FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22521, 1 October 1938, Page 15

FINANCE AND COMMERCE

PROSPECTS FOR WOOL

“SLIGHTLY LOWER PRICES

PROBABLE”

DISAPPOINTING YEAR FOR GROWERS “History has taught me to be very careful when predicting prospective ■wool values, but as far as one can see it locks as if growers can expect prices slightly lower than those ruling at the last March sales.” said the chairman cf directors of the Canterbury Farmers’ Co-operative Association, Ltd. (Mr F. R. Flatman), at the annual meeting of shareholders held at Timaru yesterday, when discussing the position of farmers in his annual report. The last year, said Mr Flatman, had been a most disappointing one for growers. It was not expected that the high prices ruling during the 193637 season would be sustained, but the drop which came was much greater than was anticipated. The season for the fat lamb producer in South Canterbury had been one of the' worst experienced for the last 30 years. Meat values were sound, but not only was the price of by-products much easier, but the fattening season was upset by the abnormally wet year, which brought with it conditions which enabled sheep pests to thrive. As a result, fattening was slow, the finished article of poorer quality than usual, and this, accompanied by a large death rate, marie the season one to be long remembered by South Canterbury farmers.

The prospects for lamb looked fairly sound, and Mr Flatman expressed the hope that farmers would not experience another season such as the one just passed. The area of wheat sown was 188,000 acres, compared with 222,000 acres the previous year. The average yield, Recording to threshing returns to date, •was 32 bushels, practically the same as last year. All local wheat had to be placed in the South Island, and importations were made from Australia to fulfil North Island requirements. In an endeavour to improve the quality of the wheat, the Wheat Committee decided to make payments on moisture content. Wheat up to 15.5 per cent, moisture was accepted as milling quality. ■ Above this, up to 16.5 per cent., a reduction of 4d a bushel was made. Owing to very unfavourable harvest weather, threshing operations were prolonged and there was still a quantity of wheat to be threshed. The estimated area of oats and chaff was 285,600 acres, being 10,000 acres less than last . year. Prices opened at from about 2s 9d to 3s for Gartons, but the demand was poor, and the only oats consistently saleable were Duns, for which 3s to 3s 6d on trucks was obtained, according to quality. The whole of the Partridge pea crop was more or less damaged by weather and in some cases crops were not harvested at all.

VEGETABLES AND

FRUIT

CHRISTCHURCH MARKET Good supplies of all varieties of vegetables have come forward this week, and values remain firm. Quotations are;— Cauliflowers, up to 7s a dozen; spring cabbages, up to 9s a dozen; rhubarb, up to 5s fid a dozen; lettuce, up to 4s 6d a dozen; spinach, up to 2s 7d a dozen; green peas, up to Sd.per lb; .potatoes, market over.-, supplied,, realising ,1s fid . a'lsugarbag;. new potatoes, -3d to 4d -per onions; Australians, lls -to 12s fid a cental bag; asparagus, up to Is 6d a bundle. Fruit—Apples; Steady supplies are available, and values are as follows: Delicious, best : quality, up; to 9s. Sturmers: A few extra choice, up to 6s 6d; inferior grades very little in-, qulry. Jonathans, to 9s. Cooking varieties, 5s to 7s fid a case. Pears, choice deSsert, up .to 5s fid a half-case. Tomatoes; Supplies scarce, and values during the week were up to 3s 3d per lb. New Zealand lemons: Steady supplies coming forward, realising from 8s to IDs 6d a case. Passionfruit: Steady supplies coming forward, market unchanged. Imported Fruits—A shipment of Queensland pineapples came to hand yesterday, and realised up to 24s fict .a ease. A shipment of Samoan and Niue bananas, also kumeras, arrived at the beginning of the week. Australian oranges: The market at present is bare, but further supplies are expected on Monday. Shipments, arriving—A shipment ot Californian grapes is expected next week, also a fresh shipment of. Queensland pineapples. Eggs—First grade to Is 3d, seconds Is to Is Id; duck eggs to is Id a dozen.

