Shares and MINING.

Observer, Volume XXVII, Issue 46, 3 August 1907, Page 20

Shares and MINING.

By Obadiah

THE London money market shows no disposition to become easier. The European summer is now almost through, and as the rate has not changed, there is now little hope of its doing so, because the autumn demands will be felt presently. In the second half of last year the discount rate moved up very fast, and in December we had a 6 per cent, bank rate. It is not ' likely that there will be such a repetition this year, but 5 per cent, is very probable. The Stock Exchange appears lifeless, and values show a declining tendency. Consols have fallen rather heavily, while three denominations of Colonial Government securities are slightly lower.

The London wool sales terminated as they commenced, with prices depressed. It was in many respects very disappointing, and the heavy carry-over of 24,0u0 bales is proof of this. Many wool growers and wool dealers are now regretting that they did not quit their clips at the local sales, for the prices obtained here are now shown to be much in excess of. the London parity. The venturesome buyers who paid fancy prices are now reaping a crop of losses. According to some accounts, the losses amount to as much as 40s a bale. This will make a big difference to the new clip. Buyers must, in view of the changed conditions, exercise a great deal more caution, and reserve and values must inevitably lower. There is, furthermore, the fact that crossbred wool is going out of favour, and that supplies of wobl are expanding — both adverse factors when market values are considered.

The butter market fails to show any improvement ; on the contrary, the position appears to be much worse. Supplies are apparently considerably in excess of the demand, and stocks are accumulating in New Zealand and Australia. In New South Wales, the surplus is going into cold store as it has done here, and there is danger that this surplus will be sent to London in advance of the new season's output, which must thereby be affected. Dealers are not rushing around the country, although it is reported that offers have already been made to some of the factories. Another complication promises to arise in the installation or dual plants for the manufacture of butter and cheese, whichever offers the most profit at the time. In anothor fortnight or so the position ought to be clearer than it is just now.

The balance-sheet of the Wellington Meat Export Company for the year ended 30th June is highly satisfactory. After making the necessary provision for depreciation, there remains to the credit of profit and loss account £18,597 8s Bd, which, of course, includes the amount brought forward. The dividend for the year at 8 per cent, on the paid up capital absorbs £8,461 6s, leaving £10,136 28 to be carried forward.

, The report of the New Zealand Trust and Loan Company for 1906, just received in the colony, states that the balanote of undivided profits, after payment of all current expenses, is £22,190. A dividend at i;he rate of 5 per cent., absorbing £2,000, has been paid, leaving £20,190 to be carried forward. On December 31st last £28,000 had been accumulated towards the £40,000 required to be set aside for the redemption of the capital, and that amount has since been increased to £33,500,

The report of the Royal Insurance Company states that the accounts for the year 1906 show that the net fire premiums amount to £3,431,416. The losses, including £1,250,854 by the San Francisco conflagration, to £2,701,324, and, after charging agents' commission and all management expenses, the balance carried to debit of profit and loss account amounts to £412,999. The profit and loss account is credited with £156,596 interest not carried to other accounts, and after payment of dividend and transferring £15,000 to the superannuation fund, a balance of £662,688 is carried forward. The dividend for the year is 40s per share. It is also stated that by the acquisition of the Northern Accident Insurance Company, Limited, of Glasgow, a valuable business organisation has been secured-, and an accident department established.

The chief figures of the North Biitish and Mercantile Insurance Company show that, despite losses on San Francisco alone of £666,082 last year, the fire funds now amount to £2,757,799. * * *

The annual report of the New York Society of Insurance shows that the disclosures of last year cost the corporation £25,800,000 in the form of loss of business on their books.

The accounts of Swift and Co., Chicago, show that the turnover in 1906 amounted to over £40,000,000 sterling. The net earnings were 12 per cent, on capital stock. The number of animals slaughtered during the year was 9,222,839, and wages and salaries amounted to nearly £400,000.

The prospectus will be issued in a few days of the Takapuna Electric Tramways and Ferry Company, with a capital of £100, 000, which presents itself as a sound financial proposition . Especially in the summer time, the traffic to Takapuna beach is very heavy, and it will be considerably increased when a direct, fast and cheap service is installed. The tramway option, which covers running rights for sixty years, is a most favourable one to investors.

The Auckland Gas Company, at its half-yearly meeting, showed a balance of £18,399 for the half-year. The dividend of 8s will absorb £14,429, leaving £3,969 to be carried forward.

Bank of New Zealand shares are quiet at buyers £10 10s, but there have been repeated transactions in National Banks at £5 8s and £5 9s, with buyers still at £5 7s and sellers at £5 Bs.

