FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22513, 22 September 1938, Page 13

FINANCE AND COMMERCE

MERINOS EASIER AT LONDON

SALES

ADVANCE IN FAT CATTLE PRICES

\ The opening of the London wool sales was better than had been expected. The selection of New Zealand wools offering was poor, but competition was keen and the market animated, although on a slightly lower basis than the July closing rates. Merinos were id to id easier, and halfbred qualities were also slightly easier, but crossbreds remained firm.

Competition at the Sydney sales yesterday was very keen from the Continent and Yorkshire, with substantial support from Japan round late firm levels for all types of wool. Greasy merino made 18d.

LONDON WOOL

SALES

BEBARFALDS, LTD.

merinos slightly

EASIER

CROSSBREDS REMAIN

FIRM

GOOD COMPETITION FROM

CONTINENT

(rarrzs pkess hiociatios —corrmisarj

LONDON, Septemebr 20. The London wool sales opened with good competition from the Continent, including Germany. Merinos were 2J to 5 per cent, lower, but crossbreds were fully firm. New Zealand lots sold as follows: — Greasy crossbred, J.M.L., B|d. A total of 8529 bales was offered, including 4385 from New Zealand, and 7371 were sold. ' The market opened better than had been expected, owing to less tension in the European situation. A fairly good selection was offered and competition was active, a good clearance being made. Compared with the closing prices of last series, merinos were unchanged and occasionally easier,' while others were very steady.

NEW ZEALAND SELECTION

POOR

A message received privately in Christchurch says that the selection of New Zealand wools offering was a poor one, biJt the competition was keen and -the market animated, although on a slightly lower basis than the July closing rates. The chief buyers were the Home trade and France and Germany, other wool-buying centres not being interCompared with the closing rates of the July series, merinos were id to jd easier, halibred qualities were easier, but not quotably so, and crossbreds remained firm. 1

MAURI BROS. AND THOMSON

KEEN COMPETITION AT SYDNEY

(WIDER DEMAND FOR BETTER CLASSES

(PRESS ASSOCIATION TEI.EQRAX.) WELLINGTON. September 21. At the wool sales 11,264 bales were offered. Sales at auction were 10,514 and 1063 were sold privately. Competition was very keen from the Continent and Yorkshire, with substantial support from Japan round late firm levels for all types of wool. There was wider demand for the better classes. Greasy merino realised 18d.

SOUTHLAND MARKETS truss association uubehJ INVERCARGILL, September 21. The Southland grain and produce markets have not been very active. Crested dogstail has shown _ an improvement because- of further inquiries from overseas, and white clover prices have been firm. The market for oats hap shown no improvement. The demand both for milling and shipment is*;inactive, and practically the only business is the supply of seed oats to fanners. Top value to growers for food weight A giade is 2s 6d, B grade eing worth about 2d less. Stocks of ryegrass held by merchants me only sufficient for local farmers 'seed trade, so that there is practically ho shipping business. The value to growers for Southland seed ranges from 4s 6d to 4s 9d. . ' There has been no improvement in Ihe potato market, and it seems un- * likely that there will be any ' great change in the shipping market. The local market is well supplied. The only variety commanding attention is King Edward, which is selling up, to • f£4. For other varieties many of the growers would be willing to accept £2 10s.

DUNLOP-PERDRIAU

DOMINIONS* BEEF QUOTA

figures for fourth quarter

OF YEAR

LONDON, September .20. The Australian beef quota:, for the fourth quarter of the year is 473,479 cwt, and. the New Zealand quota 190,000 cwt.

COLOMBO TEA AUCTION

( COMMON GRADES REMAIN FIRM

CLAUDE NEON

{FUSS ASSOCUTIOX HtUIUC.)

DUNEDIN, September 21. Mr L. M. Wright has received the following cabled report on .the Colombo tea auction of September 20: Common teas remained firm at yesterday’s tea'auction of 3,250,0001 b. Other, ifnules eased Id to jd because of lower , *At "week’s auction 2,250,0001 b • will be offered.

There was very little change in any of the sheep sections , at the Addington stock market yesterday, although the tendency was easier. The penning of fat cattle was small and prices advanced sharply.

COMPANY NEWS

INCREASE IN NET PROFIT

Bebarfalds, Ltd., a house furnishing company, of Sydney, reports a net profit of £31,252 for the year ended June 30, against £25,247 in 1936-37. It is -proposed to pay dividends on the "A” preference shares for the two years ended June 30, 1932, absorbing £14,650 and to carry forward a balance of £43,509. against £31,752 brought into the accounts. The directors have already announced that they do not propose to continue with a scheme of . capital reorganisation and modification of preference rights and that preference dividends will be paid as and when funds are

tAt the rate of 8 per cent, per annum lor the 15 months ended September 30, 1931 (£10.000), and at the rate of 6.2 per cent, per annum for the nine months ended June 30. 1932 (£4650). The directors state that trading conditions throughout the year were favourable. Notwithstanding an appreciable expansion in turnover the stock outlay has not been increased, the report adds, and credit transactions have been resricted to satisfactory amounts Outside liabilities have been substantially reduced, the bank overdraft being £113,358, against £156,541 at June 30, 1937.