DUNEDIN

(rusa iisociATtoa tilmbam.) • DUNEDIN, September 30. A shipment of oranges of approximately 3000 cases was landed on Thursday. The shipment was not sufficient to meet the demand from retailers and it had to be rationed. There is also a shortage in the North Island and part of the shipment which should have been landed in Dunedin was transferred to Christchurch and Wellington. No further supplies are expected fpr three weeks. A fair shipment of pineapples arrived by the Waitaki and realised satisfactory prices. A shipment of Samoan bananas which arrived during the week opened up in good order. The bananas will have ripened up early next week. A small shipment will arrive ex Matua transhipped at Wellington in about 10 days.

New Zealand-grown lemons are In Heavy supply. Small lots of pears ex cool stores are still reaching the marxet. Apples are in fair supply. Choice quality lines are taken up immediately on arrival at the marts.

COMPANIES REGISTERED

k (Alfred) and Sons, Ltd. Ke--12 omL as f^ riv , atc c ° m Pany September Adderle y street, Greymouth. K»£ ltal -u £450 ° into 4300 sllar M of £1 each. CrnHS rib , er i- West » ort: w - A. Craddock. A. Cradtitick. hj. E. Craddock 1500 shares each Safc: General carrlers cartr/e con-

SS* SBSftgSWw, 0%o# i,* Into 3000 shares T'tstsssssr?’ M Junoia, 14w , objects; aimSS. 1

COMPANY NEWS

NORTH OTAGO FARMERS’

DECISION TO REDUCE CAPITAL A decision to reduce its share capital and capital redemption reserve fund was made at an extraordinary general meeting of the North Otago Farmers' Co-operative Association, Ltd., held atfer the annual meeting in Oamaru yesterday. The chairman of directors <Mr C. Hedges), in his annual report, stated that the resolution was intended to put the association’s affairs on a more satisfactory basis, the increased losses during the year being caused chiefly through Government legislation.

The capital reduction proposed was £1 a share, and would mean that £20,000 would be written off. said Mr Hedges The issue had to be faced, and the proposal was the unanimous decision of the directors.

“Since 1933, when accumulated losses due to the depression amounted to approximately £IO.OOO. the directors have fully considered the question of writing down the capital, but many of the larger shareholders who were consulted at that time were strongly of the opinion that it would be preferable to reinstate the capital, even at the expense of dividend payments,” he said, in moving the adoption of the resolution. “Unlike other associations, most of which reduced their capital during recent years, we struggled on, and just when the reinstatement of the capital was in sight we were faced with the necessity of making further provision for losses resulting from the operation of the Mortgagors and Lessees Rehabilitation Act. “The question for consideration now is whether it is in the best interests of shareholders to lake steps which should ensure an early resumption of dividend payments by writing down the capital or postponing dividend payments indefinitely. “In the opinion of the directors the only way in which we can roach a position of stability is to write down the value of our buildings and provide for all contingencies, by reducing capital%by an amount to be decided upon. At present the company’s articles of association do-not provide the necessary powers to give effect to the proposed resolution, and an addition to the articles of association is therefore required.” After tracing the history of the company and the development of the cooperative movement .the chairman said that the total number of shareholders in the company was 1131, most of them holding comparatively few shares. Apart from farmers’ advance accounts the association’s affairs were in a healthy condition, and the merchandise section was quite satisfactory. The gross earnings were £15,758 and net profits £2909, the latter figure being offset by losses through debts being written off.

The resolution .was carried unanimously.

