COMMERCIAL

Southland Times, Issue 23001, 22 September 1936, Page 3

COMMERCIAL

SHARE MARKET INVERCARGILL STOCK EXCHANGE At yesterday’s call-over on the Invercargill Stock Exchange the following prices were quoted:— Government Debentures.

NORTHERN EXCHANGES SALES ON _7 CHANGE AUCKLAND.

DUNEDIN. £ s d Commercial Bank (Saturday) 18 4 New Zealand Refrigerating Deb 4'/ 4 p.c. 1945 100 15 0 G. J. Coles (Saturday 4 0 9 Electrolytic Zinc (ord.) 2 3 10’,i do. 2 4 0 Mount Lyell (2) 19 6 Gillespies Beach 1 s>,i

COMPANY NEWS CLAUDE NEON, LIMITED. Claude Neon, Ltd., reports a net profit of £21,536 for the year ended June 30, compared with £16,440 the previous year, and £10,163 for 1933-34. The dividend is maintained at 15 per cent., requiring £18,357, and £lOOO is transferred to general reserve, leaving £5378 to be carried forward, against £3199 brought forward. At the annual meeting shareholders will be asked to approve of an increase in the directors’ combined remuneration from £BOO to £lOOO a year. JAMES STEDMAN HENDERSON. James Stedman Henderson’s Sweets, Ltd., made a net profit last year of £38,305, compared with £36,261 the previous year. Ordinary dividend remains at 5 per cent, absorbing £26,534, preference dividends require £7750, and a sum of £5OOO is carried to reserve, leaving £7538 to be carried forward against £8517 brought forward. The balance-sheet has been redrafted. Specific reserves have been eliminated from the liabilities by deducting them from the respective assets to which they formerly applied, so that they now appear in the balance-sheet at their written-down value. Assets and liabilities of the New Zealand branch have been amalgamated with head office figures in place of appearing under one heading as a “branch account.” AUSTRALIAN DRUG (INVESTMENTS). Australian Drug (Investments), Ltd., realized a net return of £7916 for the year ended June 30, compared with £4200 the previous year. A dividend on ordinary shares of 2J per cent. —the first dividend since 1929—is proposed, absorbing £4055. Preference dividend of 7J per cent, less statutory reduction, requires £3649. The balance, £2ll, is transferred to general reserve. HUME PIPE COMPANY. Confidence that higher quality pipes will lead to increased avenues of trade is expressed by the directors of the Hume Pipe Company (Aust.), Ltd., in their annual report for the year ended June 30. Increased business is expected from works already announced by the Government and by other bodies, and the directors view prospects with considerable optimism. The development of the associated company, Hume Steel, Ltd., has brought in a considerable quantity of work. As announced in a preliminary statement, profits are £10,960 larger at £34,000 (6 J per cent, on capital), and dividends are being raised from 4 per cent, to 5 per cent, requiring £25,000. The New Zealand branch contributed to the improvement, which was spread over the whole business. As the directors point out, operations in Australia and New Zealand are the real source of earnings, though the company may benefit from its foreign patents. NEW SHIPPING LINE.

