COMMERCIAL

Star (Christchurch), Issue 18936, 5 December 1929, Page 11

COMMERCIAL

SHIPBUILDING,

The shipbuilding returns issued by Lloyd’s Register of Shipping for the three months ended September 30 last show that very little alteration has taken place during the current year. A graph dating back to ISB2 shows that, with very rare exception, the third quarter of the year is a weak point, and it is considered satisfactory that so little reduction in output is shown. The tonnage under construction in Great Britain and Ireland at September 30 was 1,448,355 tons, and it is worthy to note that this total exceeds Ly 358,595 tons the work in hand in the shipyards twelve months ago. The tonnage commenced in Great Britain and Ireland during the quarter under review was 360,087 tons, while the launchings totalled 369,445 tons. Compared with the figures for the June ?^ r ter, these represent decreases of 000 l tons, 68,313 tons and 23,433 tons respectively. The figures for shipbuilding abroad reveal a total tonnage under construction of 1,368,984 tons, representing a decrease of the same period of 15,335 tons, or nearly three times the decrease recorded in the United Kingdom. On the other hand, the tonnage commenced during the quarter, 300,606 tons, shows an increase of 30,099 tons, and the launchings totalling 345,927 tons also represent an increase of 24,050 tons. The total tonnage under construction throughout the world is -,81/,339 tons, showing a decrease during the three months of 20,886, which is not a very serious decline, considering that previous periods have shown an almost continuous return to the war level. That Great Britain is slowly regaining her former pre-eminence in the industry is evidenced by the percentages, for, whereas prior' to the war Great Britain was responsible for 57.2 per cent of the total, the position was reversed for some years until just recently, and the percentages now stand: Great Britain, 51.4 per cent; abroad, 48.6 per cent. The most encouraging sign is the steady increase in foreign orders secured by British shipyards, the figures for the past four quarters being: December, 175,000 tons; March, 188,000 J une * 208,000 tons; September, 267,000 tons. The much greater popularity enjoyed by the motor ship engined with internal combustion engines is hardly realised until the figures are produced and it is seen that of the total tonnage of 2,81/,933 tons under construction throughout the world, no less than 1,531,753 tons, or roughly 55 per cent, is involved in the construction of motorships.

STEEL MERGER IN GREAT BRITAIN.

