COMMERCE AND FINANCE

Otago Daily Times, Issue 23517, 4 June 1938, Page 13

COMMERCE AND FINANCE

LOCAL AND OVERSEAS MARKETS

TIN BUFFER POOL MINISTER’S STATEMENT IN HOUSE INQUIRY NOT NECESSARY (British Official Wireless) (United Press associationi (By Electric Telegraph-Copyright) RUGBY, June 2. (Received June 3, at 5.5 p.m,) A Paris message states that the International Tin Committee fixed the tin quota for the third quarter of the year at 45 per cent, of the standard tonnages. The secretary for the colonies (Mr Malcolm MacDonald) in answer to a question in the House of Commons, said the Malayan delegation was submitting a claim for a revision of the standard tonnages allocated to Malaya at the meeting at Paris. He observed that, as the standard tonnages were fixed by international agreement for five years from January, 193,7, no revision could, be effected, except by agreement between all parties to the agreement. In another reply, Mr MacDonald said he did not think that an inquiry into the facts regarding the tin industry pools was necessary. Tin producers in Malaya had voted in favour of the buffer poof bv a majority of approximately two to one. Other British departments concerned, for example, Nigeria, were in favour of the buffer pool. In the circumstances he had decided that the principle of a buffer pool might be accepted so far as Malaya and Nigeria were concerned, if agreement on a satisfactory detailed scheme were reached by the International Tin Committee. CANTERBURY MARKETS POTATOES REMAIN DULL ACTIVITY IN SEED WHEAT AND ONIONS ' (Per United Press Association) CHRISTCHURCH, June 3. The only bright feature in the grain and produce markets is the activity In seed wheat and onions. Seed wheat has been going out this week as fast as at any time this season. Farmers have responded well to the appeal to grow wheat, and it now seems certain that the acreage sown will be substantial. The Government’s decision not to allow the importation of cnions before October 5 has had an immediate effect on the local market, which has been firm. The price is £9 10s on trucks, but the crop this season has been smaller than usual, and supplies are not sufficient to meet the demand. Potatoes remain as dull as they have been in. the last few weeks. The nominal price is still £3, on trucks, but little business has been done even at this figure. A few orders are being received for best quality chaff, which remains firm at £4 10s, on trucks. The seed trade is showing its usual seasonal quietness, there being practically no business in any lines. LONDON METAL MARKET j • (United Press Association); v | (By Electric Telegraph—Copyright > ;• London, mna 2. The following arc the official'nwtal quotation!:—

AUSTRALIAN STOCK EXCHANGES IMPROVEMENT AT SYDNEY (United Press Association) (By Electric Telegraph—Copyright) SYDNEY, June 3 (Received June 3, at 9 p.m.) With the overseas markets firm, industrial shares were fairly steady to firmer on the Stock Exchange to-day. The turnover was back to normal. Pastoral shares, however, .continue dull. The Morning Sales

Melbourne Exchange Industrial shares are steady. Barriers are dull, and Zinc Corporation shares are weak Sales:—

