COMMERCE AND FINANCE

Otago Daily Times, Issue 24721, 25 September 1941, Page 2

COMMERCE AND FINANCE

THE SHARE MARKET DUNEDIN STOCK EXCHANGE YESTERDAY’S SALES DUNEDIN Sales Reported £ s. d.

AUCKLAND Sales on ’Change.—Stock, 1957-60, 3i per cent., £99; Stock, 1953-57, 3i per cent., £lOl 15s; Stock, 1943-46, 4 per cent., £lOl 12s 6d; Stock, 1946-49, 4 per cent., £lO5 2s 6d; Stock, 1952-55, 4 per cent., £107; Bank of New Zealand, £1 19s 7d (2); South British, £2 16s; Guarantee Corporation (late sale), 3s; Felt and Textiles (rights), 7s 9d; Dominion Breweries, £1 10s 4£d (2); Donaghy's Rope (rights), 16s 3d (2); Gear Meat, 15s; New Zealand Fertiliser, £1; Reid Rubber (late sale), £1 6s 6d; Woolworths (N.Z.),, 14s 4d (late sale) 14s 3d, 14s 4d; Martha, 8s 2d; Waihi Investments, 4s sd; Mount Morgan (ord.), 9s sd. Unofficial List—Smith Wylie, 10s. WELLINGTON Sales on ’Change—4 per cent. 1943-46 Stock (late Tues.), £lOl 7s 6d (3); Felt and Textiles (rights; late Tues.), 7s 6d; 4 per cent. 1943-46 Stock, £lOl 7s 6d; N.Z. Guarantee Corporation, 3s; Bank of Now Zealand (long term), £1 12s; Gear Meat, 15s; Mac Duffs (ord.), 9s 2d; Woolworths Ltd., 17s 6d. CHRISTCHURCH Sales Reported.—North Canterbury Freezing (pref.), 18s; Kaiapoi Woollens (17s pd.), 16s 9d (2); New Zealand Breweries (late Tues.), £1 15s 8d; Donaghy's Rope (rights; late Tues.), 16s lid; G. J. Coles (late Tues.), £3 7s 6d; N.Z.Farm Fertiliser (pref.), £1 3s 9d. LATEST QUOTATIONS . GOVERNMENT LOANS

SYDNEY STOCK EXCHANGE (Rec. 11 p.m.) SYDNEY, Sept. 24. The share market was quiet, but slightly firmer than yesterday. The Morning Sales. —Bank of New South Wales, £26 ss; Union Bank, £6 17s; Tooths, £2 13s; Associated News, 12s • sd; Australasian Paper, £1 17s; Colonial Sugar. £49 7s 6d; Felt and Textiles, £1 17s. Additional Sales.—Commercial Banking of Sydney, £lB 9s; Commercial Bank of Australia, 14s 2d; National Bank (£lO paid). £ll 16s; Howard Smith, £1 2s Gd; Toohey's, £1 9s 6d; Woolworths (ex div.), 17s 3d; Consolidated Industries, £2 8s 9d; Stedman, 13s lOd; General Industries, 18s; Newbold, £1 4s; Electrolytic Zinc, £2 13s.

COMPANY BALANCE SHEETS THE CANTERBURY FARMERS’ COOPERATIVE ASSOCIATION, LTD. Called-up capital: 1933-41, £149,669. General » Net Dividend July reserves, profit. pref. ord.

* Subject to tax. Net profit has dropped to £7570. or £2367 under the previous year’s figure, after allowing £17,781 for taxation. The distribution to shareholders, which is maintained at 5 per cent. In both preference and ordinary holdings, absorbs £7480 and leaves £9O to raise the floatingbalance to £4379. With a sum of £114,838 as gross profit in merchandise and produce, and one of £19,555 from commission, etc., gross profit comes out at £134,393, or practically the same as for 1939-40, On the expenditure side, a slight decrease is shown in the stamps, telegrams group at £14,354, and a larger one in the miscellaneous charges group at £24,150. Directors’ fees at £I2OO are unaltered, but the higher salaries and wages and interest groups at £62,535 and £6803 respectively, outweigh the reductions under the other headings. Excluding taxation, expenditure aggregates £109,042, and in relation to revenue, compares with previous years as follows Expenditure. Revenue. Ratio.

