 6s 3d. Milburn Lime and Cement—Sel 265. M'Leod Bros. —Buy £22.' National Electric —Sel 9s. New Zealand Drug Co.—Sel 48s 6d. New Zealand Farmers’ Fertiliser—Buy 12s. New Zealand Paper Mills (ord.) —Buy 18s. Otago Daily Times—Buy 35s 6d, sel 40s. Whitcombe and Tombs —Buy 25s 9d. GAS. Christchurch—Buy 245. BREWERIES. New Zealand Breweries, Ltd. —Buy 24s Sd, sel 255. MINING. Waihi—Buy 15s. Waihi Grand Junction —Buy 3s 3d. Electrolytic Zinc (pref.)—Buy 20s. Electrolytic Zinc (ord.) —Buy 12s. Mount Lyell—Buy 17s 3d, sel 18s. Broken Hill South—Buy 355. Mahakipawa—Buy sd, sel 6d. Kildare —Sel Is Bd. Okarito —Buy 9s, sel 9s fid. Paddy’s Point—Buy 3s Bd, sel 4s. Cornish Point’(paid)—Buy 2d. Golden Progress—Sel Is 6d. King Solomon—Buy Is, sel Is 3d. Golden Point—-Buy ,6d, sel 7d. Golden Dawn—Buy 5s 4d. Gillespie’s—Sel 3d prem. Blackwater—Buy Bs, sel 9s. Waitahu—Sel 3d prem. Consol Goldfields —Buy 3s. OIL. Moturoa Oil —Buy 2s 9d. GOVERNMENT LOANS. ii per cent. Bonds, 1938 —Sel £93 (ex int). 4J per cent. Bonds, 1939—5 el £93. ii per cent. Inscribed, 1938—Sel £93. 4} per cent. Inscribed, 1939—5 el £93 5s (ex int.). 5J per cent. Soldiers’ Bonds, 1933 —Buy 199 10s. 5J per cent. Soldiers’ Inscribed. 1933 Buy £99 10s. 5J per cent, Bondi (February), 1937 Buy £9B 15s. 5J per cent. Inscribed (February), 1937 —Buy £9B 17s 6d, sel £99 7s 6d. 5J per cent. Bonds (September), 1937Buy £9B 15s. 5J per cent. Inscribed (September), 1937—8uy.,,£98 15s, sek£99 7s 6d. NORTHERN EXCHANGES (Per United Press Association.) The following business was done on Changes yesterday:— Auckland.—Sales: Bonds (1937) 5J per cent. (Feb.), £9B ]ss; Commercial Bank, 14s 2d; Bank of New Zealand, 445. 44s Sd; Robinsons Ice, 16s; Waihi, 15s 3d. Wellington.—Sales reported: Bank of New Zealand,. £2 3s 9d (late Saturday), x £2 3s lOd; Moturoa Oil Co., 3s 3d; New Zealand Government 44 per cent. Stock

LOCAL AND OVERSEAS MARKETS.

