Shars and MINING

Observer, Volume XXVII, Issue 39, 15 June 1907, Page 20

Shars and MINING

By Obadiah.

IN London, money is getting dearer. Consols, at £83 15s, have touched the lowest point for many years, and practically all Colonial Government securities are very much lower. This general decline must have some reason behind it, and perhaps before these lines are in print an explanation will be available. It is a rich man's crisis, but, all the same, the community at large will feel the pinch. • • s

It is very probable that the recent discussions on the fall in the price of Consols, in which Lord Rothschild, Lord Avebury, and other eminent financiers have taken part, has brought about a weakening of confidence. Then, again, the political outlook in Ireland, and India is not calculated to stimulate confidence. The Bank of England figures are at the moment satisfactory enough, but in the open market the discount rate has advanced. Dearer money seems nearer, but in the meanwhile the position in New Zealand leaves no room for complaint. • ». a The produce markets, with few exceptions, are lifeless, and show a downward tendency. Wheat is not as firm as it was, and the ontJook for the European and American crops is somewhat better. The London market is certainly easier, for cargoes are nearly 2s 6d per quarter lower than they were at the time of the Chicago gamble. There is always a chance for the crops to recover in June, and it generally happens that the first reports of adverse crop conditions are pitched in a very pessimistic tone. Wheat will go lower, and the flour millers will be compelled to beat a hasty retreat. Of course, 10s has already come off j but this appears to be due to the fact that the millers were threatened with competition from Australia. After what has taken place it is to be hoped that the import duty on flour will be removed. The cost of importing ought to be a sufficient protection. The duty now charged enables millers to extract more from the public than they have any right to obtain.

Hemp is easing, and this appears to be due mainly to competition from Manila. There is no doubt that supplies from all sources are increasing, and in the end this must have a depressing effect. Butter is lifeless, but cheese is commanding a very good price indeed. The wool market is firm, but quiet. • • • The Colonial Mutual Life Assurance Society has put up a very good record for 1906. Indeed, the balance sheet issued is about the best the Society has circulated. This society has had many vicissitudes, and has been retarded in its progress mainly through inefficient or careless management, but since Mr James Pullar has been given control the society appears to have entered upon a period of prosperity. At all events, the report for 1906 is exceedingly good. During the year the Bociety wrote 4525 policies, as compared with 3b87 in 1905, assuring £1,156,510, as against £922,401. These figures alone are remarkable and they show very clearly that good management is at work. The annual income arising from the policies issued during the year amounts to £45,424, as against £35.608. During the year the death claims totalled £143,213, as against £130,835 in the previous y®**- . . .

The balance-sheet of the Gommercial Union Assurance Company, . Limited* for 1906 shows that in the

fire department the net premiums amounted to £2,361,051, being an increase of £286,262, and the Tosses paid and outstanding to £1,861,032, or 78.8 per cent, of the premium income, £794,974 of this amount, or 33.7 of the premium income, being a consequence of the San Francisco disaster. After providing for outstanding losses, the fire fund stands at £2,000,461. In the marine department the net premiums were £233,831^ and the net losses paid and outstanding amounted to £] 25,744. From the profits of this department the sum of £70,000 has been carried to profit and loss account, and after providing for outstanding losses, the marine fund stands at £600,485. In the accident department the net premiums received amounted to £176,993 and the losses paid and outstanding to £101,136. The operations of the year resulted in a surplus of £32,666, and from the profits of this department £25,000 has been carried to profit and loss. After providing for outstanding losses the accident fund stands at £129,896. * « *

The statement of accounts of the Shaw Savill and Albion Company for the year 1906 shows an excellent record. The net profit amounted to £20,716 and the trading profit, after allowing for depreciation, was £42,531. The net profit since 1893 exhibits very slight fluctuation from year to year, and having been content to pay a moderate return on capital the directors have been able to maintain a 5 per cent, dividend for thirteen years vrithout a break. The average return on the ordinary capital during the whole of the company's history is £5 12s 6d per cent., the highest dividend being 10 per cent, in 1883, 1889 and 1890, and the lowest 2£ per cent, in 1892. It has never been found necessary to draw on the dividend equalisation fund.

