COMMERCE AND FINANCE

Otago Daily Times, Issue 24606, 14 May 1941, Page 2

COMMERCE AND FINANCE

DUNEDIN STOCK EXCHANGE

YESTERDAY'S SALES

DUNEDIN Sales Repotted

AUCKLAND Sales on 'Change.—War Loan, 1953 (late sale), £B2 2s 6d. £B2 ss; Stock, 1940-43, 4 per cent., £lOl 2s 6d; Stock, 1943-46, 4 per cent., £103; Stock, 1952-55, 4 per cent., £lO6 10s; Auckland Drainage, 1948-59. 41 per cent., £103; Auckland Harbour Board, 1953. 4J per cent.. £105; Auckland Fire Board, 1954, 41 per cent., £105; National Bank of New Zealand (late sale), £1 15s 6d; Bank of New Zealand. £1 17s; New Zealand Insurance (2), £3 Is; South British, £2 10s; F.A.C. (B pref.l. £1 Is; New Zealand Breweries, .£llos lOd; Farmers' Trading (late sale), 19s 4d; Henry Jones, £2 9s 6d; M.K. Mfrs., 5s Id; Reid Rubber, £1 8s; Sanford (ord.; late sale), 4s; Woolworths (N.Z.; late sale), 13s 4d; Woolworths (Syd.), 16s Id. Unofficial List.—Farmers' Freezing, £1 0s 6d. WELLINGTON Sales on 'Change.—4 p.c. Stock, 1946 (2), £103; 4 per cent. Stock, 1952-55, £lO6 10s; Equitable Building, 10s; Gisborne Gas, 3s. CHRISTCHURCH Sales Reported.—New Zealand Government 31 per cent. Inscribed, 1953-57, £IOO 15s; Dalgetv and Co. (ex div.; 2), £5 19s Gd- Huddai-t, Parker (late sale Monday), £2 5s 6d; Hays, Ltd. (contr.), £1 Is; Hume Pipe (Aust.), 13s. LATEST QUOTATIONS The following are yesterday afternoon's buving and selling quotations on the Dunedin Stock Exchange, which are subject to the usual brokerage:— GOVERNMENT LOANS

LORNEVILLE MARKET VALUES MAINTAINED (P.A.) INVERCARGILL, May 13. With the exception of store cattle, the yardings at the Lorneville stock sale today showed a seasonal decrease in all sections on last week's entries. The fat cattle entry was smaller than a week ago. but the quality was well up to standard. Values for cows were fully £1 a head lower, while better quality cattle showed little or no change. Good-quality bullocks brought from £l2 to £l3: medium, £lO 15s to £ll 10s; and lightweights, £9 10s to £lO ss. Fair qualitycows realised from £8 10s to £9 10s; medium, £6 15s to £7 10s; and inferior, £4 to £5 10s; while handy-weight heifers made from £9 5s to £lO and light-weights from £7 10s to £8 10s. The fat sheep entry was smaller than last week's offering, and it consisted mainly of ewes, the majority of which were of good quality. The market for all classes was firm on last week's rates. Prices for the few wethers that were included remained unchanged. Freezing ewes made from lis to 15s; heavy butchers' ewes, 12s 6d to 14s; and medium quality. 10s to lis 6d. Good quality wethers changed hands at from 25s 6d to 275; medium. 23s to 245; and unfinished. 18s to 20s. Onlv 25 fat lambs were yarded. Two realised 345, one 24s 6d, and the other 22 22s each. AMERICAN WHEAT ESTIMATES NEW YORK, May 12. The New York Times reports that the prospective total of old and new wheat will be 1,240.000,000 bushels in 1941-42. This is the largest supply recorded. The domestic needs are estimated at 675,000.000 bushels annually. *

COMPANY BALANCE SHEETS

THE MUTUAL LIFE AND CITIZENS' ASSURANCE COMPANY, LTD. Paid-up capital: 1922-38, £200,000; 1939-40, £1,000,000.