(1939), £92 15s; Bank of New Zealand, £2 4s (on ’Change). Christchurch.——Sales; New Zealand Government 5J per cent. Bonds (Sept., 1937), £O9; Commercial Bank of Aust., 14s Id; Bank of Now Zealand (cum div.), 445; Goldsbrough, Mort, 235, 23s 5d (two parcels); British Tobacco, 27s 9d; Electro Zinc (pref.), 20s 9d, 20s 3d; Mahakipawn, sd. Sales reported; New Zealand Government 5J per cent. Inscribed (1951), £9B 2s 6d (two parcels); Commercial Bank of Sydney, £l4 ss; E.S. and A. Bank, £4 2s 6d. CUNARD LINE LOSSES The report of the Cunard Steamship Company, which in December last was obliged to suspend work on its new liner, shows a net loss of £553,204. The revenue and expenditure figures closely follow the estimates of the directors in the interim report made when the decision to suspend work was taken. Gross revenue amounted to £5,614,311, a reduction of £2,331.074 on the 1930 figure of £7,045,385. Working expenses totalled £5,217,802, compared with £6,948,791, a fall of £1,730.989. The gross profit worked out at £396,508, in comparison with £996.595 for 1930 and £1,852,523 for 1929. After providing for full depreciation (£704.779), debenture interest, £200,000, etc., there is a net loss of £553,204, against a net profit of £18,601 itf the preceding year, and £809,639 in 1929. As anticipated in the December circular, the cumulative dividends on the preference stocks, due January 1, have not been paid. From the balance of £278,867 brought in falls to be deduced the dividends to Juno 30 last on the preference stocks, amounting to £67,500, leaving £211,307. The directors have transferred £350.000 from contingencies reserve, making £561.367. Deducting the net loss of £553.204, there remains £8163 to be carried forward. BURNS. PHILP, LIMITED Following a fall of £72,255 in gross profit, Burns, Philp, and Co., Ltd., discloses a net profit of £202,407 for the year ended March 31, a decrease of £24,806. Dividend is at the usual rate of 10 per cent., absorbing £150,000. A transfer of £50,000 to reserve is £25,000 leas than in preceding years, and raises the reserve to £925,000. The balance carried forward is £36,295, against £33,888 brought forward. Expenses show a reduction of £11,931, and provision for depreciation and bad debts is lower by £35,518. The report:, refers to a difficult trading year, resulting in a further shrinkage in earnings from merchandise transactions and shipping services, Tyhile taxation increased considerably. To help counterbalance the depreciated revenue further economies in working expenses were effected. The directors strike a hopeful note in stating that there are indications that the decline in volume of the company's merchandise business which has been taking place during the past three years is now coming to an end, and a gradual upward movement is anticipated. LOWER PROFITS BANK OF ENGLAND SUMMARY. British company profits last year totalled 7.2 per cent, of capital, compared with 9.8 per cent, in 1930 and 11 per cent, in 1914, as disclosed in the Bank of England statistical summary for March. The number of companies represented in the , figures for last year is 2009, with a paid-up capital of £2,229,300,000. The amount allocated to dividends was £143,600,000, and £16,500,000 was placed to reserve. The dividends paid represented 6.4 per cent, of the capital, and that placed to reserve 0.8 per cent, of the capital, making a total profit of 7.2 per cent. For 1930 the dividends paid totalled £162,100,000, and the amount placed to reserve £35,400,000. Dividends averaged 8.1 per cent., with 1.7 per cent", placed to reserve, making a total profit of 9.8 per cent. In 1914, 909 companies were included with a paid-up capital of £636,000,000. The dividends were 8.1 per cent, of the capital, and 2.9 per cent, was allocated to' reserve, making a total profit of 11 per cent. New capital issues for January and February, 1932, are estimated at £15,400,000, compared with £31,100,000 in the corresponding months of Inst year. For the whole of last year capital issues totalled £89,600,000, compared with £235,300,000 in 1930. AUSTRALIAN STOCK EXCHANGES (United Press Association.) (By Electric Telegraph—Copyright.) SYDNEY, May 16. (Received May 16, at 9.5 p.m.) The sensational activity in bonds and shares which began on Saturday after Mr Lang’s dismissal continued on ’Change to-day. A' fillip was given to the market by the rout of Labour at the Victorian polls. Spectacular buying and selling was once more the feature of the trading. The volume of business was the largest for many months. Stock gains on Saturday were estimated at £15,000,000. All sections, except perhaps insurance issues, shared in the feverish activity. Substantial gains were recorded by banks, breweries, pastoral, and general trading concerns. Morning sales; 4 per cent. Bonds—l93B, £95 2s fid; 1941 (ex interest), £9l 17s 6d; 1947, £BB 17s 6d; 1950, £B9 12s 6d; 1953, £B9 15s; 1955, £B9 15s; 1957 (ex interest), £BB 2s 6d; 1959, £B9; 1961, £B9 7s 6d; Commercial Bank of Sydney, £l6 10s; Bank of New South Wales, £29; Winchcombe Carson, 19s 6d; Goldsbrough, Mort, 26s 3d; British Tobacco, 31s 9d; Broken Hill Proprietary, 16s 6d; Toohey’s Brewery, 17s 10Jd; Tooth’s Brewery, 27s 7id; Colonial Sugar, £44 17s 6d; Australian Glass, 39a 6d; Huddart, Parker, 26s 6d; Burns Philp, 41s; Howard Smith, 7s 6d; Australian Gas (“A”), £5 15s. Among the sales recorded in the afternoon were the following:—Commercial Bank of Sydney, £l6 ss; Commercial Bank of Sydney (New Zealand delivery), £l6 7s 6d; Bank of New South Wales, £2B 12s 6d; Colonial Sugar, £44 17s 6d; Millaquin Sugar, 255; Howard Smith, 7s 6d; Huddart Parker, 26s 6d; Adelaide Steam, 18s; Burns Philp, 41s; Pitts. Son, and Badgery, 28s; Winchcombe Carson, 18s 9d; Goldsbrough, Morts, 25s 4J(1; Carlton Brewery, 31s 9cl; Tooth’s, 27s 3d; Toohey’s, 17s 4Jd; Australian Glass, 38s; Australian Gas (“A”), 115 s; British Tobacco, 31s 6d; Henry Jones, 29s Cd; Dunlop Perdriau, 12s; 4 per cent. Commonwealth Bonds —1938, £95; 1941, £9O 17b 6d; 1944, £B9; 1947, £BB 2s 6d: 1953, £BB 12s 6d; 1955, £B9 8s 9d: 1959, £BB ss; 1961, £BB os Broken Hill Proprietary, 16s; South Broken Hill, 41s Gel; Electrolytic Zinc, 13s 3d. MELBOURNE, May 16.

