MINING NEWS

Otago Daily Times, Issue 22831, 16 March 1936, Page 14

MINING NEWS

GILLESPIE'S BEACH RETURN Tbe secretary of Gillespie’s Beach Gold Dredging Company, Ltd. (Mr I l ’. 11. Thompson) reports that the wash-up tor the week ended March 13 was /Ooz 13dwt for 130 hours’ work. ARGO DREDGE RETURN (Per Uniteu Press Association) GREYMOUTH, March 15. The Argo dredge reports a return of 40oz for 122 hours’ work, covering 17.000 yards. MOSSY CREEK DREDGE (Per United Press Association) GREYMOUTH, March 15. The Mossy Creek dredge reports a return of 270 z Bdwt for 733 hours’ work on 8051 yards of material. The dredge is now working under the north terrace. BLACKWATER SLUICING COMPANY The Blackwater Sluicing Company reports a return of 20oz, covering intermittent operations over the past,three weeks. BRITISH STOCK MARKET (British Official Wireless) (United Press Association) (By Electric Telegraph—Copyright) RUGBY, March 13. (Received March 14, at 5.5 p.m.) ' The stock markets arc still dominated by the European political situation, and the general tendency is weak. British Government stocks are lower. < LONDON STOCK EXCHANGE (United Press Association.) (By Electric Telegraph—Copyright ) < LONDON, March 13. Mount Lvcll shares are quoted at 19s, New Guinea Gold shares at 3s 4R and Bulolo shares at 130 s. THE RABBIT MARKET (United Press Association) (By Electric Telegraph—Copyright) LONDON. March 14. (Received March 15, at 6.30 p.m.) Rabbits have a weakening tendency. First large, ex store, £1 Is. MERCHANDISE MARKET . Advice from London states that the bag almond market has already advanced, and that it is considered it will go very much higher. The stocks of Italian almonds, imported before sanctions were imposed, are practically exhausted. Prices from Spain are very high indeed, even for common quality, and quotations coming from Persia are several shillings higher. Most of the large grinders of almonds ip England, who before Christmas had sufficient almonds in stock to last them until Easter, are already in the market for hundreds of Mgs. The Waikouaiti, which arrived during the week from Sydney, brought transhipments of shelled walnuts and tea. Included in the cargo landed by the Cape York, from Pacific coast ports, were golden bleached raisins, seeded and seedless raisins, prunes, salmon, pilchards, and new season’s cut beans. . The Waipiata and the Port Whangarei are due on March 18 With cargoes of sugar. Palmalnde, a fruit spread, packed in Christchurch, has made an appearance on the market. The Zealandic, which arrived last week from London, brought a large quantity of merchandise lines. Advice from London states that old season’s Scandinavian herrings have been sold out for some time and also some lines of sardines. Quotations for the new packs are now being received. The market for sago and tapioca still continues firm. Ideal unsweetened milk has been increased in price to 24s per ease. A difficulty is being experienced in getting orders for Australian dried apricots and peaches confirmed, consequent on a shortage in the crops. DAIRY PRODUCE The New Zealand Loan and Mercantile Agency Company, Ltd., has received the following advice from its London House, under date March 11: — New Zealand choicest salted butter. 