COMMERCE AND FINANCE

Otago Daily Times, Issue 22714, 29 October 1935, Page 5

COMMERCE AND FINANCE

LOCAL AND OVERSEAS MARKETS

EMPIRE DAIRIES, LTD. ANNUAL MEETING DIRECTORS FROM AUSTRALIA (Special to Daily Times) AUCKLAND, October 28. Four passengers by tbe Marama, which arrived at Auckland from Australia, were Messrs A. E. Gough, of London, A. W. Wilson, of Melbourne, P. Daley, ot Queensland, and J. R. King, of Sydney, who are visiting the Dominion for the purpose of'attending the annual meeting of the Empire Dairies, Ltd., of which they are directors. Mr Gough also general manager of the Overseas Farmers' Co-operative Federations, Ltd. The Empire Dairies, Ltd., is a marketing organisation with headquarters in 'J'ooley street, London. It consists of Amalgamated Dairies, Ltd, of New Zealand, and the Australian Producers' Wholesale Co-operative Federation, Ltd. The annual meeting of the organisation was commenced in Auckland to-day, and will be concluded to-morrow. Messrs Gough, Wilson, Daley, and King intend leaving by the Monowai to-morrow on their return to Australia. AUSTRALIAN STOCK EXCHANGES (United Press Association! (By Electric Telegraph—Copyright) SYDNEY, October 28. (Received Oct. 28, at 10 p.m.) Stock Exchange investors displayed confidence to-day, the, principal activity covering general industrial trading shares, which were again firmer, notably Tooths and Australian Glass. THE MORNING SALES. £ s. d.

INCREASED EXPORT PRICES BENEFIT TO AUSTRALIA. The rise in prioes of primary products entering largely into Australia's export trade cannot fail to bring marked benefits to Australia. Secondary industry and trade continue to show signs of increased activity, while (says the monthly summary of the Bank of Australasia, Ltd.). the ' financial position, particularly the prospect of recovering last year's leeway in reserves held in London, has been strengthened. Seasonal conditions in all the states are now more promising of large outputs of rural products than earlier in the year, while in Victoria they are, on the whole, classed as exceptionally good. Tho wool clip will be lighter than last year's, and the wheat crop is still to be harvested, but the aggregate rural income last year was on the low side, and on present indications a substantially larger

total may be obtained for the current season. • It may not be out of place to issue a word of warning that these higher prices may not be long sustained. Nobody can say with certitude what the future holds, but the general condition of affairs in many of the largest countries jji the world is decidedly unsettled, and -while this continues there is no assurance of stable markets at the recently enhanced price level. Australia should accept with gratitude the benefits which the higher prices are bringing, and, by careful management and avoidance of extravagance in purchases of imported goods, should add as much as possible to its banking reserves in London. It is only by the building up and maintenance of substantial holdings of sterling or other international currency that Australia can secure itself against unfavourable exchange movements, with all their disturbing effects on commerce and finance. PRICE OF FINE GOLD (United Press Association; (Ry Electric Telegraph—Copyright) LONDON, October 20.