The latest English mails have brought details of the great steel merger whereby the old-established firm of Bolckow Vaughan and Co., Ltd., has been absorbed by the equally old-estab-lished firm of Dorman, Long and Co., Ltd. The negotiations have been somewhat protracted, for as long ago as December last Sir Arthur Dorman disclosed that pourparlers were proceeding, and, although a subsequent official statement affirmed the breakdown of negotiations, the impelling reasons which originally inspired this ambitious project proved sufficiently powerful to prompt a renewal of discussions, resulting in the complete success of the scheme. In the explanatory circular issued by the directors of both concerns, it is pointed out that, although they are parallel with each other in equipment, in the control of raw materials of steel production and in the markets they supply, the method by which the fusion was accomplished offers special a< -* va nt^J» e in that it can be carried out expeditiously and with proper regard lor the trading and goodwill of the two companies. Under the agreement. Dorman Long will acquire the whole of the assets of Bolckow Vaughan, subject to their liabilities, and this method has the advantage of the agreement and support ° the of the two companies and the consolidated undertakings are assured of sufficient facilities to ensure reasonable working capital. When the amalgamation is complete the loan capital of Dorman Long and Lo„ Ltd., will amount to £5,855,773 and the share capital to £11,248,146, a total of £17>103,919, made up as follows:—4 per cent first mortgage perpetual debenture stock, £400,000 ; 5£ per cent first mortgage redeemable debenture stock, £5,455,773 (less current year’s sinking fund, say £40,000) ; 6 per cent cumulative £1 preference shares £883,918; 8 per cent non-cumulative £1 preferred ordinarv shares, £2,052 746* £1 ordinary shares, £8,311,482. The following shows the basis on which the shareholders of Bolckow Vaughan will exchange their holdings for shares in Dorman Long:— Each 100 ordinary shares of £1 each will receive 46 ordinary shares of £1 each and eleven 8 per cent non-cumu-lative preferred ordinary shares of £1 each. Each ten 5 per cent cumulative preference shares of £2O each will receive 155 6 per cent cumulative preference shares of £1 each. Each £IUO 8 per cent debentures, 1930, will receive £lO6 of 51 per cent redeemable debenture stock. Each £IOO 8 per cent debentures will receive £lO6 of per cent redeemable debenture stock. * Each £IOO 7 per cent debentures, 1930, will receive £lO4 of 5i per cent redeemable debenture stock. Each £IOO 6 per cent debentures, 1943, will receive £9l 10s of 5i per cent redeemable debenture stock. Some idea of the magnitude of the interests concerned may be gauged from the output figures for 1928, Dorman Long producing during that year two million tons of coal, 818,000 tons of coke, 666,000 tons of pig iron, 730.000 tons of steel ingots, 938,000 tons of firestone and 226.000 tons of limestone. In addition the firm supplied 1,210,000,000 million cubic feet of coke-oven gas to local corporations, generated electricity, produced a large quantity of by-pro-ducts and handled on their wharves one million tons of material, including coal and foreign ore. The combined works of the Bolckow Vaughan Company, Ltd., are capable of producing an annual output of 750,000 tons of pig iron and 400,000 tons of steel. The “ Iron and Coal Trade Review,” in an editorial on the subject, considers that the merger is very significant, in that it is a vindication of the resolute determination of the British steelmakers to work out their own economic salvation, and will probably prove the first step towards a still bigger fusion.

finance and markets.

BIG DROP IN PRICES AT RABBITSKIN SALES. Per Press Association. DUNEDIN, December 5. The rabbitskin sales at Dunedin yesterday showed a serious price decline of from 30 to 50 per cent. The temporary cessation of buying by furriers is attributed to world-wide financial stringency connected with the Americn stock slump, the Hatry group losses in England, and the money hunger reported from the Continent.

STOCK EXCHANGES.

Sales on ’Change.—Comm. Bank of Australia, 26s 3d; Ooldsbrougli Mort “rights”, 5s (6 parcels), 5s Id (3 parcels): N.%. Refrigerating (10s paid), ss; Staples Brewery, 535; Mount Lyell (cum div.), 40s 9d, 40s lOd <2 parcels). Sales Reported.—Comm. Bank of Australia, 26s 4d; Bank of New South Wales (Sydney register), £42 10s, £42 12s 6d, £42 1 0s (2 parcels); Goldsbrough Mort, “ rights,” 6s. Number of Shares:— 200 Comm. Bank of Austru 19 Bank of New South W;. - 725 Ooldsbrougli Mort, “ rights.” 100 N\Z. Refrigerating (5s paid). 50 Staples Brewery. 150 Mount Lyell (cum div.). OTHER EXCHANGES. Per Press Association. DUNEDIN, December 5. Sale Reported.—Mount Lyell, 41s.

