SUN COMMERCIAL SERVICE

Sun (Auckland), Volume II, Issue 388, 23 June 1928, Page 12

SUN COMMERCIAL SERVICE

A special section for readers seeking information on financial and commercial Questions is included in these columns every Saturday. Names and addresses must be given in every instance, although not for publication, and inquirers are requested to send in questions early in the week addressed to the Commercial Editor, THE SUN.

Indentor, Auckland.—The company you j mention is a private one, and its shares ! are not available to the public. R.L., Mount Albert.—lf the position is as j you indicate, it seems that you have no option but to pay. Timbers, Gisborne.—The prospectus is i little different from many others that have come in for unfavourable criticism I by financial writers in all parts of Australia and New Zealand during the past year or so, except, perhaps, that it contains less tangible information for possible investors. The experts’ views published are practically worthless. Such investments came in for adverse criticism by the chairman of the Auckland Chamber of Commerce at the last annual meeting of that association. As to the bonds being negotiable at any period, it is a significant fact that there is practically no sale to-day for bonds in existing companies carrying on similar operations. They are certainly not to be recommended from the point of view of a safe investment. T.W.J., Herne Bay.—The position of Australian Glass appears particularly sound. The company has experienced six years of rising profits, and dividends have been kept at a steady 10 per cent. The latest balance sheet shows preference dividends absorbing £15,750, and ordinaries £93,047, leaving £75,801 for reserves, which now total £342,764. A vigorous campaign of reorganisation appears to have been the company’s policy over the past six years, and each year very large additions to machinery have been made, while old plant has been scrapped. The scrip is recommended as reasonably sound for permanent investment for buyers who would be content with low yields until accruing additional benefits are derived.