COMMERCIAL

Southland Times, Issue 19519, 19 May 1922, Page 2

COMMERCIAL

FINANCE AND TRADE

Times Office, Thursday, May 18. yTOCK. Stock are not offering in such large numbers as they have been for some time past, and, as a result, country sales are not being held so frequently. The general tone of the market, however, is still good. Fat cattle are plentiful, and as there is no improvement in the demand prices remain low. Extra prime bullocks are worth from £9 to £ll, prime £7 to £9, and lighter sorts £5 10s to £7. Recent sales have included fair yarding® of store cattle which have met with a poor demand, as at present there is very little encouragement to fatten cattle. Fat sheep are in fair supply and continue to meet with a good demand. Wethers have shown a slight rise recently and have been realising as much as 26/6. The average price for prime wethers, however, is about 23/- with lighter sorts in proportion. Ewes are selling exceedingly well, extra prime sorts bringing as much as 19/-. Ordinary prime ewee are selling at from 14/- to 16/» The lamb market is slightly easier. Buyers limits appear to be somewhere about 7Jd, extra prime lambs at this rate being worth 24/- to 25/, and prime from 21/- to 23/-. The demand for store sheep has slackened off considerably, especially for breeding ewes. Forward lambs and wethers are stiff selling well but at prices not so good ao those ruling a month ago. Farward lambs and wethers are worth about the same money, namely, 16/- to 18/-. CEREALS. Otte: The market remains about the same as last week. Some business has been done for shipment so that the market is fairly steady at present prices. A grade are worth about 2/4, on trucks, to farmers, and B grade about 2/J to 2/2. Under grade run from 2/- down. Duns are still in demand and prices to farmers for heavy dark lines run from 2/8 to 2/10. Chaff: Considerable quantities are offering. Prime new is worth £3 10s on trucks, farmers’ sidings, prime last season’s would probably net 5/- a ton more. Ryegrass: Last week’s prices are being maintained. Clean 25-26 10 seed is worth up to 3/6, 0.A.0.5., 24 lb seed 3/4, 23 lb seed 3/2, dirty and lighter lines proportionally less. Potatoes: The market for shipment seems easier and potatoes for immediate delivery could probably be bought in Canterbury at about £4 10s, si.; this is equal to about £3 10s, on truck growing districts, but Southland potatoes are commanding from £4 10s to £5 for local consumption. GENERAL MERCHANDISE.

Business for the week, has, if anything, been on the quiet scale, but this is nothing unusual for thia time of the year. There is an increasing demand for those lines for which lower prices have been ruling. Kerosene is due to drop another 1/- per case, about the end of this month. Grocers are buying breakfast goods freely, as it is thought that prices are bound to advance. There is speculation as to what the possible drop in prices of Edmond’s Baking Powder will be. The fall is to take effect from May 20. Wax matches are now in more plentiful supply than formerly, and it is expected that from now onward, all reasonable demands will be met by the manufacturers. The site question in Wellington has been ajnicably arranged for, so thav a larger output may soon be expected. Business in tea is very firm, and as in other parts of the dominion, retailers are drawing freely on merchant stocks, whose prices are considerably lower than the next importations will be. Zig Zaz tissues are absolutely unprocurable, and many stock holders are asking their own. price. This state of affairs is general in northern towns. Surgar of Milk is likely to recede in price about June. The Wanaka is timed to leave Auckland on the 20th of this month with southern consignments of sugar. Australian goods: A number of the Australian manufacturers are falling into line and paying the extra duty on their goods, so in the near future these will be quoted at the old prices. Walnut# are in very short supply. New season’s Akaroa walnut? have been offering at 1/6 per lb nett. Chinese walnuts are also on the market. Mainly owing to the increased duty Queensland arrowroot is now quoted at 9/per dozen packets. Latest advices from Singapore indicate that the prices of sago and tapioca lines considerably firmed. The sago quotation# ex Singapore for July are higher than the ex stofe price now ruling. Burman candles are in short supply. Further shipments are expected to land shortly. CURRENT PRICES.

