FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22509, 17 September 1938, Page 14

FINANCE AND COMMERCE

PROSPECTS FOR LONDON WOOL

SALES

OVERSEAS STOCK MARKETS RALLY

According to.advice received in Chrxstchurch merino wool at the sales about to open in London are likely To be 5 per cent, lower than at the last series. A s^^ anticipated in the rates for fine crossbred with medium and coarse unchanged.

The New York stock market advanced five *****££ Sag Wall Streets optimism about ™ e tween Mr Chamberlain and Herr Hitler. Prices were marked up in London,

Lamb prices on the London market are unchangedL but the trade has been affected by large supplies and the low prices of Wethers and ewes are quiet with P™ es £ n changed. Chilled beef is easier because of warm weather affecting the demand.

Ne, pron. o £ £1 9,360, «£*£* ;.««»*SS ous year, is shown in the annual accounts oj. Co-operative Assccia tion, Ltd for July 31, 1938. Dividends are maintained at 5 per cent, on ooin preference and ordinary shares.

SHARE MARKET REVIEW

PRICES FAIRLY WELL

SUSTAINED

JTOLUME OF LOCAL BUSINESS

KEPT UP

" In spite of the disturbing news from Europe, the share market has not Shown any signs of panic, and prices .for the most part have been fairly .•well sustained. The most severe drop was in stocks affected by the price of base metals. The volume of local business kept up. although there was little inquiry in several sections. No sales were recorded in insurance, shipping, woollens, coal, and gas. Reports from America of the over-subscription by more than 10 times of issues of 2J arid H par cent, bonds had a favourable effect on the market.

-Company balance-sheets issued during the week have on the whole shown profits equal to or better-.than those of the previous year. The outstanding exception was the balance-sheet of Wilcox, Moffhn, wool, hide, skin, and tallow merchants, which showed a loss of £01391, against a profit of £45.385 last "year, and average profits for the Six years from 1932 to 1937 inclusive of £29,400. '■•■■'--.■ Turnover on the local exchange day by day was:—

This week. Last week. £ . - £ Saturday .. 1.657 405 Monday .. 2,420 1,299 Tuesday ..-2.249 3,749 Wednesday .. 2,658 3,197 Thursday .. 3,230 7.133 Iriday .. 7.103 .3.426 19.317 19.206 • Dealings in the different sections Were: ~" Value. £ Government .. 3,845 3,855 jointures ■.. 2,246 2,216 ■■.«■' Shares No. . .;•,-, Banks* .. 400 " i; 278 £Sn and Agency .. 300 404 JVozen.Meat . •• 5° .. «g Breweries •• .*» ™2 Miscellaneous .. 4,405 6.564 Mining •• 5,950 3.810