CANTERBURY FARMERS ; “In dealing with the net profit of £19,360, plus the carry-forward of £3736 from the previous year, the directors have been able to make provision for payment of 5 per cent, on all classes of shares,. to provide for payment of incomertax to the exent of £7460, and to transfer £6OOO to general reserve and superannuation, leaving a carry-forward of £2159,” said Mr . F. R. Flatman, chairman of directors of the Canterbury Farmers’ '-Co-operative Association, Ltd., at ll.c annual meeting of shareholders at Timaru yesterday. . Since last January, said the chairman, South Canterbury had not fared well with, the weather, having suffered from a surfeit of rain during the critical time of harvest and lamb fattening, and farmers generally had had a trying time, resulting in considerably less income being available from the farms, and necessitating increased support financially by banks and mercantile firms. The association had had '. > give increased support to farmers to the extent of £32,038. thus increasing its responsibility in finance, against last year, by £21,836. Added to this, the ever-increasing costs of working owing to legislation, had handicapped farmers in their year’s results. Labour conditions had been difficult owing to men leaving farm work for the higher rates of wages ruling in Government undertakings. In dealing with the net profit of £19.360, plus the carry-forward of £3736 from the previous year, tb directors had been able to make provision for payment of 5 per cent, on all classes of shares, to provide for payment of income-tax. £7460, and ‘o transfer £6OOO to general reserve and superannuation, leaving a carry-for-ward of £2139.

A good season in sheep and lambs, dairy produce, and crops could be looked for, though it was regrettable that through force of circumstances, it would appear that the acreage in wheat would be very short, and importation to make good New Zealand’s requirements would be considerable next year. The season for wheat sowing was very unfavourable and had been the real obstacle to a sufficient crop being available for New Zealand’s - requirements next year. On the motion of Mr J. Trotter, a motion of thanks was accorded the directors, management, and staff for their services during the last year. The following retiring directors were elected without a ballot:—Messrs J. Bitchener and ■C, J. Talbot (shareholders) and M. Guild, A. S. Jones and N, M. Orbell (stockholders).

Messrs A. C. Martin and J. Leggott were re-elected auditors.

BRUNNER COLLIERIES

LOSS ON YEAR’S WORKING (FEES* ASSOCIATION TELEORAV.) WELLINGTON, September 30. In its annual report for the year ended June 30 last, the directors of Brunner Collieries, Ltd., state that the net result for the year, after providing £1915 4s for interest on debentures and £1573 Os 8d for depreciation on plant and equipment, is a loss of £3338 11s Id, compared with a profit of £3805 5s fid for the preceding year. Recession is due to increased production costs and a reduction in output. The principal increases are wages £2671 9s 10d, maintenance £1335 Is 3d, and employers’ liability insurance £626 18s 3d. A slight increase was obtained in the selling price of coal, but through the competition of the State and other .mines the Increase secured was insufficient to offset the advance in costs. The output was 50,873 tons, a decrease of 1652 tons on the previous year. Overhead expenses show a reduction of £259 10s sd. A defect in the main boiler necessitated the installation of two new boiler drums, and during the period of X'ODiacement the output was adversely affected.

", of negotiations with the debenture-holders, the debenture issue has been extended for a period of 10 years from' the due date. November 30, 1938< at a reduced rate of interest of 5. per cent, for the first five years. This will result in a saving of interest of £419 per annum.

Although the result for the year is disappointing it has been caused by factors quite beyond the directors’ control. Since June 30 cutout has increased and a coal cutter has been ordered, which, it is anticipated,, will reduce mining costs..

GROCERY TRADE

PRICES AND PROSPECTS

Although trade is reported in some quarters to be a little unsettled, there was evidence this week of fair trading conditions, some city stores reporting business as being generally good. Since last report, there have been no price movements overseas of any importance, and as far as can be judged there is now no reason to anticipate any violent fluctuations ip grocery lines coming from England or the Continent. During the week there was a very heavy demand for sugar, but this has now eased, and in any case stocks are sufficient to cope with the demand. Prunes The supply of Californian prunes in 30/40’s size, is reported from San Francisco as being very short. One shipper has already commenced to ration this size, and will not supply at all unless four times the quantity ordered m 30/40’s size is booked in other (smaller) at the same time. The Californian market is advancing for all sizes, with prospects heading toward a firmer market generally. It may be mentioned that 30/40s prunes at present in San Francisco are Os Cd per cwt above the standard <SO/70’s size. Pilchards Japanese packed pilchards. soz, have been offered on this market. Small parcels will probably arrive about the middle of December, if not earlier, when further reports as to quality will be supplied.

