Shares and MINING

Observer, Volume XXVII, Issue 40, 22 June 1907, Page 20

Shares and MINING

By Obadiah.

THE London money market presents peculiar features, and there is reason to fear that at the close of the quarter money will be tight, even if there is not another financial crisis. The open market discount rate has been hardening for some time, and 3J per cent, is relatively high. There has already been a crisis in Berlin, and the -worst is not over yet. New York must again feel the pinch, and if from these quarters there is a demand made apon London the position may easily become one of exceptional severity.

The decline of the prices of the principal industrial metal is not an encouraging feature. The shrinkage in the values of metals points to a decline of trade, and in Germany this is freely admitted. Gilt-edged securities are a little firmer, but there is still apparent great want of confidence in the situation.

The. produce markets are easing. Wheat has gone back to the level of values that ■ ruled before the recent gamble in Chicago, and before the pessimistic views of a very great shrinkage in the American crops was made public. New Zealand flour millers will soon be compelled to retrace their steps, and they had better show the same celerity in reducing prices as they did in raising them if they wish to avoid the public censure.

Butter continues dull, and cheese is on the down-grade. It is difficult to see how cheese can hold up, since the new make of Canadian cheese now coming on the market is quoted at a much reduced price. Hemp is quiet, and frozen meat is rather better than for some time.

The report of the North British and Mercantile Insurance Company for 1906 shows that the net fire premiums amounted to £2,063,547. The net fire losses (apart from those occasioned by the disaster at San Francisco) amounted to £1,011,525. The San Francisco losses totalled £666,082. After carrying into the fire account the sum of £250,000, which was set aside in view of these losses out of the profits of 1905, and adding £49,340 to the fire premium reserve, there is a balance, on the fire account of £114,361. The usual dividend and bonus have been paid, and the balance - carried forward is £302,176. The fire reserve of £1,550i000 remains as before. • * •

The report of the Northern Assur^ ance Company for 1906 states tnat in the fire department the net premiums amounted to £1,127,958, showing an increase of £115,366 in comparison with those of the previous year. The net losses were £1,101,133, of which the San Francisco conflagration was responsible for £482,751, and the total expenses of management were £416,660. The result is that after reserving 50 per cent, of the premiums to cover liabilities under current policies, a loss was incurred of £347,518. The balance of profit and loss account — after crediting it with £300,000 transferred from the fire reserve fund and charging it with the loss on the fire account for the year, and the interim dividend paid in November last— amounts to £165,523, out of which a further dividend of £2 per share has been paid, absorbing £60,000 and leaving £95,523 to be carried forward. • .• * The annual report of the New York Life Assurance Company for the year ended 31st December, 1906, shows that during the year, the' com-

■Jpany paid in death loseei, oh, the ■ lives of over 7200 policy-holders, J§ £4,300,000 ; and to living polioy- ' holders on maturing policies and other oash benefits £4,800,000. The company loaned to 75,000 policyholders on the security of their policies upwards of £4,41)0,000 at 5 per cent, interest, while the dividends paid to policy-holders for the year amounted to £1,000 > 000. The income for the year was £20,949,843, and the insurance in force at the ) close of the year totalled £417,056,553. ; • » * The report of the Equitable Life Assurance of the United Stateß shows that the total payments to I policy-holders during 1906 exceeded b £9.000,000. The number ot policies 1 issued and paid for during the year f was 34,717, representing new assurb ance to a total of £17,127,013. A r very large reduction was again made in expenses, lowering the ratio to 7 premium income by over 3 per cent. b The income from interest has been b increased by £357,710. The total 1 income from interest, dividends and 1 rents now amounts to £3,751,245.

Some of the building societies in Wellington have increased their rates tor deposits, and this is attributed to the competition of the Post Office Savings Bank. No doubt this competition has had something to do with it, but there are other factors at work. There is the competition between the societies themselves, for it is obvious that the younger companies, to attract- business, must otter inducements. It is also likely that some of those who hold deposits with the companies are unable to renew.

The fire premiums of the Alliance Assurance Company, Limited, during the year ended 31st December, 1906, amounted to £1,284,939. Ordinary losses by fire were £573,009 and £225,315 represents the losses arising out of the San .Francisco earthquake, the total losses thus amounting to £828,325. The expenses of management totalled £300,098, and commission £178,354, increasing the total outgo to £1,306,177, and showing a loss on the underwriting account of £21,838. To this sum has to be added ,£211,027, ithe amount reserved against outstanding claims lodged, but not admitted. In respect of losses by fire due to earthquakes on the Pacific coast of America, raising the total to £232,865. The fire assurance fund at the end of the year, after taking credit for amounts transferred from the Westminister and County fire offices purchase accounts, stood at £2,358,235, being 1.83 per cent, of the fire premium income. The marine underwriting surplus, after the usual charges and losses had been met, was £31,663. The marine fund, including £116,760, which had been placed temporarily to profit and loss account at the close of 1905, amounted to £416,760.