The Stock Exchange was excited after the elections, and there was extensive trading. Sales: Commercial Bank of Australia, 15s'fid; Carlton Brewery, 31s 9d; Bunion Perdriau. 12s 7d; Dunlop Perdriau (pref.). 25s 6d: South Broken Hills, 425; North Broken Hills, 61s 3d; Mount Lyell, 19a Bd.

WELLINGTON FRUIT MARKET The Wellington Fruit Markets, Ltd., report the following Wellington fruit and produce values during the past week. A firmer demand exists for all lines of choice fruit and vegetables. Prompt consignments recommended. We anticipate the following values: Apples.—Cox Orange, Dominion Mark, Bs, 10s; others, ss, 7s; Delicious Dominion Mark, 5s 6d, 6s 6d; others, 3s, 4s; Jonathans fancy, 4s 6d to ss; others, 3s, 4s; Stunners, few large offering, first grade, 4s 6d, 5s fid; fancy dessert, worth 6a to 6s; Ballarats, 4s fid, ss; Wolseleys, large, 3s fid, 4a; Cleopatra, Premier, Tasma, and other varieties, 3s fid, 4s bushel.

Pears.—The demand is good. Winter Coles, 8s fid, 9s fid: Nelis, 4s, ss; P. Barry, 6s, 7s; B. Bose, choice, 6s, 7s 3d; Vicars, 0s fid, 7s; Keiffcrs, Easter Buerre, and Diels, Cs to 7s.

Grapes: Choice hothouse, Is 3d to Is 7d per lb. Passions: Choice, 8s fid, 9s half case. Tomatoes: Hutt choice, 3s Cd, 5s half case.

Lemons: Choice cured, preferred sizes, 14s to 15s; others 10s to 12s bushel. Potatoes; Prime tabic, £C 10s to £7 10s; others £5 10s ton. Onion: Prime table, 9s. 10s cental. Picklers, 3s sugar bag. Garlic wanted. Walnuts: Choice, sid, 6Ad lb. Chestnuts, 3d lb.

Cape Gooseberries, 2s 3d to 2s fid half case.

Lettuce; Well hearted, 2s, 3s banana case.

Cauliflowers; Choice, 7s to 13s fid sack. Cabbage: Savoys, 2s 3d to 3s sack. Swedes, 2s, 2a fid banana case. Celery, 9d, Is 4d bunch. Pie Melons, 6s to 6s Cd sack. Rock melons wanted. ,

Green peas, 7s to 14a half sack. Pumpkins: Red, best, 5s to 5s fid sack, Brussels sprouts, 3s, 5s bushel case. Rhubarb, 4s to 5s dozen bunches. Poultry in moderate demand.

GRAIN AND PRODUCE MARKET

Donald Reid and Co., Ltd., report as follows: —

Wheat.—The bulk of this year’s crop has been marketed, and local millers have secured sufficient for their requirements. Any lines now offering have to be of the very beet quality before sales, can be effected. Prices are still on the same basis—viz., 4g BAd for Tuscan, f.0.b.; 4s IOJd for Hunter’s; and Ss.OJd for Pearl Velvets, sacks extra. Fowl wheat is in better demand. This is no doubt due to the Government making no move to lift the embargo on imported wheat. All qualities of fowl wheat are available, and prices range from 4s to ss, ex store, sacks extra.