Lima Beans Attractive quotations are now available for Lima beans, due to arrive about the third week in December.

Hams The booking of hams for Christmas trade is progressing steadily. Retailers who require supplies for that period should consider protecting themselves, as in some previous years supplies have run very short during Christmas week. Tartaric Acid

A recent cablegram from London announces a sharp advance in the price of tartaric acid, the rise being 10s 6d per cwt. This movement is considered to be due to the uncertainty of the market position in France and Italy, whence the raw material

for this product is imported into England. Tea. At the usual weekly auction sale of Ceylon tea. held in Colombo early this week, a good demand was noticeable for all grades showing quality, which showed'a general improvement. Many lines brought higher prices, some advancing up to £d per lb, especially in Broken Orange Pekoe types. Onions About September 20, 100 tons of onions were dispatched from Melbourne for New Zealand, and this, according to a report, represented the final shipment for New Zealand markets.

The total importations of onions by New Zealand from Melbourne this season has been some 2200 tons. Prices in Melbourne have now advanced to £l3 a toh, f.0.b., for prime Brown Spanish. Borax An oversea notification states that one brand at least of borax has declined in price by several shillings per cwt. Spices

Nutmegs are now fairly cheap, according to a recent Singapore cablegram. Mace is easier than it was some time ago, while pepper is weak and stationary. Shelled Walnuts

New season’s Chinese shelled walnuts have been quoted both for halves and pieces. Halves are only IJd per lb dearer than pieces, and both lines are quoted at very reasonable prices for all grades, especially the generally preferred light amber. These lines should arrive ih 'time for Christmas trade, and prices being so attractive, good business looks very probable for all grades.

Dried Fruit The Commonwealth Dried Fruit Export Control Board has advised its New Zealand agents that for the month of October shipments of currants, lexias, and sultanas (of grades available) can be made at the same prices as now current.

Greaseproof Paper A recent cablegram from London announces a reduction in the price of greaseproof paper of 10s a ton f.o.b. Norwegian ports. Barley and Peas

Late quotations from Australia contain the following items:—English malting barley 3s lOd, feed 3s, Cape feed 3s, milling peas 7s, all f.o.b, Melbourne.

Eggs The fresh egg market remains firm. This week city stores were paying for supplies as follows: —Firsts Is, seconds lid. both prices net.

Up to the present local exporters have shipped from Lyttelton to London close on 2000 cases of eggs, the last parcel being some 549 cases by the Tamaroa. These figures look very small when compared with huge shipments which have been made from Australian ports to London. For the week ended September 17 these totalled 23,790 cases, and since July 1 106,435 cases of eggs have been shipped from Australian ports to the British market.

A cablegram from London states that the egg market for imported eggs is weak,, and last week Australian eggs were selling there at 13s 6d for 17’s and 12s 6d for 14’s. These figures represent Is 4£d and Is 3d a dozen respectively, equal to approximately Is 8d and Is 6Jd in Australian currency.