CHRISTCHURCH STOCK EXCHANGE THE WEEK’S ACTIVITIES (Special to Daily Times) CHRISTCHURCH, June 3. The chief event of the week was the announcement of the Bank of New Zealand accounts for the year, but several important companies also announced their figures. The Bank of New Zealand showed a slight decrease in the net profit, for which the reason will in all probability be given in the chairman’s report. The decrease was apparently smaller than was expected, because shares since the announcement have firmed. Two New Zealand industrials to announce lower earnings during the week were Wilsons Cement and Perpetual Trustees, but neither reduced their dividend. Devonport Ferry showed a small rise in profits, and proposes to pay an unchanged dividend. Important overseas companies to announce profits were Goldsbrough, Mort, which showed smallei earnings, and proposes a lower dividend; Gordon and Gotch, which made a smaller net profit for its latest halfyear, and Morris, Hedstrom, which announced a considerably better net return and recommends a slightly increased dividend. The overseas situation has. however, improved, and towards the end of the period there was a definite upturn, not only here, but in England, America and Australia. The tin situation also is clearer, though the decision of three major American automobile manufacturers to close down temporarily will probably have some effect on the metals market The turnover in Christchurch was considerably smaller than last week, the figure being £18,543. against £28,042 last week. Government issues were again in consistently good demand, and sellers were still hard to induce to do business. There were two sales of 4J per cent, 1949, at, £lO3 ss, and one sale of 4 per cent., 1955, at £lO4 7s 6d. Banks were not active. There were several sales of 10s Commercials of Australia, which were not dealt with last week at all. The price was well down, falling to 15s 6d, but at the end there was a sale at 15s 9d. New Zealands had' a number of sales and showed a consistent rise. They finished last week at about £2 3s, but during the present period rose to £2 4s 9d in dealings. Loans were entirely neglected, and the only sales in the meat section were two of New Zealand Refrigerating at 8s sd, a slight increase. New Zealand Breweries were traded steadily throughout the week and showed a continuous decline in value, the loss amounting to about lOd. Apart from a sale of Swan, no other business was done. Trading in the miscellaneous section was confined almost entirely to industrials. Australian shares in general showed a tendency to rise, though there were exceptions to this trend. British Tobaccos were slightly weaker, though there was a firmer tone at the end. Broken Hill Proprietaries were fairly steadily firmer, and gained lid on the week. G. J. Coles sagged at the star:, but picked up later to gain Is, but both Electrolytic Zincs were lower over the period, though they, too, showed signs of recovery at the finish! Taranaki Oils consistently improved their position and finished with a gain of Bd. Woolworths (Sydney) were slightly weaker on the balance, but Proprietaries (rights) were about 3d better, with sales up to 4s. Mines moved downward most of the week, but finished with a firmer tendency, Lyells and Morgans showing distinct gains on the week. MINING NEWS NEMONA RETURN (Pee United Press Association) GREYMOUTH, June 3. The Nemona dredge return was 61 ounces for 124| hours (14,800 yards), QUARTZ MOUNTAIN (PAPUA). LTD, The chairman of directors (Mr J. W. Thomson) reports from Sydney that the recently appointed engineer-man-ager (Mr Donaldson) has taken charge at Misima, and has commenced investigations preparatory to carrying out the new development policy. Necessary white labour has been engaged, and miners left by the outgoing Macdhui this week to complete present requirements. By the same boat Mr D, F. Scott, M.A.I.M.M, (who is the company’s consulting metallurgist and managing director of Quartz Investments, Ltd.), left Sydney on a visit to Misima, MAORI GULLY RETURN (Per United Press Association) GREYMOUTH, June 3. The Maori Gully dredge obtained a return of 104 oz 7dwt for 133 hours’ work. PROFITS AND PRICES BANK OF AUSTRALASIA A record total of the balance sheet for the Bank of Australasia, for the year ended October 11, 1937, was mentioned by the chairman. Sir John Sanderson, at the annual meeting held in London on March 31 last. During the first six months of the bank’s year (to April, 1937) prices for wool, wheat, and metals were definitely profitable, he said, and “our bank naturally had a share in this prosperity.” For the subsequent half-year prices for nearly all commodities, excepting gold, suffered a sharp decline. Meat and dairy produce, however had been made fortunate in maintaining steadier prices. The total of the balance sheet. Sll John Sanderson stated, had increased by £4,72C,000, and “it now stands ai the record figure of £55,846,000. This is mainly accounted for b: an increase of £1,562,000 in fixed deposits and of £2.047.000 in current accounts. “A few years ago over £3,000.000 ni our deposits represented proceeds of imports into Australia which were being left there in the hope that the rate of exchange would become more favourable for their transfer to this side (London). To-day, the figure is reduced to the neighbourhood of £250.000, and we are not sorry to see the departure of these particular deposits.” Assets at £ 10,000,000 showed an increase for the year of over £5,000.000, and represented about 25 per cent, of the total liabilities to the public in respect of deposits. British. Australian, and New Zealand Government securities and other securities with the £10.000.000 above-mentioned represented 45 per cent., or 9s in the £ jf total deposits. Bank premises increased by £40.000. Total profits increased by £132.000. charges of management increased by £IB.OOO. and rates and taxes were increased from £95.500 to £269.700 MORRIS, HEDSTROM. LTD. A net profit of £82,098 is shown in the accounts of Morris, Hedstrom, Ltd., Suva, for the year ended March 31. This is an increase of £11,714 over the earnings of the previous year. The dividend for the year is increased to 6 per cent, from 52 per cent., and in addition a bonus of per cent, on ordinary shares, absorbing £13,010. is proposed in commemoration of the seventieth anniversary of the foundation of the firm The directors also recommend transferring £20,000 to general reserve, increasing this fund to £120,000, and an additional contribution of £SOOO to the company’s pension fund. After providing for dividends and these appropriations, £61,785 remains to be carried forward, against £62,073 brought in.