General reserves show an increase pi £9O, being the amount unallocated of the net surplus and added to the floating balance,* which then stands at £4379. Reserve account and the reserve earmarked for bad debts at £22.000 and £209 respectively are still intact. The growth of reserves, which has been steady since 1935, has been retarded. The 1 41 per cent, debenture issue remains at £235,749, and continues to occupy the chief place in the association’s finances. The debenture holders’ interest is considerably larger than that of the shareholders, but it may be assumed that the personnel is similar. The issue is due to mature during the course of the current year, and much will depend on the conditions of renewal. Sundry creditors at £30,506 have slightly fallen, but the difference is more than offset by the rise in current accounts to £79,202.. The bank overdraft of £10,845 helps to increase the outside indebtedness, which at the four latest closing dates has been as under:—

The annual growth in liabilities, although not large, has been steady. After allowing £1670 for depreciation, freehold property at £123,429 is some £6OO down. As distinction is not drawn in the balance sheet between land and buildings, it does not appear what relation the provision of £1670 has towards the wasting portion of the asset. Leasehold property at £6618 has been reduced by £169 as against £216 for the previous year. The furniture, plant group at £40,342 is smaller by £2760. Capital expenditure of £2OOO approximately is indicated after a depreciation provision of over 10 per cent, has been deducted. Fixed assets aggregate £170,389, or practically 30 per cent, of the total assets. Among the floating assets, stock at £218,760 takes first place. It has risen by £22,414, in spite of its large increase at July, 1940. On the other hand, advances and auction accounts are reduced to £96,871., while amount due on open accounts and bills receivable at £55,448 and £4387 respectively are also less. In the aggregate, these assets have altered little. Investments at cost have risen from £2770 to £13,020, due, it is inferred, to the inclusion of a war loan, and payments in advance have grown to £6043. Floating assets represent £394,530, and bring the total assets to £564,919, an increase of £12,553, which is barely equal to the increase on the liabilities side. MINING NEWS NOKOMAI WASH-UP The Nokomai Gold Mining Company, Ltd., reports that the return from the final wash-up of the present paddock, which took place last Saturday was 1370 z Idwt, which, added to the previous partial return of 1370 z lOdwt, resulted in a total return of 2740 z lldwt for the paddock, which measured onefifth of an acre of bottom.' COLOMBO TEA SALE Mr L. M. Wright has received the following cabled report on the Colombo tea auction of September 23; An offering of 1,375,0001 b was submitted to buyers. Competition was keen. Heavy buying for South Africa and Egypt forced prices of all grades higher. Common teas .advanced id, medium kinds were 3d dearer, and good-quality grades showed a rise of |d to Id compared with last week’s rates. At next week’s sale 1.250,0001 b will be submitted to buyers. PROPERTY SALE Messrs James Samson and Co. report that they offered by auction yesterday, in the estate of Mr Henry T. Andrews, a freehold property known as No. 76 Tennyson street, on which was erected a double-storey seven-roomed wooden dwelling. The sale attracted considerable attention, and after keen competition the house was sold to a client for £ll7O. John M. Fraser and Co., Ltd., selling agents for Otago and Oamaru egg circles, report as under: —Eggs; Heavy grade Is 6d, standard Is 4d, medium Is 2d. Dairy butter pats lid to Is Id. Potatoes ils to 12s per cwt.. King Edward potatoes 12s to 13s per cwt. Chaff £6 10s per ton, sacks extra. Canterbury onions 22s per cwt. Whole fowl wheat to 6s 9d per bushel. Honey 7d to 8d per lb. 51b tins, 101 b tins wanted. Poultry; White Leghorn hens 5s to 6s, heavy breeds 6s to 7s. cockerels, light 4s to 6s. heavy breed 7s 6d to 9s 6d. roosters 2s 6d to 4s 6d, ducks 6s to 7s. ducklings 6s to 7s, all per pair Turkeys-—Gobblers 8d to lOd per lb. live weight, hens 7d to 9d per lb. We stock “ C.F.M.” Mealmeal, Butter Milk Powder. Palmer’s Chick Food. We are Otago agents for:—“ Champion ” egg crates, “ Sol-Vit-Ax ” Cod Liver Oil for poultry; prices on application

Consignors please note that all poultry must arrive not later than Wednesday morninc of each week. We have a stock of poultry crates on hand for use of our clients.

