COMMERCE AND FINANCE

Otago Daily Times, Issue 24723, 27 September 1941, Page 2

COMMERCE AND FINANCE

THE SHARE MARKET DUNEDIN STOCK EXCHANGE FIRM VALUES MAINTAINED The investment market completed a comparatively quiet week yesterday. The volume of business transacted on the Dunedin Stock Exchange was 1191 large, but the demand was fair throughout and price levels were generally firm. Government Loans had a less general inquiry, but a few issues of Bonds and Stocks were steadily sought, P’ew parcels were made available, however, and only an odd sale was recoTded. The 1953 War Loan was steadily quoted, but little demand was apparent for the more recent 2J per cent, and 3 per cent, war loans. Banking shares continued firm with one or two sales taking place, and insuranccs were quieter. A buyer of New Zealands came into the market, but met with no response. South British were again firmer. Meat preserving shares were well supported, but here again sellers were few, The general demand which has existed in recent weeks for loan and agency lines was maintained, but without attracting any business, Auckland Gas shares were wanted and in the coal mining section Kaitangatas were firmer together with Westports and Westport-Stocktons. Oil shares were neglected. Woollens had a keen demand, but sellers failed to respond to investors’ overtures. There was practically no activity in Australian industrials. Broken Hills and G. JV Coles were sought at bids which showed a reduction on late levels, and few other lines were prominent. All sound New Zealand lines in the miscellaneous section received good support. Donaghy’s rights were again firmer with no diminution in the demand and a number of parcels changed hands. New Zealand Breweries stood still at an unchanged quotation. . , . , . . Australian mining, which was keenly sought the previous week, was mainly slack, and apart from a couple of sales of Big Rivers, New Zealand mining continued to be dull. YESTERDAY’S SALES DUNEDIN

Unlisted Stock Mackintosh C'aley Phoenix 015 0 AUCKLAND Sales ,on ’Change.— War Doan, 195154. 3 per cent., £97 10s; Stock, 1948, 4 per cent. (2), £lO5 ss: Commercial Banking of Sydney (special parcel). £l3 15s; Bank of New South Wales, £2B 10s; Bank of New Zealand, £1 19s lOd; Union Bank (2). £7 ss; F.A.C. (£]) 16s; Newton King (pref.). Us; Auckland Gas (3). 7s 6d: Dominion Breweries (ord.). £1 10s sd; Farmers Trading, £1 2s; Milne and Choyce (deb.) 17s; Woolworths (N.Z.), 14s 4d; Cate .sale; 3), 14s 4d; Woolworths (Syd.), 17s 6d; W, R. Carpenter, £2. WELLINGTON Sales on ’Change.— National Bank of New Zealand (late Thursday; 2), £1 19s- Farmers’ Trading (late Thursday). £1 2s; Woolworths. N.Z. (late Thursday), 14s 4d; Mac Duffs (pref.; late Thursday), £1: 3 per cent. Stock, 195154. £97 10s: Union Bank, £7 ss; N.Z. Guarantee Corporation. 3s Id: N.Z. Insurance. £3 7s 6d; N.Z. Refrigerating, £1 0s 6d: CHRISTCHURCH Sales on ’Change.— Woolworths (Syd; ord) 17s 6d; Woolworths (N.Z.; 2), 14s sd; Big River (3). 9d; Grey River (cum div.). 15s 6d. Sales Reported.— Listed slocks: N.Z. Government 3.1 per cent., 1957-60, £99 7s 6d; N.Z. Government 4 per cent. Stock. 1954-58, £lO7 ss; Christchurch Drainage Board 41 per cent., 1965, £110; Commercial Bank of Sydney, £lB 15s; Big River, 9d; N.Z. Breweries, £1 16s; Woolworths (N.Z.), 14s 4d; Big River, 9d. AUCKLAND HARBOUR BOARD

The Auckland Harbour Board is issuing £200,000 worth of debentures at 31 per cent, for 30 years. The money will be used principally in the construction of an up-to-date export wharf.