Oats.—Threshing is now practically finished, and the Bulk of all the oats of quality has been sold. There are still a good number of light and out-of-condi-tion lines to sell, and these are being sent into store to be dealt with as occasion offers. Prices this season have been very much better than those ruling last year,, and with heavy yields farmers have had # a satisfactory year so far as this grain is concerned. To-day’s values are as follow: A grade, 3s; B grade, 2s 9d; under-grade from 2s 3d, sacks extra, on trucks, country stations. Potatoes.—The market is, if anything, easier. The local demand is not by any means brisk, but on the other hand there are not many trucks arriving. King Edward appear to be more in demand than Arran Chief. From £4 Iss to £5, sacks in, was obtained for good tables during the past week, ex truck, Dunedin. Chaff. —This market remains quiet. There are few feeders now in the city which require a large quantity. The bulk of sales are for small lots only, ex store. Sales for full trucks are a rarity, the price obtained for best quality ex truck being £4 10s to £4 15s per ton, and £5 is the value for similar quality ex store, sacks extra. N.Z. WOOLPACK AND TEXTILES MANUFACTURE OF FLAX. The pi’ospectus of New Zealand Woolpack and Textiles, Ltd., the shares in which have already been placed on the market, seta out that the objects of the company are to acquire by purchase for the New Zealand Flax Manufacturing Company, Ltd., the New Zealand patent rights, together with an option to acquire the Australian and world patent rights of a process by which New Zealand flax may be manufactured into woolpacks > or such other products aa corn sacks, sacking, hessian, etc. The manufacture is to be carried out by means of what is known as the Coghill process, the invention of Mr R. D. Coghill, a technical chemist, of Dunedin, by means of whjch the difficulties in the way of satisfactorily manufacturing sacking products from New Zealand flax —difficulties which have arisen owing to the woven fabric being too stiff and hard for utilisation —have been overcome. Woolpacks made from fabric woven from .New Zealand flax in the experimental mills and treated by the Coghill process, have, it is stated, been severely tested under working conditions, and proved to be of superior quality and to be cleaner and stronger than the jute woolpacks at present in use in this country. Woolpacks, which it is the company’s first intention to manufacture, are at present manufactured from jute and imported from overseas. During the years 1928, 1929, 1930 a yearly average importation of woolpacks, exclusive of all otner sacking goods, was made of 852,164. of a yearly average invoice value of £132,534. In addition to the woolpack market, should the company desire to extend its operations, there is also a vast market awaiting it in corn sacks and other sacking products, which during 1928, 1929, 1930 were imported into this country to an average annual value of £404,452. If the money expended on such importations can be spent in New Zealand the importance of such a saving in the Dominion’s trading account will readily be appreciated. The promoters propose installing a complete plant and buildings for the conversion of the flax into commercial products, and it is estimated that it will be possible, after providing for a reasonable margin for distribution, to allow of the purchase of woolpacks by farmers at a price below that which they have had to pay for many years, whilst at the same time assuring a substantial profit to the company. The nominal capital of the proposed company is £390,000, of which £IOO,OOO has been issued for public subscription in shares of £1 each. The nrovisional directorate of nine includes Sir Alexander Roberts, Colonel J. J. Esson (laie_ financial adviser to the New Zealand Government), and Mr H. H. Sterling (chairman of Government Railways Board). MINING OKARITO RETURN. Messrs W. A. Mitson and Co., secretaries of the Okarito Five Mile Bead) Gold Dredging Company, Ltd., report that the wash-up for the week ended May 14, 1932, has yielded 41oz for 129 hours’ dredging. TONSON. GARLICK. AND CO. (Special to Daily Times.) AUCKLAND, May 16. The thirty-fifth annual report of Messrs Tonson, Garlick, and Co., furnishers, shows a loss on the operations for the year ended March 31 of £5603. The losses in recent years have been—l92B, £2762: 1029. £6340; 1930, £4361; 1931, £1031; 1932, £5603.