83s per cwt. Market slightly steadier. ‘ Cheese, white, 50 s per cwt; coloured, 52s to 53s per cwt. Market slow. THE COMMONWEALTH BANK HALF-YEAR’S PROFIT OF £638,981. The Commonwealth Bank made a profit of £638,981 for the half-year ended December 31, compared with £623,807 the previous half-year and £659,767 the corresponding half of 1934. The profit of the general banking department was £214,089, compared with £210,872 the previous half-year and £226,301 the corresponding half of tbe previous year. Half the profit goes to the reserve fund of the department and half to the national debt sinking fund. The profit of the rural credits department was £21,735, compared the previous half-year and £24,790 the corresponding half of the previous year. Half goes to the reserve fund of the department and half to the development fund. The profit of the note issue department was £403,157, compared with £386,669 the previous half-year and £408,675 the corresponding half of 1934. The whole of the profit of this department goes to the Commonwealth Treasury. FRUIT AND PRODUCE WORLD Reilly’s report selling: Per Dozen. —Cabbage, Is fad; cauliflowers, 4s to ss; cucumbers, 2s to 2s 9d; carrots. Is; beet, Is; lettuce, choice. 2 S to 3s Gd; eggs, poultrykecpcrs’. Is 7d; storekeepers’, Is sd; pullets’. Is 2d: section honey, Bs. .. Each. —Knapsack sprayer, £4 los: Champion egg crates, 24 dozen, 17s 6d. Californian lemons, 48s; New Zealand lemons, 10s to 14s; bananas, Samoans and Nines, to arrive 17th; Californian grapefruit. 355; Californian navels. 37s 0d; raspberries, 3s Gel to ss; cultivated blackberries. 7s to 8g per bucket; apples, Gravcnsteins. 5s to Os Gd; Jonathans. 4s to 5s 0d; Cox’s orange, 4s to 6a; Altristons, 4s to 5s Gd; pears, W.8.C., 5s 6d (o 7s Gd: Marie Louise, 4s 6d to ss; Bucrre Bose. 4c Gd to ss; cooking pears, 3s 6d to 4s; quinces. 6s to 7s. Per Half Case—Outside cucumbers, Is 3d to 2s; Nelson tomatoes, 2s 6d to 3a; peaches, 2s 6d to 3s Gd: apricots, 5s to (is Cd; dessert plums. 3s 6d to Gs; cooking plums. 2s 6d lo 4s Gd; nectarines, 3s 6d to 4s Cd; Bon Chretien pears. 2s 6d to 3s Gd: cooking pears. Is to Is Gd; Capo gooseberries. 6s. Per LI). —Strawberries, Is 3ld: local grapes. IOAd to Is 2d: local lomatocs, firsts 4d to sd. seconds 3d to 3-Jd: Otago Central tomatoes, 2.1 dto 4ld; Christchurch tomatoes, firsts, 2d (o 21(1; (small), 1 LI: tigs. 7d; apricots, 4d to sd; peaches. 21d to 31d: nectarines, seconds.' 21(1 "lo 3LI: plums. 2Jd: blackberries 4d; green peas, choice 3d to 4Jd; mushrooms. 4.1 to sd; garlic, (id: walnuts, (id; tea, orange pekoe, 2s fid: butter, storekeepers’. 9(1; bacon, prime, lid: bacon pigs, (id: overweight.. 4d; bulk honey, new season's. 4Ad: beeswax. Is 2d. Per Cwt- Canlorbury onions, (is to 7s; oyster gril. 6s (id; wood wool,_ 20s: potatoes.'ss" marrows. ss; pumpkins, (is Olive oil. 12s gallon: Giraffe lime sulphur barrels. 1s 9d gallon: Semesan and Gran'osaii. 2oz 2s 3d. Hb 9s. lib ss; patent codlin moth tree hands. 200 ft lengths 17s (id: arsenate of lead paste, 9d to Is 3d; powder. Is fo Is Gd: red oil. 5s fid: French Bordeaux, Is Id. Fowl wheat, fis; partridge peas, fas; maize 7s: oats. A Cartons 3s. B 2a Cd: crushed oats. 9s fid: X Keys meatmen!, 15s: buttermilk powder. 3d: bran, £5 ss; chaff, b. 0.5.. £5 10s: nollard. £6 ss; to : me to stakes. 12s per 100. Pc,- Pair. —Poultry: 415 hens at 2s to 4s 0,l 117 cockerels at 2s to fis fid. fi nitron's at Is. 5 pullets at, 5s to 5s fid: 10 ducks at 3s to 3s 2d: 5 bantams at Is fid per pair. REILLY’S CENTRAL PRODUCE MART. LTD.. Moray place, Dunedin, Cl.