ARTIFICIAL SILK TEMPORARY CHECK ON PRODUCTION The hope that a longer-period policy on United Kingdom production of goods of artificial silk for export will soon be established is expressed in a message which has been received by his Majesty's Trade Commissioner m Wellington (Mr R. Boulter) from the Department of Overseas Trade, London. According to the advice, which he has forwarded to the Dunedin Chamber of Commerce, it has been decided, pending the settlement of a longer-period policy, to check production for two months on the following lines for which there is a market in Australia and New Zealand:— (1) The export of acetate and viscose staple fibre will be discontinued. , . (2) The export of continuous filament yarn will be cut to 75 per cent, of the 1940 monthly average in the case of viscose and to 50 per cent, in the case of acetate. . (3) Exports of piece goods will be maintained at the 1940 level. . As the United Kingdom rayon industry has already opened its order books for September and October the message says, this check will not be operative until November or December and probably will not affect exports to any marked extent before the New Year, except in the case of yarn and fibre. THE PRUDENTIAL ASSURANCE COMPANY, LIMITED (Incorporated in England) ASSETS INCREASE BY £10,000,000 TO £364,000,000 93% OF FUNDS IN BRITISH EMPIRE A national institution rendering a national service-this is the impression gained from a perusal of the ninetysecond annual report of the Prudential Assurance Company for the year 194 b. As the largest insurance company in the British Commonwealth of Nations, this vast organisation forms a vital part of the Empire’s social and economic life, and it is in the light of this that the annual accounts of the company are always awaited with interest by financial circles everywhere. The impact of war-time conditions on the Prudential Company is revealed by the figures and by the facts set out in the statement by the chairman ot the company, Sir Edgar Horne, Bart. Considering it a national duty to contribute to' the fullest degree to the British Empire’s war effort, the company has given practical effect to its war-time policy—1. By investing to the fullest possible extent in war loans throughout the Empire. 2. By limiting investment of the company’s funds almost entirely to avenues within the British Empire—the latest accounts show that 93.68 per cent, of funds are so invested. 3. By direct contribution of manpower to the army, navy and air force, to the extent of nearly 10,000 members of the male staff, including no less than 54 per cent, of the agency staff. 4. By continued waiver of all naval, military or air force risk conditions embodied in any of the company’s life assurance policies issued from the Australian and New Zealand branches on or before September 25, 1939, which were in force on that date.

This full support of the Empire’s cause is constantly before the public. Having contributed £5,000,000 to the war loan in England in March, 1940, the company bought £20,000,000 of National War Bonds in July—the latter is probably the largest direct investment for a term of years ever made by a single institution in one amount. Further, the Prudential has continued to support War Bonds and Savings Bonds in association with “War Weapons Weeks ” and has participated in the efforts in well over 200 towns and districts.

The accounts for 1940 also reveal that the assets of this huge organisation now total £364,854,580, an increase of over £ 10,000,,000. The income was again over £1,000,000' weekly, totalling £56,048,786. The surplus in the life branches amounted to £8,572,012, including £1,467,652 brought forward, and J of this £4,475,000 was carried to contingency funds, and £2,000,000 to investment reserve funds. New Business £84,000,000

A striking feature of the 1940 results has been the manner in which the organisation has continued to produce a vast new business in spite of the obvious difficulties created by the wat, the total new sums assured issued in 1940 in the life branches amounting to £84,800,054, which must rank as an outstanding achievement. The consideration for annuities granted amounted to £452,753. The sums assured, including bonus additions, in force in the life branches now amount to £912,785,408.

In the general branch, the company transacts fire, accident and marine insurance business and the total premiums x’eceived amounted to £2,422,474. The surplus was £579,470, including £226,974 brought forward. In brief, the guiding principle operating behind these figures is one aptly expressed by the chairman: “The business of the Prudential is so wide and varied in character', end constitutes such an important pai't of the social and economic life of the nation that its maintenance at a high level of efficiency is an obligation to the public which the directors felt must be dischai'ged at all costs.”—l. SOUTH BRITISH INSURANCE FINAL DIVIDEND AND BONUS (P.A.) AUCKLAND, Sept. 24. A final dividend of Is a shai’e, plus a bonus of 6d a share, is to be recommended by the directors of the South British Insurance Company. An interim dividend of 9d a share was paid in April, so that the total distribution for the year ended August 31, including the bonus, is 2s 3d a share, compared with Is B|d a shai'e in the previous year.

4 p.c. Slock, 1949-52 .. Standard Insurance 106 10 0 .. 3 1 6 Donaghy’s (rights; 2) .. Farmers’ Fertiliser .. 0 16 3 .. 1 0 0 Big River .. 0 0 9

