COMMERCE AND FINANCE

Otago Daily Times, Issue 21647, 18 May 1932, Page 4

COMMERCE AND FINANCE

THE . SHARE MARKET DUNEDIN STOCK: EXCHANGE A sale of Union Banks was reported on the Dunedin Stock Exchange yesterday at £6 15s 6d. The ishares were later offered at £7, but.no buyer came forward. British Tobaccos have improved again and are now ; being asked for at 26s 9d with a' seller asking 6d more. Business was reported, in Gillespie’s Beaches at par and Waitahu’s were also dealt in at par. Both were on offer later at Id prem., without attracting a buyer. A parcel of 54 per cent. Bonds (Feb., 1937) was turned over at £99, further offers of £9B 15s finding sellers firm at £99 10s. Sales reported: Union Bank, £6 15s 6d; Gillespie’s Beach, par; Waitahu, par; 64 per cent. Bonds (Feb., 1937), £99; Bank of New Zealand (after last call), 44 s 3d, The following are yesterday afternoon’s buying and selling quotations, which are (Subject to the usual brokerage:— BANKING. Bank of New South Wales —Buy £25. Bank of New Zealand—Buy 445. Commercial Bank—Buy 13g 6d, sel 13s lid. - National Bank of New Zealand —Sel 67s 6d.' National Bank of Australasia —Sel £lO 6s. ; ■ , Union Bank —Sel £7. INSURANCE. - South British Insurance Co.—Buy 47s Sd. Standard Insurance Co. —Buy 375. SHIPPING. Howard Smith —Buy 6s. Huddart, Parker (ord.) —Buy 21s 6d. P. and 0. Deferred Stock —Buy 15s. ; COAL. ’ Westport Coal Co. —Sel 21s. LOAN AND AGENCY. Goldsbrough, Mort —Buy 22s Id, sel 22 s Bd. New Zealand Guarantee Corp.—Sel 4s 6d. Wright, Stephenson (pref.)—Sel 15s. MEAT PRESERVING. Gear Meat Co. —Buy 265. ' South Otago Freezing—Buy 40s. MISCELLANEOUS. British Tobacco —Buy,26s 9d, sel 27s 3d. ■Crystal Ice Co.—Buy 235, sel 265. D.I.C. (ord.)—Sel 12 s 3d. - Kaiapoi Woollen (ord.) —Sel 6s 3d. Milburn Lime and Cement—Sel 265. National Electric —Sel 9s. New Zealand Drug Co. —Buy 45s 6d. New Zealand‘Paper Mills (ord.) —Buy 18s. . - Otago Daily Times—Sel 40s. BREWERIES. New Zealand Breweries, Ltd. —Buy 245. ■ Tooth’s Brewery—Sel 24s 6d. MINING. Waihi Grand Junction —Buy 3s 3d. Electrolytic Zinc (pref.)—Buy 19s 4d. Mount Lyell—Buy 17s. Broken Hill South —Buy 355. Mahakipawa—Sel 5Jd, Kildare —Sel Is Bd. Okarito —Buy 9a Id, sel 9a ,sd. Paddy’s Point —Buy' 3s Bd, eel 4s. Golden Progress—Buy Is, sel Is 6d. King Solomon—Sel Is 3d. ; Gillespie’s—Sel Id prem.' Golden Dawn—Buy 5s 3d. Golden Terrace —Sel 3s 6d. Blackwater —Buy Bs, eel 9s. Waitahu—Sel Id prem. Consol Goldfields —Buy 3s. OIL. Moturoa Oil —Buy 3s. GOVERNMENT LOANS. . 4J per cent. Bonds, 1938 —Buy £92. 44 per cent. Bonds, 1939- —Buy £92. 44 per cent. Inscribed, 1938 —Buy £92. 4J per cent. Inscribed, 1939- —Buy £92. 