DEPRESSION IN WHEAT.

Press, Volume LXVI, Issue 20100, 2 December 1930, Page 12

DEPRESSION IN WHEAT.

ARGENTINA'S PROSPERITY AFFECTED. FARMERS heavily mortgaged. (witrd rrvKss associa.tion-_bt electkip TELEGRAPH —COPYRIGHT.) (Received December Ist, 8.45 p.m.) BUENOS AYJtKS, November 30. Tho world-wide depression in wheat prices has removed Argentina's prospects of regaining prosperity through the new crops, which promise to be the greatest of recent years. The Government is preoccupied in attempting financially to aid the farmers to harvest their crops, admitting that the country must have grain regardless of the loss or profit to the growers. Authoritative estimates plar-e last year's unfavourable balance of international oayiaerts s gainst Argentina at seven hundred million pesos, with a similar unfavourable balance in prospect for this year. Farmers have already mortgaged their lands, buildings, machinery, tools, and stock to the limit. N.Z. FARMERS' COOP, DISTRIBUTING CO. DIVIDEND PASSED. The directors of the New Zealand Farmers' Co-operative Distributing Company, Ltd., with headquarters now at Feilding, in 1 thoir 27th annual report for the year ended | September 30tb, 1930, state that the profit ; and loss account shows a gross profit of £47,535 5s 7d, and the expenditure amounts to £41,405 3b 9d. The net profit, after making provision for bad and doubtful accounts, and for depreciation of plaut and furniture, amounts to £6130 Is lOd, "which, with £1286 15b 7d brought forward from last year gives a balance of £7416 17b 5d to be dealt with.

Tho decrease in profit compared with tho two immediately preceding years, was due to tho smaller commissions received from sales of wool and Hv© stock, owing to the lower prices ruling, and to a proportion of the usual offerings of wool being withhold from aale, because the growers were not prepared to accept the market prices. When proposing distribution of profit last year, full provision was made for income tax under the then existing scale of taxation, but, as a consequence of the increased taxation imposed by the Land and Income Tax 1930 Bill, the company has since been assessed for an additional amount of £OO7 lis, and the amount brought* forward in the proAt and loss appro, priation account has been correspondingly reduced. It would be possible to pay a small dividend, but, in view of the unfavourable market prospects of farm products, the directors consider it inadvisable (0 do so, and recommend that the balance of £7416 17s 5d available in the profit and loss appropriation account be allocated as follows:—Write off £ISOO for depreciation of properties; add £IOOO to tho general reserve fund; add £ISOO to tbe reserve for bad and doubtful account**; provide a sufficient sum to cover income tax, and to carry forward the balance. The retiring directors aro Messrs T. Currie, D. Scott, and G. K. Yule, who offer themselves for re-elertion. The retiring auditor, Mr S. E. Lambert, has been nominated, and offers himself for re-election. The principal items in ihe balance-sheet, compared with 1929, are as follows; Liabilities—--3 929. 19.10. £■ « Capital .. 229.411 133,735 Fixed, deposits 14.805 14,505 Reserves . . 9,000 12,632 Sundry crs. and share holders cur. a/rs. 53,568 21,706 Bank of Australasia . . 12.666 34,481 Contingent Liability—Bills discounted . - 7,000 Assets— Properties le*s 71.010 70.106 Stocks . 25.320 24,742 riant, etc. . 9,776 9,102 Investments . . 1.401 1,757 Bills receivable . . 435 513 Kundry debtors and advanccb 111,026 122,36-1 TOOTH AND COMPANY.

DIVIDEND OF Hi PER CENT. Tooth and Company, Ltd., ih© Sydney browing company, in its annual report for the period ended September 30th, discloses a net profit of £686,391, which is £52,347 above that of the previous year. With an increase of £111,452 in tho gross profit, there was an addition of £59,115 to expenses. Interim dividend was 6$ per cent.; a final dividend of 5 per cent, is recommended, making 111 per cent, for the year. This rate is li per cent, lower than that of the previous year. t>ividend amount is £G32,317 f against £539,860 a year previously. The increase in thft amount with a decreased Tate is explained by the fact that the increase of capital shown at September 30th, 1929, was in us© only a small portion of 1928-1929. A sum of £50,000 is carried to reserve, and with £35,011 brought forward, thcro is carried forward £39,086. 1929. 1930 £ £ £

Gross profit „1,482,345 1,593,797 Management and taxation 848,291 907,405 Net profit . % 634,054 686,391 Dividend, p.c. . . 12& 111 Dividend, amount 539,860 632,317 To reserve fund +. 100,000 50,000 Forward 35,011 39,086 Liabilities— Capital paid up 5.620,598 5,620,598 Reserve fund . . 650,000 750,000 Depreciation reserve 50,000 50,000 Creditors .. 613,369 553,605 Employees' benefit fund . . 55,359 54,448 Workmen's compensation fund . . 25,000 25,000 Assets — Breweries, freehold, plant . . 4,590,425 4,727,376 Government stock and deposits . . 509,007 560,686 Bank balances . . 135,498 72,299 Stock on hand . . 577,290 456,142 Sundry debtors . . 1,734,165 1,607,262 Taking the balance-sheet items, creditors are lowor on tho year by £59,764. Of liquid assets, Government stocks and deposits have increased by £151,679, and bank balances show a reduction of £63,199. Stock iB less by £121,148,. and debtors have reduced their amounts by £3 26.903. The value of tho breweries, freehold, and plant has been bet» tercd by £136,951.

CHEAP ROAD TRANSPORT. FUEL OIL AND DIESEL ENGINES. Commenting on the fact that recently a small motor-car, driven with a Diesel eng'ine, did the run from London to Brighton and back, a distance of about 110 miles, on 9d worth of fuel oil, the Manchester "Commercial" says:— "The trip was interesting as demonstrating that the heavy Diesel engine could now be adapted to the motor-car, though before its general use in this manner could be assured there would have to be some modifications. Its speed, for example, would have to be more than the 20 miles an hour or so "which was the maximum limit of this car. Tn further runs the car has now done 100 miles at a cost in fuel oil of no more than 7s Gd. There are therefore interesting possibilities opening out. The car in question is small only in its power unit. As a road vehicle it is a five-seater, weighs 22 cwt, and does from 50 to GO miles on a gallon of fuel. It is quiet, odourless, responsive, and a sturdy climber, although the normal rating of the engine is only about' 3 li.p. It starts easily from cold owing to the system of relief valves which cuts "out part of the compression, and in design the unit is much moro simple than the ordinary petrol engine. It has, for example, no magneto, no sparking plugs, nrlrt no carburettor. Fuel is stated to be rpadily available, and cost 3Jd in bulk or 5d per gallon when bought in small quantities on the road."