COMPANY TAXATION A FLAT RATE IN SOUTH AUSTRALIA. The Budget proposals of the South Australian Government, disclosed this month, provide for a flat rate tux of 2s in the pound on companies' profits. The previous rate ranged from a minimum of lid in the pound to a maximum oji abouc 3 S 3:id according to- the size of income. Under this scale 903 companies paid taxation amounting to £453,394. Of this sum, however, £379,568 represented the payments by only 102 companies, leaving only £73,826 as the contribution of the other 861 companies. Obviously, therefore (the Advertiser comments], mauy companies must have paid at a considerably less rate than the new flat rate of 2s, even with the supertax of 10 per cent. Calculations based on figures given in the appendices to the Budget show that companies with a taxable income of more than £2OOO will benefit by a 2s rate, but those with a taxable income of less than £2OOO will pay more than previously. For example, a company paying in the past at a rate of Is in the pound will have what amounts to a 100 per cent, increase. It is estimated that there are about 200 of such companies, but their total of taxation is so small that the South Australian Premier claims that the increase in the rate will inflict no hardship. He points out that the fac,t that the property rate on individuals was consideably higher than the minimum rate on companies led to many persons forming themselves into companies or partnerships in order that they might secure the benefit of the leaver rate. The Government's proposals are based on the recommendations of an expert committee on taxation. The committee stated that the method which had been in force was unsound in principle, and the high rate of tax was adversely affecting secondary industries in the State. BUTTER CONSUMPTION PLACE IN BRITAIN'S DIET. RATIONS IN INSTITUTIONS. The importance now being attached to improved nutrition by the British Government and health authorities in Britain is tending to give butter and cheese an entrenched place in dietary standards. An English correspondent states: —" Inquiries recently made on an extensive scale among county and city councils in all parts of the country reveal that butter, as well as fresh milk, is becoming a recognised feature of the diet in public institutions. In" some of the institutions formerly under the control of boards of guardians the butter ration is nearly 50 per cent, more than the avenge national consumption for 1934. During that year the population of the United Kingdom consumed 25.21 b of butter a head, or 0-Vlb a head mote than in 1930 — but .the allowance in some of the institutions controlled by local authorities is as high as lOoz to 12oz a week. " It is rather astonishing to find that butter still, finds no part in the prescribed dietary of the fighting forces. When the facts concerning national nutrition in its private and public aspects are more fully investigated the authorities may give serious consideration 1 to the mattter of seeing that the troops, the Navy and the Air Force, are not worse treated in respect of allowance of dairy products than inmates of institutions which are a charge upon public rates and taxes." AMALGAMATED WIRELESS, LTD. LAST YEAR'S RESULTS. The report of the directors of Amalgamated Wireless (Australasia), Ltd., which was adopted at the ".twenty-seventh ordinary general meeting in Sydney last week, stated that the net profit tor the year ended Juno 30. ]935, was £119.52i 9s 10d. After adding the amount brought forward and deducting allocations to the renewal reserve and 'o staff superannuation suspense account, also dividends paid, there remained a credit balance of £126,014 l'Js lOd. which had been carried on to the accounts for the current vcar. Out of this amount the directors had declared a final half-year's dividend of 6 per cent., amountins to £44,050 19s Id. This dividend, which was paid on October 14, together with the interim dividend paid in March, made a total of 10 per cent, for the financial year. A further sum of £30,000 had been allocated to the general reserve, and the directors proposed to transfer a further sum of £15,000 to a staff superannuation and provident fund. After making these allocations a balance of £36,958 0s 9d was available to carry forward to th" next account. The beam wireless service had maintained its revenue, and was now carrying over 75 per cent, of the total telegraph business between Australia and Great I Britain, and also continued to carry a satisfactory proportion of the telegraph business between North America and Australia.

Commonwealth Bonds — '■ 3| p.c, 1949 .. 96 10 9 .. 103 2 (i 4 p.c, 1941 . ..103 7 <i .. 104' 7 (! .. 19 6 .. 2 17 !) Anthony Hordern .. .. 0 19 3 .. 1 4 6 Australian Glass ,. .. 4 1 0 .. 0 10 n .. 0 17 9 .. 0 10 6 .. 1 9 9 ADDITIONAL SALES. f a. d. Bank of New South Wales .. 32 7 u Commercial Bank of Sydney IS 0 0 Queensland National Bank 5 5 0 Associated News .. 14 6 Adelaide Steam .. .. .. 1 11 0 W. H. Paling .. .. 0 17 4i James Stedman .. 0 17 9 Australian Gypsum .. 0 16 9 Australian Glass .. .. 4 1 3 Dunlop Perdriau .'. .. .. 0 16 3 Winchcombe Carson .. . .. 19 9 Morris Hedstrom .. .. 1 3 105 Greater J. D. Williams .. ..0 7 10 .. 1 17 0 .. 0 7 s W. E. Smith .. 0 14 1 Hoyts (B pref.) ..'.-.. .. 0 12 s ..2 0 3 Standard Cement 12 3 General Industries 0 19 u Australian Gas A .. 7 16 I) British Tobacco .. .. 1 19 6 Tooths .. .. 2 IS 0 .. 1 9 C United Provisions .. 0 11 7 Mauri Brothers .. .. 2 10 0 .. 10 (> Mount Morgan .. .. 1 17 9 South Broken Hill ..5 0 0 11 6 MELBOURNE, October 28. Electrolytic Zinc .. 1 13 u G. J. Coles . - .. J. • .. 3 5 0 .. 0 19 7 2 2 9 13 n

1 s. d. October 2G .. . . .. 7 0 October 24 .. . . .. 7 3i October 23 .. . . .. 7 H October 22 .. . . ... 7 7 October 21 .. . . .. 7 5 October 18 .. . . .. 7 3J October 17 .. . . .. 7 6 October 16 .. . . .. 7 7i October 15 .. . .. .. 7 9