COMMERCE AND FINANCE

Otago Daily Times, Issue 23940, 16 October 1939, Page 5

COMMERCE AND FINANCE

IMPORT CONTROL LICENCES FOR THIRD PERIOD (Per United Press Association/ WELLINGTON, Oct. 14. The Minister of. Marketing (Mr W. Nash) said to-day that the arrangements in connection v/ith import licences for the third neriod were very near completion, and the schedules would probably be released for publication on Monday or Tuesday. “ TIME OPPORTUNE FOR REMOVAL” “It appears that the time is opportune for a complete removal of the present regulations so far as they affect the United Kingdom—ships should come out from the United Kingdom full of goods and go back full of produce. We know the Government is endeavouring to arrive at an early decision about the basis of allocations of licences of 1940, but the position is now one of the greatest urgency, 1 ' 1 comments the United Kingdom Manufacturers’ and New Zealand Representatives’ Association on the import regulations. ; “ Our considered opinion is that, having regard to available funds, NeW Zealand should stock to the limit with all classes of United Kingdom goods. We know of cases where agents of United Kingdom manufacturers have to refuse orders which their factories c'ould fulfil immediately, because no licences have been issued. The position must be remedied now before it is too late, otherwise New Zealand will be faced! with the grave position of. empty warehouses and factories." SYDNEY STOCK EXCHANGE (United Press Association) (By Electric Telegraph—Copyright) SYDNEY, Oct. 14. (Received Oct. 15, at 6.30 p.m.) The following sales were made on ’Change to-day:—

WAR-TIME LOAN NEEDS EFFECT ON NEW CAPITAL MARKET CONTROL OF INVESTMENT IN PRIVATE ENTERPRISE War-time loan needs and their effect on Idle new, capital market are dig* cussed in the weekly review of the Sydney Stock Exchange Research and Statistical Bureau, which recalls that during the last Great War it became necessary for the Commonwealth authorities to act Increases of capital were permitted only when they were considered to be in the national interest. "The need for similar measures of control,” the review contends, “ is even more imperative now if maximum staying power, upon which the issue will ultimately depend, is to be developed, arid there is a growing recognition: thatj.the; control-of Vestment in, private Enterprise will become an essefttiiil ; feature of jAustralian war efforts. Action has already been taken irt Great Britain along these lines. The Government IS controlling the market for new capital, limiting issues to essential Industrial requirements. “From an Industrial point of view the Commonwealth is better equipped at present than it has ever been, but one of the outstanding problems wih be that of raising Federal loans at a rate of interest that will neither _ dislocate the organisation, of private finance nor throw-too heavy a burden upon the whole community.” SHAELAND AND CO., LTD. MANAGER APPOINTED At a meeting of the directors of Sharland and Co.. Ltd., wholesale druggists. held last week, Mr Hector J. McDonald was appointed general manager of the company in place of Mr C. Bruce-Smith, who has resigned. Mr McDonald has been manager of the Wellington branch since 1931 and will now have the affairs bf the company at Wellington, Auckland. Christchurch, and Dunedin under his control. His headquarters will be in. Wellington. DAVID JONES, LTD. RECORD NET PROFIT Net profit of David Jones, Ltd., at £197,563 for the year ended July 31 is an increase of £20,876, and constitutes a new high record for the company. Ordinary dividend at a steady rate of 10 par cent, requires £BI,OOO on the fully-paid enlarged capital, and preference dividends amount to £27,750. The full dividend charge is thus £108,730. Transfer to reserve is £75.000, against £IOO,OOO last year, and the fund is now £600.000, In view of the increases in taxation provision for'income tax is supplemented by a further £15,000, bringing the total amount reserved to £65,000. A contribution of £IO,OOO is made to the staff superannuation fund, which now stands at £50,672. These allocations leave £119,400 to be carried forward, compared with £130.58/ brought forward. .