51 per cent. Soldiers’ Bonds, 1933 —Buy 199 10s, sel £IOO TOs. 54 per cent. Soldiers’ Inscribed, 1933 — Buy £99 10s, sel £IOO 10s. 5i per cent.,. Inscribed, 1933 —Sel £9B ios. ■ ' . 5J per cent. Bondg (Feb., 1937) —Buy £9B 15s, sel £99 10s. , 5J per cent. Inscribed (Feb., 1937) — Buy £9B Tss, sel £99 ss. 5J per cent. Bonds (Sept., 1937) —Buy £9B 15s, sel £99 10a. 54 per cent. Inscribed (Sept., 1937) Buy £9B 15s, gel £99 ss. NORTHERN EXCHANGES V (Per United Press i Association.) The following business was done on "Changes yesterday:— Auckland. —Sales: National Bafik of New Zealand. £3 ss; Bank of New Zealand 44s 3d (two parcels); New Zealand Insurance, 35s 3d; Goldsbrough, Mort., 22s 9d; Gear Meat, 27s 6d; New Zealand Drug, 46s 6d (two parcels); Golden Dawn, 5s 6d (two parcels); Mahakipawa, 5Jd, sid; Bonfis, 4J per cent. (1939), £92 17s 6d; Commercial Bank, 13s 9d. ' Wellington.—Sales reported; New Zealand Government 44 per cent. Bonds (1939), £92 17s 6d (late Monday); New Zealand Government 44 per cent. Bonds (1939), £92 15s; New Zealand Government 44 per cent. Bonds (1938), £92 10s (ex interest); New Zealand Government ■54 per cent. Bonds (1936), £9B I7s 6d (late Monday); New Zealand Government 44 per cent. Stock (1938), £92 10s (two sales), ex interest; New Zealand Government 54 per cent. Stock (Feb.,, 1937), £9B 15s; 4 New Zealand Government 54 per cent. Stock (Sept., 1937), £9B 15s; Uaion Bank of Australia, £6 15s 6d (late Monday) ; Union Bank of Australia, £6 15s 6d; Bank of New Zealand, £2 4s; Commercial Bank of Australia (ord.), 14s (two sales); New Zealand Insurance Company, fl 15s 3d; New Zealand Refrigerating Company (10s pd), 4s; British Tobacco Company (ord.), £1 7s 6d; Dunlop Perdriau Rubber Company, 10s 7d. Christchurch. —Sales: Bank of Now Zealand (cum div.), 44s (two parcels); Goldsbrough. Mort., 22s 6d (two parcels); Mount Lyell, 17s 3d; Golden Dawn, 5s 3d (three parcels), 5s 6d, 5s 7d, 5s 8d; King Solomon, Is 2d, Is 14d; Mahakipawa, 5d (three parcels); Mahakipawa. (pref.), 6d (three parcels); Okarito (cum div.), 9s Id, 9s 24d. 9s 4d. Sales reported: Commercial Bank of Australia, 13s 9d; Goldsbrough, Mort., 22s 3d (two parcels); 54 per cent. Inscribed (1951), £9B 2s 6d; New Zealand Breweries, 24s 9d. AUSTRALIAN WOOL CLIP GREAT BRITAIN THE BEST _ CUSTOMER. (United Press Association.) (By Electric Telegraph—Copyright.) MELBOURNE, May 17. (Received May 17, at 8 p.m.) Australia’s wool clip for the 1931-32 season totalled 2,690,136 bales, and approximately 2,595,000 bales have already been disposed of. The export returns to March 31 showed that 2,259,628 bales went overseas to 21 different countries. Great Britain was the best customer with 802,006 bales, Japan was next with 603,996 bales. It is_ estimated that the freight paid to shipping companies was about £3,000,000, .

