INVESTMENT TRUSTS.

Star (Christchurch), Volume LXVI, Issue 20425, 2 October 1934, Page 9

INVESTMENT TRUSTS.

Quotation on Exchange Lists. AN AUSTRALIAN COMMENT. \A ithin the last few weeks considerable publicity has been given to inquiries into the affairs of certain companies which have been described as investment trusts,” said the chairman of directors of Were's Investment Trust, Ltd (Mr S. Ricketson) at the annual meeting of shareholders in Melbourne recently. “The abuse and misuse of the joint stock company principle is not new; indeed, it is as old as the history ot joint stock companies, and the whole design oi company legislation has been to prevent misuse and abuse and to ensure the conduct of company business on proper lines.” said Mr Ricketson. No torm of company has been exempt from misuse, but such misuse has not in any way affected the benefit of the joint stock company principle when properly applied. Stock Exchange Duties. The application of the trust principle to investment is a comparatively recent development, and in this matter an important opportunity and indeed a responsibility rests on the Stock Exchanges of the Commonwealth and New Zealand. “ Quite properly the public have come to regard the listing of stocks or shares on the Stock Exchange as at least evidence of bona fides. The Exchanges conduct their business virtually by an unexpressed franchise from the public, and in pursuance of this they are in effect constituted a sort of public censor in the matter of stocks and shares. They thus enjoy an auth°Gty which carries with it a responsibility to give the maximum of sound guidance over the widest possible field. Refused Quotations. Unfortunately, for some reason there has been a general inclination on the part of Stock Exchange committees in Australia and New Zealand x to regard all investment trust companies with disfavour, and to refuse them quotation. notwithstanding that in other parts of the world, and especially in London, they are regarded as most important, and are freely granted quotation. i ‘‘The effect in Australia and New Zealand is that the public are deprived of the opportunity of judging the bona fides of such companies bv means of granting or withholding of quotation by the Stock Exchanges, and the way is made easy for \improper practices in relation to the formation and conduct of such companies to the detriment of the public. . “I feel sure that very great good indeed would result from an alteration of the attitude of the Stock Exchanges to properly managed investment trust companies. “ In the meantime, it is perhaps unnecessary for me to remind shareholders that this company follows closely the example set by the great British investment trusts, in that it issues annually to shareholders a complete list of all investments held, and also observes the same practice of distributing to shareholders profits resulting from revenue only, and not those representing capital appreciation.” ANGLO-SOViET TRADE. Huge Increase Recorded in July. The Moscow Xarodnv Bank Review reports orders -placed in Great Britain in July as amounting to £860.132, as compared with £378,625 in July. 1933, the increase being more than 127 per cent. The following shows, orders placed and purchases made in July 1934 : Machinery and equipment. £98,457. steel and ferrous alloys £210,156. non-ferrous metals £117,894, | rubber £271.400, textile (raw materials) £8605. tea £115.612. textiles and ether goods £37,978; t0ta1,£860,132. The principal increase was for orders placed for machinery and equipment, for steel and ferrous alloys, and in the purchases of rubber. The purchases of textiles and other goods have also more than doubled this year. In July of this year the Anglo Soviet Shipping Company, Limited, chartered a total if 287,003 tons, involving an estimated freight of £201,735 Of the total tonnage chartered in July. 148.059, involving a sum of approximately £95,179, was British. The above figures do not include time charters. In July of this year the estimated cargo to be carried on time charter from the Kara Sea was 26.774 standards of timber, of which British figures cover 19.551 standards. The total amount of freight involved is.estimated at £28.880, of which the share to be paid to British owners is estimated at £20,531. OVERSEAS MARKETS. High Commissioner’s Cable From London. The Department of Agriculture tins | received the following cablegram, dated September 29. from the High Commissioner for New Zealand. London:— Tallow-Demand is good at auction: 788 casks offered, of which 65 4 sold at late rates to 6d per ewt. advance on the prices ruling at the Inst auction. Preoont ?2 >ot ,quotations are: Mutton—Fine. 22s bd: fair to good. 79s to 21s lid; dark to dull. 17s to 7 Ss. Beef- Sweet 18s to 20s 6d; dark to~ dull, "l 6s° 17s (id. Mixed—Fair to good. 18s to 20s fid; dark to dulfi 16s fid to 17s fid. Gut, Hemp—Manila: Market quiet hut steady. Nominal values for AugustOotober shipment. £l2 10s. Sisal Market steadier. Octobor-December shipment sold at from £l3 15s to £l4. New Zealand—Market steadv. Small business has been done. High points for Sept ember-Octoher shipment. £ls 10s. Nominal values for fair grade, £l3. Eggs—English produce dearer. English. national pack. 13s to 19s; English, ordin ar y pack, 13 s fid to 14s 6d ; I>a n i sh. creasing. 10s to lls 6d. ’ ** "* * m Apples—Fair demand British Columbia; Jonathan, 10s 6d to 11s fid; Cox's Orange, showing bJtterpit, 10s to 11s; Californian Newtown, 10s to 10s fid; other Newtown Pippins, lis fid to 13s. Peas—Maples: Market quiet, particularly about the end of the month. “ A ” grade Tasmanian. S£ptember-Oetober shipment sold at 575. New Zealand. r.Os at the close. Sellers quote Tasmanian for October-Xovember shipment at 49s fid; nominal value for New Zealand. 475. Blues: Market dull. Tasmanian neglected. Nominal value for SeptemberOctober shipment £lO 10s. Bradford Tops Trade LONDON, October 1. A substantial amount of covering business is being done at Bradford at improved prices.