The following are current prices quoted l>y a retailer: — —Wholesale. — Eggs, 3/3. Bacon, 1/1. Butter, factory 1/6, farm 1/1, separator 1/3. . Pollard, £9 per ton. Bran, £3 per ton. Flour, £lB 10/- to £2O 10/-. Oatmeal, £2l 16/- to £23. —Retail.— Eggs 2/8. Bacon 1/4 per lb. Butter, factory 1/8 cash, 1/9 booked; farm 1/3, separator 1/5. Pollard, 11/- per 100. Flour, 25 s 6Z- 50's 11/-; 100’s, 23/-; 200’s, 43/-. Uiitmeai, 501 b 13/-; 251 b, 6/6, 51b, 1/7; lib 40. OniOn, Slbs V-. FRUIT A.ND VEGETABLES. The market has been quiet during the week, extra heavy supplies coming forward. The market is glutted with dessert peers which are being sold at low rates. A shipment of Australian fruits arrived ex the Wingatui and met a good market American oranges and Adelaide lemons tomorrow. Following are the approximate wholesale prices Apples, Delicious 11/- to 14/-, Johnathans 7/- to 9/6, Scarlets 7/- to 9/-, Cleopatra 7/6 to 10/6, Lord Wolseley 7/tp 8/-, Five Crowns 6/- to 7/6, Munro’s 5/6 to 7/-; Pears choice Winter Nellis ILI to 2id, Winter Coles lld to 2d, others from 3/- to 5/- per bushel case; grapes, Groecolmar 2/- per lb; tomatoes, hot house 7d to Bd, Christchurch 24d to 4d; oranges, Blind repacks 24/- American double cases 50/-; passion fruit to 24/- per box; Queensland bananas to 38/- per case. Vegetables are in plentiful supply. Wholeeale prices:—Cauliflowers 7/- to 9/- per sack, cabbage 3/- to 4/- per sack, Swedes 2/6 per bag, carrots Id per lb, parsnips lid, jam melons 2d. HARDWARE. There hai been A fair demand for fencing material and prices are firm at rates quoted recently. The building trade is still quiet, and consequently the demand for lines used in it is slack. London advices received in Invercargill in regard to the price of Steel indicate that English makers have been quoting very low in order to overcome Continental competition, but the loss which resulted was so heavy that some works have been closed down and otlisr companies have been compelled to drop their piuas somewhat. STOCK EXCHANGE. A BRISK WEEK Twelve percels have changed hands during the week, the improvement in the money market no douh* aweuatiag far the increased faratmada.

Business in Southland Frozen Meat stocks began to move appreciably on Monday, and further sales were reported yesterday. Bank 'of New Zealand sellers continue to hold out for £2 12/- with buyers offering £2 11/- yesterday. Union Bank sellers show a tendency tp drop their price. N.Z. Coal & Oil sellers’ ideas have come down twopence. There are steady buyers of N.Z. Milk Products at £1 2/-, but no offers from the holders of this scrip. A buyer of N.Z. Sugar of Milk shares has appeared at 4/6 below holders’ quotation. There are still buyers of Otago Daily Times shares at £2 5/-. Buyers of all Government stocks have advanced their price still more, but there was a seller of Soldiers’ Settlement Bonds yesterday at £9B 15/- with no offers. Yesterday a buyer of National Banks made his appearance at £6. This is probably a sign of interest due to the fact that the shareholders in the bank were last week informed by circular that the board of directors has resolved to offer to the shareholder® this month 100,000 new shares of £7 10/- each (£2 10/- paid up) at a premium of £2 per share. This is consequent on the resolution carried unanimously at the annual meeting increasing the authorised capital of the bank from £3,000,000 to | £4,500,000 by the creation of 200,000 new shares of £7 10/- each. It would appear that the bank is issuing only one-half of the newly created shares at the present time. The proportion of the new issue which shareholders are entitled to receive is one share for every four shares held at the present time. The payment for these new shares may be made in instalments, on which interest at the rate of 4 per cent, will be allowed till September 30, but payments made in full on June 8, which is the date of application, will carry dividend for the half-year ending September 30. The directors in this circular anticipate that the dividend and bonus to be declared for the year ended March 31 last will be the same as that declared for the previous year,which was 14 per cent. The present market price for National Bank of New Zealand shares is £6, and it will be seen from the foregoing that shareholders get the one share for the four now held at the price of £4 10/-.