NET PROFITS AT RECORD FIGURE

Mauri Bros, and Thomson. Ltd., reports a record net profit of £94,432 for the year ended June 30. In 1936-37 the profit, then a record, was £93,239. Dividends have been maintained at the unchanged rates of 9 per cent, on the “A” preference, 10 per cent, on the “B” preference, and 10 per cent, with a bonus of 5 per cent, on the ordinary shares. These absorb a total of £58,533, and, after transferring £34,000 to reserves. £39,254 is carried forward, compared with £37,355 brought into the accounts. Year ended June 30, - 1936. 1937. 1938.

The directors state that during the year negotiations with Messrs Stevenson and Howell, Ltd., London, were completed, and on March 7 a subsidiary company was registered, in which the two companies are interested.

Full accounts of the Dunlop-Perdriau Rubber Company, Ltd.,' Melbourne, for the year ended June 30, confirm the. profit of £414,597 announced m a preliminary statement by the directors, published in “The Press,” on August 29. This figure is £4835 higher than that,of the previous year and exceeds that of £411.630 shown in 1929, the year following the amalgamation of the Dunlop and Perdriau companies. The 10 per cent, preference dividend takes £93,000. and ordinary dividend unchanged at 7 per cent., requires £263.595. It is proposed to transfer £60.000 to general reserve, increasing it to £260,000-, leaving £56,574-to be carried forward, agamst £58,573 brought in. ■ ' ' The company s profit on trading, interest, dividends on investments, including those received from or since declared by subsidiary companies, and miscellaneous receipts, amounted to £1,051,792, against £991,935 in the previous year, and expenses and all other charges took £637.195. compared with £589,374 in the previous year.

Avery successful year was reviewed by Mr W. A. Ince, chairman of directors of Claude Neon,’Ltd., at the annual meeting in Sydney last week. Sales of new signs were well maintained. and renewals of expiring contracts exceeded expectations.... . . In reply to a question concerning the proposed merger with Claude Neon Lights (Victoria), Ltd., Mr Ince said tha'

POTATOES FOR EXPORT

“SUFFICIENT TO RELIEVE

LOCAL GLUT”

STATEMENT BY MINISTER FOR MARKETING (PRESS ASSOCIATION TELEGRAM.)

WELLINGTON, September 21

; Interviewed to-day about further shipments of potatoes for export, the Minister for Marketing, the Hon. W. Nash, said that the existing arrangements were working smoothly and that there was no doubt that sufficient quantities of potatoes would be exported to relieve the serious glut on the local market. The Minister continued that there was no reason for any quantity of exportable quality Red Dakotas remaining unsold, as the Government had already announced some days ago that it was prepared to purchase all potatoes of this variety which would come up to export grade. Accordingly, arrangements had been made by the Internal Marketing Division by which every merchant ’desirous of participat-' ing in export could be assured of receiving full advice about procedure. In conclusion, Mr Nash said he hoped growers would realise the necessity of promptly making available all their exportable grade potatoes in order that the shipment of several thousand tons arranged for the Port Melbourne, due to leave about September 29, would be amply filled.

MOUNT MORGAN AFFAIRS

CIRCULAR ISSUED BY SHAREHOLDERS

THREE NEW NOMINATIONS

FOR BOARD

Dissatisfaction with many matters connected with the affairs of Mount Morgan, Ltd., Queensland, is expressed in a circular issued from Brisbane over the name of Mr W. M. Hall, secretary for a number of dissatisfied shareholders. The group has lodged nominations for the three vacancies on the board to be filled at the annual meeting, to be held shortly. The three nominated are Messrs W. J. O’Sullivan, head of Jackson and O’Sullivan, commercial printers, of Brisbane: A. W. Fadden, M.H.R., who represents Darling. Downs; and J. Malcolm Newman, mining engineer. Mr Eric Campbell, managing director of the company, retired recently, and two other directors, Messrs T. M. Owen and O. F. J. Wolff, will retire by rotation. ■ . It is believed that the annual meeting will be held in Sydney toward the end of November. The move to elect new directors comes from a number of large shareholders in Queensland, with support from shareholders in other states and New Zealand. The group alleges that the reports issued from time to time by the company do not contain the information usually supplied by mining companies. This information, the group claims, is necessary to estimate profits and to assess the value of the shares. The circumstances of the recent issue of redeemable, preference shares afford a further point of criticism. The market decline in Mount Morgan shares over the last year, and the low market valuation .of shares in Mount Morgan Developments, Ltd., a subsidiary, and in Sulphide Gold Junction Reefs, N.L., in which Mount Morgan Developments is are further matters with which the group expresses dissatisfaction.