LATEST QUOTATIONS

FRUIT AND VEGETABLES HEAVY SUPPLIES OF APPLES CAULIFLOWERS PLENTIFUL

Heavy supplies of apples arrived during the week. Because of their poor condition a fairly large line of Nelsongrown Sturmers was cleared out of the marts at lower than the fixed rates. Delicious are in fair supply, and prices were reduced slightly during the week. Cookers are in short supply. Pears are offering freeljr ex store. New Zealand-grown lemons are in heavy supply, with sales slow. Oranges and bananas are sold out of wholesale hands. The shortage of oranges is already being felt by retailers, and before the next shipment arrives from Australia the retail shops are likely to be sold out completely. The market for rhubarb has eased, consequent on better supplies. Cauliflowers have been in heavy supply. Poor quality lines have been offering at low rates. Spring cabbages are in fair supply. Savoys are about finished for the season. Lettuces have a good demand. Following on the cold winter, supplies are much shorter at this time of the year than usual, but there should be an increase from now on. Carrots still command high prices. Parsnips arc not so plentiful, but the opposite is the case with swedes. A small lot of new potatoes reached the market from Nelson. Wholesale prices are as follows; — Apples: Delicious, 5s to 10s per case, according to grade and count; Sturmers. 4s to 6s; Granny Smiths, 6s to 8s; Rome Beauty, 4s 6d to 8s; cookers, 4s 6d to Bs.

Oranges, 21s 6d to 27s per case, according to count. Pears, 3s 6d to 6s 6d per half-case. Lemons: New Zealand, 11s to 20s per case, according to grade and count. Bananas: Unobtainable. Rhubarb, 4s to 5s per dozen bundles. Cauliflowers; Choice, 4s to 5s per sack; others, Is to 2s. Potatoes: King Edwards, 12s to 13s per cwt; Arran Chiefs, 10s to 10s 6d. Celery, 4d to 6d per head. Cabbages: Best quality, 4s 6d to 6s per sack; others, Is 6d to 2s 6d; spring-grown, 3s 6d to 4s per case of 18. Lettuce: Choice. 3s to 6s per dozen; others, to Is 6d. Carrots, to 7s 6d per sugar bag; 2s per dozen bunches. Parsnips, 2S to 3s per sugar bag. Swedes, Is 6d to Is 9d per sugar bag. Beetroot, Is 4d per dozen bunches. Spinach, to 2s 6d per dozen bunches, according to size. Leeks, 4d to 5d per bundle. Silver beet, 7s per case. Artichokes, to Id per lb. Baronias, to 9s per dozen bunches; violets, to 2s 6d per dozen bunches. FARMERS’ AUCTIONEERING COMPANY (Special) AUCKLAND, Sept. 26. A net profit of £66,506 after providing for bad and doubtful debts and depreciation, is shown in the accounts of the Farmers’ Co-operative Auctioneering Company, Ltd., for the year ended July 31. This compares with £69,432 last year (a record) and £51.602 in the previous year. After the balance brought forward of £6655 is added to the net profit there is a total of £73,161. The 5 per cent, dividend on the preference shares paid this year absorbed £12,660, leaving £60.501 available. The directors propose an unchanged ordinary dividend of 6 per cent., requiring £13,604, to provide £40,500 for taxation I £43,200 last year), and to carry forward the balance.