COMPANY BALANCE SHEETS THE BANK OF ADELAIDE Paid-up capital, 1920, £500,000; 1921-22, £625,000; 1923-26, £875,000; 1927, £1,000,000; 1928-38, £1,250,000.

Once again a small increase in profits is recorded, and the net profit of £65,788 for the year is the highest since 1932. The final dividend paid last year was increased by h per cent, to 2J per cent, (making 4| per cent, for the year), and, as this increased rate has been maintained, the distribution this year will be 5 per cent. The payment of this dividend requires £62,500, leaving £3288 to increase the balance of undistributed profits carried forward. The fixed assets are entered “ at cost, less amounts written off,” but no information is given as to how much has been written off. In former years there was little fluctuation in the book value of the fixed assets, the amounts written off being approximately equalised by the capital expenditure, but this year an increase of £52,744 is recorded. This is due to the purchase of a new property, which is to be used in the extension and modernisation of the bank’s premises, so that further capital expenditure on premises may be expected in the near future. The total liquid assets have dropped to £3,164,857, and this decrease is accompanied by a substantial growth in advances, indicating an extension of the bank’s business. Last year the liquid assets were equivalent to 10s Id in the £ of external liabilities, but this year the liquid position is not quite so strong, the ration having dropped to 8s 7d in the £. Money at short call and treasury bills have decreased by £304,000, while there is an increase of £202,000 in the amount invested in Government securities. A temporary diminution in the volume of the export business is the cause of a drop of £518,774 in the amount of London bills and remittances in transit. After a small decline last year, advances have again risen, and at £6,075.864 are at their highest level for several years. Deposits (£6.971.876) have, on the other hand, fallen slightly. The relation between advances and deposits has been as follows: March. Advances, etc. Deposits. Ratio

jyjß .. D,u/o,ab4 u.avi.ave aa.t>9 The other liabilities are much the same as before and amount to £347,374, a comparatively small sum compared with the deposits of £7,000,000. The reserve fund remains unaltered at £1,000,000, and the only other visible reserve consists of the balance of undistributed profits, £45,345. A large proportion of the reserve fund is invested in Government securities (£904,137), but the remaining general reserves are not specifically linked with any particular asset or assets. The general reserves disclosed are equivalent to 83.6 per cent, of the paidup capital, which must be considered a very strong reserve fund indeed. BURNS, PHILP AND COMPANY, LIMITED Paid-up capital, £1,500,000.

