COMMERCE AND FINANCE

Otago Daily Times, Issue 22398, 20 October 1934, Page 9

COMMERCE AND FINANCE

MINING NEWS WAITAHU REPORT The secretaries of the Waitahu Gold Mining Company, Ltd., report having received advice from the claim manager that 13oz 7dwt of gold have been recovered as a result of stripping operations conducted since October 9. The elevator ig now working on the bottom wash. BENDIGO ACTIVITY OPTION TO AUSTRALIAN FIRM. Mr T. C. Coull (chairman of directors of the Bendigo Goldlight Company) visited the claim last week with a representative of a very influential mining house in Australia, and as a result _ot -an inspection of the property an option has been negotiated with an Australian firm for 750 acres of the 1000 acres : held by the company. The remaining 250 acres represent 20,000,000 cubic yards. It was stated that the Australian concern proposed to put a large dredge on its area to work in from the river, and boring operations are to be commenced immediately. Mr Coull found everything in a satisfactory state at the claim, all the heavy ; machinery being assembled on the pontoon. In the opinion of Mr Fletcher Roberts (engineer to the company) the Goldlight dredge will be working by the end of November. A pleasing feature of this claim is that ib the ground that; ha* been tested the overburden shows gold which is thought to be drift gold off the old Bendigo reefs. THE GOLDFIELDS DREDGE The secretary of the Goldfields' Dredging Company, Ltd., reports that the return for the fortnight ended was 20oz 16dwt for 175 hours’ dredging. The dredgemaster advises that the loss in dredging time is due to drift gravel brought down by three recent floods in the Shotover River. PADDY’S POINT GOLD MINING COMPANY The secretaries of Paddy’s Point Gold Mining Company, Ltd., report that a paddock was completed yesterday for a total return of 450 z. The time taken was 7J weeks. : ■•' , ,/ : _ ■ V S BELL-KILGOUR RETURN ■ The secretary of the Bell-Kilgour Gold Mining. Company, Ltd. (Mr F. K. Thompson) advises that the wash-up for the week ended yesterday amounted to 19oz 6dwt. QUEENSLAND GOLD YIELD ’ The gold yield of Queensland rose from 7821 fine ounces in 1930 to 23,263 ounces in 1932, and 91,997 ounces last year. The annual report of the. Under-secretary for Mines states that production in 1933 not Only eclipsed that of the" previous year, but advanced Queensland to the position of the second largest gold-producing State of the Commonwealth. The ranking of the various States is shtwn as follows: — ■, Western Australia, 637,207 fine ounces j Queensland, 91,997 fine ounces; Victoria, 38,183' fine ounces; New South Wales, 29,336 fine ounces; Tasmania, 6673 fine ounces; South'Australia, 6179 fine .ounces. kThe increase in Queensland is attributed 7in the report to the development of Mount Coolon, the reopening of Mount Morgan, l and the assistance given to prospecting by the Government, The standard value of . the production was £390.779, increased by : £291,963,0n the year. The total value of, .i the State’s mineral production was • ’£2,103,927, .compared, with £1,784,490 in < 1932, 'so that gold accounted for the bulk > of the increase of £319,426. OPERATIONS AT MOUNT LYELL The Mount Lyell Mining and Railway Company, Ltd., progress report for the fortnight ended October 3 is:— North Mount Lyell Mine.—Ore breaking in progress, tons extracted 6526. Crown Lyell Mine.-—Ore breaking in progress, tons extracted 4981. ■ . Lyell Tharsis, Mine. —Ore breaking in progress, tons- extracted 13. ~ Lyell Tharsis Mine.—Ore breaking in progress, tons extracted 5753. West Lyell Mine. —Five hundred and eight. tons of ore obtained from developmental workings. : Lyell Comstock Mine.—Ore breaking in - progress, tong extracted 4285. Reduction Works.—Furnace in blast during full period; 7217 tons refinery anodes made, for -the financial year up to September 30, 1934; 122 tons refinery anodes made for current year. Concentrator. —Mill operated 333 hours and treated 22,290 tons ore, producing -.2062 tons concentrates. .7 Copper Refinery.—Tank house in operation throughout period, 455 tons cathodes being produced for the fortnight. Total for year to September 30, 7367 tons; total for current year, 102 tons. AUSTRALIAN. PRICE OF GOLD The price fixed by the Commonwealth Bank for gold, including jewellery, lodged at the Melbourne Mint, for the week ended October 5, ■ is _at the rate of approximately £8 Is 3d’ per standard ounce (2 .carats),-equal to a premium of 107.05 per cent. Payment is made according to the assay value of the gold. The price is Is-2d higher on the week. The price per ounce fine is £8 15s lid, a rise of le Sd on the week. ■ v BLACKWATER MINES. LTD. .The quarterly report of the Blackwater Mines, Ltd., for the period ended September 30, states: —No. 11 north level was extended 230Jft, all on reef, averaging 21in width : and 9dwt value. No. 12 level north drive was advanced 200 ft, all on reef, averaging 20in in width and 13.4dwt in value. Rising during the period amounted to 126jft, of which 93Jft exposed reef averaging 27in in width and 14.2dwt in value. Winzing totalled 123 ft, of which 'Bsft exposed reef averaging 12.4dwt in value and 22|in in width. Prohibition shaft, after being retimbered between 10 and 11 levels, was sunk a further 76Jft, making the total depth 212 ft from the, surface. Output, 11,550 tons were crushed, yielding -5585 fine ounces of gold from all source, the value of which amounted to £38,623. Working costs were £17,415, leaving a working profit of £21,208. Development expenditure amounted to £2223, and capital expenditure £2054,. The value of gold is estimated from monthly market value. KING SOLOMON MINE I Fra United Peess association.) INVERCARGILL, October 19. The return of the King Solomon mine for the week was 61oz 16dwt. WHEAT SURPLUS PROBLEM (United Press Association.) (By Electric Telegraph—Copyright.) WINNIPEG, October 18. (Received Oct. 19, at 9.30 p.m.) Mr John I. M'Farland, general manager of the Central Selling Agency of the Canadian wheat pools, to-night told a private gathering of delegates to the annual conference of the Manitoba Wheat Pool that he expected to retire in about a year. Taking an optimistic view, of world marketing problems, Mr M’Farland said his job would be over in a year. The wheat surplus was fast disappearing and the glut on the market was being eliminated, despite the Argentine operations. < Mr M‘Farland has been in charge of the Government stabilisation operations on the Winnipeg Grain Exchange. BEET SUGAR (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, October 18. ■ Beet sugar: November, 4s 4^d.