LOCAL AND OVERSEAS MARKETS

MINING NEWS WORKSOP EXTENDED RETURN During the period ended October 11 the Worksop Extended dredge obtained a return of 290 z. The time worked included the turning of the dredge. WHITE’S ELECTRIC DREDGE White’s Electric dredge during the week ended October 12 recovered 250 z of gold for ICB hours’ dredging time. ARGO DREDGE (Per United Press Association) GREYMOUTH, Oct, 14. The return of the Argo dredge was 21oz for 123 hours. 12,000 yards being treated. „ ... A dividend (No. 19) ot Id a share (free of income tax) has been declared on all shares in the Argo Gold' Dredging Company, Ltd.. an „d w HIJ? e P. ay ' able on October 24, 1939. This dividend, represents a distribution of £2OOO to shareholders, which makes a total of £37.200, paid in dividends since operations were commenced. The sum of £4OO has been placed to the, general, reserve fund, which now stands at £4600. IHDRCIIISON-MATAKI RETURN (Per United Press Association; WELLINGTON, Oct. 14 ■ The Murchison-Mataki Junction return for the week ended on Thursday last was 430 z of smelted gold for 129 hours’ working, and 18.000 yards treated. PRICE OF WOLFRAM (United Press Association), (By Electric Telegrahp—Copyright) ' T 'LONDON. Oct, 14., (Received Oct. 15, at 7 p.m.) Wolfram: Chinese 80s to 70s nominal, BRITISH TRADE SHARP RISES IN PRICES REPORTED , Illustrations of the present difficulties of conducting business in London/ on behalf of overseas interests are given in recent air . mail advices received in New Zealand. The British Government has taken control of all essential commodities, including flax, wool, jute and rayon, and certain lines can only be exported under licence. Insurance of stocks of goods _ anywhere on land against enemy action is compulsory, the.' premium .being Ids per' cent.' a month. Air-raid precautions are also compulsory. ; v • All these items involve expenditure on a large scale for all businesses. Most trading associations, have, decided that it la necessary to charge an advance, on orders on hand to meet these, costs. The percentage of increases'varies from 5 per cent to 10 per cent, on orders booked and undelivered, future orders being: subject to market conditions when orders are received. The necessity for making these increases was regretted, but ; manufacturers .stated that. any. amelioration of these charges, that might, be made would-be passed on to their customers. During the week ended September 16, the Government took over all flax production of yarns and cloth. The flax here mentioned is. of course, flax,for linen manufacture. For the time bejng no merchant or factory could, sell or, deliver anyi flax goods. Belfast trade was at a standstill. . From reports received up to September. 