Shares and MINING

Observer, Volume XXVII, Issue 35, 18 May 1907, Page 20

Shares and MINING

By Uuadiaii

''M^ HE London money market is I gradually tending towards easiness, and another week or two should see the bank rate further reduced. When we get back to 3 per cent, we may consider the market to be easy.

Tho conversion loan issued by Western Australia a month or two ago is not so satisfactorily placed a* could have been desired ; consequently the Treasurers ot the other States are looking to the local markets to furnish the funds necessary to cover their committments.

The Hon. Thomas Bent has managed to make satisfactory arrangements in Melbourne for all Victorian loans falling due up to 1908. This is depleting the local market, and more than one chairman of the Australian banks has called attention to this.

Locally there is no change to report, but money for ordmar • demands is plentiful. Several large share issues are announced, such tor instance, as the Wellington Woollen and the " New Zealand Times."

The directors of Dalgety and Co. Limited have declared an interim dividend at the rate of 6 per cent, per annum. The dividend was made payable on the 16th inst.

The report of Sharland and Co., Limited, is not as satisfactory as usual, the profits not being as Largo as in recent years. AViiy there should be this shrinkage in a year of extreme general prosperity is not explained by the directors in their report, but no doubt there are adequate reasons. The profits are sufficient to pay the usual dividend of 7£ per cent., and the directors recommend that the usual dividend be paid, but nothing is to be added to the reserve fund. The directoFs, however, express the "ious hope that additions to the reserve may be made at the end of the year now current. It is a question whether the directors would not have acted wisely in reducing the dividend and adding to the reserve fund ; such a course would have affected the income of shareholders and probably reduced the market value of the shares, and that perhaps accounts for the maintenance of the dividend at the old rate.

The report states that, after making full provision for bad debts, depreciation of piant and fixtures, and certain losses of stocks, the nett profits tor the year amounted to £3601 2s 2d, and with the balance £111 0s 6d brought forward, there is £3,712 2s 8d available for distribution. The dividend at the rate of 7^ per cent, absorbs £3,650, or £4D more than the nett profit, leaving £61 8s 8d to be carried forward. It is explained that the turnover of business by the company has been greater than in any previous year, but the gross profits have been less, while expenses, bad debts and losses in stocks have been unusuall- high. The shares will most likely weaken — as a matter of fact they have not been, strong for some time past.

The fifty-eighth annual report of the A.M. P. Society, which covers the year 1906, shows that 17,122 policies were issued, assuring £4,585,436. This total includes 255 non-participating policies, assuring £51,117. The new premiums totalled £217,830. Claims under 1361 life policies amounted to £729,971 ; and the total included £220,711 for bonus additions. The industrial department issued during the year

15,365 new policies, assuring £4Uo/J57 at premiums amounting to £24,295 per annum. The business in force in this department at the end of the year consisted of 16 318 policies, assuring £432,623, and producing an annual premium income of £25,ya1. The accumulated fund has been increased by £yyu,746, and now amounts to £22,413,827.

The report of the actuary discloses a cash surplus of funds over liabilities of £<b 0,341. Out of this surplus the board has resolved in accordance witn tne recommendation ol the actuaryj to allot the sum of £bb4,o'y/ tor distixuuuon among the members. This sum will provide reversionary bonuses amounting to about £I,2UU,OUU. The total revenue ol tne ordinary department during the year amounted to £2,ybii,756, of which the renewal premiums accounted for £1,716,721, and interest and dividends lor £y87,4y7.

The total payments to policy holdera and tneir representatives amounted to £1,203,8bd. The surrenders totalled £3^,089 ; bonuses paid to policy holders in cash, £60,022 ; commissions, £64,400 ; medical tees and salaries, salaries ot olficers and employees, £ttt>,3o6 ; other expenses ot management, £02, /75 ; taxes, £27,05y ; and other payments, £36,558. The assets ot the company include mortgages, i.'J,788,o v j3 ; loans on the company's policies, £4,446,731 ; New Zealand Uovernment securities, £1,215.800 ; Uritish Government securities, £102,340 ; Indian and Colonial Government securities, £3,433,560 ; mun lcipal and other loans, £1,889,4t;0 ; properties acquired by foreclosure, j-Ou-i,288 ; premiums due and overdue, £232,261. • » »