LOCAL 1 AND OVERSEAS MARKETS.

SOUTH OTAGO FREEZING COMPANY * ANNUAL MEETING The annual meeting of the South Otago Freezing Company, Ltd,, was held in St. Mark’s Hall, Balclutha, yesterday afternoon. The chairman of directors (Mr P. M'Skimming, M.P.) presided over an attendance of about 150 shareholders. CHAIRMAN’S ADDRESS. The chairman, moving the adoption of the annual report and balance sheet, stated that shareholders would notice from the report that the company had killed 295,300 sheep and lambs this season, compared with 327,104 the previous season. The decrease of 31,804 was no doubt partly accounted for by the fact that many farmers had kept a larger percentage of their ewe lambs last season than had been the case for several years. The number of sheep killed had also been considerably less than the pre:, vious year, this being accounted for, no doubt, by the demand in the local markets for sheep that would otherwise have been frozen. The number of cattle killed this season had been 4188, being an increase of 444 over the previous year. Shareholders would notice that there was an additional item this year in respect of killingsi He referred to the 844 pigs killed for export. Although the works had been killing pigs for local consumption for several years, this was the first occasion on which pigs had been treated for export. The directors hoped next season to show a marked increase in the number slaughtered for export, as this industry was forging ahead, and a large number of dairy farmers were turning their attention to the rearing of pigs in conjunction with dairying. Some of. the North Island works had killed large numbers of pigs this season for the export trade, and he saw no reason why the company should not develop the pig industry in the south, not perhaps to the same extent as had been done in the north, but sufficiently so to show a considerable increase in the business. The number of pigs killed for export in the Dominion from October 1, 1933, to June 30, 1934, had been 440,979, an increase over the previous year of 130,690. In regard to the balance sheet, It would be noticed that the directors had written oil depreciation on land, buildings, plant and machinery to the extent of £4BOO, and, after placing £SOOO to general reserve and making provision for income tax (£9000), had remaining in the profit and loss account a credit balance of £14,202 4s sd, which, of course, included the carry forward of £5838 13s from the previous year. The directors recommended the payment of an 8 per cent, dividend, which would absorb £5304 8s and leave a balance of £8897 16s 5d to be carried forward.