18. costs of goods were advanced from 25 per cent, to 40 per. cent, above those ruling just before the war. ' ■ ■ , .' ■ ■ • . WHAKATANE PAPER MILLS PLANT NOW IN PRODUCTION. The annual.' report of Whakatane Paiier Mills, Ltd., .'for the year' ended June 30 states that capital expenditure on the works totals £525,374. Since July the mill has been running three full' shifts, covering 132 working hours a week, and providing steady employment for about 170 men. At present the daily tonnage is well below the rated capacity of the plant, but a gradual improvement is expected. The exchange control and import restrictions should enable the company to enjoy a steady and increasing demand for its products and keep the mill working to capacity. All expenditure for the year nas been -apitalised, and the cost of running the plant was, charged to establishment account. Income from invested funds was applied to the reduction of total expenditure. It was not opportune to prepare a profit and loss account for the parent company or its subsidiaries for the period. Pending assurance that sterling funds to repay the London debenture group would be available as required, the issue of debentures in New Zealand could not be made. The ’ directors meanwhile were- utilising sub scriptions from New . Zealand shareholders for repayment of the company’s obligations within the Dominion and reserving £BO,OOO of the issue for redemption of the London group’s securities when the exchange difficulty had been solved. FRUIT AND PRODUCE WORLD Reilly’s report selling:— Per Dozen.—Spring cabbage. 2s to 3s. Spring onions, 12s. Asparagus, 8s to 11s, Lettuce, 2s to 3s; choice, to 4s 6d. Carrots, Is 6d. Eggs, Is 4d to Is sd. Mutton birds. 11s 6d. Narcissi: Trumpets. 2s to 4s 6d. Tulips. 2s to 4s Passion fruit, 2s. Each.—Champion egg crates, 24 dozen 18s. Per Case.—Californian grapes: Ribiers and Red Malagas, 42s 6d. New Zealand grapefruit, 16s. New Zealand lemons: Fancy, 10s 6d to 16s; good. 8s 6d to 14s. Australian Valencias, 18s to 245.. Bananas: Ripes, 22s 6d. Apples: Delicious, 12s to 16s; Tasmas, 9s to 10s 6d; Sturmers, 9s to 14s; Rome Beauty, to -10 s; Statesman, 8s to 10s; small grades, 4s to 6s; cooking apples. 7s to 8s 6d. Queensland pineapples, 20s to 245. Pears: Winter Coles, 12s to 13s 6d; Winter Neils 12s to 13s 6d. Rarotongan tomatoes, 255. Per Pound.—Rhubarb, IJd to 3d. Brussels sprouts, 3d. New Potatoes: Locals, Is 3d. Hothouse tomatoes, 2s 9d. Kumeras, sd. Artichokes, 3id. Tea; Orange Pekoe, 2s lOd. Butter: Storekeepers. Is. Bacon; Prime, Is 3d: Pigs: Baconers. 8d; porkers. BJd; overweights. sd. Clover honey, 8d to BJd: second grade, 6d to 7d. Beeswax, Is 4d Walnuts. Bd. Whitebait. 2s 9d to 3s 3d. , „ Per Sack.— Cabbages. 3s to 4s. Cauliflowers, Bs. , , r . Per Cwt. —Onions, 255. Potatoes: King Edwards, 19s; Arran Chief, 16s to 17s. Olive Oil, 18s. Lime sulphur. 3s 9d gallon. Restar: h gallons. 4s 6d- Semefan: 11b. 8s 6d. Red Rose Nicotine sulphate: 101 b. 435: 21b, 13s 6d; 11b, 7s 6d; Jib, 4s 6d. D.P. Derris for white butterfly control: 11b tins. 2s 3d; 101 b tins, 15s Woodwool, 28s. Fruit wrapping paper. 2s 9d ream. Fowl wheat, to 6s 9d: second grade, 6s. Maize, 7s 6d. Oats: Gartpns to 3s ner bushel; crushed oats 12s 6d. Crosskeys meatmeal, 15s bag Bran £5 10s. Pollard, £6 15s. Chaff: 8.0.5.. £5 10s. Oaten straw, £3. Hay, £4 15s. Palmer’s chick food: 1001 b. 21s 6d. Per Pair.— Poultry: 104 cockerels, 2s 8d to 9s; 69 hens. 4s 2d to 8s; and 6 Muscovy ducks; 12s to 16s 6d per pair. REILLY’S CENTRAL PRODUCE MART, LTD. Moray place, Dunedin Cl.