* Including balance on accident account and Income tax reserves. t Excluding bonuses to accident policy holders. Assurance funds, which at December, 1939, stood at £26.696,943. have risen to £23,348.467. an increase of £1,651,524. Income, after deduction of taxes, has grown to £4,805,665. of which £1.261.915 comes from interest, rents, and dividends. General expenditure, inclusive of amounts written off securities, and staff superannuation fund contributions, amounts to £785,536, as against £719,284 for 1939. The actuary's recommendation is to divide £666,070 as profits from the ordinary branch, and £134,326 from the industrial branch, both amounts being an excess of the previous year's division, after conducting the annual investigation on the stringent interest basis of 2J per cent. Premium Income in the ordinary section amounts to £2,265,708, while claims aggregate £1,471,826. The margin between the two has increased to such an extent as to reduce the ratio to 64.96, and continue the steady reduction that has been taking place annually. The manner in which claims have remained fairly'even since 1931 in spite of a premium income that has grown by 70 per cent, is remarkable. The relations between the two have been:—

The annual growth in the net income from interest, rents, etc., is diminishing, but this may be ascribed to heavier taxation. At £1,261.915, the increase is £15.480, or under half of that of a year ago, which in turn was short of that of its predecessor. In comparison to the premium income, the revenue from interest, etc.. stands as follows:

In assets, which aggregate £31,897.715, freehold property at £693,814 occupies a relatively small part. It is £4195 higher than at December, 1939, and from a revenue-producing point of view, both in regard to premises let and premises occupied, doubtless yields a satisfactory return. Leasehold property at £899 has further decreased, while office furniture and fittings are entered, as formerly, at nil.

The bulk of the invested funds is placed in Government securities and with public bodies. The former which have risen to £13,458,547, or by some £1,300,000 are evidently the form of employment in most favour at the present time. Municipal securities and loans to public bodies at £6,662,931 have slightly fallen. The preference for Government investment is further seen in the loans to co-operative building societies under Government guarantee, which, at £2.568,244, are larger by nearly £500,000. Other loans are loans on mortgage, which are down to £5.379,240, and loans on policies, which by falling to £1,864,710 in an expanding turnover indicate that the demand for money has slackened. Loans on life and reversionary interests, and loans on personal and collateral security at £4494 and £2636 respectively continue to fluctuate, but are not sufficient to exercise much influence on the total investments. Debentures and debenture stocks (£420,860) are little changed, while preference and guaranteed stocks (£15,425) arc unchanged, but the nature of the employment of cither is not stated. Shares in other companies, which offer a wider field for investment than the other headings, are reduced to £118.040. Altogether a sum of £31.897.715 is employed through the above channels as against £29,578,665 at December, 1939.

Among the other assets, the chief place is occupied bv interest accrued, the increase of which to £326.808 bears a high proportion to the total increase from this source. Presumably rents and dividends accrued are included. Outstanding premiums, in spite of the larirer premium income, have dropped to £138.541. Cash in hand and on current account at £198,769 has risen considerably, but sundry debtors and agents' balances at £27,152 and £12,628 respectively have both fallen. Assets aggregate £31,397,715, an increase of £1,724,380.

The largest liability is deposits, which are reduced to £856.584. Claims in course of settlement, have grown in sympathy with the larger total claims and accounts for £375,776. Other items of indebtedness are sundry creditors, etc., which have diminished to £98,590. premiums in suspense at £24.216, also less, industrial branch premiums paid in advance practically unchanged at £38,505, and staff superannuation fund raised to £68,412. Altogether, the liabilities are reduced by over £125,000.