YESTERDAY S BUSINESS. Sales reported: Southland Frozen Meat, £1 ord., at £1 4/3 and £1 4/6; Inscribed Stock, 1938, at £95 10/- and £93 15/-. Following are the quotations (subject to brokerage): — Bank of N.Z., buyers £2 11/-, sellers £2 12/-. Commercial Bank, sellers £1 16/-. National Bank, buyers £6. Union Bank, sellers £l2 18/6. N.Z. Coal & Oil, sellers 3/1. Westport Coal, sellers £1 10/-. N.Z, Insurance, buyers £1 8/-. Southland Farmers’ Co.-op. (ord.), seller? £2. I N.Z. Milk Products, buyers £1 2/-. N.Z. Sugar of Milk, buyers £1 6/-, sellers £1 10/6. Southland Frozen Meat, £1 ord., buyers £1 4/-, sellers £1 5/6; 10/- ord., buyers 12/-, sellers 12/9; £1 pref., buyers £1 4/-. N.Z. Drug, buyers £2 11/-. N.Z. Paper Mills, sellers £1 2/6. Otago Daily Times, buyers £2 5/-. Papuan Products, sellers Bd. War Bonds, 193 U, buyers £93 10/-; 1938 and 1939, buyers £93; P.O. Bonds, 1927, buyers £94; Soldiers' Settlement Bonds, sellers £9B 15/-. TIMBER PRICES. REDUCTION UNLIKELY IN NEAR FUTURE. i In view of the reported further reduction ! in timber prices reported from Christchurch, ■ a Times reporter yesterday made inquiries ; as to whether the local millers intended to i take similar step® following on the Arbi- ; tration Court’s pronouncement. It was exI plained to him that the local millers had | anticipated the wages cut by early in April I reducing the price of their o.b. timber by 2/- per 100 feet this reduction, it was stated, representing a bigger percentage re- ‘ duction than the fall in wages. He was led to believe that there is no likelihood of a further drop in the immediate future. The Forestry Department is now making millers pay more in royalty, while the timber is i ever becoming more extensive and difficult ; to mill as the central supplies of bush be- | come exhausted. More, it was claimed that i the profits of the millers had fallen considerably during the past few months owing to the tact that most of the mills have been working at from 30 per cent, to 40 per cent, below their capacity due to a lagging demand.

WAIHI GOLD MINING COMPANY. The announcement that the Waihi Gold Mining Company had decided to alter the articles of association to,enable the company to mine lor any substance in any part of the world would, no doubt, be read ! with a good deal of interest by local share- | holders (writes “Filer,” in the Timaru Post). ' An important change in articles of associai tion oi this nature is not usually sought I lor by directors without good cause, and it is Likely that before asking shareholders to grant them such extensive powers, the directors had in view some scheme for the ! furtherance of the interests of holders oi I scrip. Indeed, it is just possible they may I hold an option, or options, over certain ; mining areas in another part of the world. 1 Be that as it may, it- may well be asked i why seek “fresh woods and pastures new” I when there is a property—the Grand Junc--1 tion—next door to their own mine which many shareholders in both companies would I like much to see acquired. A few years | ago when the late Mr Grace was manager oi the Grand Junction, it was understood , that negotiations were no toot for an amalgamation of the two companies, but fell through. The benefits of such an amalgamation are obvious. The elimination of dual control and the heavy overhead charges of working two properties situated side by side as they are, need only be mentioned in this connection to be fully appreciated- Whatever is in the minds of directors, the shareholders, especially those who paid high prices for their holdings, hope that the new move will restore, at least in part, ihe erstwhile “glory” of this company, which of late years has been somewhat dim. COMPANY REPORTS. NEW ZEALAND PAPER MILLS. The report and balance-sheet of the New Zealand Paper Mills, Ltd., shows that after making provision for all bad and doubtful debts, for depreciation on and machinery, for income tax, and reducting the interim dividend of £3788 7s 7d, paid on November 9, 1921, there is left available £14,645 14s lid. The directors recommend that this be dealt with as follows:—Payment of dividend at the rate of 4 per cent, for the half year (making 74 per cent for the year), £4BBO ss; carry forward £9765 9s lid. Work at the extension at Mataura had been iu progress during the year. The paper machine is finished, and will shortly be shipped from Edinburgh. Contracts have been let for the necessary turbine, generator and steam boilers, and the new section of the waterrace is practically complete. The directors deplore the loss of Mr J. M’D. Stevenson, who died suddenly in March. Though only occupying a seat on the board for fourteen months, his colleagues had learned to appreciate the vilue of his services and expert knowledge. Mr J. W. Mitchell retires by rotation, but is eligible, and offers himself for re-election, as do the auditors, Messrs Barr, Leary and Co., of Dunedin, W« Auckland.

