COMPANY NEWS

Southland Times, Issue 23780, 30 March 1939, Page 3

COMPANY NEWS

DOMINION RUBBER COMPANY UNSATISFACTORY YEAR REPORTED (Special to The Times) DUNEDIN, March 29. An unsatisfactory year, attributed to a low export quota and weakening rubber prices was reported at the annual meeting of shareholders of the Dominion Rubber Company Ltd., today. The chairman of directors, Mr Hugh Adam, presided over a small attendance of shareholders. “The year has been a very difficult one,” said the chairman, moving the adoption of the directors’ report and statement of accounts, “for, in addition to a drastic reduction in the exportable quota fixed by the Rubber Restriction Committee, the prices of rubber underwent severe fluctuations at the beginning of the financial year. The exportable allowance was 90 per cent, of the standard production. At that time rubber was returning in Singapore slightly over 6d per lb. For the January-March quarter the quota was reduced to 70 per cent., but contrary to expectations, the price failed to rise and in fact fell to 52d at the end of March. For the following quarter the restriction committee allowed only 60 per cent, export and here again the price continued to drop, instead of increasing. Early in that particular quarter the return for our firstgrade rubber in Singapore was only 44d per lb. Half-way through the year a drastic cut to 45 per cent, was made and this quota continued until the end of the financial year. This substantial cut had a satisfactory effect on the price, which jumped from 4 4-5 d in June to 7jd in July, while at the end of November we were receiving 8d per lb for a considerably smaller output. “Since the close of the financial year the price had dropped again, our last advices being that first-grade rubber was selling at 7£d. The effect of these reductions of the quota was that of our standard production we were permitted to export only 58J per cent. The net result was that our average price for the full financial year was only 5.14 d per lb, as against 8.45 d for the previous year, while the quantity sold fell by approximately 90,0001 b in the same period. The effect of these factors can better be seen from the fact tha.t whereas the proceeds from the sale o’f rubber for the 1936-37 period totalled £16,325, in the year just ended we received only £8132.”

The chairman added that in view of the uncertain position in the rubber industry the directors felt that the whole of the balance in the appropriation account should be carried forward.

THE WOOL MARKET ACTIVE COMPETITION AT LONDON SALES LONDON, March 28. At the wool sales 8771 bales were offered, including 3718 from New Zealand, and 7793 were sold. There was a poor selection but it met with active competition. Russia operated moderately for New Zealand crossbreds. Values were generally well maintained. Quotations: — New Zealand greasy Merino, “Bemopai,” 9|d and 13d; greasy crossbred “Tepuru” and 10.! d; “Tirohanga,” 9|d. SYDNEY MARKET FIRM (Received March 29, 9.25 p.m.) SYDNEY, March 29. At the wool sales today there was a strong demand on the Yorkshire and Continental accounts. The market was firm at the previous day’s rates. Greasy Merino made up to 25Jd. A total of 10,314 bales was offered and 9034 bales were sold, also 600 privately. THE METAL MARKET (Received March 29, 6.30 p.m.) LONDON, March 28. . Metal quotations are as follows; — I Mar. 27 Mar. 28 A ton. A ton.

SilverFine, per oz 19 15-16 d 19 15-16 d Standard, per oz 21 lid 21 Hd

£ S d £ S d Copper— Standard, spot 43 8 l'/ 2 43 1 3 Forward 43 13 9 43 9 4’/ 2 Electrolytic 48 10 0 48 10 0 to 49 0 0 49 10 0 Wire bars 49 0 0 49 10 0 uead— Spot 14 10 10 >/ 2 14 14 4>/ 2 Forward 14 18 9 14 16 io.>/ 2 SpelterSpot 13 15 0 13 15 0 Forward 13 18 9 13 18 1’ 2 TinSpot 217 2 6 216 2 6 Forward 215 17 6 214 17 6