FINANCE AND COMMERCE.

Press, Volume LXIII, Issue 18895, 10 January 1927, Page 10

FINANCE AND COMMERCE.

PRODUCE GRADING SYSTEM CRITICISED. MEETING AT WAIMATE. {SVECIIL TO THZ PBESS.) WAIMATE, January 8. There was a large and representative attendance ot the farmer:, and potato-growers of the Waimate district at a meeting held to-day under tho auspices of the Waimate branch of the Fanners' Union for the purpose of discussing the grading, of produce, particularly ..polutpes, and tor effecting improvements to the present unsatisfactory system. .Mr A. \\. Darnett (president; occupied . the chair, and explained the object of the •meeting. - The hn>t speaker was Mr A. Oram, »ho said that produce to the value of £24.5/JB2 had been shipped through ' Tiroaru in 1925, and one man, who was appointed by tho Merchants Federation, had the sole right of saying whether that produce should be rejected or not. The speak ir said he was not blaming the Merchants' Federation, which the merchants haJ instituted quite rightly to protect themselves. The farmers had, taken, no interest in the matter and tie Federation went on increasing its powers. He did not think it right that one man should say what was to he done with farmers' produce, and when a grader ' lejected produce, farmers, under the present conditions, had no redress. It was explained by another speaker that grading charges were paid equally by the merchant at the shipping port and by the merchant at the receiving port. ' When produce was rejected the whole of the grading charges fell on the farmer. That was certainly hard, but it was difficult to see how it could be righted. Until recently, when a farmer's produce uus rejected', h«* was simply advised of the fact, but the merchants, for the benefit of the .farmers, now got the grader to issue a certificate w]ien rejecting produce, which was also accompanied with an •xplanation fo r such rejection. .Mr J. Fox said the merchant did Hot pay the grading fees; the farmer paid all through. ( Mr John Bitchener, M.P., said the matter was important to the farmer, the merchant, and the consumer. The Minister for Agriculture had agreed that the present system of appointing -graders was a bad one, and had expressed surprise when he learned how the grader was paid. The producer should be considered, for if there were no producers, merchants would not be necessary. • At the instigation of the Farmers' Union he had brought the matter up in the House, whereupon one Minister had said he was rough on the grader, and the speaker hai! been held up to ridicule by the Merchants ; of the Dominion. Members in the House inquired if the speaker had been misled, but he was satisfied- that there was a great feeling of unrest among .South Canterbury farmers in regard to the matter. The speaker promised the meeting all possible help, stating that tho present system of grading was "rotten," and that sorue•thing should be done to effect a remedy. t -Mr Grant moved: "That this meeting of farmers consider the' present method of grading produce at ports ,most unsatisfactory in view of. thefact that' farmers', have not a say in the; matter of grading, and they respectfully suggest to° the Minister that port graders ought to be appointed by the Department of Agriculture, and made solely responsible to that Department." Mr W. Stewart, in speaking to the motion, Teferred to the woolbrokers increasing the number of star Ipt4 and said they should urge that legis'lation be .passed ensuring that no change be made by the merchants in tho system of disposal of farmers' produce Without the farmers being consulted. •

Mr Lindsay said the present system of grading was brought about through pressure from the • farmers twenty years ago. ' They could not get a better gtader. It was not the grader that was wrong, but. the grader at l.jiiaru had-not been as strict as he could have been; otherwise not 60 per cent, of the produce would have passed. He urged farmers to get a grader's certificate on the farm and not. at the port. The grade was at present too high, i •:••';. Mr Bitohener plain .-that it was the principle he was up against, not ther grader personally. • Other-speakers contended that there irns no standard grade.! ' Mr Ruddenklau advocated- grading on the farm, which would be much better for farmers. The motion, on being put, was carried With Mr Lindsay dissenting. It; was, decided, thai .the. matter be forwarded to the South Canterbury executive to deal with, they to communicate with other Unions, asking for support. A committee, consisting of Messrs J. Smith, 6. Ruddenklau, and J. Patrick was appointed to act with the Fanners' Union. ■ i "—~- BRJQHT PROSPECTS. ' SHIPPING TRADE.