GRAIN AND PRODUCE MARKETS UNCHANGED OATS IN SHORT SUPPLY Business in wheat at the present time is practically confined to lines of fowl feed, for which the wholesale value remains unchanged at 5s lOd per bushel, sacks extra, with a higher value for small lots, ex the store. Flour, Bran, Etc. Flour; 200’s, £l3 15s 6d: 100’s, £l4 12s 6d; 50's, £l4 17s 6d; 25’s, £ls 7s 6d. Bran,: £5 5s per ton of 20001 b. Pollard: £6 15s per ton of 20001 b. Oatmeal: 2001 b sacks, £25 10s 6d per ton; 251 b loose, £27 0s 6d; 251 b packed in sacks of eight, £27 10s 6d. Scarcity of Oats Merchants continue to experience difficulty in securing supplies of oats, and business in this cereal is at a standstill. The only transactions being recorded are to meet growers’ requirements for seed oats. The price 1 order remains unchanged at 3s lid, f.0.b., s.i., but this is a purely nominal quotation. No Change in Chaff Canterbury continues to supply most of the supplies of chaff required for the local trade. Business, however, is restricted, with no change in prices. Steady Position in Potatoes The price fixed by the Marketing Department for the potatoes recently imported from Australia is £l2 10s per ton, ex store, by merchants to retailers, with a reduction for deliveries which may be taken ex the wharf. The present importations are to be released on the Auckland and Wellington markets only. There has been no variation in prices in the local market during the week. Arran Chiefs are worth £lO 10s a ton and King Edwards £ll to £l2 a ton. Orders for Seeds Merchants are now busy sending out seeds to meet farmers’ requirements for spring sowing. Further overseas business has been recorded during the week, and the export prices for all lines remain firm. Interest is still being centred in the white clover market, and business has also been recorded in Che wings’s fescue, ryegrass and uncertified Montgomery red clover. Prices generally show no change. Current Values Wholesale prices are as follows: Chaff: Good bright oaten sheaf, £5 10s to £6 per ton, sacks extra, ex truck; to £6 Lss, ex store. Fowl wheat, up to £6 6s per bushel, according to quality and quantity, ex store. Potatoes: Arran Chiefs. £lO 10s a ton; King Edwards, round about £l2 per ton. Dairy butter: Milled bulk, Is Id per lb; separator, Is Id per lb. Bacon, Is 3d per lb. Hams, Is 2|d per lb; boneless, Is 4d. Onions: Canterbury, to 18s per cental bag; market firm. Prices for Eggs Unchanged The retail prices of eggs are, as follows: —Heavy Is Bd, standard Is 6d, medium Is 4d. The wholesale prices are Is 6d, Is 4d, Is 2d. COMPANY BALANCE SHEETS THE MILBURN LIME AND CEMENT s COMPANY, LTD.

Paid-up capital: 1930-41, £200,000,

The substantial drop in the net profit, which this company recorded .12 months ago. has been recovered to the extent of £4344. The net surplus comes out at £15,405, and on this occasion the shareholders’ distribution is maintained within its limits. This has meant a dividend rate reduced to 7 A per cent, which absorbs £15,000, and leaves £405 to swell the floating balance.

While various items are detailed in the profit and loss account as having been taken into account before the net profit was. struck, the amounts of each are not given, except in the charge s for directors’ fees, which are unchanged at £6OO, small receipts from transfer fees, and £703 surplus on investments realised. The fact that the dividend rate has now been reduced by U per cent., when it was left intact 12 months ago on a lower net profit, indicates that it is considered that reserves must not be subjected to a further demand to meet the dividend. and that the hopes then entertained have not been fully realised. Reserves have been altered only by the £405 that is not distributed of the net surplus. The general account, at £25,000, comprises more than half, and the other reserve accounts at £IO,OOO, £BOOO and £3OOO respectively are earmarked for accident insurance, Makareao plant and doubtful debts respectively. The floating balance has been raised to £1964, which brings the aggregate to £47,964. Outside liabilities are grouped at £33,329. This is £4042 higher than at July, 1940, but is not as large as might be expected, seeing that it contains the income tax provision and higher profit brings higher taxation. This grouping of all outside indebtedness under one sundry heading does not tend towards the lucidity of the balance sheet. Fixed assets stand at the net figure of £103,467, which is £1396 less than 12 months ago. No distinction is drawn between freehold and leasehold properties, buildings, plant and office furniture, which are entered as a unit, less depreciation, at £141,544. This sum is subject to a deduction for depreciation reserve of £39,014, which itself is subject to a deduction for depreciation of £937 on a tractor. There is nothing to show what the allowance for depreciation in respect of the past year has been. The relations of the ‘fixed assets and investments to the total assets have been:—

Investments, which consist of New Zealand Government Stock and other investments at cost, are at £73,483 slightly reduced. Their tendency, both as a separate unit and in relation to the total assets, has been to fall in late years. As a revenueearning asset, they should contribute materially to the net profit, although in this respect they may not have assisted so much during the past year ns in previous years, owing to the compulsory war loan claiming a part without interest. Shares in the subsidiary company of Ewing Phosphate Company remain at £9OOO, but the profit of this company has not been takqn into account in the holding company’s books. The rise in bills receivable to £3371 balances the fall in sundry debtors to £33,942, while slock at £58,131 has increased to the same extent as a year ago. A reflection of this increase may be seen in the smaller bank balance of £5398. Assets as a whole are larger by £ 1947, but the outstanding liabilities are greater by £4042. MINING NEWS AUSTRAL-NEW ZEALAND DREDGE (P.A.) CHRISTCHURCH, Sept. 26. The Austral-New Zealand dredge return was 501 oz of bullion for the 14 days to midnight on September 20. N.Z. NEWSPAPERS, LTD. (Special) AUCKLAND, Sept. 26. An interim dividend of 8d a share, unchanged, has been declared by New Zealand Newspapers, Ltd., for the halfyear ending September 30. It is payable on October 1,