CANTERBURY MARKETS

ALL SECTIONS . CONTINUE DULL (BT CUTE COMUEKCJAt EDITOB.) Friday Evening. In the opinion of one merchant who has been in the trade for many years, the present season in the Canterbury grain and produce markets has been the quietest for a very long time. This is due largely, of course, to the dullness in the potato market which has been a big disappointment all through, chiefly because it was not found possible to export potatoes in any large quantities. According to the Abstract of Statistics, the estimated acreage ot ;potatoes this year was 21,700, of which 4900 were in the North .Island, and .16,800 in the South. The total of 21,700 is just slightly less than the total for last season, 22,462. Although no accurate estimate of the yield can be given at this stage, it is not likely that it will be greater than last season’s. The chief difference between the two seasons is that 23,000 tons were exported in the lest year and only about 3600 tons have been sent away this season, including the shipment now being loaded into the Port Melbourne at Lyttelton for Montevideo. Merchants reported to-day that all the potato markets which Canterbury uses as outlets were oversupplied, and' that business was negligible. Some supplies, it was stated, had been sent to Wellington from Blenheim. Reports from the country indicate that a certain amount of this season’s crop will not even be dug, and that other crops that are now in pits will not be bagged, Some

growers are turning their crops over with the plough and putting stock m to feed. Quotations in the Christchurch markets are nominal at £2 10s to £3 ss. Other' markets are featureless.

■ Quotations The following are the prices quoted to farmers on trucks at country sidings unless otherwise indicated;— Wheat— Milling, f.0.b., September, Tuscan 5s lid, Hunters 6s Id, Pearl 6s 3d. Oats—A Cartons to 2s lOd, B Cartons to 2s 6d, Algerians 2s 9d to 3s. Ryegrass—Perennial 3s 9d, Italian 2s 9d to 3s. ,

Cocksfoot —Plains 8d to 9d. Akaroa 8d to 9<Sd per lb. ■ Cowgrass-—6d to 7d per lb. White Clover—9d to Is per lb. Potatoes—£2 10s to £3 5s a ton. Chaff—£4 5s a ton. Barley-Malting 4s 7£d, feed 3s a bushel. Browntop—M.d., 9d to lOd per lb. Partridge Peas—4s 3d to 5s 3d a bushel. _ _ Bran —Large £4 15s, small £5 ss. Pollard—Large £6 5s a ton, small £3 15s.

ASHBURTON A period of comparative inactivity has been experienced on the Ashbur--11.. market during the week. Very few wholesale orders have been received for oats, ryegrass, and clovers, but a satisfactory retail demand is being maintained. Seed Carton oats are saleable, but light and inferior lines are neglected. Odd inquiries are being received for certified lines of seed potatoes, but the volume of business passing is small. The following are prices quoted to farmers, on trucks at country stations unless otherwise indicated, sacks extra, free of commission: Wheat—Milling Tuscan 5s • lid, Hunters 6s Id, Pearl.6s 3d; fowl wheat. 5 S lid (all f.0.b.). Oats—A Cartons 2s 9d, B’s 2s 6d; Algerians, 2s 9d to 3s; Duns, 3s to 3s Cd, according to quality. Grass Seeds —Perennial ryegrass 3s 9d to 4s 3d, Italian 2s 9d to 3s, cocksfoot 7d to B}d, red clover 6d to 7d, white clover lOd to Is. Chaff—£4 5s a ton. Partridge Peas—ss 6d for No. 1 grade, undergrade 3s 6d to 4s 6d. ■ Barley—Malting 4s 7£d, feed 3s 3d. Potatoes—Export quality £3 (sacks in) for Dakotas.

DUNEDIN (press association telegram.) DUNEDIN, September 30. The fowl wheat market is unchanged with stocks on the short side. Values remain unchanged at 6s 6d to 6s 9d a bushel, sacks extra, ex store. Chaff is quiet with values unchanged. Best quality is selling slowly at £6 10s a ton, sacks extra, ex store. Merchants are now drawing most of their supplies from Canterbury. Good quality lines are difficult to obtain.

Freshly-picked lines of potatoes are selling at £3 a ton, sacks included. Local, distributors are content in the meantime to buy only small lots and place them before coming on the market again. All seed markets continue firm and there has been a fair amount of activity during the week. Both white clover and dogstail have firmed in price following inquiries for export.