LONDON, January 7. . Mr Runciman, in an article in "Compendium," says that, he regards shipping prospects as brighter than a year ago. He points out that the shipments that have bei-n delayed for nine months must be made pretty soon. They include three million tons of Australian grain, which combined with other forces, will possibly give trade a new ttart. ' NEW COMPANIES. . The "Mercantile Gazette" records the teiistration of the following new companies: '' Rangiora Brewery, Ltd. Registered as a private company December 21st, 1926. Office: Situate at Northbrook road, Rangiora. Capital: £3OOO into 3000 Bharcs of £1 each. Subscribers—Rangiora: G. E. J. Sturgess 2SOO, \V. E. Sturgess 200. Christcburch: if. S. Barton 700, W. Sullivan 500, A. J. Morton 800. Objects: To carry on business •I brewers and raaltsters in all its branches. N.Z. Hemp, Ltd. Registered aB a private company December 21st, 192 G. Office: Situate at 17G Hereford street, Christchurch. Capital: £SOO into 500 shares of £1 each. Subscribers: B. B. Wood 499, G. H. Buchanan 1. Objects: To carry on business of flaxJjrowers, flaxmillers, and flax merchants and exporters, and dealers in hemp, rope, cordage, ' 1 incidental. POULTRY AND EGGS. p A good entry ol poultry, came .forward for tb» week's markets, competition being keen for good ducklings, heavy chickens, and j 4>rge hens. ' The following prices were realhad:— Hens r light 3s lo 4s, heavy Gs to 7s 6d; chickens, light ie to 9s, heavy 9s to' Ma; ducks, 5a to 9s; .ducklings, 9a to 13s; fees*, 7a to 9s; goslings; 9, to Us; turkev •Bf, ITa to 256; gobblers, 30s to 455, aft! *>>.«*. eggi market is 'in good suppiv, • and, ■ J$*!P*«HE m». general rule at this time of ff 6 - Wi pricea had a downward tendency •nrongn we accumulation caused bv the r o ', 1 ?*?- ?l *he weekly auction sale c<?es teal!**!!.-First grades Is 7d to la Sd, faconde la 8d to is 7d, ducks Is 7d to Is Bd.

RAIL TRAFFIC.

COMPARISON FOR DECEMBER. A return covering the passenger and goods traffic in December has been prepared by the Railway Department, making possible a comparison with the corresponding month of 1925. „ j Easily the greatest variation is in the number ot sheep carried. Steady ! progress is being made by the DepartI nient" in the winning back of goods ! traffic from the proprietors of motorlorries. I The detailed figures are as follows:

Totals .. 18,823 19,874 105,511 90,627 •Includes a day oi 1927 and 1926 in each indicated year respectively, CATTLE TICK. AT TOLAGA BAY. (rSESS ASSOCZATIOS TELEGRAM.) GISBOBNE, January 9. Cattle tick has been discovered on a ! horse and on dairy cows in Tolaga Bay. Mr W. S. Barry, District Superintendent, and Mr E. Wright, principal inspector, arrived from Wellington, and are ■inspecting all herds. Farmers are asked to report anything suspicious. ELECTRIC BUSINESS. Official statements made by the British .Electric and Allied Manufacturers' Association, or "Beams" for short, show that Britain is not slipping back in exports of electrical machinery. For tho first nine months of 1926 the value of exports was £13,061,000, almost exactly the same as for the 1925 period, notwithstanding the grave dislocation of business caused by the coal strike of last year. The full year of 1926 is expected to reach £18,000,000 —a record. Exports of electrical machinery and apparatus from five countries during the past three years, with 'ooo's omitted, are as follows: — 1924. 1925. • 1926. £ £ £ Britain .. 16,034 17,351 13,061 Germany .. 11,246 16,021 13,400 United States .. 18,500 18,000 14,200 Prance , .. 4.550 3,800 2,800 Switzerland .. 2,100 2,400 1,500 Figures for . 1926 are for nine months. These returns show Britain with 29.2 per cent., Germany 29.9 per cent., United States 3.5 per. cent., Franca 6.3 per cent., and Switzerland 3,1 per cent, of the total. The figures going back to 1913 show that Germany was in the lead with 48.5 per cent., Britain second, United, States third. Beatna is responsible, for the statement that ''The *ritish position In exports of electrical machinery is wholly satisfactory; British firms have strengthened, even in 1926, their hold on overseas markets."

WHEAT. (Bf CABLK'-PRESS ABSOCIATIOH—COPVRIQHT.) (JIUSTSAUAS AND K.Z. CABLE ASSOCIATION.) (Received January 9th, 5.5 p.ru.j NEW YORK, January Chicago wheat quotations are:—May 1381, July 12JJ, January • 131J cents' a bushel. BUTTER. (Received January 9th, 6.5 p.m.) NEW YORK, January 8. A Vancouver message saya that wholesale agents state butter., will drop two cents per pound on Monday, under competitive pressure following the arrival of 16,000 boxes of I«ew Zealand butter by the Niagara. The new retail prices will Be -14 cents for bricks to 17 cents for cartons. LONDON MARKETS.