PRICE OF WOOLPACKS ANNUAL REDUCTION EXPECTED (0.C.) WELLINGTON, Sept. 26. An announcement that he expected that it would be possible to reduce the price of New Zealand woolpacks by several pence each this year was made by the Minister of Industries and Commerce (Mr D. G. Sullivan) during the debate on the Public Works Statement in the House of Representatives to-day. “ Ultimately, when we get all the modern machinery we require, I 'believe we shall be able to compete with any country in the world in the production of woolpacks,” the Minister added. PRICE OF WHEY BUTTER The announcement from Wellington that the price of whey butter is being reduced to Is 3d per lb has __ raised hopes prematurely. The reduction will not take place until October 1. SYDNEY STOCK EXCHANGE (Rec. 11.30 p.m.) SYDNEY, Sept. 26. Having regard to circumstances, notably the Federal Budget and the war situation, investors displayed caution on ’Change to-day, but share prices were steady. Bank of New South Wales, £26 3s; Commercial Banking ,of Sydney, £18; Felt and Textiles, £1 16s lOd; Burns, Philp, £2 12s 6d; Dunlops, £1 2s 6d; Wilcox, Mofflin, 9s 4d: Bradford Cotton, £2 0s 6d; Arahura, £1 6s.

Sales Reported £ s. d. 4 p.c. Stock. 1952-55 107 0 0 Bank of New Zealand 1 19 9 Union Bank .. • • . ■ ■ • ■ 7 5 0 7 National Insurance •. • • 0 19 Donaghys (rights; 2) 0 16 3 New Zealand Drugs 3 18 3 New Zealand Breweries .. i 15 9 Milne and Choyce Debs. .. U 17 0