The half-yearly report of the Bank of New South Wales, presented at the meeting of shareholders held in Sydney j stated that aicer making all provisions the net profit amounted to £141,582. This> with the undivided balance from' the last half-year, gave £169,000 for distribution. A dividend -was declared at the rate of ten per cent. ; £25,000 was added to the reserve, and £15,000 to the Buckland fund ; and £29,314 was carried forward. The shareholders agreed to the pro-

posed" increase of capital — to the is»u« of 25,000 now shares of £20 •ach, which will bring the capital of the bank up to £2,500,000.

Apropoi of the question of London management, I have received a letter from a shareholder in N.Z. Crown Mines Co., in which he sayis : ■ — ' 'This company pays its two directors £300 each per annum, which seems a very large amount in view of the fact that shareholders are afforded no information whatever, and the only meeting which the, directors have to attend appears to be the annual affair held in London in December of each year. The Observer a few weeks ago stated that the Crown Company were replacing their water race (damaged last January) with a new and up-to-date one at a cost of about £6000, and that this expense would absorb any profit for some time to come. The company has produced bullion (as per monthly returns) amounting to over £19,000 from January Ist to April 30th, 1907, which, less cost of the new race, leaves some £13,000 to cover mining expenses, etc., and if the above statement is correct, and this amount has been absorbed, and a hole made in any future profits in such a short time, then shareholders are fully justified in asking how the money has been expended. With local representation, and more economical development, the Crown Company might once again resume its old place on the list of regular dividend payers. Should the Talisman and Crown Companies ever amalgamate, the result would be a very strong company, with sufficient capital to thoroughly test the ore reserves in and around Karangahake.

The Stock Exchange has shown a little more activity during the last week, but it is still very dull, and the business done has been chiefly at receding prices.

Following the publication of the annual balance-sheet of the Bank of New Zealand, there was again a rise in the stock from last week's price of £10 3s. Business was done at £10 7s, but buyers have since offered £10 11s steadily without tempting business. The tendency of B.N.Z. stock must continue to be upwards.

There has also been an unsatisfied demand for South British Insurance shares, which have been done up to £5 9s 6d, with buyers offering £5 8s 6d.

A line of Leyland and O'Brien's Timber shares was done this week at ±;2 ss, which is a premium of 255. Buyers offer 44s 6d. • • .«

The only other investment stocks that have been dealt with this week were Auckland Tramways, which have an easier feeling, and Kauri Timber contributings, which were done at 7s lOd*

Following the arrival of the English mail, there was a fall in Waihis of nearly 10s, caused by Home shares being placed on the local market. Business was done as low as £8 13s. It is difficult to imagine any reason for the fall, the mine looking as well or better than ever, unless it is that the strike in South Africa has created a feeling of insecurity in mining stocks on the London market.

Talismans continue to change hands freely, but in small lots, and the price during the week touched

34s 6d. They are easier now at about 33s 6d. a• . • Waiotahis are a shilling better than last week, buyers offering 225. Tairua Broken Hills have dropped from 4s 6d to 3s 9d, notwithstanding • • * glowing reports of expectations when the connection is made in the low level. Values in the rise are said to be not so good. • • * An improvement is reported in the Waihi Extended reef in the low level. Buyers offer 5s 3d • • • The assay value of £2 5s 3d from the Old Alburnia reef should be gratifying to shareholders who have waited so long and patiently some prospect of profitable development. This was, however, a picked sample, and is only of value in showing that there is gold in the reef. The buying price is Is 2d. If a two-inch leader, with fair picked stone, will send Waitangi shares up to 2s 3d, after the recent drop, what would a payable reef do ? Golden Belt shares, after being as low as 4d, rose suddenly to 9d on a more reassuring report from the mine manager, who believes he has got a new run of geld in a five feet reef on the No. 1 level.

Miss Jennie Opie, the popular Australian contralto, who was # a great favourite for many years with colonial opera and music-hall audiences, is touring the United States, on a vaudeville circuit. • » ■

Mrs G. B. W. Lewis, the clever delineator of old woman parts, who was in Auckland with the " Squaw; Man " company three or four months ago, has left Australia for England. • • •

At latest advices Miss Maude Beatty was in San Francisco, appearing in the musical play of " Robin Hood."

• • • Madame Carreno, the top-notch pianist, now in Australia, is said to be very sensitive about the correct pronunciation of her name. To please her it should be called Car-rain-yo. Madame is a South American, and belongs to the same family as Bolivar, the Venezuelan liberator. Her husband and three daughters are travelling with her.