CHRISTCHURCH. Following- are today s quotations: Buyers Sellers. £ d £ d N.Z. GOVT. STOCK5 0 f>Zi p.c. Bonds, 1933 100 12 6 101 b 0 101 0 0 5 ' rj.c. Bonds, 1936 101 0 0 OTHER DEBENTURES Christchurch Drain 1938-73 104 0 0 p.c., 1944 100 0 0 100 15 0 N.Z. Breweries CInscr.) .... 1 S 4 N.Z. Breweries (Bonds) 1 s 0 1 8 3 Glaxo, 65 P-c., 1945 91 0 N.Z. Refrigerating 6.’; p.c., 1935 .. 0 BANKS— 0 0 Aust. of Comm. . . 1 10 0 Australasia .... 13 10 0 Comm, of Aust. . . 1 6 E., S. and A 7 11 0 Natl. of A’asia (£5 paid) .... S 6 0 Natl, of New Zealand (cum div.) 6 14 0 6 16 0 New South Wales 42 7 6 42 12 New Zealand (cum div.) 2 ID 9 3 0 0 INSURANCE— A.P.A 0 Mercantile Mutual 1 10 0 National ........ 0 15 0 0 15 Queensland .... 0 0 United LOAN AND AGENCY — Dalgety and Co. . 12 17 6 13 0 0 Goldsbrough, Mort (cum div.) .... 1 17 6 1 18 Goldsbrough, Mort 0 National Mortgage 4 N.Z.' Guarantee Corporation 0 S 6 United Building Society Wright, Stephenson and Co. 1 0 0 SHIPPING — Muddart Parker . 2 3 2 P. and O. Deferred Stock (cum div.) .... 14 6 17 0 FROZEN MEAT— Canterbury (cum div.) S 0 N.Z. Refrig. (£2 0 12 0 0 12 N.Z. Refrig. (10s paid) 0 5 North Canterbury Freezing 0 3 0 0 6 9 WOOLLENS— Kaiapoi (17s pd.) 0 12 6 Kaiapoi (7s paid) 0 COAL— Westport 1 11 6 1 12 0 Stockton (ord.) .. 0 1 0 0 2 10 Stockton (pref.) . 2 0 0 3 9 i GAS— Auckland 1 5 1 1 5 5 Christchurch (10s 0 13 Tiraaru 1 5 3 BREWERIES— Monteiths (cum div.) 1 0 0 1 3 0 Fosters 3 13 0 New Zealand .... 4 5 0 4 6 0 Staples 13 0 13 3 Timaru 0 Timaru (5s paid) 0 8 Tooheys 1 Tooths 2 6 4 6 White Star 0 13 3 Tooheys (“ rights ”> .... 0 1 0 MISCELLANEOUSAustralian Disleries 1 1 6 Allied Motors 0 4 0 Australian Iron and Steel (pref.) 1 0 0 1 0 9 British Tobacco . 2 5 3 Beath and Co. . . 1 10 0 1 11 Beath and Co. (Is paid) 0 7 6 0 Burns, Philp .... Canterbury Farmers’ Co-op (Timaru, "A” pref.) 2 5 0 2 15 0 Colonial Sugar . . 49 10 Dunlop Rubber . . 1 3 9 Electrolytic Zinc (ord.) 1 13 "Electrolytic Zinc (pref.) 1 13 3 Glenmore Brick and Tile 1 4 3 1 S Greater Crystal Palace 3 6 Hayward’s Pictures 1 0 0 Hume Pipe (Aust) 0 16 Mt. Lyell (cum div.) 2 0 9 2 0 10 N.Z. Farmers’ Coop. (1st pref) . . 4 2 0 op. (“A” pref.) 2 17 0 2 19 0 N.Z. Farmers’ Coop. (“ B ” pref.) 3 3 3 3 6 0 N.Z. Farmers’ Coop. (61 p.c. Stk., 1930) N.Z. Farmers’ Coop. (65 p.c. stk.. 1939) N.Z. Farmers’ Coop. (61 p.c. Stk., 1945) 0 N.Z. Farmers’ Fertiliser 1 1 Quill, Morris .... 0 12 9 0 Wilson’s Cement . U 0 Amalgamated Wire less (contr.) . . 1 Amalgamated "Wire Jess (£1 paid) . . 1 11 W. Watson and Son 1 S 6 C MINING — Ka war a u Mahakipawa .... 0 0 4 0 0 Okarito . 8 t (prei !.) t Winding Creek (Is paid) Winding Creek (6d 0 1 1 0 1 Stoney Creek (6d paid) 0 0 11