COMPANY BALANCE SHEETS KEMPTHORNE, PROSSER, & CO.’S NEW ZEALAND DRUG COMPANY. LIMITED.

• Including bonus. The higher level attained by the net profit a year ago has beeu held. A figure of £54,454 admits of the same allocation —8 per cent, to shareholders, £SOOO to general reserve, and £2500 to staff provident fund—which leaves £314 to swell the undivided surplus. While the net profit comes out virtually ns before, the figures concerned have beeu on a larger scale. Notwithstanding the deduction of a depreciation provision, larger by £SOOO, the gross profit has risen by over £12,000. As a setoff the expenditure has increased to a slightly greater extent. As the expenditure is grouped, the cause of the difference is not apparent, but it may be surmised that taxation, for one item, would be higher. After a diminishing ratio for three years, the relation of charges to gross profit has again risen, as the following columns show:— Charge;.. Gross Profit. Ratio. £ £ P.e.

Except for a sum of £63 for dividends unpaid, outside liabilities are all contained under sundry creditors, which, at £137,464, have risen by over £50,000. This pronounced increase can scarcely be ascribed entirely to a larger provision for income -tax. so that it would seem that, - if no further provisions arc included, the additional indebtedness lias been acquired towards the eloFe of the season, as there are sufficient funds held in bank to liquidate the bulk of the amount oustanding. Reserves have varied little, but their tendency is upwards. The transfer of £SOOO from the net surplus will raise general reserve to £120.000, while the reserves earmarked for stock, book debts, and works repairs remain at £26,000, £5300, and £2223 respectively. With an addition of £314, the floating balance will appear at £35,059, and visible reserves will total £188,643. In contrast to recent years, capital expenditure has been on a large scale. Fixed assets have risen to £402,791, or by some £36,500, which the depreciation allowance of £30,000 does not fully counteract. An average allowance of 7i per cent, approximately for wastage on all fixed assets including land and buildings, should deal adequately with the wear and tear incurred. Fixed assets have stood to the total assets as under: — Jan. 31. Fixed Ahscls. Total Assets. Ratio.

The steady decrease of the fixed assets ratio in recent years, with the consequent growth of that of the liquid section, is a reliable testimony to the progress that is being achieved. A rise of nearly £27,000 in stocks brings them closer to their values at closing dates previous to that of 1934-35. This rise concurrently with larger funds in bank may be partly responsible for the greater indebtedness under sundry creditors. In their relation to the gross profit stocks stand somewhat similarly as at January, 1935. The money represented by book debts and sundry debtors shows remarkably small alteration. Customers’ book debts at £81,904 have varied by under £IOO, while sundry debtors in conjunction with hills receivable come to £38,298, as against £39,019. Although the total of customers’ book debts has fluctuated considerably from time to time the reserve of £5360 has remained the same, and as the reserve now bears a higher relation to its specific asset than it did some years ago, the question of strengthening it does not seem to call for attention. Cash on deposit at £60,000 and in bank at £62,741 are both up. Whether the cash on deposit is m the hands of the bank or whether the cash in bank is entirely on current account is not quite dear. Shares in the subsidiary companies ot Fertilisers (South Island), Ltd., and Agricultural Lime Company, Ltd., remain at £IBOO and £5825 respectively.- A sales account for the former accounts for adding £13,498 to the assets. The trading results of that company, as distinguished from the profits of the other concern, have been incorporated in the parent company’s accounts. LONDON PRODUCE MARKET The Bank of New Zealand has received the following advice from its London office, under date March 13:— Frozen Meat—For wethers there is a weaker tendency, and for ewes the market is firm. There is a good demand for light-weight lambs. Trade generally is slow. Wethers, light, 43d to per lb; wethers, heavy, 31d to 4d; ewes, 3d to 41d; lambs, twos, 6|d to 7Jd; lambs, eights. 6jkl to 6gd; lambs, fours, 6id to 6|d: iambs, seconds, 63d to 7d. THE RUBBER MARKET PROSPECTS OF IMPROVEMENT. According to a London trade report there was a better feeling in the rubber market at the close of 1935, and dealers were beginning to take a more hopeful view of the outlook for the commodity. The report states:—“The average ol the daily spot price for 1935 is slightly under 6d per pound, compared with 6 3-16 d for 1934. Production on estates (luring 1935 has been restricted to about half the potential maximum to comply with the lower permissible export percentage, which for the year has averaged 674 per cent, of the basic standard, as compared with 924 per cent, in 1934, when for the first seven months of the year production was virtually unrestricted. ‘‘Production costs in 1935 increased owing to lower outputs and very few' estates had the benfit of forward contracts at a higher price, as was the case for the previous year. Manufacturers appear to be satisfied with the present price, and trade demand is being well maintained, but the excessive total of visible supplies in consuming centres and the only gradual reduction expected in the stock returns for a considerable time is restraining speculative interest. . . . “ Prospects of an improving statistical situation during the coming year are based on two factors—the maintenance ot I be permissible exportable percentage at 60 iter cent, of the basic quota for the first half of the year, and evidence of a continuance of consuming demand from the activity reported in the motor car industry.” TAX ON BUSINESS ••There is a real danger that the extension of governmental activities and the increase in public debts may result in a lax burden that will seriously ami permanently impair the productive cliiciency of our industrial system,’ states the Ciuaranlv Trust Company of New York in a survey of the field of taxation in the United' States. The company quote** some extraordinary figures ot taxation. It points out that a tax burden is meafeured. in so far as it cun be measured mathematically, by the ratio of taxes to income. In the United States this ratio has risen since the beginning of the depression, and the peak was reached in 1930. Between 1930 and 1932 the estimated national income decreased by more than 40 pel cent. For the period from 1932 to 1934 the ratio averaged about ‘2O per cent., as against 10 (o 12 per cent, in the years prior to the depression. “ If it could be assumed that the tax burden on business would decline to something approximating the pre-depression average as recovery progresses, the figures for the last few years would afford ground for loss concern/* sttttea the compnny. “ Unfortunately, no such assunip-