(Received January 9th, 5.5 p.m.) LONDON, January 8. Cotton—February delivery, 6.75 d per lb. Rubber—Para, 16id per lb; plantation smoked, 20d. . .J_ute-7-January-Fe-bruaiy delivery, £3l 15a per ton.' Hemp—December-February delivery, £37 per ton. Copra—January-February, £24 10s per ton. Linseed Oil—£3l per ton. Turpentine—sßs 9d per cwt. j FROZEN MEAT. r~: (Keceived January 9th,, 5.5, p.m.) LONDON, January 8. Sheep—Canterbury light 6|d, medium 6id, heavy 6Jd per lb; North Island, none la offering. New Zealand ewes 4£d; Australian firsts 4Jd, eeaonde 4Jd, ewee 4Jd; Argentine light 01, medium 5Jd; heavy sd, ewes-4jd per lb. Lambs—Canterbury medium BJd, seconds 8d; Australian firsts and othsr States, 7Jd; Argentine firsts, light, 8d per lb. Chilled Beef—Argentine fores 3Jd, hinds 5Jd per lb. Others are unchanged. DAIRY PRODUCE. Messrs A. H. Turnbull and Company have received a cable message from Messrs W. Wcddol and Company, Ltd., dated London, 7th inst., reading as follows: Danish butter, 180 sot 182s (last week, 184s to 186s); New Zealand, unsalted 180s to 182s, salted 172s to 174s (172s to 1745); market quiet. Cheese: White, 93s to 94s (93s to 945); coloured, 94s to 95s (93s to 945); market steady; Canadian cheese, white and coloured, 91s to 98s (94s to 98s).

BUTTER DISPOSAL. The methods adopted for shipment to the London market, show that the most popular form of trading overseas is shipment on consignment, and 73.1 per cent, of Australian butter exported siuce July Ist was treated in this way. The following is a comparison made by the "Australasian" of the returns *rai dairying States: — Tons. Per cent. Consignment .. 7,414 73.1 RO.B. .. ..767 7.5 0.1. F.E. .. 1,814 17.9 C.I.F. .. .. 153 1.5 10,148 100.0 States' quantities in tons were: Victoria, 6473; New South Wales, 1374; Queensland, 1223. HORSE SALE. Messrs H. Matson and Co. report laving held a very successful gale on Saturday. An entry of thirty-five horses came forward. Good active young draughts ready for farm work met with a keen demand, while light hacks sold on a par with late rates. Prices were: Heavy draughts, £25 to £3O; lighter draughts. £ls to £22; hacks, £2 to £7.

NATIONAL MUTUAL LIFE ASSOCIATION, LTD.

GOOD PROGRESS REPORTED. The 57th annual general meeting of the National Mutual Life Association I of Australasia, Ltd., was held on December 22nd. ' I "We have again to submit to you a ' report of a most satisfactory year's I business," said the chairman (Mr Edward Trenchard). "During the year which ended 30th ! September the Association issued newpolicies assuring £7.763,910, and providing for annuities of £3431. I New Business. "The amount of new business is £712,000 more than the previous year's total, and is the largest that we have reported in any yea-. At our last annual meeting the system of what is known as group insurance was referred to; this is comparatively new to Australia, but I am glad to see that the great advantages of the system are gradually coming to be recognised by both employers and employed. Several group insurances are included in our year's business. "The premium income of £2,758,068, which includes an even larger amount of single premiums than we reported last vear, shows an increase of £320*000. High Rate of Interest. "The interest income of £1,315,162 is £119,000 greater than last year's amount, and it i 3 equal to £5 lis 6d per cent, of the mean funds. This is the highest rate of interest earned by the Association's funds in any year during the last 34 years. We assume in our calculations that the funds will earn 3$ per cent, per annum. The amount received this'year in excess of the assumed rate is some £120,000 larger than the total expenses of conducting the business. "Our last year's accounts contained a special item of £645,096 consideration for re-insuring the liabilities of other companies; this year we have a similar item of £7186. Omitting both of those, the total income shows an increase of £439,000. "The chaims due to death, £669,107, arc £85,000 more than in the previous year, but they represent a very favourable rate of mortality, as they are equal to only 61 per • cent, of the expected payments under this head. "The payments to members for matured policies, etc., (apart from claims by death to which I have just referred) were £1,086,000, and this is actually £34,000 less than the corresponding payments in the previous year. The drop in these payments is of no significance. It merely indicates a slight, irregularity, in the distribution of the maturing policies.