The disclosures made at the annual meeting of Donaghy's Rope and Twine Company in Dunedin a fortnight ago are calculated to arouse a feeling of uneasiness in the minds of shareholders in more than one other manufacturing and trading company that has not been achieving satisfactorily profitable results. The Donaghy shareholders have considered it expedient to set up a special committee to investigate the manner in which the original promoters unloaded their shares, and, when the report is made, some further interesting disclosures are expected. In the meantime, the directors have found it desirable to reduce the valuation of the company's property from t £76,864 to £33,842, a very drastic proceeding, and now it will become necessary to ask the shareholders- to reduce the capital correspondingly.

It appears from the figures placed before the meeting that the Dunedin property, standing in the books at £40,500 is valued at only £14,921 ; Invercargill factory, hitherto estimated at £15,750 and now at £2250 ; and Auckland factory, in the books at £18,750 and now valued at £14,921. The discrepancy between the respective totals is startling. When asked how the original value was arrived at, it was explained that the Dunedin factory was paying handsomely when the Assets Board, which held the Auckland and Invercargill factories, proposed an amalgamation. The three factories were set down at a certain price, and 50 per cent, was added.

Then a remarkable thing happen-* cd. The shares rose to more than £13, and, in accordance with a previous arrangement, the original promoters transferred their shares to the Assets Board, which gradually unloaded them with its own, the sale proceeds being divided pro rata. Only 58 shares are now held by the old proprietors, as against 4700 formerly held by them. . It is this latter transaction that the special committee has been set up to enquire into. \t was explained by Mr Passmore that Mr Lee Smith and himself felt it necessary at the time of the amalgamation to safeguard themselves against : the possibility that the Assets Realisation Board,

the other party to the amalgamation, might " slaughter " the shares it held and leave them with two ("rotten businesses" on their hands, and accordingly it was mutually agreed that if the Assets Board sold any of its shares Mr Lee Smith and he were, to " pull out " pro rata and that the whole of the sales thus made should be effected through the Assets Board. The present position of Donaghy's, in view of the high estimate at which the stock was held by investors, comes as an eyeopener.

The Bank of New Zealand has had another most prosperous year. The profits for the twelve months amounted to £350,880, which is a magnificent earning on the limited capital- Dividends absorb £87,500, which is a moderate proportion of the aggregate, £168,705 has been transferred to reserve fund, and £31,675 has been carried forward. The balance is made up of interest on guaranteed stock, grant to officers' provident fund and other charges. Now that the Bank has commenced to build up reserve out of profits, a further guarantee of stability is given, and there is no reason why it should not gradually retrieve its former splendid financial position. Shares remain stationary at about £10 3s, notwithstanding the gratifying balance sheet, but this is probably due to the likelihood of further capital being called up on the shares. This, however, would be an advantage to the shareholders themselves, because they would receive 10 per cent, on their money from the outset, with every prospect of gradually increasing dividends. • * .*

National Banks saw improved prices this week. They have been done as high as £5 9s, while buyers offer £5 8s 9d.

There was also an improvement in South British stock, parcels being bought up at £5 9s, with buyers left at £5 Bs.

New Zealand Insurance have been done at £4 8s 3d, with buyers at £4 7s 6d, which is about last week's rate.

Taupiri Coals are a shade firmer on the prospect of the purchase of the Craig property. Shares have changed hands at 19s 6d, and buyers still offer that price.

There has again been a fair amount of business in Auckland Tramway shares, which are strongly in favour with investors. The substantial provision of £12,500 made in the balance sheet for depreciation has also created a good impression locally. From the published accounts, the nett profits for the year were £33,583, out of which a dividend of 7 per cent, was recently paid. The increase in the traffic receipts for the year was £8457, the total being £130,336. Buyers of preference shares offer 23s and of ordinary 24s 4d.