Reserves have more than regained their position of two years ago before their depletion to swell the paid-up capital. By a transfer of £IOO,OOO from the industrial branch, general reserve is raised to £700,000. while income tax reserve is increased to £306,800 by transfers of £13,000 and £14,500 from the industrial and general branches respectively. With the aid of a transfer of £34,439 from the Empire Insurance Company, Ltd., general branch shows reserves and balance of £100,364. The aggregate of these reserves is £1,107,164, which places them at their highest point at any closing date. REID RUBBER MILLS, LTD. INCREASE OF CAPITAL (Special) AUCKLAND, May 13. A resolution to increase the capital of Reid (New Zealand) Rubber Mills, Ltd., from £120,000 to £250,000, by the creation of 130,000 shares of £1 each, will be considered at a meeting on June 5. Other resolutions will seek authority to provide for the creation of reserves and for business calls. It is considered advisable to raise the entire sum by the issue of further shares, but as a substantial portion will not be needed for several months, the intention is to spread the calling up of shares. As the company has only 30,398 unissued shares, it is proposed to increase the capital to avoid calculations of dividends according to the amounts paid up on shares, thus bringing the company into line with the usual practice. A memorandum to the shareholders outlines plans for a new factory. It is considered that £60,000 will be required in the next year to finance new buildings, plant on order, and extra stocks. Sanction will be asked to raise the capital from £120,000 to £250,000, of which £IOO,OOO will be held in reserve for future issue. On approval of the increase of capital shares will be offered to the present shareholders to bring the subscribed capital to £150,000. MINING NEWS OKARITO DREDGE The wash-up for the week ended last Friday of the Okarito Five-mile Beacli Dredging Company was 28oz 13d\vt for 120 hours' work. ALEXANDER MINES The gold returns for March and April of the Alexander Mines, Ltd., are as follows:—From battery. 11l tons of or? crushed for 550 z 12dwt melted gold; from cyanide, 38oz Bdwt bullion from 181.69 tons of sand; total estimated value, £722. In addition, 2.80 tons of concentrates weia saved for 14.3090 z valued at £ll4. Gold has been taken at. £8 per oz. KANIERI GOLD DREDGING (PA.) WELLINGTON, May 13. The Kanieri Gold Dredging Company has declared its fifth dividend of Is a share on the ordinary and preference shares, payable on May 24. TOOTH AND CO. (P.A.) WELLINGTON, May 13. Tooth and Co. have advised the Stock Exchange Association that they have declared an interim dividend at the rate of 12 per cent, per annum.

AUSTRALIAN STOCK EXCHANGES (Rec. 0.15 a.m.) SYDNEY, May 13. Trading on 'Change to-day was light, but the undertone of the market was firm. Additional Sales.—Commercial Banking of Sydney, £lB 9s; Bonds Industries, £1 10s; Dunlop Perdriau, £1 0s 6d; Felt Textiles, £1 18s; Gordon and Gotch, £1 19s; Coles, £2 19s 3d; Colonial Sugar, £42 2s tid; Electrolytic Zinc, £2 lis 6d; (pref., £2 12s 3d); Arahura, £1 4s 3d; Oil Search, ss. MELBOURNE, May 13. National Bank (£5 paid), £5 17s; Australian Paper Manufacturers (pref.), £1 4s 6d; Herald and Times, £2 lis; Carlton Brewery, £3 Is; Howard Smith. 19s 9d; Mount Morgan, 8s 9d; Kuala Kampar, 15s 6d.

£ s. d. G. J. Coles .. .. 3 10 Woolworths (ord.) .. .. 0 13 4 N.Z. Breweries .. .. 1 10 10

