AUSTRALIAN STEEL

Wanganui Chronicle, Volume 84, Issue 210, 6 September 1940, Page 3

AUSTRALIAN STEEL

B.H.P. WORKING AT PRESSURE “One cause for satisfaction is the company's ability to hold the price of s.rel to pre-war levels. Prices of all stores necessary /or our production have increased substantially, but, ow-i ing tc the policy of the company in I carrying heavy stocks of material, this i aspect has so far not had much effect on production costs. However, any replacement of stocks when the time arrives will mean increased costs. I The company’s policy is to maintain I present prices as long as possible, and I consider that Australia is most for- | tunate in being able to procure the | cheapest steel in the world for domestic and war requirements. “Steel is. virtually unprocurable from other countries. The pre-war , price of imported steel c.i.f. Australian ports, taking an average range of commercial steel, was £5 6s 3d a ton higher than the local product without ; any duty. To-day this steel, if it were procurable, would be at least £lO 10s I a ton higher without any duty. The . low price of our steel is having a favourable effect on this country’s economic stability." i The demand for products is very heavy, and all plants concerned are employed to the limit of our capacity to supply steel,” stated Mr. H. G. Darling, chairman of directors of Broken Hill Proprietary Co., Ltd., at the annual meeting in Melbourne last Friday. “That, however, was the position before war broke out, and the result of the war has been rather to divert the direction of supply than to affect its total. is, of course,” he added, “being given to Australian defence work and, subject to these requirements, we are doing our best to make supplies available to the United Kingdom and to the defence requirements of other parts of the Empire. This has necessitated the suspension for the present of the commercial export trade which has been successfully built’up in the Near East, India and Africa. The branch office in Singapore is, however, being maintained. WAIRAKEI HOTEL LOSS A net loss of £1962, against a profit of £2854 in the previous year, is shown in the accounts of Wairakei, Limited, for the year ended June 30. The loss is shown after providing for depreciation and additional taxation. The report states that the result was directly attributable to the cessation of overseas tourist traffic, consequent on war conditions. After deducting the balance of £1540 brought forward, there is a debit of £422 in the profit and loss account. This has been transferred to general reserve. In the past three vears, the company paid a dividend of 71 per cent., but no distribution is recommended this year. Issued capital remains at £25,000. Bank acccinmodation has risen from £lO7l to £>4,294. Creditors, including

tax provision, are £2717 lower at £1139. After deducting the profit and loss balance, the reserve account totals £2578. Total assets are £6669 higher at £43,011. This is mainly accounted for by an increase of £5922 in buildings, which now stand at £14,563.