As shareholders were all aware, the Government in July last had placed an embargo on the export of boneless beef and hobby calves to the United Kingdom. The directors had no knowledge at present how long this embargo would last, but as far as they could see it was likely to continue for some time. It was doubtful whether this would suffice to meet the position. If not, there was grave danger that mutton, lamb and pork exports might be curtailed. They could not altogether blame the British Government for the steps taken, as it was only natural that its first duty was to its own farmers. The company had some' boneless beef on hand, but it belonged to Messrs Thomas Borthwick and Sons, and it was merely being held on their account. The bobby calf business did not .really affect the South Otago iyorks very much. It had been tried out for three successive seasons, but the results had been very disappointing, aud the works had received so few calves that it had .been decided to discontinue the business. “ The last year we operated in calves,” he added, “we killed 1464, and when I tell you that one company in the North Island killed 270,897 last season you will understand the reason why we discontinued the business, and at the same time it will give you some indication of what the embargo means/ to farmers in the north.’’ A new regulation had been brought into force by the Imperial Government In respect of .the branding of meat (beef excluded) imported into the United Kingdom as from the beginning of 1935. All imported Empire meat had to bear a brand denoting the country of origin, and imports from foreign countries the word “ Foreign.” The mutton and lamb carcasses had to be branded, in the case of the Dominion, with the words “ New Zealand ” in six different places, while In the case of pigs the brand had to be stamped on eight different portions of the carcass. The object of this branding was to protect the British producer, hut in his opinion it was merely a disfigurement of the meat and was not in the interest of high prices. Additional expense was also incurred at this end in stamping the carcasses.

The lamb prices had been good during the year, the “on hooks” prices ranging from 6Jd in December to BJd in June. Those who had pooled their lambs up until March had received satisfactory returns, but, owing largely- to the fall in wool and a slight decline in meat value on the London market, the later shipments would not give a return equal to the “ on hooks ” price that had been ruling at the date of killing. The (percentage of • stocky pooled this year had been 31.55 against 24.62 in 1933. He was quite satisfied that the farmer who consistently consigns would come out on top at the finish, but he was well aware that many thought they could fore-, cast the market correctly and as a consequence they kept chopping and changing betwixt “ on hook ” and pooling, very often with disastrous results. “ In regard to manures,” the chairman continued, “ it is very interesting to revert back six or seven years when our output of sheep, lambs and cattle was considerably smaller than it is to-day and the maximum quantity of fertiliser available was 124 tons. We had considerable difficulty in disposing of this small output as farmers did not appear interested at that time, and we had to dispose of the majority of it in bulk to merchants. With our increased output it was necessary to reorganise our methods of handling it, and several alterations were made in this department not only with a view to handling the increased quantity, hut to improve the class of article offered and reduce the cost of manufacture so that it would be available to clients at a reasonable figure. I am very pleased to say that the expenditure in this direction' was fully justified, and for the past two years our output has been taken entirely by farmers at prices that are more than, competitive. Unfortunately yve do not have sufficient to-day to supply all orders, but these are taken in sequence, and I can assure you that there is no favouritism and everyone gets a square deal. I know there are quite a few who think some of our output has been sold to merchants, but this is not the case. Portion of our meat meal and meat and bone meal is sold in bulk, but this is

entirely different from our fertilisers, and is manufactured under an entirely different process. To supply this article, for which there is a keen demand, we installed a plant two years ago, and the article we are producing is finding a ready sale.” In referring to the new plant Installed for making meat meal and meat and bone meal, he stated it might interest shareholders to know that during the last five years considerable improvement had been made in the works. Five years ago the majority of the freezing space had been in very bad repair, so bad in fact that only a very small portion of it had been fit for use, and some of the plant for freezing had also served its term of usefulness. The company had been faced with a considerable expenditure to renew the insulation and replace the plant to enable the increased output to be handled, and he was very pleased to be able to say that the directors had put this work in hand and paid for it out of the profits that year. Further renovations in ferro-concrete and cell-concrete insulation had been carried out last season to the freezing block and had been required immediately they were finished. It had also been found necessary to make alterations to the slaughter board during the period under review to handle the increased output. It would be seen, he concluded, that, while the directors had been giving shareholders interest on the money invested, they had not neglected the upkeep of the factory to do so. as they- had spent a very considerable sum in the last five years on renovations, alterations and new plant, which he thought had been fully justified by the very satisfactory results obtained. — (Applause.) “ DRY ” SHAREHOLDERS. Mr A. S. Malcolm congratulated the directors on the report submitted, which, he said, provided a contrast with some of those presented, a few years ago. He referred to the fact that £5945 was lying in the Bank of New Zealand at call and asked whether this amount could be loaned at 3 per cent, to the South Otago Hospital Board, which at times required an overdraft of up to £3OOO. The company would then benefit a local body and secure interest itself on money at call. He added that only one-fifth of the shareholders were “dry,” so that “ wet ” shareholders received four-fifths of all profits devoted to dividends. At the same time non-shareholders supplied 130,000 carcasses to the works and shareholders 165,000. Thus in any other expenditure of profits “ wet ” shareholders received only half the benefits. At the same time he was delighted that the directors had kept in mind the fact that the works had been established chiefly for the benefit of the producers. As chairman of the committee which had been responsible for the formation of the company, he knew that that was one of its chief objects. The chairman said that he did not think there was anything in the articles of the company to stop it from using its money in the manner which Mr Malcolm had suggested. There might be other purposes, however, for which the money might be needed. He would promise that the directors would look into the matter.