The mining market could not well be worse than it is. There is very little business doing, and the tendency continues to be downward instead of upward. • • •

The May return of the Talisman mine, probably for the purposes of the annual meeting in London, reached the splendid total of £16,979 from 4410 tons. Shares rose to 34s 6d when the yield was made known, but have since receded again in sympathy with the dull market, to 33s 6d. It has been cabled to London that the reef in the No. 13 level is 6£ feet wide and worth £9 11s per ton. The Talisman show at the present time is a splendid one.

The Crown return of £4852 from 2039 tons is very satisfactory. Shar%s are,, however, a shade easier than last week at buyers 6s lOd

Tairua Broken Hills is one of the few stocks on the market that shows any "activity. Shares have risen this week to 4s sd, and the prospects are first-class.'.

Waiotahis continue to fall slowly, as the rich block is being lessened. The buying price is 20s 6d, which is a shilling lower than last week.

With Golden Belt shares at 3d, it looks as if this mine will have to be interred in the H. H. Adams cemetery. How does the present situation, after an expenditure of £30,000, compare with the brilliant assurances given to the shareholders in the annual reports of two, three and four^ears ago ?

There are indications that the St. Hippo reef is to hand in the May Queen mine. The company has been reformed, and application has been niade for the subsidies, but the stock is lower at about Is Id.

Characteristic par from a .Colorado prairie news-sheet : —- " Ahtaxigus B. McColl, a local amateur, played' Hamlet at the Second-street Theatre, on ..Monday night. His funeral on Wednesday Vas largely' attended."

George Grossmith's new play, "The Girls of Gothenburg," is the latest mirth-pro voter at the Lonaon Gaiety. He has taken as his material two recent German incidents — the Koepenick case, in which a smart person donned a captain's 'uniform, commandeered a company, and hoodwinked the mayor of Koepenick into handing over the municipal funds ; and the petition of the girls of Carlsburg that their town should be made a garrison one in order to : supply them with partners for their dances. In the latter instance the Kaiser not only granted the fair petitioners' request, but led his regiment into Carlsburg in person. J. C. Williamson has his eye on the piece with a view to colonial production.

The Herbert Hemming Dramatic Company have produced a charming idyll in Sydney in the W. G. Wills dramatisation of " The Vicar of Wakefield," under the title of " Olivia." Miss Beatrice Day plays the name part, and Mr Flemmmg is the vicar. • ■ a

Miss Florence Young will not come with the ''Mother Goose" pantomime to New Zealand, being required in Sydney for " The Spring Chicken " performances. Her place, as "principal boy" is to be taken by Miss Mabelle Morgan, hitherto her understudy. • • •

Walter Baker's illness has proved so serious that he has resigned his membership of the Bland Holt dramatic company, with which he has been connected for seventeen years. A monster benefit is on the cards in Melbourne. • * *

Miss Florence Quinn, of Auckland, who lately joined the Williamson musical organisations, has won her chance for a leading part very early in her career. She is cast as Jill, the "principal girl," for the New Zealand tour of the "Mother Goose" pantomime. • • ■

Tom Pollard has secured the rights and script of the successful London extravaganza '' Bluebell in Fairyland" for production by his juvenile opera company. The piece will furnish the bill f#r the opening of the tour, which is to take place at Christchurch in August. • * .•

Madame Albani's tour, just begun in Melbourne, is spoken of as " Australasian," so that it evidently includes New Zealand. She has -with her a strong concert party, consisting of William Green, a prominent English tenor ; Miss Mildred Jones, a very fine contralto ; Miss Myrtle Meggy, solo pianiste ; Haydn Woods, violinist ; and Theodore Flint, accompanist and concert master. • • a

The two " Squaw Man " principals are returning to America. Mr Waldron has accepted an offer by David Belasco, one of the foremost impressarios in the United States, to star for three years in his New York theatre, and Miss Ola Humphrey has also secured an important engagement.