The profits of the company have remained remarkably consistent since 1930, and even during the depression years diminished to only a comparatively small extent. This diminution has been made good in recent years, and the net profit of £240,574 for the past year is higher than that for any year since 1930. The dividend of 10 per cent., which has been maintained for many years, is again recommended. The payment of this dividend on the fully paid shares requires £150.000, and on the 500,000 new shares which are as yet paid to 5s only, £6250. This makes a total dividend payment for the year of £156,250. There is a further appropriation to reserve fund of £75,000, and a staff retirement fund has been opened with a contribution of £IO,OOO from the year’s profits. These appropriations and the dividend account for £241,250, which is £676 in excess of the net profit for the year. The balance of undistributed profits is therefore reduced by this sum, the amount carried forward being £31,459. The volume of business is still expanding. and the increased sales have produced a gross profit of £1.111,950. This figure is higher by £145.973 than last year’s gross profit and represents an increase of 13 per cent. The net profit has. however, not increased to the extent which one might expect from such a substantia] increase in gross profits, as £131,465 has been absorbed in higher charges, leaving £14.508 as additional net profit. Bad debts and losses are slightly less, at £35,204, while the depreciation charge has been increased to £128.228 (equivalent to a little more than 4 ner cent, on the total fixed assets). The main expense group has risen from £600.148 to £707.643. an increase of almost 18 per cent. The relations between charges and gross profits have been as follows:

Reserve.? continue to grow, and the latest transfer of £75,000 will bring the reserve fund up to £1.200.000. The insurance and sundry other reserves have increased during the year by £21,151, and now stand at £574,502. The total disclosed general reserves, including the balance of undistributed profits, amount to £1,231.459. The fixed asset group shows little variation except in respect to investments. which have dropped by over £200,000, and now stand at £751,928. Real estate and shipping property, and also shares in subsidiary companies, are practically unaltered at £1.323.610 and £730.681 respectively. The larger volume of business transacted during the year is reflected in the greater amounts of stock, debtors, and current liabilities. The stock and advances group has risen from £1.060,015 to £1,398,414, while debtors' balances have increased by £203.117. and stand at £928 408 Corresponding with these increases, the external liabilities have risen to £1.845.897. an increase of £128.848 on tlm previous year’s total. The variations in the balance sheet as a result of the year's operations may be summarised as follows: £ Increase in Floating Assets .. 579.341 Decrease in Fixed Assets .. 213.708 Increase in Assets . . 305,573 Increase in Liabilities . 128.848 Increase in Dividend . . .. 0.250 Increase in General Reserves 74,324 Increase In Other Reserves .. 31.151 Increase in Capital 125,000 £365.573 COMPANIES REGISTERED The Mercantile Gazette notifies the registration of the following companies:— Robertson’s Hardware nAd. Registered May 25. Office, Thames street, Oamaru. Capital, £IO,OOO, into 5000 preference shares of £1 each and 5000 ordinary shares of £1 each Subscribers: Dunedin—R. M. Byford, A. V. Gain, N, A. V. Godward W P. Wellington, A. C. Halligan, V M. Glasson, M. Gilbert, 100 ordinary shares each. Objects: To carry on in Dunedin and elsewhere the busines of ironmongers, hardware merchants, oil and colour merchants china, glass, and crockery merchants, and incidental. Trail Timber Company, Ltd. Registered as a private company May 20. Office, Esk street, Invercargill. Capital, £1750, in 1750 shares of £1 each. Sub-

; .. .. Ton Copper, spot .. £33 IS : 4.'/, Rise £1 0 0 Copper, forward 34 3 9 Rise 0 19 4'/s Eleotrolytle, spot 3? 15 0 Rjse 0 10 0 Electrolytic, forward.. 38 IS 0 Rise 0 15 0 Wire ban 38 15 0 Rise o Is 0 Lead, spot 13 II 3 Rise 0 4 4'/, Lead, forward 13 14 4 Vi Rise 0 5 0 Spelter, spot .. .. 12 6 10/a Rise 0 8 ■ Vi Spelter, forward 1210 7'/i Rise 0 7 6 Tin, mot 167 17 6 Rise 4 15 0 Tin, forward .. .. 168 7 6 Rise 4 10 0 Oz. Silver, standard 18 I5-I6d No chango Silver, fine .. . 20 7-l6d No change