Mr 0. R. Throp referred to the reduction which the directors had made in charges. In 1929 these had been ,9d and ,8d on lamb and mutton respectively. In 1933 they had been .8d and .7d, and in 1934 .75d and .65d. This showed that the company was carrying out its object in aiding the producers. He went on to refer to the question of dry shareholders. In 1929 dry shareholders had held 4018 shares and wet shareholders 9243 shares. In the following years the holdings of dry shareholders had been as follows: —1930, 2098 shares; 1931, 1775; 1932, 1739; 1933, 2033, and 1934, 2708. There had been a sharp increase in dry shares in the last two years, and, had it not been for the activities of three men who had been appointed a committee to watch the drift, the number would have been greater. It was a serious matter that 700 shares had “ gone dry ” last year. If there was to be a continuation of big dividends the number would increase. A dividend of 8 per cent, was too high.— (Voices: No!) He thought that 5 per cent, or 6 per cent, was sufficient If the policy of the company was to carry on with high dividends, the city man would come in and buy out the man in the country. As soon as the rate of the last dividend had become known to commercial interests (and they had known before the shareholders themselves) the value of the shares had risen. He would like ro know what steps the board was taking to stop the drift. Once the dry shares predominated there would not be a board of farmers as there was at present. Directors representing dry shareholders would go for dividends, iand there would be no rebate as was given at present. The chairman stated that it was the desire of the directors that the shares should be kept among the farmers, but they did not know how this could be achieved except by an appeal to the farmers that they should retain their shares. There was now leas reason than ever before for a farmer to part with his shares.— (‘‘Hear, hear.”) It was a mistaken idea to think that the number of dry shareholders could be kept down by a reduction in dividends. If the dividends were reduced the speculator would conclude that the time was not far off when there would be a division of profits. If the dry shareholders got into power they could have what was known as a watering down of capital. Mr Throp: What we want is a watering up.— (Laughter.) . The motion was carried. DIRECTORS RE-ELECTED. As Mr John Christie had withdrawn his nomination, the retiring 'directors (Messrs P. M'Skimming and J, D. Revie) were declared elected. Mr Revie, in returning thanks for his re-election, said that if the shares were worth a certain sum to a city man they ought to be worth more to a farmer. He urged farmers to retain their shares. The remuneration of the directors was fixed at the same amount as they received last year—£4so. Messrs Barr, Burgess and Stewart were re-elected as auditors at the same fee as they were paid last year, GENERAL. On the motion of Mr Revie the staff was accorded a vote of thanks for its efficient management of the works last year.—The manager (Mr F. L. Nicolson), in reply, said that the reasonable attitude adopted by the men at the works in any difficulty that had arisen had contributed largely to the successful running of the company’s activities. A vote of thanks to the directors was also carried. In reply to a question by Mr A. Craig with respect to the Meat Board’s export lamb competition, the manager stated that he intended to interview the local A. and P. Society and arrange a date suitable to all concerned. WHEAT, FLOUR. ETC. (United Frees Association.) (By Electric Telegraph—Copyright.) LONDON, October 18. Wheat cargoes are inactive and lower. Parcels are in small request at 3d to 6d down. Futures —London: February 22s sd, April 22s lid. Liverpool: October 4e H2d, December 5s 21d, March 5s 6id, May 5s 74d. The spot trade is slow, with an easier tendency. Australian, ex ship, 27s 6d to 28s 6d. Flour is quietly steady. Australian, ex store. 20s 6d to 21s. Oats are slightly easier. Peas and beang are quiet and unchanged.

