LONDON METAL MARKET

Otago Daily Times, Issue 22422, 17 November 1934, Page 9

LONDON METAL MARKET

(United Press Association.) (By Electric Telegraph—Copyright.) LONDON. November 15. (Received Nor. 16, at 10.30 p.m.) The following are the official metal quotations:

CHRISTCHURCH MARKETS (Per United Press Association ) CHRISTCHURCH, November 16. The only development of interest in the grain and produce market is a shipment from Bluff by the s.s. Norfolk next week of 15,000 sacks of oats to the United Kingdom. Thi a is the first shipment for some time, but it is understood that the price is substantially lower than that secured when export was -in progress some months ago. The figure is stated to be about 2s 4d, f.0.b., s.i. The shipment, however, will be of value in helping to clear stocks. It is comprised of A Gartpns. Fowl wheat is a shade firmer, the quotation being 3s Bi_d, f.0.b., s.i. There has been more inquiry. The potato trade as affecting merchants is over, although small consignments are going north for by-ports. Quotations are nominal, and range about 50s, fo.b., s.i. The grass seed market is dull, and merchants have to lower their prices to make sales. It is yet too early to estimate the prospects of the new crop of seeds, but except in the case of ryegrass they will arrive on a bare market. Ryegrass is quoted at to 3s a bushel on trucks, and cocksfoot 7d. EXPORT OF EGGS THE AUCKLAND FIGURES. The last shipment of the season .of the Auckland Egg Export Committee, comprising 867 crates, or 26,010 dozen eggs, was despatched by the Tamaroa on October 31. This shipment is expected to reach London about December 9, in time to meet the increased Christmas demand. The total number of crates, of 30 dozen eggs each, exported .from Auckland during the season, was 3054, compared with 2760 last,year.. The largest shipment, of 1020 crates, was taken by the Rotorua, and it will arrive on the English market .toward the end of November. Other shipments from Auckland included 211 crates by the Rangitane on August 31, and 956 crates by the Rangitata on September 26. NORTH BROKEN HILL Reference to an important development at the North Broken Hill mine since the closing of the accounts on June 30 was made by Mr H. Sheppard, chairman of directors, at the annual meeting held-in Melbourne recently. * Mr Sheppard said that a crosscut at the 2000 ft level had been completed through the lode to the hangingwall at 114 ft south of the main crosscut. In this crosscut a width of 167 ft of ore had been proved. The ore was slightly above the average grade of the mine, and in all respects was quite up to exceptations. This was a very satisfactory development, showing that the wider portion of the lode had maintained its maximum width from the. 1700 ft level downward. The greater portion of the lode at the 2000 ft level had yet to be opened up, but the work done so far ; gave satisfactory indications of permanency and value. Mr Sheppard said that sales of lead had kept pace with production in the year, and for the first few months of the current year had exceeded it. In common with the other Broken Hill companies, North Broken, Hill had invested £25,000. sterling in Improved Metallurgy, Ltd., a company formed in England: to acquire the right to, operate the vertical retort zinc smelting, process for the production of high-grade zinc.; : COMPANY PROBLEMS RIGHTS OE' SHAREHOLDERS. Many shareholders in various kinds of companies in New Zealand should be interested in some passages of- an address given by - a, well-known British accountant, Mr Harry Morgan, at the recent postgraduate course l for incorporated accountants at Cambridge University. “ Company reconstructions,” said Mr Morgan, “ may , involve the sale of the undertaking to a new company, but the term may also be taken to coyer schemes for reduction and reorganisation of capital, and in some cases schemes of arrangement vrith creditors or debenture holders. ■ “ During the last few years succeeding the speculative boom of 1928 and 1929, and because of the intense world-wide depression in trade, combined with the departure of this country from the gold standard, schemes for reconstruction or reorganisation of capital have been numerous; in fact, such schemes have recently been a feature of public company practice. These schemes have involved writing-off enormous, indeed fabulous. amounts of capital. Many of them have aroused intense public interest, not only by reason of the enormous amounts involved, but on account of the violent opposition of shareholders whose interests have been affected. . Long and expensive litigation hag frequently ensued, and, in my opinion, it is not surprising, for in many cases it is difficult to appreciate any sound justification for the inequitable, treatment of different classes of shareholders or creditors. It is not too much to say that numerous schemes in recent years have served to dispel many illusions held by the investing public. “When shareholders are asked to consent to a scheme which may impose upon them a most serious sacrifice by the writing-off of capital or curtailment of their rights, there is .no legal provision for an independent examination and report upon the causes that have rendered reconstruction necessary, but shareholders have to rely upon the ex parte statement of the very persons whose actions and conduct of the business may be open to the gravest criticism or may even have been the cause of the company’s misfortunes; and. moreover, the directors do not run the risk, as they would do in the case of a prospectus, of personal liability to shareholders whose support to the scheme may have been obtained bv reason of any untrue or incorrect statement. As we know, occasionally shareholders are able to obtain the appointment of a committee of investigation, which committee usually has the advantage of the services of a professional accountant. In my view, such investigations almost invariably operate to the benefit of the shareholders, but as a general rule directors are able to avoid investigation and to force through reconstruction schemes in face of strong opposition entirely by reason of the inability of shareholders to exercise their voting power, with the result that mistakes and weaknesses which existed in the past still continue in the future.”

Copper, spot Ton. £37 18 9 Rise £0 7 6 Copper, forward .. 38 1 414 Rise 0 6 3 Electrolytic, spot .. SO 10 0 Fall 0 8 0 Electrolytic, forward 31 10 0 Rise 0 10 0 Wire bars .. .. SI 10 0 Rise 0 10 0 Lead, spot .. .. 10 8 0 Rise 0 2 6 Lead, forward .. 10 13 » Rlae 0 1 s Spelter, spot 12 1 3 Rise 0 3 s Spelter, forward .. 12 6 3 Rise 0 2 6 Tin, spot .. .. 228 6 3 Fall 0 I 8 Tin. forward .. 228 11 3 Fall 0 2 6 Pis Iron, homo trade 3 7 6 No change Pig Iron, export 3 2 6 No change Antimony, British Ei 10 0 No change Antimony, foreign 48 6 0 No cb. :ge Molybdenite .. .. Unit 1 14 6 No change Wolfram .. .. 2 0 6 No change Silver, standard •. Silver, flue .. .. O*. 24%d 26 11-lCd No change No change