EOCAL AND OVERSEAS MARKETS,

COMPANY BALANCE SHEET WRIGHT, STEPHENSON AND CO., LTD. Paid-up Debenture, Net Dividends. Mar. 31 Capital. Stock. "Reserves. Profit. Pref. Ord,

The net profit for the past season shows a substantial advance upon that of 193031, but on this occasion the distribution is maintained within the year’s surplus. The holders of ordinary shares are Subjected in consequence to a further reduction on the rate of dividend, which at 4 per cent, absorbs practically the balance of profit, after the fixed 54 per cent, to preference shareholders has been met. The directors’ report states that the net earnings were only obtained by drastic curtailment of expenses, from which it may be inferred that the groSs profit did not exceed the total expenditure of former years. The published statement, while giving the various items of income and expenditure in detail, does not mention the respective amounts’ (except in the case of transfer fees) or even the totals of income and expenditure, so that the shareholder is not enlightened regarding the relations of one side of the profit and loss account to the other. The reduction in the chief liability—the sundry creditors group—continues. Inclusive of bills payable, sundry creditors stand at £803,780, which is down by some £IBO,OOO from the total at March, 1931, —a result which has been accomplished without increasing the bank overdraft or other indebtedness to any similar extent. The liability of the bank has advanced to £174,091, the growth as shown ■in 1930-31 having been considerably checked. Debenture stock, at £689,540, hasVeached a higher aggregate than at any previous balancing date, the increase being chiefly in the 6 per cent, second lien terminable section. An outcome of the financing being effected mainly through debenture stock is : that the amount expended annually in interest on debenture stock must exceed the amount distributedin dividend. It is possible that the registers of shareholders and debenture stockholders contain many names in common. 'Reserves, which consist of general reserve and the floating. balance, have slightly risen. The general account usually receives some small addition each year —whether from the same source or not it is impossible to tell from the published statement. The dividend surplus continues to he carried forward at a substantial figure, it apparently being preferred to retain over one-fourth of the visible reserves in that liquid form.. At £1,486,141, after deduction of reserves, sundry debtors show a- considerable drop, which is somewhat counteracted by* the rise in bills receivable to £92,056. As formerly, sundry debtors preponderate over the other assets, and, 1 as the asset on which the well-being of the company obviously depends, much weight is attached to the valuation of them. Their reduction may be chiefly due to a larger allowance for bad and doubtful debts, although it is gathered from the auditors’ report that there is some doubt about possible losses being fully covered. The position in that respect is not peculiar to this company, and is one which present-day conditions render inevitable. The next liquid asset in point of size is shares in other companies, now increased to £242,354. Such an extensive holding implies the controlling interest in other concerns, but, as the valuation is entered at cost, there may be some margin between the book and the market value. From the manner in which stocks have fallen, it may be assumed that their value of £139,159 has been arrived at after heavy writing down. The balance of the advance group has advanced to £110,588, indicating that the vdlume' of business of that nature is on the increase. If drafts are drawn at a high proportion of the advances, a 14rge business would seem to be going, through. Cash in hand, at £6933, is lower than at the previous two closing dates, but, «in view of the reduced liabilities, that movement is not unexpected. Except in motor cars, the fixed asset groups have not altered greatly. A small expenditure has taken place on freehold and leasehold properties, which, sifter the deduction of the same amount of unpaid pfirchase money (£54,200) as at March, 1931, stand at £230,842. at £15,187, has risen slightly, but ; apparently in neither case has there been any allowance for depreciation. Motor cars at £9386 have been reduced approximately 40 per cent., possibly from realisation as well as depreciation. Fixed assets have stood to the total assets as follow: — Jl«r. 31 Fixed Assets. Total Assets. Ratio.

The increase in the latest proportion has been brought about after a reduction in both groups chiefly felt by the total section. Stocks and sundry debtors arc mostly responsible for the fall, which in consequence has 'had a direct bearing on the net profit. In view of the cutting down that has taken place, the net surplus brought out for the past year cannot be regarded as unsatisfactory. AUSTRALIAN STOCK EXCHANGES' (United Press Association.) (By Electric Telegraph—Copyright.) SYDNEY, May 17. , (Received May 17, at 8.30 p.m.) Although it was not marked by the abnormal rush which characterised business yesterday on the Stock Exchange, the turnover to-day was well above the average. and the tone of the market generally was good. Profit-taking accounted for a decline in values, although the losses were "not great, but it is evident that brokers are receiving good buying orders. “Sales; Bank of New South Wales, £2B ,4s 6d;.Bank of Australasia, £lO 7s Cd; Commercial Bank of Sydney; £l6 2s 6d; Colonial Sugar, £44 ss; United Insurance, £7 ss; Burns, Philp (ex div.), 40s 3d; Australian Gag (A).. 112 s fid; Carlton Brewery, 31s 3d; Tooths, 27s 4J d; Tooheys, 17s 6d; Australian Glass, 38s; British Tobacco, 31s 6d; Goldsbroughs, 25s 6d; Dunlop Perdriau, 12s 2d; Dunlop Perdriau ’(pref.), 25s 6d; Howard, Smith. 7s 6d; Bcrlei, Ltd., 20s; Millaljuin Sugar, 255; .Winchcombe, Carson, 19s; Mount Lyell, 19s 3d; North Broken Hill, 60s 9d; Pour per cent. Commonwealth Bonds, ,1938, £O4 15s; 1941, £9O ss; 1944, £BB 15s; 1947, £BB ss; 1950, £BB 2s fid; 1953, £BB 2s (id; 1955, £BB 12s Cd; 1957; £B7 10s; 1959, £B7 7s «d; 1961. £B7 10s. Morning sales: Four per cent. Bonds, 1938. £94 17g Cd; 1947, £B7 17s 6d; 1953, £B7 15s; 1959, £B7 10s; Bank of New South Wales* £2B ss;'.Australian Gas (A), £5 14s; Australian Gas. 38s; British Tobacco, 31s 3d; Dunlop Perdriau, 11s lid. MELBOURNE, May 17. (Received May 17, at 8.30 p.m.) Commercial Bank of Australia, 15s 4d; Goldsbrough, Morts, 25s (id; Dunlop Perdriau, 12s 2d; North Broken Hill, 60s fid; Zinc Corporation, 25s Cd; Mount Lyell, 19s' 4d. NEW YORK STOCK EXCHANGE (United Press Association.) (By Electric Telegraph—j-Copyright.) . NEW YORK, May 10. Commonwealth s’s (1955 and 1957), each £6O; 4J’s, £54 ss; New South Wales s’s (1957) £sl. (1958) £SO 10s; Queensland 7’s, £7l.