Scott Bros., produce merchants and commission agents, agents for the Dunedin Egg Suppliers’ Association, report: Eggs; Storekeepers, Is lOd; poultry farmers’, 2s; preserved, Is 4d to Is sd. Butter: Dairy pats, 9d to Old per lb; bulk, 9d to lOd per lb. Honey: Bulk, 5d to 5Jd per lb; 101 b tins. 5s 9d each; 51b tins, 3s. Beeswax, Is 4d to Is 6d. Fat: Nominally, 7s to 8s per cwt. Poultry: Hens. Is 6d to 2s 6d per pair. Ducks: 2s 3d to 3s each. Geese, 3s to 3s Cd each. Turkeys: Hens, 7id to 8d per lb. Gobblers, 9d per lb. Pigs: Prime baconers, 4pi to 5d per lb; porkers, to 5d per lb. Potatoes; Oamaru and Taieri, £4 10s to £4 15s per ton. Onions: Canterbury, 9s 6d to 10s per cwt. Chaff: Prime oaten sheaf, £5 to £5 5s per ton, bags extra, ex store. Partridge peas, 6s 3d per bushel, sacks extra. Whole fowl wheat, 4s 9d to 5s 3d per bushel, sacks extra. Barley dust, 8s per 1501 b. Clover and rye grass hay, £4 10s to £4 15s per ton, ex store. Maize, 6s 9d per bushel. Oats: Carton’s, 3s 3d to 3,s 6d. Sparrowbills, 3s 6d bushel, sacks extra. Pea meal, 17s 6d per sack 1501 b. Oat dust, 4s 6d per sack. Oat pollard, 14s 6d per 1501 b. Pressed wheaten straw, £4 10s; oaten, £3 15s, ex store. Feed barley, 2s 9d per bushel. Farro Food, £6 per ton. All poultry requisites in stock. May 16, 1932.

BRITISH DEBT TO AMERICA BONDHOLDERS NOT CONCERNED. Statements have been made that in. regard to the British war debt to the United States, the United States Government induced United States bondholders to accept the rate of interest and other terms for repayment which the United States Government granted to Great Britain. The statement is incorrect, says a financial authority. The debt is a debt of one Government to another, and the terms which were granted by the United States Government to Great Britain had nothing to do with United States bondholders as bondholders, (hough the terms affected the bondholders as taxpayers. _ The money which was lent to Great Britain by the United States Government was raised by that Government from United States citizens, but the terms of the raising of that loan were solely between the United States Government and the United States citizens. The terms on which the money was re-lent to Great Britain and the terms of the subsequent funding operations concerned solely the United States Government and the British Government. Those terms did not effect in the least the terms on which the United States Government borrowed the money from its citizens in the first place or any subsequent conversion. To argue on such mis-statements that Great Britain should negotiate with British holders of Australian bonds arises either from sheer ignorance or from a deliberate intention to distort the facts. DOMINION RUBBER COMPANY The accounts of the Dominion Rubber Company, Ltd., for the year ended November 30, 1931, show a loss of £2327, compared with a loss of £2352 in the previous year. The company has an issued capital of £50,000 in £1 shares fully-paid. Its estates are at Kelantan, Malay States, where it possesses a planted area of about 1078 acres, of which 900 acres are being tapped. No dividends have been paid since 1927, when 10 per cent, was distributed, compared with 30 per cent, in 1926. WRIGHT. STEPHENSON. AND CO., LTD. NET PROFIT OF £25,776. (Per 'United Press Association.) WELLINGTON, May 16. A net profit of £25,776 is shown in the annual report of Messrs Wright, Stephenson, and Co., Ltd., for the year ended March, 1932. The sum of £27,141 was brought forward from 1931, making £52,917 available for distribution. The interim dividend on preference shares absorbed £6871, and the directors now recommend that after making a fixed payment of 2i per cent, on preference shares a dividend of 4 per cent, for the year be paid on ordinary shares, which will leave £27,166 to be carried forward. In their report the directors state that the proposed ordinary dividend is 2 per cent, below that declared last year. In view of the unprecedented worldwide depression the directors have continued their policy of further strengthening their internal reserves against their advances to the farmers. The net earnings of the company for the year were only obtained by a drastic curtailment of expenses. Messrs R. S. Abraham. D. Allan and J. A. Johnstone, retiring directors, offer themselves for re-election. During the year Mr M. C. Fcatherstone retired from the board, but he will continue to act as London director. NEW ZEALAND’S ADVANTAGE New Zealand is fortunate in possessing the most suitable climate in the world for the growth of softwood trees, and this fact, coupled with £he ample security affox-ded, has been responsible for the development of N.Z. Perpetual Forests, Ltd., to its present position as the largest commercial afforestation company in _ the world. In New Zealand Pinus insignis trees reach a size suitable for pulping purposes in 12 years, whereas in other lands they take from 50 to 60 years to reach the same size. The slow growth in other countries, therefore, effectively eliminates competition for many years to come. —Advt.