Commonwealth Bonds— £ s. d. 4 p.c., 1947 .. .. 102 13 9 '4 p.c., 1950 ... .. 103 6 3 4 p.c.. 1961 Commercial Bank of Syd104 0 0 ney 20 13 0 Tooths 2 15 6 Australian Gas (A) 7 8 6 Australian Gas (B) 7 9 .6 British Tobacco .. 2 9 0 Broken Hill Pty. .. , . 3 1 0 Colonial Sugar 47 15 0 Electrolytic Zinc . Additional Sales 1 17 6 Bank of New South Wales 32 0 0 Colonial Sugar 47 15 0 Associated News .. 1 0 7* Howard Smith 1 1 6 Bums, Philp .. 2 13 3 Australian Gas (A) 7 8 6 British Tobacco 2 8 9 Tooths 2 15 9 Australian Glass .. 4 13 6 Kandos 1 5 3 Fejt and Textiles .. 1 11 6 Gordon and Gotch 2 15 0 Mauri Bros. 3 9 0 Victoria Nyanza .. 0 14 9 C. Neoa • .... 2 8 6 Meggitts 1 12 0 Hackshalls 0 14 0 Permanent Trustee 0 18 0 Woolworths 1 1 4} Winchcombe, Carson 1 7 6 Henry Jones .. 2 7 6 Mount Lyell .. 1 3 li Broken Hill Proprietary 3 1 0 North Broken Hill 1 19 9 Kuala Kampar 0 16 6 Rawang 0 8 5 Loloma 1 1 41 Placer Development 3 14 0

£ s. d. C-mmercial Bank of Australia 0 15 9 National Bank (£5 paid) .. 6 8 0 G. J. Coles 4 2 3 Drug Houses 1 4 6 Australian Iron and Steel (oref.) 1 8 0 Australian Glass 4 13 3 Dunlop Perdriau 1 1 2 Dunlop Perdriau fpref.) .. 1 18 0 Herald and Times .. .. 2 16 6 Mount Morgan 0 9 0 Mount Lyell 1 3 3 Broken Hill Proprietary .. 3 1 0 North Broken Hill .. .. 1 19 9 South Broken Hill .. .. 1 8 6 Zinc Corporation .. .. 3 11 3 Emperor 0 12 3 Loloma 1 1 6

March. Reserves. Net Profit. Dividend 1928 £ 1.003.464 £ 128,637 p.c. 10 1930 1,049,482 138,107 9 1932 1,040,571 66,776 4 1934 1,048,796 54,497 4 1935 1,028,997 55.201 4 1936 1,036,970 57,973 4 1937 1,042,057 61,337 4i 1938 1,045,345 65,788 5

£ £ p.C. 1920 .. 5,655.750 6,084,129 82.96 1930 .. 6,230,907 6,105,440 102.06 1932 .. 5,108,010 6,031,331 84.69 1934 .. 5,075 518 6,197,488 81.90 1935 .. 5,252,802 6,372,597 82.43 1936 .. 5,660,001 6,713,968 84.30 1937 1930 5,631,010 . (5 07.6 864 7,066,114 6 971 R7R 79.69 HR M

March 31. General Reserves, Net Profit. Dividend £ £ p.c. 19.30 831,675 231,982 10 1931 903,888 227,213 10 1932 961,296 202,407 10 1933 974,826 208,531 10 1934 1,003,023 .203,257 10 1935 1,039,089 211,006 10 1936 1,081,069 216,979 10 1937 1,157,135 226,066 10 1938 1,231,459 240,574 10

Total Gross Charges. Profits. Ratio £ £ p.c. 1929-30 548,924 780,855 70.30 1930-31 .. 545,957 773,170 70.61 1931-32 498.508 700.915 71.12 1932-33 503,981 712,511 70.73 1933-34 . . 532 330 735,587 72.37 1934-33 581,835 792,841 73.39 1935-36 . 643.139 860,119 74.77 1936-37 739,912 965,978 76.59 1937-38 .. 871,376 1,111,950 78.36