GOVERNMEN T LOANS Buyer. Seller. £ s. d. £ s. d 3J p.c. Bonds, 1953-57 101 0 0 — 31 p.c. Stock, 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, 1946-49 . . — 105 5 0 4 p.c. Stock, 1952-55 .. — 107 10 0 War Loan, 1953 .. . . 87 2 6 87 10 0 3 p.c. War Loan, 1954 96 10 0 — BANKING N.Z. (£1) 1 19 6 — N.Z. (long D; £1) .. — 1 11 9 Commercial (10s) 0 15 2 — Natl, of N.Z. (£2 10s) — 1 19 9 Union (£5) 7 0 0 — INSURANCE AND SHIX’PING National (7s) .. .. 0 19 6 0 19 3 New Zealand (£1) -- 3 8 0 — South British (10s) .. 3 0 0 Standard (£1) 3 1 C — P. and O. Stock (£1) 1 10 0 2 0 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. (£1) .. 0 19 6 — N.Z. Refrig. (10s) 0 8 10 0 9 1 South. Froz, (ord.; £1) 1 129 — South Froz. (pref.; £1) 1 12 9 —• South Otago (£5) .. 5 4 0 5 10 0 Waitaki Farmers (£5) 4 14 0 — Natl. Mortgage (£2) 1 15 0 — Natl. Mort. (B; £1) 1 1 6 — L. and M. (ord.; £100) 35 0 0 — Guarantee Corp. (3s) 0 2 10 — Perpetual Trust (l!is) 2 10 6 — Tmstees. Exec. (£3) 4 5 0 — W.S. (ord.; £1) .. .. 0 18 0 0 19 9 W.S (pref.; £1) 0 19 0 — GAS, COAL, AND OIL Auckland (£1) .. .. 0 7 0 — Kaitangata (16s) 1 12 0 1 14 0 Westport (10s) .. .. 1 4 0 — W.--Slock, (ord,; 10s) 0 2 5 — W.-Stock. (pref. 10s) 0 6 6 — Moturoa (pref.; 5s) .. — 0 5 0 WOOLLEN COMPANIES Bond’s Hosiery (£1) 1 8 0 — Bruce (ord.; £1) 1 3 3 — Bruce (pref.; £1) 1 1 3 — Kaiapoi (ord.; 17s) .. 0 16 6 — Kaiapoi (cont.; 7s) 0 6 6 — Mosgiel (£4) .. .. 10 7 6 — Oamaru (£1) 1 2 0 — Timaru (£1) .. .. 0 16 6 — MISCELLANEOUS Broken Hill Ply. (£1) — 2 3 0 D.I.C. (ord.; 10s) 0 14 2 — D.I.C. (pref.; £1) .. 1 4 3 1 5 3 Dora. Fertiliser (£1) 1 3 3 — Dom. Rubber (£1) .. 0 16 0 1 0 0 Donaghy’s Rope (£1) 2 6 0 — Don. Rope (rights) 0 16 0 — G. J. Coles (£1) .. 3 -3 0 — Hume Pipe (£1) — 0 14 6 — Kauri Timber (£1 5s) 1 3 0 — MacDufTs (ord.; £1).. — 0 9 3 McKenzies (£ 1) .. ■. 2 1 0 — McLeod Bros. (£10) 25 10 0 27 0 0 Natl. Electric (£1) .. 1 3 6 — N.Z. Drug Co. (£2) .. 3 17 9 — N.Z. Drug (£1 paid) 2 9 6 . Farm, Fertiliser (£1) 0 19 0 — N.Z. Paper Mills (£1) 1 12 3 1 13 3 O.D. Times (£1) .. 1 17 3 — Regent Theatre (£1) — 0 19 0 Smith and Smith (pref.; £1) .. 0 19 0 — Wilsons Cement (10s) 0 19 3 — Woolworths (ord.; 5s) — 0 14 5 Woolworths (Syd.; 5s) — ♦O 17 9 Woolworths Prpts. (£1) 1 5 9 — Woolworths (S.A.; 5s) — 0 16 0 BREWERIES N.Z. Breweries (£1) 1 15 6 1 16 0 Dominion (£1) 1 10 0 — Dunedin (£1) .. .. — 1 1 6 MINING Broken Hill South (5s) 1 7 0 — E. Zinc (ord.; £1) .. 2 13 0 , E. Zinc (pref,; £1) .. 2 15 0 — Mount Lyell (£1) .. 1 7 3 — Mount Morgan (2s 6d) 0 9 3 0 9 9 North Broken Hill (5s) 2 2 6 2 4 9 Clutha River (2s) — 0 2 0 Gillespie’s Beach (Is) — 0 0 3 Grey River (10s) 0 15 0 — Nokomai (5s) .. .. —— 0 1 0 Waihi Invstmnts. (5s) 0 4 0 — Waitahu (5s) .. .. 0 0 5 0 0 9 UNLISTED STOCKS National Tobacco 1 12 3 — Mackintosh Caley,--Phcenix 0 14 9 0 15 6 O. and S. Finance (cont.) 0 1 9 — O. and S. Finance (paid) 0 7 0 — O. and S. Finance (pref.) .. .. •• 0 18 0 — Otago Invest. Trust .. 0 0 6 — * Ex dividend.

Net DiviJuly 31 Reserves profit dend £ £ p.c. 1930 .. . . .. 23,002 21,904 10 1932 .. . . .. 24,969 14,835 n 1934 .. . 25,259 83 1936 .. . 20,059 83 1938 .. . 23,750 8.3 1939 .. . . .. 53,998 19,828 83 1940 .. . . .. 47,559 11,061 83 1941 .. . . .. 47,964 15,405 74

Total Fixed InvestJuly 31 assets assets Ratio ments Ratio £ £ p.c. £ p.c. 1936 .. 272,273 112,098 40.14 94,218 33.74 1937 .. 275,189 111,834 40,66 89,218 32.42 1938 .. 286,829 116,319 40.55 79,218 27.62 1939 .. 285,016 110,327 38.71 74,218 26.04 1940 .. 286,846 104,863 36.56 74,218 25.87 1941 .. 188,792 103,467 35.83 73,483 25.44