Government loams were very quiet •nd only three sales were recorded locally. Prices on "the whole were tarn, but an easing tendency was noticeable. . Local body debentures were freely quoted but -the recorded turnover was small. .. __^. /. The shipping, woollen, and coal sections were inactive on all New Zealand exchanges. " , .'-'.'' -.VIn banking the recorded tifrnoyer was below the average and the market showed no real strength. English; Scottish, and Australian were firm at £5 3s 6d: National of New Zealand at 52s and New Zealand at 425. , Austral-. ISa were easier at £lO 10s. In other centres New Zealand eased to 41s M; Commercial of Australia". (pref.) advanced to £9 10s. and National of Australasia, had business at £l3 IDs. ; Insurance Sellers of insurance shares were more in evidence than buyers. Nation-, als were offered down to 16s Bd. Last week they were sold at 16s lid.. New Zealand dropped to 555. Local dealings in loan and agency were restricted to Goldsbroughs at 275, 28s M. and 26s lid." Dalgetys' were easier with-sellers at £B*ls. Elsewhere New Zealand Guarantee were steady at_4s ljd.' , ' ' Canterbury Frozen Meat had business at £3 10s. a drop of 12s 6d on last recorded business, which «yas on Feb-, ruary 2. Gear Meat were firm at 14s 4<L. . .. • - _ New Zealand Breweries -were dealt in at 40s 3d and 40s. and showed little variation on last week. Tooths feu to 53s 6d.and 52s 6d. Timaru fin liouidation) had business,at lOd. In other centres Carlton were fractionally firmer at 63s 6d and Dominion were slightly easier at 30s 9d and 30s M. Miscellaneous - In the miscellaneous section interest was chiefly" in Australian industrials and chain stores. ' Broken Hill Profirietary declined from 55s lid to 54s d. but recovered to 55s 9d at the close. The contributing had dealings at 38s 3d and 38s 5d early in the week, but closed weaker. Colonial Sugar were firm at £47 ss. Dunlop Rubber were steady at 20s lid.Electrolytic Zinc dropped to 40s Id and the preference to 44s Id. Tararnaki Oilfields were fractionally weaker at 12s 0d to 12s 4d. Wilson's Cement declined to 16s 7d. Wilcox. Mofnin were fractionally weaker at 6s 2d. G. J. Coles fluctuated between 78s 6d and 775. Woolwortbs. Ltd., ran down from 20s fld to 19s 9d. but recovered to 20s at the close. Woolworths (South Africa) ten to 14s 9d and 14s 7d. . Sales in other centres included the following, all "of which were below last week's prices:—Australian Glass 91s 10|d. British Tobacco 46s Zealand Farmers' Fertiliser 17s. Farmers' Trading 19s 9d. Milburn Lime 355. Mining The local mining turnover of 5950 chares was made up as follows: Froken HUI South 650. Mount Lyell 700, Mount Morgan 1400. North Broken HiH "600. Rawang Tin 100, Gillespie's Beach 200. Glenroy 2000. Grey River 150. Waihi Investments 150. • Broken Hill South cum dividend declined from 31s 9d to 30s Id. Ex dividend of 6d a share dealings were at 28s 9d and 30s 3d. Mount- Lyells dropped to 26s 3d. but recovered to 27s at the close. Mount Morgans moved between lis and 10s 9d. North Broken Hill went from 47s 6d to 445. recovering to 45s 3d yesterday. Rawang Tin showed little variation at 8s 3d ' and Ss IdGrey River were firm at 14s. Gillespie's Beach were a shade stronger at Is Id,' snd'Glsnroy Gold, which- have not been'on the s?les list for a very. Jong- time, bard dealings at Id..

YESTERDAY'S BUSINESS

LISTED STOCKS

AUCKLAND

[THE FBESS Special Service.]

DUNEDIN

[IHI PRESS Special Service.]

Whether your Income is £2 or £2O weekly; you'll make it buy more if you md the advertisements regularly in Press." y\.,* —6

The Christchurch Stock Exchange contoured dull yesterday, and price movements were irregular.

. Government Stock New Zealand Government 4_ per cent, stock, due 1955, changed hands af £IOO 2s6d and £lool \fi-8& and closed with buyers, at £IOO 10s. 'Christchurch City Council 4J per ceht debentures, due 1940-41, changed nands Drainage Board, due 1956, at £lO3. Bank of Australasia were easier with business at £lO 10s- Gol4sbrbugh, Mort were fractionally firmer at Ca S nte?bury Frozen Meat/were, dealt in at £9 10s. V . Miscellaneous . - Australian Glass were, easier with seUers at 915..: Broken . Hill. Propmtary had business on the at 54s 8d and on the afternoon call at 55s "6d. The contributing were firmer with buyers at 37j-;6d.. . . ,_ .. . An odd parcel of New Zealand Farmers' Co-operative 4i. per cent, stocks due 17/5/49, was placed at £9O 10s. Woolworths, Ltd. (cum were fractionally firmer with,*»£«■ and business at 20s. Woolworths (South Africa) eased to 14s /9d and 14s 7d. „, , Mining Broken Hill South (ex div.) scored a rise of Is 6d with business at 30s 3d, sellers staying, in at that price,.buyers at 29s 9d. Mount Lyells recovered to 27s and closed firm. Mount-Morgans were a shade easier at 10s 9d. North Broken Hill (cum div.) gained Is. 3d with D yers and business at 45s 3d.

AUCKLAND. September 16. Fear of war overshadowed all other influences in the investment market this week. The flow of business diminished to the smallest volume for a lorig time, and values slipped away throughout .Jhe period, reaching m many instances the lowest points of me on top of the unsteadying effect of increased company taxation both in New Zealand and Australia, the European crisis caught manteis ax a low ebb, and political issues have been almost .lost sight of during the disturbing days of the last week..lnvestors for the most part, .however, were content to hold their hand, hoping for the best, and while it was difn> cult to induce offers at; what .m-many cases appeared .to be rates there was no evidence of ;*- liquidate, such as might be expected in the circumstances. That some;power to rally, was retained was provided,in the immediate response of markets upon receipt of the news of Mr Chamberlain's visit to Germany,. ... ■■-„-■, . ..-. In banks, business was restricted: almost solely to the two New? Zealand institutions, which, lost further ground although New Zealand rallied from, 41s 9d to 42s at the close; of dealings. Insurance were similarly easier with New Zealand Insurance, contributing the only transaction .61 the, week and losing Is to 555. All these.issues, wer* at their lowest levels this vyear. ■>'■-_ Neglect was very apparent in the classified sections. Breweries were slugeish with some effort at recovery later. Among Australian industrial sues falls were persistent over the greater part of the week. *'