Expenses. "The expenses of conducting the business are divided into, two classes, those connected with obtaining new business, which amount to more than half the total, and the expenses of management and of collecting the ordinary revenue. This year both of these classes of expense are. a lower ratio of the related income than in the previous year. Increase to Assurance Fund. "The amount added to the Assurance Fund as a, result of the yeai's transactions is £1,975,205. If we omit the special items which I have mentioned, the amount added shows an increase of £371,000. "The Bevenuc Account shows then that we • have largely increased our business, we have earned a higher rate of interest; the mortality experience has been very favourable, and the rate of expense has been reduced. "The result of these favourable developments,, in which, of course, only our policyholders share, is that the cost of insurance will be reduced —that is to say, the bonuses will be increased. The cost of providing life assurance has been reduced considerably since 1914, and I doubt if this can be said of any other important commodity. "I will call your attention to the principal changes in our investments as Shown in the balance-sheet. Government and other public securities now amount to over £11,123,000, or more than 40 per cent, of the assets. This amount has increased by £983,000 during the year. I am not sure that this iB a matter for congratulation. Government Borrowing. "The requirements of the different Governments show no signs of abating, but I am afraid that they will not find it easy to continue the present rate of borrowing without impeding the development of our industries. "In his last Budget speech the Federal Treasurer (Dr. Page) announced that it was the intention of the Government to/ provide £20,000,000 to assist in the provision of houses for the people both by new construction and purchase. Building societies have been formed throughout Australia for this purpose. Their investments at the end of last year exceeded £7,000,000. Savings banks are established in each State. They hold deposits amounting to nearly £200,000,000, and some of them have lent large sums and are still lending to help in the purchase and building of. houses. - Trustee companies and insurance companies make it part of their business, and we ourselves have over £1,000,000 so invested. The intervention of the Federal Government does not seem to be necessary. It would mean, I suppose, the formation of a new department, and as •. rule the administration of a Government Department is cumbrous, and it is not noted for its efficiency or economy^

"If the £20,000,000 which the Treasurer referred to is to be provided by a loan the Government will not be disappointed if the institutions concerned do not subscribe.

"Loans on mortgage have increased by £291,000. "Loans to members on the security of their policies have increased by £514,000. Increase in House Property. "House property—the Association's freehold properties—have increased by £BO,OOO. This is due to the completion of the new buildings in Durban, South Africa, and in Geelong, referred to at our last meeting, which aro now occupied. Since the close of the books we have arranged to buy the well-known property called Panyer House, in London. This property in Paternoster Row adjoins our Cheapside building, and it will provide the additional accommodation which has long been required by our branch office. New buildings for our Queensland branch are in course of erection in Brisbane, and we are adding to our premises in Auckland, New Zealand.

"Life assurance has been called a social barometer; the standard of the companies and the measure of their prosperity are indications of the welfare of the community. In Australia we have 29 companies established. Most of these are proprietary companies, which have been formed during the last few years, and. have not yet proved their efficiency. According to the last annual returns of the new business transacted by the 29 companies, not all in Australia, more than 70 per cent, was transacted by five mutual companies, and.of the total funds of over

£113,000,000, So per cent, were held by the five Mutual Companies.

"In his presidential address to the institute of Actuaries in October last Sir Joseph Burn said: 'From whatever point of view I attempt to view this matter it is impossible for me to understand how any true teacher of morality can fail to teach insurance. My belief is that what is needed at the present time is a grc.at awakening of the nation's moral sense. Insurance should be taught in schools; it should be preached from pulpits; it should be analysed and studied by professorsit should be trumpeted by the Press' and proclaimed by every possible means of publicity.' That is, I think, profoundly true, and it is specially applicable to our conditions. It should be published throughout Australia.

"Before I move the adoption I wish to express our thanks to our officers and agents at all the Association's offices for their efficient services which have made it possible for us to submit such a satisfactory report." The chairman then moved the adoption of the report and statements of accounts. This was seconded by the vice-chairman (Mr George Swinburne) and carried.

Sir John MacFarland, the only retiring director, was re-elected. New Zealand Directors: —O. S. Watkins, Esq., J.P.; J. M. A. Ilott, Esq., J.P.; W. D. Stewart, Esq. General Manager for New Zealand: F. W. Nicholson, J.P. District Office, 143 Hereford street, W. Helliwell, District Manager. District Agents: Messrs Manhire, Denby, and Candy.

(Published by arrangement.)

Passengers. Week 1926. 1925. ended. No. No. December 4th .. i !9,06J 39,404 December Jlth .. J i2,12l 39,673 December 18th .. -i 10,745 50,800 December 25th .. 49,876 67,913 "January lot .. ' M,H3 68,64 3 Totals .. .. 235,951 266,429 Ca ttle. Sheep. Week 192G. 1925. 1926. 1925. ended. No. No. No. No. December 4 th .. 623 1C17 10,337 5,603 December 11th .. 923 974 11,733 10,218 December 18th ,. 539 1050 30,213 7,636 December 25th .. 795 828 27,907 6.252 •January 1st .. 381 320 618 " ■1,601 • Totals .. 3261 4189 80,762 31,310 Timber Other goods. Week 1926. 1925. 1926. 1925. ended. Tons. Tons. Tons . Tons. December 4th . 4908 4231 25,162 23,530 December 11th . . 4925 3669 26,207 21,990 December 18th . . 3912 4540 22,491 18,189 December 25th . . 3273 5220 21,837 17,309 •January 181 . 1805 2214 9,814 9,609