COMMERCIAL ITEMS.

Dominion, Volume 3, Issue 903, 24 August 1910, Page 8

COMMERCIAL ITEMS.

1 - INVESTMENT SHAEES. Wellington Meat Export shares, £2 12s. 6d„ changed hands at £3 55., and Taringamutu Totara Sawmills sold at £1 12s. 6d. Bank of New '■ Zealand shares show a further decline,'sellers now being'willing to accept £10 12s. 6d. The quotations were, as under:— ■ Buyers. Sellers. Sales .. £s. d. £'s. d. .£s. d. National Bank — 518 0 .—, Bank of N.Z —, -.- 10 12 6 - Equitable' Building 9 12 6 — — Metropolitan 12 0 0 — ■ .'- N.Z. Loan and Her- ■'•■..'■■ cantile .....;.. — . 010 6 — N.Z. and Elver Plate - 2 1 0 - Feilding Gas — 12 0 - Wel'gt'n Gas (£10) 18 2 6 - - Insurance, — . 9; ;■— - N.Z. .'lnsurance ~.'.... • — 4-.0 0 ■'.-— l Christchurch Meat 1316' 0 — ■ ': .'— Gear Meat (£4) ...'lo' s'o - - - Gear Meat (£1) 2 15 0 — — Meat Export (£2l2s. 6d.) : - 3 5 0 3 5 0 N.Z. Shipping — 10 0,0 - - Union Steam 3 15 3 — — Well. Woollen ■ Cord.) 3 12 6 - - Well. Woollen;(pref.).2 13-6 2;15>0. - Wostport Coal ...... — 6 15.0. — Wcstport-Stockton 0 7-0— — Leyland-O'Brien 1 7 0 1:7 6 - N.Z. Con.' Dental..,; - 12 6 - Saarland's prcf. ...:l-:i 6 l-2;6 - Taringamutu Totara 111 0 — 112 6 Ward -and Co. -. — 5 6 0 - N.Z. SHIPPING COMPANY. The "Financial Times" of July 12 to hand by the last mail says:—"Since the commencement of June tho £8 shares of the New Zealand Shipping Company have risen from about 83d. to 93d., and we understand that this movement is not based on dividend prospects." After referring to the purchase of the "B" shares of the Shaw, Savill, and Albion Company by the Ellerman Line, it is hinted that .tho same concern was. about to purchase the N.Z. Shipping Company, and the paper goes on to say:—"On intrinsic merits the shares of the New Zealand Shipping Company are stated to bo worth more than those of the Shaw, Savill, and. Albion Line, owing to the strong financial .position of tho undertaking and the conservative policy adopted :by .the. directors in the past in regard to the administration of the company's affairs. Some time ago £2 was written off the New Zealand. Shipping Company's capital issue. Since then, however, the position has undergone such n. great change that we understand the directors may possibly sooner or later pay a special bonus of £2 ,per share. Whether such a course be adopted.or not, tho forthcoming accounts, tor the year ended Juno 30, which' are due to be published In September next, will, we understand, show results of a satisfactory nature, though there is not likely to bo an increase iu the dividend. The advance which lias taken place in the market price of tho shares must, therefore, be attributed to, other causes."

The Customs revenue collected at tho port of Wellington, yesterday amounted to £2278 os. Bd.

TRADE IN ALLEN STREET. Oats—These are now offering more freely, but there is no change in values to bo noted. Maize has advanced, the price now ranging from 3s. 3d. to 3s. 4d. Bran.—ln the absence of orders for export, the market is slightly easier, and a fair trade is passing in this line. Flour—The New Zealand Flourraillers". Association is still qaoting £9 por ton f.o.b. southern port, and the majority of those outside tho association are quoting the same price and' terms. ■ Barley is meeting with a dull market. • Oatmeai is dull of sale; millers are now quoting .£ll perr,ton f.o.b. south. Vegetables—The milder weather now' beins experienced Is responsible for the largo quantities of vegetables coming on the market, and prices for most, lines have declined during the week. Cauliflowers, nrime nullity, arc now 7s. to 10s.; cabbage, 3s. to Bs., according to quality: parsnips. 7s. to Bs.; carrots, ..4s. 6d. to. ss. ,6d.; and pumpkins, 25.; to 4s. . • Fruit—Only ■ a ; small ; shipment . of. Fiji, banauua came by- the.usual.monthly''boat,

and owing to pnrcel having to Job- tran-.shipped'at-Auckland the fruit arrived'.in a- somewhat blackened condition, and realised: only-nominal ratqs. . There is. a keen demand for choice bananas, and further supplies arc due from the Cook Islands about August 30; by the same steamer Island oranges- will come to hand. For a. small line of outdoor-grown Fiji tomatoes, which arrived in excellent condition, up to sd. and 6d. per lb. was realised. : . .