LORNEVILLE STOCK SALE (Special to Daily Times.) INVERCARGILL, May 17. There were average yardiugs to-day at the Lorneville stock sale, with the exception of the fat sheep section, which showed a big increase over last week’s figures. Tlie quotations for fat sheep remained on a par with last week’s prices, and there was little or no change in fat cattle. Fat Sheep.—Bpst butchers’ wethers realised up to 15s 6d; good wethers, ,12s to 13s 6d; light, down to 10s; heavy, good quality ewes-, up to 10s 6d; good ewes, 7s 6d to 8s 9d; freezing ewes, 5s to 6s; freezing lambs, up to 14s 6d; medium, 11s 6d to 12s Gd; lighter sorts, down to 10s. Fat Cattle.—There was little or no change in prices of good quality stuff. Prime bullocks realised to £7; good quality to medium-weights, £5 to £6; lighter sorts, down to £4; best quality heifers, up to £6 10s; good quality medium weights, £3 15s to £4 10s; lighter sorts, down to 50s; good medium quality cows, up to £4;; average sorts, £3; inferior, down to 30s. INDUSTRIES. LIMITED / The engineer for Industries Limited reports as follows on the various properties uuder its control: — , WETHERSTONES. Underground.—The main drive south has been extended from 45ft to a total* of 131 ft. Driving has ceased here temporarily, due to near vicinity of an old shaft which is full of water. Rises 1,2, and 4 have been put up 47ft, 55ft, and 10ft respectively, all in high-grade lead. To date a total of 1063 tons of conglomerate has been raised, and is in course of treatment. Experiments with different grades of explosives have resulted in a grade which shatters the ground to the consistency of loose sand 1 (excepting the pebbles and boulders), and making it unnecessary to crush it further, thus permitting it to go direct to the sluice boxes. Surface.—A gravity disintegrating tower fitted with steel baffles and a supply of water has been constructed to deal with any possible boulders of 1 conglomerate in this finely comminuted ore, and has been put into successful operation, the resultant product passim* through the sluice boxes consisting of fine sand and pebbles, the latter being remarkably clean and free from adhering “ cement ” particles. NOKOMAI. The paddock under excavation is almost completed, and the clean-up is to take place at the latter end of this month. GOLDEN DAWN REPORT, The following is the Golden Dawn mine report for the two weeks ended May 7: — The crosscut east off No. 3 reef at No. 3 level has been extended 9ft; total, 113 ft. The cofintry rock here is of a good class for carrying reefs, being interlaced with quartz stringers and mineral veins. Stoping is being carried on at No. 1 reef above No. 3 level in four blocks, with, machines working three shifts. The reef averages 3ft Wide, and the ore is of very good value. Sloping is also carried on at No. 3 reef above No. 3 level in two blocks, with machines working three shifts. The reef here averages 2ft Gin wide, and the or* !■ of fair value.

£ £ £ £ p.c. p.o. 1021 535,740 3G5.154 94,813 29,584 5 Ms 7 1922 530,410 400,820 80.400 25,302 5 M 7 1923 538,114 499,828 83,152 30,091 5M 7 1924 641,889 540,208 90,378 39.809 , ■ 5',4 7 1025 543,082 550.093 101,828 45,134 5M 7 1020 544,357 678,103 113,712 45,050 5 Mi 7 1927 545,032 579,493 100,413 20,502 5 Mi 7 1928 540.907 509,993 107.000 35,144 5 Mi 7 1029 548,182 000,353 111,142 37,570 6 Mi 7 1930 549,144 087,339 112,882 30.035 5M 7 1031 549,709 670,495 102,032 20,512 5M 0 1932 550,082 089.540 102,244 25,770 5M 4 * Excluding sundry debtors’ reserves.

£ £ p.c. 102.1 .. . . .. 251,000 2,009,067 12.14 1924 .. , 2,115,422 14.56 1925 . 2,297,839 15.44 1926 . 2,311,425 17.32 1927 .. . . .. 234,854 2,165,025 10.85 1928 .. , . .. 220,249 2.315,326 9.77 1929 .. . 2,491.036 9.11 1930 .. . 2,506,976 10.55 1931 .. . 2.485,594 10.63 1932 .. . 3,338,017 11.18