Montreal Australia New Zealand Line, Limited, has been registered as a private company. The following are the names and addresses of the persons resident in New Zealand authorized to accept service of process and any notices required to be served on Montreal Australia New Zealand Line, Limited, a company incorporated in Canada, with its established place of business in New Zealand at Maritime Building, Ballance Street, Wellington: C. M. Turrell, W. E. C. Gregory and A. D. Bayfield, all of Wellington, shipping managers. Capital: 500,000 dollars in 5000 shares of the par value of one hundred dollars each. Objects: To own, maintain, design, build, etc., or otherwise deal with steam, motor, or other ships and incidental. MOUNT MORGAN MINES OPERATION OF OXIDIZED PLANT. (United Press Association.) Wellington, September 21. Following the recent visit of the chairman and deputy chairman of Mount Morgan, Ltd., to the mine, a circular has been issued to shareholders outlining the improvement expected when the oxidized ore treatment plant begins operations in November. The first capacity of the plant will be 6000 tons a week and 1,500,000 tons of this oxidized material has already been sampled, tested and transferred to the <re reserves. An enlargement of the power house is scheduled. The concentrating mill at present has a capacity of 7500 tons a week and further enlargements are in progress. The development of an open cut shortly should possibly maintain an output of 30,000 tons of average grade sulphide ore a month and 25,000 tons of oxidized ore, making a total of 55,000 tons throughout. LOCHIEL DAIRY COMPANY The first annual report of the newlyformed Lochiel Dairy Factory Company states: “During the season a skimming plant was installed, and all cream was sent to the Farmers’ Dairy Federation. The average pay-out to suppliers was 9-Jd a lb, and a further payment by the Federation of 2 l-5d has just been made. “Keen and Daly were the successful tenderers for the erection of the new factory, and it is hoped to be ready to begin the manufacture of cheese at the beginning of October. Wilkins Ltd. have installed the machinery and the directors feel confident that the new factory will prove a great asset and convenience to the district.” DAIRY PRODUCE LONDON QUOTATIONS. By arrangement with the Primary Products Marketing Department the following information is supplied, prices for the previous week being given in parentheses:— Butter.—New Zealand salted, 105/to 106/-, equals approximately 12.45 d f.0.b., (109/- to 110/-); unsalted, 104/to 106/- (109/- to 110/-); Australian salted, 105/- to 106/- (108/- to 109/-); unsalted, 103/- to 105/- (109/- to 110/-); Argentine unsalted, 94/- to 98/- (100/- to 102/-); Danish, 102/- to 103/- f.0.b., 124/- spot (107/-, 128/-); Dutch unsalted, 98/-, 101/- up to 104/- (100/- to 106/-); Siberian salted, 102/- to 103/- (104/- to 106/-); Ukranian salted, 102/- (104/- to 106/-); Polish salted, 86/-, ex. 88/- (90/- to 92/-); unsalted, 86/- (90/- to 92/-). Retail prices are unchanged. New Zealand 1/2, Danish 1/3. The butter market continues weak, closing 1/- to 2/- below exchange price. Australian offering, 100/- c.i.f. shipment September, but no buyers. Dutch and Baltic States butters could be bought for America on the basis of 87/- c.i.f., but no offers.

Cheese.—New Zealand white, 67/- to 68/-, 7.61 d f.o.b. (68/6 to 69/-); coloured 65/6 to 66/-, 7.39 d f.o.b. (67/-); Canadian white, 69/- to 70/- (70/- to 72/-); Canadian coloured, to 72/- (69/to 70/-); Canadian old season’s white, 82/- (82/-); English finest farmers, 78/to 80/- (78/- to 80/-); English factory cheese, 62/- to 66/- (62/- to 66/-). New Zealand retail price, unchanged at Bd. The cheese market is quiet, but the demand is steady with good deliveries. Canadian autumn production was excellent and English make, although decreasing, is now higher than last year.

THE WOOL MARKET SYDNEY SALES RESUME FIRMLY. (United Press Assn.—Telegraph Copyright.) (Rec. 10 p.m.) Sydney, September 21. ' The wool sales resumed to-day. The market was firm at the closing rates of the last Sydney series, but all lines carrying burr and dust were 5 per cent, lower. Yorkshire and Germany were the chief buyers, supported by France, America and local users. Japanese representatives were present but did not operate. Greasy Merino made up to 19., d a lb. The offerings amounted to 10,732 bales, of which 8571 were sold, also 818 privately.

THE WOOL YEAR

SURVEY OF INDUSTRY.

HIGH AND STABLE VALUES.

“From a marketing standpoint the sheep industry in Australia during the past year has experienced one of the most gratifying periods in history,” said Mr H. Bell, chairman of directors of Winchcombe, Carson, Limited, Sydney, at the annual meeting of shareholders recently. Higher prices for wool and sheep had been obtained, but it was doubtful if a more stable range of values for wool and stock had ever been enjoyed. “If we glance back to 1932,” Mr. Bell continued, “when the clip sold at an average of 81d per lb. in Australia, and ; sheep and lambs were worth about one--1 third of their present-day _ value, we unquestionably have the right to assume that we have emerged from the depression. The value of all other primary products has also risen appreciably since those dolorous days. “Though uncertainty exists regarding the volume of Japanese wool-buying in Australia this season,” he continued, “there is no doubt that a demand will be experienced for every bale the Commonwealth grows this year and the years ahead. Russia and China are potential extensive users of wool. Nature has given Australia singular advantages both in climate and soil to grow wool and maintain sheep of high standard. She is more richly endowed in that respect that any other country in the world. The welfare of the sheep industry should be paramount in her national policy.” Mr Bell said that, in New South Wales, considerable agitation was proceeding for the stimulation of closer settlement. With existing numbers at present in the country about 10 per cent, of the Australian clip is bought by local manufacturers. Twice the population would make the mills in Australia most influential buyers at the sales, with decisive effects on wool values, in addition to supplying a remunerative outlet for larger quantities of rural products. “For five consecutive years the Australian clip has totalled over 3,000,000 bales,” concluded Mr Bell. “Ten years ago the total was 2,000,000 bales, and on occasions less. Australia rnay have neglected her opportunities in some directions, but she has not done so in the sheep industry. For a long period wool-growing was almost wholly centred upon, but of late years in the Commonwealth the fat lamb industry has displayed remarkable expansion. I consider that this distribution of activity is wise within limits, as it is undesirable to be over-dependent on one class of product. In the year ending June 30 last, the Commonwealth exported 4,800,000 carcasses of lamb.”