Insurance stocks are dull but steady. New Zealands have sold at £4 os, with more buyers at the same price, and Standards at 22s 3d, with buyers still offering 21s 9d.

The demand for Auckland Tramway shares has eased off considerably, but several sales of ordinary have been made at 24s 4d. This is a high price for stock paying seven per cent., with a shilling deduction in the £ for English income tax, more especially as the Company, under the additional expense at which it is now working, will have difficulty in maintaining the rate of dividend.

Other investment stocks are quiet. Taupiri Coals have been done up to 20s 9d, D.S.C.'s at 6s 3d, and Kauri contributings at 7s lid, but there is very little business being transacted. Tamriri Coals are easier now at from 20s 3d to 20s 6d.

The G.M. Co. has announced a record return of 64,320 from 26,999 tons, and a record dividend of 3s 6dj which will be the usual quarterly rate for the future. The monthly report from the mine is a glowing one, and one low level development, whioh gives 27 ounces of silver as well as more than -an ounce of gold over a considerable bv-fSy of ore, specks volumes.

Talisman shares have risen again to 495. I feel impelled again to renew my warning to investors not to be carried away by the unquestionably fine show in the mine. There are limits to its value, and, on the present show, it appears to me that the limit has been pretty well reached. Buyers are now beginning to pay certainty price for an eventual uncertainty. * * *

The Komata Reefs return for the month was £3960 from 2300 tons, which was a substantial improvement on the previous month. The buying price is down to is sd.

There are now 80,000 Crown shares held in New Zealand, and th© local shareholders, like those in. the Talisman, are beginning to move in the direction of a voice in the management. They have ideas of their own how the mine should be worked, and it would be in the interests of the Crown if they were listened to. There has been a good deal of business this week from 7s 6d to 7s 3d.

Waiotahis are easier at about 11s 6d. In some quarters, there is a great deal of confidence in the divi-dend-paying future of the Waiotahi, but it is not general.

Hauraki and Bunker's Hill shares have seen brisk business at about Is 3d.

Ngatiawa shares have recovered to about Is sd. The mill ought to be nearly ready for starting.

There have been reports of gold being seen freely in the Waitangi main reef, and shares have been in brisk demand, changing hands freely. They have, however, dropped from 4s 4d to 3s 6d.

The Tairua Broken Hills reef in the rise is again 3 feet, but of low grade ore, but the block already proved should give dividend-paying returns for some time to come. Buyers offer 5s lOd.

Ml^ '^^^ra^^e¥^T handspme Ijfew gjbd, i^.ahoui i to co^raen^f&t'^fii^eT^fiki Jweii^aß. sea^Qii-of fsta^aAiy display.- -■ ■' ■" ??■■.'! t-^ ,if

.-. .■■*,, :•-•■; ■ . •■■• -y^>r% " The Blue Moon '*; still shines *$»' the. iull at. the P : r3ftcess~vTlieair^ ; Melbourne, without any gigns ■■wm waning in popular faroiiir.. \:> .Btiii^tit^ end of the company's' season _ -SCt^S proaches, as " My Lady; Ma36ap-*-l^4 to be done .before they .i leaye ; Mel"-^ bourne. / ' '; '■:.*;■ I* * . * * ■ '.'■•■ "•■ „ •• ?>

The Mongolia's complement of passengers, when she. left London on "- Friday, 19th July, for Axis-, tralia had more than the usual share of representatives' ' o^ the art of music on board in Madamef Clara Butt, her husband, Mr Kennerley Rumford, their three children, -v and the members of the concert party < which is to tour Australasia with-* them, under the direction. of -Messrs'* J. and N. Tait. In addition, there ; i will be Madame's secretary, himself :i a musician, her sister, her maid, and' a nurse for the small Rumfords, „ 80 -•;• that quite a respectable share of the i accommodation was takeji up by the;] whole of the party.

Mr Alfred Hill, of " Moorish Maid"" f aide, purposes producing the opera in Dunedin at an early date. It is understood that Miss Rosina Buckmann will play the lead.

Miss Lillian Ormond, of Musgrove's Grand Opera Company, is a. Melbourne girl. She was originally in the chorus, but, being called upon to sing the part of Senta in the " alkyrie/" she acquitted herself so well that she is now entrusted with leading roles.

At the close of their engagement with the Fullers, Cleopatra and Bonita sail for India. * * *

At last success seems likely to smile upon Miss Nance O'Neill, who has been having a bad time lately. She has made quite a hit on tour in America in a new play, " Cleo," by the author of '' The Squaw Man."

The pantomime cast for its New Zealand tour will be strengthened by the inclusion therein, as Jill, of Miss Olive Godwin, who was Mr J. C. .- illiamson's original selection for the part, but whose recent serious illness prevented her from taking up the work.