In the fifty-eight years of its existence the (Society has issued 8V4,840 policies, of which 167,846 have become void through various causes, leaving in force 12116,994 policies, atisuring £67,809, Jit, and producing £1,89^,189 in annual premiums. The total receipts during the titty-eight years amounted to £54,446,4*2, ot which £17,330,863 was derived from interest. The total disbursements were £32,032,645, of which £26,032,118 was paid to members or their representatives. On the 31st December last there were 23,432 policies overdue and which were being kept going in force by their surrender values.

The New Zealand Paper Mills Co. has had t. good year. After making provision for depreciation, the nett profit for the year was £6,fcn 6. A dividend of seven per cent has been declared, and £1,107 carried forward. Buyers offer 255, which is a slight advance on last week.

Buyers have come in for B.N.Z. shares, and £10 3s 6d is offered, with no sellers. Nationals have been done at £5 9s, .vnh more buyers at the same price.

Insurance stocks are steady, but scarcely so strong as last week. South British have seen transactions at £5 9s, and buyers are still offering about £5 7s, and New Zealands are wanted at £4 Bs. The buying pjice of Nationals is still at 275, arid of Standards 23s 6d.

Several buying orders of Northern Steams have been filled this week, at 18s for paid ups and 8s 2d for contributings. Both classes of this stock are still steadily enquired for.

Kauri contributings have been done up to 7s 9d and paid ur>s to 20s. This stock is greatly increasing in favour with investors.

Auckland Tramways continue to be bought steadily. It will be interesting to know that already £100,000 worth of this stock, or about onesixth of the whole, is held in Auckland. There are buyers of preference at 245, and of ordinary at 23s 3d.

Shares in the Waihi G.M. Co. were at £9 9s 6d when the news was cabled of the declaration at the annual meeting in London of a dividend of 3s and a. bonus of 8s per thai-*, and

the announcement that for the future the quarterly dividends would be 3b 6d. It might have been expected that the shares would have risen on this gratifying news, but, on the contrary, they fell by 3s. Why, it is difficult, to say, unless there was an expectation that even higher dividends irould be announced or because of the miners' award, which was published the same day. If the latter was the cause, there is no reason for uneasiness. The only increases allowed are to men underground, and in the Waihi mine all the underground work is done on contract, and already the contractors pay higher wages than those awarded. To the Waihi Company, at all events, the award makes little or no difference. Besides, the i4s to be paid in quarterly dividends, I quite expect to see the Waihi pay a substantial bonus at the end of the year.

The show in the No. 13 level of the Talisman is a splendid one. The reel is 6 feet through, and of high rade ore. The developments being several years ahead of battery requirements, it will not be necessar" to deepen the shaft for some time to come. The April yield was an average one of £11,345 from 4136 tons. Shares are worth 32s 6d.

The Waiotahi mine is still holding its own, and shares are firm enough at 25s 6d, but how much longer can this be expected to last ?

Not only is the Tairua Broken Hills carrying the gold up with the rise, but the reef has widened out to 3 feet 6 inches. Shares have risen correspondingly, and are now worth rather more than 4s.

Crowns are again easier at 26s 10d, buyers. It is estimated that the water race will cost the company £6000, which will absorb the profit for some little time to come.

Several parcels of picked stone are reported from Kirikiri, but the public are sceptical, and shares do not rise above 6d.

The scare in the Waihi Extendeds was scarcely justified by circumstances, and may be attributed to the exertions of the bears. Though the reef is not yet. to hand in the low level, it has been carried down in the winze nearly as far as the level, so that it is certain to be picked up. Evidently, it has deflected somewhat from its course. Shares have recovered to 6s.

Some interesting developments may be exepcted in the May Queen now that the slide has been picked up in the St. Hippo crosscut, 'me reconstruction arrangements are well forward, and with the £1000 coming from the Thames Borough Council and the £ for £ subsidy from the Government, deep level exploration prospects are good. Buyers are firm at 2s 9d.