MINING RETURNS OKARITO. (United Press Association.) Dunedin, September 21. The Okarito mining return was 270 z 4dwt for 125 hours. WAIPAPA BEACH. (United Press Association.) Dunedin, September 21. The Waipapa Beach wash-up for 130 hours’ dredging totalled 15oz 3dwt. SYDNEY STOCK EXCHANGE MANDATED ALLUVIALS RISE SPECTACULARLY. (United Press Assn.—Telegraph Copyright.) (Rec. 8.30 p?m.) Sydney, September 21. On the Stock Exchange to-day Mandated Alluvials again rose spectacularly, touched £1 11/- and closed at £1 8/7 >/ 2 . Values generally were firm, with indications of profit-taking in the investment section. Sales:—

Melbourne Sales. Industrials were firm but barriers were

Irowat 2 0 PRICE ~oF GOLD The continued fall in the price of gold in recent weeks has given rise to some speculation about the outlook. Mining interests are trying to decide whether the future trend will be upwards or downwards and there is room for considerable divergence of opinion (says The Press). The price on Thursday, about £6 17/6 was the lowest for two years. Extreme quotations in the last three years compare as follows:— 1934. 1935 1936. £ s. d. £ s. d. £ s. d. Highest 733 794 714 7 owest 6 6 8J 6 19 9J 6 17 57 The price is fixed by the day-to-day relation of the pound sterling to francs and dollars. Recently sterling has been appreciating and the sterling price of gold has shown a corresponding fall. Should France devalue the franc, it is assumed that the sterling-dollar exchange will become the yardstick. The price, in turn, depends on the United States maintaining its present gold

buying rate of 35 dollars an ounce. An appreciable fall in the gold price would deal a heavy blow to expansion in the mining industry, and much of the prosperity which has been builton the higher price would be lost. The effects would be felt severely> in the British Empire, which is an important producer. Realization of this has prompted the belief that Britain will endeavour to hold a price about £7 an ounce. If this is so, the currency decline may be only temporary. The use of the Exchange Equilization Fund may restore the exchange rates and so reverse the movement.

Buyers. £ s. d. Sellers. £ s. d. Stock, 31 p.c., 1938-43 101 10 Stock, 3 J p.c., 1938-52 103 15 0 0 Stock, 3J p.c., 1939-43 101 10 0 Stock, 3J p.c., 1939-52 103 15 0 — Stock, 4 p.c., 1946 103 15 Bonds, 4 p.c., 1946 103 15 Stock, 4 p.c., 1949 105 5 Bonds, 4 p.c., 1949 105 5 0 0 0 0 — Stock, 4 p.c., 1955 105 5 Bonds, 4 p.c., 1955, 105 5 0 0 Banks. National of New 5 2 6 Commercial 0 18 3 0 18 5 Commercial, pref. 4 p.c. (cunt.) 0 0 N.S.W. New Zealand 1 19 0 0 32 17 1 19 6 6 Australasia 12 0 National of Australasia 14 10 0 0 Breweries. N.Z. Breweries (shares) 2 12 Tooth’s Brewery 2 16 0 0 2 13 2 16 0 9 Coal. , 1 1 0 1 3 3 Westport Coal - Insurance. National 0 18 3 — Loan and Agency. Goldsbrough, Mort and Co. 1 13 6 — Meat Companies. N.Z. Refrigerating— n 19 5 paiaj (10/- paid) 0 9 South Otago Freezing Co. 7 15 0 0 0 9 6 Shipping. Union Steam Ship Co. (pref.) 1 6 P. and O. Stock 1 10 0 0 — Woollen Mills. n 14 6 Bruce Miscellaneous. Australian Glass 4 14 British Tobacco (Aust.) 2 2 Broken Hill Pty. 0 9 3 17 0 (cont.) — " 4 1 6 G. J. Coles Dominion Fertilizer 1 4 Dominion Rubber 0 1 1 5 8 0 0 Co Donaghy s Rope and Twine 2 11 Dunlop Rubber (Aust.) 0 17 N.Z. Drug 3 15 N.Z. Guarantee Cor0 10 0 0 18 3 poration 0 5 N.Z. Paper Mills 1 6 Wilson’s (N.Z.) Portland Cement 1 16 7 3 3 1 16 9 Mining. o 2 3 Wailaliu Gillespie’s Beach 0 1 5 0 o 1 1 6 0 King Solomon - Mount Lyell 19 Mount Morgana 0 12 1 o 0 10J n m Waimuuiu Electrolytic Zinc— (ord.) 2 3 (pref.) 2 4 0 6 o Waipapa , ■ 6 6 0 Broken 11111 ©outn Big River 0 1 9 0 2 2 Okarito Unlisted. Woolworths (Sydney) 5 6 Shillings Ltd. 0 16 0 9 0 17 6