£ s. d. £ s. d. 31 p.c., 1953-57 .. .. 100 10 0 — 4 p.c. 1940-43 .. .. 101 0 0 101 10 0 4 p.c, 1943-46 .. -• 4 p.c, 1946-49 .. .. 102 0 0 — 102 15 0 103 a 0 4 p.c, 1948 104 0 0 — 4 p.c, 1949-52 .. .. 4 p.c, 1952-55 .. 105 15 0 — 105 15 0 106 10 0 4 p.c, 1954-58 .. .- 106 2 6 War Loan, 1953 .. 82 0 0 BANKING New Zealand .. 8 10 1 16 0 10 0 14 0 Commercial • • — Comm. (pref.) .. •• 8 10 0 4 3 6 16 0 0 E.S. and A 6 10 0 INSURANCE AND SHIPPING 0 18 3 0 19 0 South British .. •• 2 8 6 2 19 6 ~ P. and O. Stock 1 4 0 MEAT, LOAN AND AGENCY N.Z. Refrig. (pd.) .. 0 16 3 — N.Z. Refrig. (cont.) .. 0 7 0 . South Fro. (paid) .. 1 10 0 4 10 1 16 1 1 0 0 6 Waitaki Farmers — Natnl. Mortgage — Natnl. Mortgage — Loan and M. (ord.) -. 26 0 0 N.Z. Guar. Corp. — 0 2 ii Perpetual Trustees .. 2 11 3 0 Trustees, Executors .. 4 2 Wright. Stephenson -(pref.) 0 19 6 ~ COAL — 1 3 0 6 3 9 W.-St'kt'n (pref.) — Taupiri (pref.) .. 1 0 0 WOOLLEN COMPANIES Bond's Hosiery 1 5 0 — Bruce (ord.) .. •■ 1 0 9 — Bruce (pref.) •• •• 1 0 0 Kaiapoi (ord.) .. . • 0 14 9 Kaiapoi (cont.) .• •• 0 4 9 Wellington (ord.) — 7 0 0 Wellington (pref.) 6 15 0 MISCELLANEOUS Aust. Consol. Indus... 2 2 0 — Broken Hill Pty. 2 2 0 — Chas. Begg and Co. 1 1 0 — Consol. Brick .. .. — 0 7 0 D.I.C. (pref.) .. •• 1 3 9 — Dom. Fertiliser — 1 6 0 Dom. Rubber .'. .. — 1 0 0 Donaghy's Rope. r -T2 12 6 Dunlop Rubber .. .. 1 0 6 — Milburh > Lime 1 - .. — 1 18 3 Natnl. Electric .. ■• 0 1.9 3 1 0 0 N.Z. Drug — 3 17 6 Farm. Fertlsr. (pref.) — 1 2 6 N.Z. Paper Mills — 1 10 0 Otago Daily Times.. — 1 17 6 Wilsons Cement .. 0 18 4 — Woolworths (N.Z.) .. 0 13 0 — Wool worths (Syd.) .. — 0 1G 3 BREWERIES N.Z. Breweries 1 10 6 1 11 1 Dunedin . — 1 1 6 _. , MINING Broken Hill South .. 1 3 0 — Mount Lyell ■. .. — 1 8 6 Wellington Alluvials.. ■— 0 4 6 Austral N.Z — 1 5 0 — 0 1 6 Okarito .. . • — 0 1 6 0 0 7 0 0 9

'General tProflts raymenis to policy Dec. reserves. Income. divided. holders. 31. £ £ £ £ 1932 . . 667.094 2,845,889 580,967 1,743,699 1933 . . 865,432 2,960,263 631,363 1,735,454 1034 . . 889,543 3.179.771 705,660 1.668,363 1(135 . 762.234 3,277.360 767.499 1.664,218 1936 . . 771.728 3,744,515 825,853 1,679.759 1937 . . 784,582 4,015,736 891,137 1,712,716 1938 . 1,082,288 4,240,244 964,488 1,897,253 1939 . . 908,321 4.491.327 755.508 1,942,941 1940 . . I.I07.IC4 4.805.665 800,396 2,033,367

Premium income. Claims. Ratio, £ £ P.O. 1931 .. 1.33-1.961 I.428.B22 107.10 1032 .. 1,358.427 1,407.773 103.63 1933 .. 1,403.609 1.412,591 100.64 1934 .. 1,440.271 1.331.273 95.90 1035 .. 1.537.958 1,372,523 89.24 1936 .. 1,827,761 1,352,799 74.01 1037 .. 1,929.684 1.322.240 C8.52 1338 .. 2,028,509 1.401,331 69.08 1039 .. 2,156,075 1.435,331 66.57 1940 .. 2.265,708 1,471,826 64.96

Interest, rents, etc. Total Premium Income. Ratio, £ £ p.c. 1035 .. 1.023,252 2,253,543 45.41 1936 .. 1.071.745 2,615,680 10.97 1937 .. 1,139,193 2,819,293 . 40.40 I93T .. 1.214.388 3.021.115 40.13 19313 .. 1.246,435 3.244,622 38.42 1940 .. 1,261,915 3,543.539 35.61