MERCHANDISE MARKET TRADING DIFFICULTIES A number of imported lines are now out of merchants’ hands, and there is not much prospect of further supplies in the meantime. Wholesale merchants are experiencing a difficult time trying to meet the wants of grocers, and grocers, in their turn, are having a difficult time endeavouring to fulfil orders from the public. It cannot, however, be said that any householder is suffering real hardship through lack of any particular comomdity. Two steamers landed cargoes of sugar at the week-end, and further supplies will be to hand this‘week. The latest arrangements made by the Colonial Sugar Company should provide sufficient supplies of sugar for the time being, and those householders who have been inclined to rush the market for sugar, with the idea, of hoarding stocks, would be well advised to buy their normal requirements only. In an.v case, orders for sugar are now being rationed by the wholesale houses, anu grocers consequently cannot supply what they have not got. Latest advices from Australia go to show that supplies of Australian dried anricots cannot now be obtained A small parcel of tinned herrings has iust arrived from the Home market. A cablegram from Colombo states that there has been a reduction in the price of tsa. Values, however, are still,very much above those ruling before ’be outbreak of war. Small consignments of Australian lexias have reached the market. These will be the last for the season. Quotations for the new season’s China walnut meat are now being received. They show a considerably increased cost on the opening prices of last year. Onb a few Dunedin merchants have licences to import for the second period of the year. Further supplies of English manufactured cigarettes have reached the market. It has been ascertained that the German steamer Frankfurt, which was 'Within a few days pf arrival in the Dominion when wai broke out, has sought refuge in an American port. This vessel was carrying glucose, turpentine, resin, etc., and the goods were badly needed. NORTH BROKEN HILL INCREASE IN OUTPUT LOWER METAL PRICES In an advance statement, North Broken Hill, Ltd., reports that net profit, after providing for depreciation, taxation ami royalty, amounted to £330,187 for the year ended June 30. This is a decrease of £144,966. compared with the previous year. Quarterlv dividends totalled 2s a share, equal to 40 per cent., requiring £280,000, against 3s a share, or 60 per cent., for 1937-38. Production increased appreciably, but metal prices were lower. During the year 522,676 tons of crude ore was treated. The mill produced 92,748 tons of lead concentrates, containing 69,887 tons of lead and 3,798,8000 z of silver, and 90,955 tdns .of zinc concentrates, containing 47*095 tons of zinc. In the previous year the plant treated 468,150 tons of ore. Production was 86,640 tons of lead concentrates, containing 64,092 fobs of lead and 3,546,7650 z of silver, and 81,950 tons of zinc 'concentrates, containing 42,900 tons of zinc. , The average of London metal prices Was lead £l4 17s lid a ton, zinc’£l3 18s 2d a tori,; arid silver Is' 8.848 d an ounce. In 1937-38 average prices were: Lead, £l7 9s lid a ton; zinc, £l6 15s a ton; and silver. Is 9.122 d an ounce. LONDON MARKETS (United Press Association) (By Electric Telegrahp—Copyright) LONDON, Oct. 14. (Received Oct. 15. at, 10 p.m.) Friday’s Closing prices, were as follows: i ■ Cotton: Spot, 5.75 d per lb; November, 5.66 d. ; Rubber: Parp, lid; plantation smoked, JOJd. Jute not quoted. Copra,—Spot requisition prices; unofficial South, Sea. 9:]d; smoked, 9id; plantation Rdbaul. lO&d. , , Linseed oil, £36. ■ Turpentine, £3 11s 6d. GUARANTEE CORPORATION DECREASE SHOWN IN NET PROFIT The directors of the New Zealand Guarantee Corporation, Ltd., in their report for the 12 months ended August 31, slate that business during the year has been well maintained, and the directors have, as in the past, adopted a conservative policy. The net profit for the year, after providing for all bad and doubtful accounts. amounted to £10,289 4s 7d. Provision has also been made for the full increases in taxation due to the Government’s war finance measures. After providing for the interim dividend amounting to £4424 15s lid for the half-year ended February 28. 1939, there remains a balance of £13.246 9s 3d in the appropriation account. From this amount the directors now recommend the payment of a diyidend of 2d per share, less a deduction of is in the £ for social security tax. This will absorb £5604 2s lid. leaving a balance of £7642 6s 4d to be earned forward. COMPANY REGISTERED The latest issue of the Mercantile Gazette contains notification of the registration of the following private company: Abernethy (Joseph) Ltd. Registered as a private company. Dunedin. Capital: ~£l4OO into 1400 shares of £1 each. Subscribers: Dunedin—J. Abernethy 1399, R. G. Abernethy 1. Objects: To carry on business of art dealers, dealers m pictures, paintings, sculptures and anything relating to works of art.

'; ' ■ “ ’ £ s. d. Associated News .. .. .. 0 16 0 Anthony Hordern (pref.) 0 18 Australian Consolidated In6 dustries .. .. .. ' 1 15 • n (cont.): 0 10 10 Broken Hill Proprietary .3 7 0 Burns Philp 2 126 Electrolytic Zinc (pref.) .. 2 15 6