DUNEDIN," September 16. " There have been some sharp losses recorded in . practically every group 'oh' the". Duttediri Stock Exchange, with a- consequent decline, in buying support Investors, however, are inclined to regard the future with: equanimity. Towards the close of. the week price levels showed a slight upward trend. Sellers dominated practically all-sec-tions,, but although they showed willingness to grant, concessions, they uever at'any- stage offered their holdings at "give away" prices. Very few transfers Were made in ? the call room, but transactions : recorded off 'change represented a fair sales' list. -"■:*'■•■ Long-dated - issues of fairly, well , but values were frdin 2s 6d tQ:5s easier; Sales recorded were% of stock. 1939-41, af £96 10s, 4 per cent, stock, 1947-49. at £lOl (five sales being put through at that figure), an£ 3J per cent, -stock, 1953-57 V * 7s 6d. Banking scrip gained notmng ; v:of its lost popularity, interest beingjionfined chiefly .Zealands which had four transfers, all at last week's price of £.2 2s. E..' S..and A.'s changed hands at £5 2s, and i Nationals of New, Zealand .were dealt in at £2 12s.' . •;■ ■'■>. '• Inquiries for insurance, shipping,

COMPANY NEWS

co-op-

FALL IN NET PROFIT

WAIMATE DAIRY

I PUKEMIRO COLLIERIES

NEW YORK TIN

CANTERBURY FARMERS'

Net profit of £ 19,360, compared with £22,297 in the previous year in the annual accounts of the Canterbury Farmers' Co-operative AssociaD . ury T +j fnr the year ended July di, tion, Ltd., for J««f '*"; £lO4 321, comiQ3B Gross profit, Mjas *;. ±U ?' o ' , - L i„ „„_ j ;!,;+£ £129 834. Dividends are SSfK feS rSuf^rve £ s,and say>.■Depreciation °^mldm g s plant been provided as n usual a c 6^th^ P year a-241 623 241,034 credit 65.432 63,448 Bank and cash in hand 7,753 14.962 * - ' 3 704 2,010 London account • • ■*■'»* • . Total credit •• J^ • Total -. •.. 3 iZi?i An tacrease in responsibility of £21,836 "The result of the year's operations discloses a>t profit earned of **#*£* orou^fo^vara 3 £?£ dividend on all classes of \. pre*erence !b h of e a »n r d srass&iw^ S C arrVseTv e £ £5000. and transfer tor. SrsMes'rs M. Guild. AS Jones andN. M. Orbell, who were eligible for re-election and have been nominated accordingly There' being no fresh nomina«nm: ail the above were automatically elected for the ensuing, X, Messrs A. C. Martin and J. J-&B----|St, retiring auditors, lave, again offered items are:—

Liabilities Change from July 31," " last 1933. year. e, £ Capital paid up , •• 149.534 +lO Calls in advance .. » Secured debentures plus accrued interest .. 241,034 -589 Creditors •• •• 21,132 -M™ Current accounts .. 63,448 -l.»°* Bank overd'ft. (secured) 12,952 +12,952 Staff superannuation _ fund ... •• 3,402 +B7O Bad debts reserve .. 209 General reserve .. 15,000 +5.000 Income-tax reserve .. 301 +3b Profit and loss .. 23,097 -3,146 Total 530,114 +9,457 .'Assets' Freehold property ..127,585 -2,055 Leasehold property .. 7,219 —217 Furniture, plant, fixtures, etc. .. .. 4 J„°J? + - Investments .. , • • 5,0z0 Advances and auction ,„„,, . accounts .. ' •• IfSilf +32,0 , 3 1 1 Due on open accounts ... 57,255 — ?°S Bills receivable .. ,8,75| T s ** Goods on hand . .. 137,978 -8,202 Bank and cash .. „ Payments in advance .. 2,259 —SB Total ... •• 510jL14 +9,457 July, July. July. 1936. 1937. 1938. £ £ £ Gross profit .. 113,634 129.884 104,321 Net profit .. 17,114 22,297 19,361 Dividend — ■ ■ Pref;,. per. cent. . . 5 5 o Ord., per cent. 5 5 5