Buyer. Seller. £ s. d. £ s. d, 3J p.c. Bonds, 1953-57 101 0 0 — 4 p.c. Bonds, 1943-46 101 0 0 — 4 p.c. Stock, 1943-46 .. 101 0 0 — 4 p.c. Stock. 1949-52 106 5 0 106 15 0 4 p.c. Bonds, 1952-55 106 15 0 — 4 ‘p.c. Stock, 1952-55 106 15 0 — War Loan, 1953 87 0 0 — BANKING N.Z. (£1) 1 19 0 2 0 0 N.Z. (Long D; £1) — 1 12 0 Commercial (10s) 0 15 0 — INSURANCE AND SHIPPING National (7s) .. .. 0 19 6 — New Zealand (£1) .. 3 6 0 — Standard (£1) 3 1 0 — Hud., Park, (ord.; £1) — 2 6 0 P. and O. Stock '(£1) 1 10 0 — U.S.S. Co. (pref.; £1) 1 6 0 — MEAT. LOAN AND AGENCY Cant, (ord.; £7 10s) 11 5 0 — Cant, (pref.; £5) 7 0 0 — N.Z. Refrig. (10s) 0 8 10 — South. Froz. (ord.; £1) 1 12 0 — South Otago (£5) . 5 1 0 — Waitakt Farmers (£5) 4 12 6 — Natl. Mortgage .(£2) 1 15 6 — Natl. Mort. (B;. £1) 1 1 6 — L. and M. (ord.; £100) 35 0 0 — Perpetual Trust. (18s) 2 10 6 — Trustees, Exec. (£3) 4 5 0 • W.S. (ord.; £1) .. .. — 0 19 9 W.S. (pref.; £1) 0 19 0 — GAS AND COAL Auckland (£1) .. .. 0 7 0 — Kaitangata (16s) 1 12 0 1 13 3 Westport (10s) .. .. 1 4 0 — W.-Stock, (ord.; 10s) 0 2 4 — W.-Stock, (pref.; 10s) — 0 7 3 WOOLLEN COMPANIES Bond’s Hosiery (£1) 1 8 0 — Bruce (ord.; £1) 1 3 0 —: Bruce (pref.; ,£l) 1 1 3 — Kaiapoi (ord.; 17s) .. 0 16 0 — Kaiapoi (pref.; 17s) .. 0 16 9 —. Mosgiel (£4) .. .. 10 6 0 — Oamaru (£1) 1 1 3 — Tlinaru (£1) .. .. 0 16 6 — MISCELLANEOUS Broken Hill Pty. (£1) — 2 3 3 D.I.C. (ord.; 10s) 0 14 1 — D.I.C. (pref.; £1) .. 1 4 1 — Dom. Fertiliser (£1) 1 3 3 • Dom. Rubber (£1) .. 0 16 0 1 0 6 Donaghy’s Rope (£1) 0 16 0 0 16 3 Farmers' Trading (£1) 1 1 6 — G. J. Coles (£1) 3 5 0 — Kauri Timber (£1 5s) 1 3 0 — MacDuffs (ord.; £1).. — 0 9 3 Milburn Lime (£1) .. — 1 18 6 Natnl. Electric (£1) .. 1 3 0 — N.Z. Drug Co. (£2) 3 17 9 • N.Z. Drug (£1 paid) 2 9 6 — Farm. Fertiliser (£1) 0 19 6 — N.Z. Paper Mills (£1) 1 12 3 — O.D. Times (£1) 1 17 3 — Smith and Smith (pref.; £1) ■■ •• 0 19 0 — Southland Ice (£1) •• 1 3 0 — Wool worths (ord.; 5s) 0 14 0 0.14 6 Woolworths (Syd.; 5s) ' U Woolworths Prpts. (£1) 1 5 9 BREWERIES New Zealand (£1) .. 1 15 0 i 16 0 Dunedin (£1) •• •• — i 1 6 MINING Brok. Hill South (5s) 1 7 0 i 9 3 E. Zinc (ord.; £1) .. 2 13 0 — Mount Lyell (£1) 1 7 o — Mount Morgan (2s 6d) 0 9 4 0 9 11 North Broken Hill (5s) 2 2 6 2 4 6 UNLISTED STOCKS National Tobacco 1 11 9 — Mackintosh Caley Phoenix 0 14 9 0 15 6 O. and S. Finance (cont.) 0 1 8 — O. and S. Finance (paid) 0 7 0 — O. and S. Finance (pref.) 0 18 6 1 0 0 Otago Invest. Rights.. 0 0 6 —

31. £ £ p.C. p.C. 1935 .. 6,558 ♦14,532 5 5 1936 .. 13,946 ♦17.114 5 6 1937 .. 18,736 ♦22,296 5 5 1938 .. 22,160 11,900 5 5 1939 .. 23,830 9,147 5 5 1940 .. 26,289 9,937 5 5 1941 ,. 26.379 7,570 5 5

£ £ p.c. 1934-35 . 89.848 104,381 86.08 1935-36 . 96,520 113,634 84.94 1936-37 . 107,588 129,884 82.80 1937-38 . 104,536 123,896 84.37 1938-39 . 104,622 122,896 85.13 1939-40 , 106,036 134,343 78.93 1940-41 . 109.042 134,393 81.14

1938. 1939. 1940. 1941. £ £ £ £ Debentures 238,022 237,354 235,749 235,749 Current accounts 63,448 56,436 69,629 79,202 Sundry creditors 21,132 20,439 31,171 30,506 Bank 12,952 24,534 6,723 10,845 335,554 338,763 343,272 356,302