£ S d Stock 1938-52 p.c. 104 0 0 Auckland Power Board 1939 4V< p.c. 102 5 0 Hamilton Borough 1950 4 1 /4P-c. 105 0 0 do. 1960 4'4 p.c. 107 0 0 Commercial Bank of Australia 18 4 Bank of New Zealand (2) 1 19 0 South British 4 9 3 Renown Colleries (pref.) 2 10 Auckland Gas 1 3 1 Tooth's Brewery 2 16 4 Colonial Sugar 42 17 6 Dunlop Perdriau 18 2 Electrolytic Zinc 2 3 9 G. J. Coles (2) . 4 2 0 Morts Dock (2) 12 0 New Auckland Laundry 19 6 Wilson's Cement (2) 1 16 6 Brian Boru 3 Matakl j. 1)4 Mount Lyell (2) 1 9 6 Mount Morgan (3) 12 9 Unofficial. Dominion Breweries (pref.) 1 12 3 Weres Rights 10 WELLINGTON. £ s d Union Bank 9 10 0 Auckland Gas 1 3 1)4 Consolidated Brick (2) 9 5 Tooth and Co. 2 16 6 Broken Hill Rights to Wellington Alluvials Ltd. 2 6 Mount Morgan 12 6 Mount Lyell 1 9 4 Unofficial. Shillings Ltd. 17 1 Woolworths (Sydney) 5 7 6 CHRISTCHURCH. Listed. £ s d Mount Lyell 1 9 5 do. (3) 1 9 6 Mount Morgan 12 6 do. (3) 12 10 Brian Boru (3) 3 New Zealand Government 4 p.c. Inscribed 1937-40 101 15 0 New Zealand Government . 4 p.c. Inscribed 1943-46 104 0 0 New Zealand Government 4 p.c. Inscribed 1946-49 105 0 0 Commercial Bank of Australia 18 4 New Zealand Breweries 2 12 6 do. 2 12 7 do. 2 12 6 Timaru Brewery (in liquidation) 2 9 Australian Glass 4 12 8 do. 4 12 8 do. 4 12 6 Broken Hill Propty. (ex rights) 3 15 11 Colonial Sugar (2) ; • 42 17 6 Dunlop Rubber (cum. div.) 18 1 do. 18 G. J. Coles (cum. rights and cum. div.) (2) 4 2 3 do. (2) 4 2 5 Hume Pipe (Aust. cum. div.) 19 8 Rawang Tin 9 3 Sales Reported. Listed. Bank of New South Wales 32 10 0 Colonial Sugar 43 2 6 Morts Dock 11 11 Mount Lyell i 9 5 Unlisted. Selfridges Australasia (old) 1 6 9 Shillings Ltd. (17/6 paid) 17 0 Sales Reported. Unlisted. Shillings Ltd. (17/6 paid) 17 0 Wellington Alluvials (rights) 2 6

£ s d Colonial Sugar 4.3 2 6 Bank of New South Wales 33 5 0 E.S. and A. Bank 5 16 0 Australian Gas (A, new) 7 5 6 Toohey's Brewery 1 12 1V2 Drug Houses 1 12 6 Wilcox Mofflin 12 6 Greater J. D. Williams 8 1 Henry Jones 2 2 9 Millaquin Sugar 2 3 0 Fairymead Sugar 1 16 3 Farmers 1 12 3 Mount Lyell 1 10 0 Broken Hill Propty. 3 16 6 Zinc Corporation 4 2 0 Bulolo Deposits 1 5>/a Placer Development 4 16 6 Mataki Gold 3 0 Mandated Alluvials 1 8 7 J ,2

easier. £ d Commercial Bank of Australia 18 7 National Bank (£5 paid) 7 3 0 G. J. Coles 4 4 0 Australian Glass 4 13 0 Dunlop Perdriau Rubber (ord.) 18 5 Dunlop Perdriau Rubber (pref.) 1 15 0 Electrolytic Zinc (ord.) 2 4 9 Electrolytic Zinc (pref.) 2 a 6 Mount Morgan 13 2 Loloma 1 3 3 Herald and Weekly Times 3 10 0 Myers 1 1G 3 Silverton Trams 1 18 0 General Motors Holdens 1 4 0 United Provisions 11 6 Upper Watut 3 0