LARUT TIN

Proposals for the reduction of the capital of Larut Tin Fields, Ltd., Malaya, which were foreshadowed at the annual meeting in June, are that the capital should be reduced from £600.000, in shares of £1 each, to £300,000. in 600,000 shares of 10s each. The reduction is to be effected by cancelling capital which has been lost, or is unrepresented by available assets, to the extent of 10s a share. After the reduction it is proposed that each share of 10s should be subdivided into two shares of 5s each.

BULOLO

Bulolo’s total gross production in August amounted to 23,492 ounces of bullion, containing 16,209 ounces of fine gold, from 1,249,000 cubic yards. Estimated working profit was 11,508 ounces of fine gold. The production is equivalent to £141,829, and working profit to £100,695 on the basis of £8 15s (Australian) a fine ounce of gold.

PLACER DEVELOPMENT

For the three months to September 1. Pato Consolidated Gold Dredging, Ltd. dredged 3,031,000 cubic yards for a recovery of 10,463 ounces of fine gold, and handled with its''hydraulic units 264.000 cubic yards, which yielded 2104 ounces of fine gold, the value of the total production being 439,845 dolthe same period, Asnazu Gold Dredging, Ltd., handled 505,100 cubic yards, recovering 2688 ounces fine gold, equivalent to 94,080 dollars. The reduced Asnazu recovery a yard was due to the dredging of some low valued ground, which had to be handled at this time or permanently abandoned.

LONDON BUTTER MARKET

SLOW

(UNITED PRESS ASSOCIATION —COPYRIGHT.).

LONDON, September 20. The butter market is slow. Choicest salted New Zealand 119 s, Australian 114 s. Unsalted Is premium.

BRITISH WAR LOAN

(MITISB OTfICUI WIREL»3»./ ' RUGBY, September 21. War Loan, 3i per cent., is quoted at £IOO 15s.

BRITISH EXCHEQUER RETURNS

RUGBY, September 20. Exchequer returns - show that the total ordinary revenue amounts to £287,702,553, compared with £292.874.049 at the corresponding date in 1937. TO date, National Defence contributions have yielded £ 6,030,000, Total expenditure, less self-balancing items, is £438,080,721, compared with £382,167,144 a year ago. The net increase-dn the floating debt since the beginning of the financial vear is £77,930,000, and the total outstanding is £919.685,000, compared with £901.380,000 at fhe corresponding date in 1937. ■

the directors saw no reason to doubt that the aggregate profits of the last year would be fully maintained and they believed they would show improvement.

available. Year ended June 30, 1936. 1937. 1938. £ £ £ Net profit .. 21,971 25,247 31,752 “A” pref. div. .. — — fl4,650 Forward .. 1,160 26,407 43,509 Depreciation . • Liabilities— — 1,535 1.280 Capital— Pref. 199,500 199,500 199,500 Ord. 213,400 213,400 213,400 Creditors 106,664 94,720 93.585 Bank 165,493 156.541 113,358 Loans on mort- ‘ gage — 213,119 212,620 Assets— 554,026 Properties 334,409 553,777 Investments 227 .227 227 Stock 98,024 95,440 91.342 Furniture and. plant Debtors 11,262 10,248 10.244 208,438 209,851 201.167 Cash items 465 502 473 Goodwill 33,393 33,393 33,393

£ £ £ Profit 89,907 93,239 94,432 Dividend— 13,500 Pref., A, 9 p.c. 13.500 13.500 Pref., B. 10 p.c. 2,190 2,190 2,190 Ord, p.c. 10 10 10 Ord, amount .. 28,562 28,562 28,562 Ord. bonus, 5 p.c. 14,281 14,281 14,281 To reserves 31,100 30,000 34.000 Forward 32,849 37,355 39.254 . Depreciation .. t 8,001 8,265 LIABILITIES— CapitalOrdinary . 285.620 285,620 285,620 Pref., A .. 150,000 150,000 150,000 Pref, B 21,900 21,900 21,900 Reserves — 45,000 55.000 Depreciation .. 40,000 Dividend 47.190 equalisation 47,100 47,100 General 138,000 163,000 187,000 Creditors 48,843 *104,712 •105,363 Due to . subsidiaries 2,766 3,811 Taxation and 47,949 contingencies t i ASSETS— 209,082 210.259 Property 209,082 Plant and vehicles 37,768 ' 45,809 47,078 Mortgage Castle- ' 51.130 reagh st. prop. — ■ — Stocks 98,759 124,471 132,486 Debtors 78,572 59,079 62.609 Cash 88,755 163,527 162,851 Subsidiary companies 241,193 250,713 273,554 Trade'’ mark. 41,179 42.622 goodwill, etc. 41,179 t -Not shown separately. •Includes taxa* tion and contingencies, t Included witn creditors.