tion can be made. The depression years have witnessed further extensions of governmental activity into new fields, with rising tax rates, and with a rapid growth of public debts. Both the new activities and the larger debts will require greater tax revenues than have been needed in the past. , “ What effect high taxes will have on business recovery and on the productivity of our industrial system over a period of years is likewise beyond prediction. It is frequently pointed out that, from taro point of view of a national economy as a whole, taxes do not represent a cost in tlie sense of a deduction from income, but a redistribution of income. This, of course, is true as long as the governmental activities supported by the taxes are as useful and as efficiently conducted as the private industrial operations which they displace. “Another important consideration is that there cannot be adequate taxation unless there ai'e profits to be taxed,” the company adds. “‘Recent legislation has tended to subject business management to an increasing degree of regulation, and to make it increasingly difficult to control costs to the extent that was formerly the case. At the same time, government competition with private business has been increased and earned into new fields, levying on business what amounts to an indirect tax. In so far as the earning position of business is impaired by this regulation and competition, the tax burden will be increased, and the ability of business to support governments correspondingly reduced.” DEATH AND CO.. LTD. At a meeting of the directors of Death and Co. yesterday it was decided to pay an interim dividend of 21 per cent, on preference shares and 3 per. cent, on ordinary shares. Dividends will bn posted on April 3. Interim dividends of 21 per cent, on preference shares and 4 per cent, on ordinary shares were paid in March last year, dividends for the full year being 5 per cent, and 8 per cent.

Jan. 31. Paid-up Capital. Iteserres. Net I’roflt. •Dividend. £ £ £ p.e. 1015 .. 205,000 64,901 23,450 7 1018 .. 273,000 08,725 20,006 8 1021 . 380,500 107.300 43.551 10 1024 . 400.000 111,881 42.253 10 1927 .. 511,005 107,5.38 57.134 10 1030 .. 583,000 111,002 71,000 10 1032 .. 583.000 140,287 40.052 7 Ms 1033 .. 583.000 147,188 '47.120 7% 1034 .. 583,000 140,752 48,780 7V4 1935 .. 583,000 183,328 54,404 8 103G .. 583.000 188,043 54,454 8

1027-28 .. 120.533 177.159 63.04 102S-20 .. 12(3,522 100.318 93.48 1920-30 .. 130.770 202,952 94.53 1030-31 .. 115.227 177.083 94.74 1031-32 .. 00,3315 145,309 00.27 1932-33 .. 84,832 134.939 94.30 1933-34 .. 78.073 127,731 61.83 1034-35 .. 82.732 437,205 90.30 1035-30 .. 05.007 140,520 63.00

£ £ p.c. 1915 135,892 379.902 35.72 1918 149,528 429,007 34.78 1921 209,750 734.427 27.80 1921 308,870 608,208 46.22 1927 431,198 868,702 40.04 1930 408,043 1,013,013 40.09 1933 431.767 012,434 47.32 1933 413.942 885.276 . 40.76 1934 300.202 802,151 43.74 1935 300,221 870.501 41.04 1938 372.791 037,004 39.75