The success of the reorganisation of 'staff and collection routes at the beginning of the year to cope with increased costs was the subject of favourable comment at the annual meeting of shareholders in the Waimate Dairy Company yesterday, when congratulations were - extended to the directors and to the staff. The results of the year's trading had proved most gratifying, stated the chairman of directors H. H. Meredith), and in spite of an increase of cream collections to three days a week, over-all costs fell from 3.012 d to 2.903 d per lb of butter-fat. ' The annual report stated that the estimated and actual season's average payment per lb of butter-fat was 12.09 d per lb. Export butter in stock had been valued at 12.91 d per lb, and local market stocks at Is ljd per lb. The. appropriation account showed a credit balance of £7183 19s Id, which the directors recommended should be dealt with as follows: To make a deferred payment of 2d per lb to suppliers on the whole of the butter-fat supplied' during the year, £5867 9s lOd.

To pay 4 per cent, dividend oh paid-up. capital, £225 9s 3d. To carry forward £lO9l. . The retiring directors,- Messrs H. H. Meredith ana A. J. Burness, were reappointed. " The retiring auditor', Mr J. B. Neale, was reappointed.

BARTHOLOMEW LAND AND TIMBER^

' [THE PRESS Special Service.] AUCKLAND, September 16. ; The" accounts of the Bartholomew Land and' Timber Company, • Ltd.; Hamilton, show a net profit of £2607 for the year ended July 31, against £2709 in the previous . year. The directors recommend a final dividend of 2J per cent., making 5 per cent, unchanged for the year.

AUCKLAND, September, 16. After allowing £2669 for depreciation, a net profit of £7153 is shown in of Fukemiro Collieries,: Ltd., for the "year ended August 31.This compares with a profi.t of £7Bll- - the previous year, when £4OOO was provided for depreciation. -}.'■■■' The directors recommended a final dividend of 4£ per cent., making 7 per cent, for the year (unchanged);

• LONDON,. September: 15. New York tin is quoted at 43.25 cents per lb." - :

meat preserving, loan and agency, and woollen scrip were few. -Passing interest'was '- shown in Milburn Limes,, which sold (ex dividend) at £1 15s. Wilson's Cement declined sharply, to sell, at 16s 7d. Dominion ? Breweries were also easier, With dealings at £1 10s 6d. Although leading Commonwealth industrials did not escape the downward trend, they were the first-to show out towards the close of the -week for a slight recovery in values.^ Australian mining shares received some severe set-backs in the first part of the week,: and prices took an upward turn later, and values at the close? were on a level with those ruling at the same' time last week. Mount Morgans led the way in trading, but although gold is at its highest level for some time, there was no marked improvement in the prices of these, shares. Seven dealings were recorded at from 10s lid to lis. Mount Lyells were sold at £1 6s Bd, with final unanswered buyers offering Id above that figure, and preferred Electrolytic Zirics were/erratic selling from £2 5s 6d to £2 4s 3d, and finishing round £2 3s; North Broken Hills were sold at £2, 5s 4|d, but buyers' best final offer was £2'4s.

Sales on 'Change £ s. d. 100 Gbldsbrough, Mort 1 6 LI o 1111 !Su*J !^^^E!Kx^B!^l 2 15 9 100 Woolworths (Syd., ord.) • • ;,• 1 0 0 100 Woolworths (South Africa) . • „ -•:•-. 0 14 ,9 50 Broken Hill South (ex div.) .. -• 1 10 3 - 200 Mount Lyell (2) 17 0 9 100. Mount Morgan 0 10 100 North Broken Hill 3 (cum div.} 2 5 Sales Reported £3645 N.Z. - Govt.. 4 p.c ' ' 6 6 Stock, 1955 100 2 100 12 £1000 Christchurch City, 4J p.c, 21/3/40-41 ... £200 Christchurch Drain102 10 0 age, 4i p.c, 30/6/56 103 o 0 25 Bank of Australasia (cum div.) 10 10 0 50 Canterbury Frozen Meat. ■■,..■ •*• ■ 9 10 0 £346 .N.Z-Farmers Co-op., (odd parcel) __ .. v yu iu u 100 Woolworths (South Africa) .. 0 14 7