TAUPIRI COAL MINES. The twenty-third annual report of the directors of the Taupiri Coal Mines, Ltd., covering the year ended March 31, shows that the profit for the year, after making allowance for depreciation and provision for income tax, amounts to £11,746 19/8, to which must be added the sum of £llOO 18/7, brought forward from last year, making a total of £12,847 18/3. Preference share dividends, amounting to £1599 10/8, have been paid, leaving a balance of £ll,248 7/7. This sum the directors recommend be appropriated as follows :—To pay a dividend of 1/6 per share, £9075 ; to transfer to accident reserve fund, £lOOO ; to carry forward to next year’s account. £1173 7/7. The retiring directors, Messrs W. J. Ralph and J. Raynes, offer themselves for re-election. Mr R. E. Isaacs offers himself for re-election as auditor. Following is a comparison of the company’s receipts for the last three years : 1919-20 1920-21 1921-22 £ £ £ Brought forward 1,573 1.018 1,101 Net profit . . 12,105 11,751 11,747 Dividends — Preference . 1,584 1,594 1,599 Ordinary . 9,075 9,075 9,075 Accident reserve 2,000 1,000 1,000 Carried forward 1,018 1,101 1,173 The dividend in each year on the ordinary shares has been at the rate of 1/6. DENTAL AND MEDICAL SUPPLY. CO., LTD. The twenty-fourth annual general meeting of the Dental and Medical Supply Company, Ltd., was held in Wellington on Friday evening, Dr W. Fell presiding. The directors’ | report and balance-sheet were adopted. The I year’s trading showed a net profit of £2430 1/3, which, with the amount carried forward from last year, £1636 15/4, makes a total of £4066 16/7. It was decided that this be applied as follows To payment of a dividend of 8 per cent, £2834 17/9 ; bonus to holders at March 31, 11)21, of five or more shares on their purchases, £5ll 18/-; carry forward to next year, £720 0/10. Total, £4066 16/7.

Feeling reference was made to the loss sustained to the company by the death of the Hon. J. G. W. Aitken, chairman since the company’s inception, and shortly after of his successor, Mr William Hannay. A resolution empowering the directors to make sales of shares “across the counter” upon such terms and conditions as the directors shall think fit, and either at par or at a premium, was unanimously carried. The retiring directors, Messrs Andrew Gray and George Wilson, were re-elected, and Mr W. G. Mantell was elected to fill the vacancy caused by the death of Mr Hannay. The retiring auditors at Auckland, Christchurch, Dunedin and Welling ton were re-eleceted. A hearty vote of thanks to the staff was passed. THE BANK OF ENGLAND. The Bank of England yesterday increased its dividend for the half-year to 6 per cent. (says the Manchester Guardian, of March 17). Reference may be made here to a speech of an unusual kind which Mr 8. P. Derbyshire, of Nottingham, made. A previous chairman, he said, several years ago intimated that the directors were contemplating bringing the Bank more into line with modern requirements. It was founded in 1694, under a Charter, and although alterations had been made from time to time it remained very largely in the form in which it was established. He knew it waa sacrilege to talk within those wails about an alteration, but he suggested that the time had come when the Bank of England ought to give the stockholders much more information than had been done hitherto. He gathered that the Government owed the-Bank £11,015,100, and had done so for many years. He respectfully suggested that the time had come when that overdraft should be discharged, and, instead of a large portion of the proprietors’ capital being looked up in the Government stagnant overdraft at 2j per cent, interest, it should be put into a better form of investment. The Bank had three great responsibilities. Its first duty was to the Government, the second to the commercial public, and the third to the stockholders. They had faithfully discharged their duties to the Government and fairly well to the commercial public, but he still clung to the opinion that the interests of the stockholders had been their last consideration. He suggested that the Charter should be revised and that an ordinary limited company should be formed that would bring the memorandum and articles of association right up to date. The board of directors, too, ought to be more widely representative. With /the huge amount of business which was being done, the earning capacity of the Bank could be easily increased. What was wanted was a change in sentiment. The sentiment of a large number of the proprietors of the Bank seemed to be that their delight was to hold shares in a bank which rendered noble service to the public at a cost of the unhappy holders. The rank and file of the stockholders all over the country did not hold that position. In a brief reply, the chairman said that the matters referred to were continually being considered.