SYDNEY STOCK EXCHANGE (United Press Association.) (By Electric Telegraph—Copyright.) SYDNEY, October 19. (Received Oct. 19, at 5.5 p.m.) The early sales on Exchange to-day were;—Bonds (4 per cent.) 1938, £107; 1941, £IOB Is 3d; 1944, £lO7 10a; 1947, £llO. Commercial Bank of Sydney, £lB 2s; National Bank (£5 paid), £6 6s 6d; Anthony Hordern, 16s; Anthony Hordern (pref.), 24s Cd; Burns Philp, 58s; Dunlop, 20s 41d; Howard Smith, 16s 4Jd. ADDITIONAL SALES. SYDNEY, October 19. (Received, Oct. 19, at 10.30 p.m.) On the Stock Exchange British Tobacco forged ahead to a new high level. There was an active demand for leading industrials and prices kept on firm levels, while the gilt-edged section showed signs of steadying after yesterday’s slackening. Additional sales were as follows; — Colonial Sugar, £74 15s; Bank of New South Wales, £33 2s 6d; Commercial Bank of Sydney, £lB 2s; Associated News, 25s 6d; Huddart, Parker, 375; Australian Gas (A). £8 3s; British Tobacco, 525; Carlton Brewery, 51s 6d; Dunlop Perdriau, 20s 3d; Winchcombe Carson. 29s 9d; Wilcox Mofflin, 10s 4d; Morris Hedstrom, 17s 6d; Henry Jones, 365; Electrolytic Zinc, 28s 6d; Farmers, 25s 6d; Anthony Hordern, 16s; Anthony Hordern (pref.), 24s 6d; Standard Cement, 20s; Mount Morgan, 35s Dd; South Broken Hill, 745; Bulolo Gold, £9 4s; Bulolo Deposits, 9d; Placer Development, £24 15s; General Industries, 13s. MELBOURNE, 'October 19. National Bank (£5 paid), £6 ss; Commercial Bank (pref.), £lO Is: E.S. and A. Bank, £6 6s; Australian Glass, 51s 9d: Goldsbrough, Mort, 31s 7Jd; Howard Smith, 16s 4d; British Tobacco (month), 41s 6d; Broken Hill Proprietary, 535; Dunlop Perdriau, 20s (month, 20s 2d); Electrolytic Zinc, 28s 14d; Electrolytic Zinc (pref.), 365.

BROKEN HILL PROPRIETARY HALF-YEARLY DIVIDEND. (Per United Press Association) ' WELLINGTON, October 19. The Broken Hill Proprietary has cabled the Stock Exchange Association that a half-yearly dividend of Is per share. Australian currency, has been declared, payable on November 21. BONELESS BEEF If the agitation of New South Wales stock owners is successful, New Zealand may find yet another outlet for its exports of boneless beef closed. Since New Zealand undertook, following the Ottawa conference, to reduce her supplies of boned meat to the United Kingdom, producers have been finding a market for large quantities in Australia. Country Life, the official organ of the Graziers’ Association of New South Wales and many other important primary producers’ organisations, in a recent issue declares that “ stock owners of New South Wales are face to face with a new peril.” The article states that the Sydney meat market is being glutted not_ only with meat from Queensland and Viptoria, and cheap, low-grade pieces and meat sundries from outside the metropolitan area, but also with an avalanche of boneless meat from New Zealand. Between August 28 and September 15, the article continues, 43,1061 b of veal pieces and 46,0611 b of pork pieces were unloaded on to the • Sydney market, an operation that is described as “ foisting the Dominion’s inferior meat on Australia.” The journal fears that this is only the beginning of a sparkling new trade for the Dominion. “ Dumping of any inferior meat on the Sydney market must undermine Homebush and fat stock prices generally. Country Life insists that this new torrent of trouble shall be shut out from Australia, quick and lively,” the article concludes.

NEW COAL COMPANY The Mercantile Gazette notifies the registration of the following company : . Auckland Coal Supplies, Ltd. Registered as a private company, October 9. Office: 207 Queen’s arcade, Auckland. Capital; £7500 in 7500 shares of £1 each. Subscribers: Auckland —Wilton Collieries (1934), Ltd., 1050, C. H. Luke 250, M. M. Clark 250, E. H. Rhodes 350, W. J. Fletcher 500, T. E. Clark 250, J. Fletcher 1000, A. Crum 500, H. Isherwood 500. Christchurch —T. Newburgh 250. Dunedin —E. V. M'Keogh 100, G. W. Thomson 250, M. J. Rellstone 250 and 250. Objects: Deal in coal, etc., and incidental.