Apples.—Tasmanian '• and ■ New grown'are in excellent'demand; and satisfactory prices are belnc; obtained. .The is due to-day from' Sydney with further supplies of mandarins, Seville oranges, lemons, passion fruit, oranges, and pineapples. Eggs.—Fresh eggs arc in heavy supply, and prices range from Is. to Is. Id. per dozen. A further"decline is anticipated.

Butter—Prime bulk is' in keen demand at Mi. to lid.

Fresh cut flowers are in more plentiful supply, and prices have declined for most varieties. - ..-.- ■ ..

Fungus meets with keen competition at s»d. for prime dry. Honey, In 561b. tins, has pood enquiry, at 4d. per lb. for prime quality.

' WELLINGTON MARKET KEPORI. ■ Messrs. Lacry and Co., Ltd., Wellington, report wholesale prices ruling on the mar* kcts:—Wheat, fowl, 3s:'Bd. to 3s; 9d.; feed oats. 2s. sd. to 2s. 7d.; dun oats, 2s. 7d. to 2s. 9d.; seed ,oats. 2s. led. to 35.: Algerian oats, 2s. 7d. to 25..9 d.; mane, 3s. 3d. to 3s. 5d.; crushed malt. 75.: fowl barley. 2s. 9d.;Cape barley- 6eed, 35.; flour, New Zealand £9 *ss. to £10; peas, Prussian bine 6s. 3d., split £18;. partridge peas, ss. 3d. bushcli- boncdust, £5 ,155.; superphosphates, £5 to £5 55.; 'pollard,' £6 10s.: bran, £4 ss. to £4 lCs.; pearl barley, 155.; chaff (oatensheaf), £4155. to £5 55.; oatmeal, £12; potatoes, table, £8; . seed potatoes, Up-to-Dates, £7 to £7 55.; onions, Victorian, £7 ton; molasses fodder, £6; bacon (factory), sides 7Jd., hams 9d., rolls, Bd.; butter, prime bulk, lOd. to lid. Poultry, hens,. 3s. 6d.; ducks, ss. to 6s. per pair; turkeys, gobblers 18s. to 205., hens 10s. to 145.; : fresh eggs,- Is. dozen; cheese, 5Jd. per lb.; Akaroa ma-chine-dressed" cocksfoot, 7d. per lo.; farmers' dressed cocksfoot, sd. per lb.; ryegrass, 4s. 6d. por bushel; Italian ryegrass, 4s. to 4s. 4d. per bushel; white clover, 80s. per cwt.

BOWRON BROS.' EXPORT AND TRADING COMPANY. ' (To the Editor.) Sir,—When I saw the names associated with the now Bowron Bros.' Company, I felt inclined to apply for some shares, but, 'on. studying- the prospectus, I find some statements there' which are apparently in conflict with the figures of tho profit and loss accounts. As nine-tenths of the shares offered to the nublic have been underwritten, those concerned doubtloss know r far ;more about the .business of the company ' than what is disclosed in the prospectus: I would ask them, therefore, to be good enough to enlighten tho public through your columns on tho following points:— - The prospectus contains these statements :—, . -' ■ 1. "Profits: The gross trading'• profit for' the period of two years and two months ending ■ Soptembor 30, .1909, amounted to £78,094 13s. 4d., and "the net .-profit; "afterall deductions of. bad and doubtful debts, allowances for depreciation, revcrve fund, and other-items, • amounted, to, £46,769. This will show'the solid and Highly, profitable character of the business." . 2. "The profits shown in such balance-sheets-are sufficient to pay a 12 per cent, dividend on tho issued capital, and to place a substantial sum to a reserve fund, after allowing for-writing off depreciation, etc." ■ - 3. "The value of the goodwill assessed on four years" purchase would be £92,0C0, whereas the company are only paying £27,000, less-10 per cent." Tho returns included in the prospectus deal with. a period of 26 months, and these show as stated: £ Gross trading profit 78,094 Expenses- as per profit and loss accounts 54,914 Net trading profit £23,180 or an average of £10,692 yearly. Would this provide for 12 per cent, on £150,000 capital, and also a substantial sum for reserve fund? On reading the above extract No. 1 from the 1 , prospectus, ono would infer that tho net profit from the ordinary trading of the 'company was £46,769, instead of apparently £23,180. : It is true that the actual net profit shown' for the 26 months was £46,769, but clearly' there is included in that amount .£23,580 profit derived from investments, interest, rents, etc., pertaining seemingly ,to ■ transactions outside of the regular trading business of the. comSany, with the exception of "primage anu ills of lading," the profits from which would represent a small portion of the £23,580. .. Sly surmise that most,of the £23,580 was inado'from investments,-'etc'.;" seems to' beconfirmed by tho certificate of Messrs. Cooper, and ModUn concerning the. good will, of the business, which they value at £27,0C0. ■-They emphasise the fact that they wore only Valuing the goodwill of the business, "as .relating to the tannery, grindcry, wool and pelt industries, that is,' tho entire business with the exception of outside speculation in shares, land syndicates, etc." If the net profit from trading averaged only £10,692 yearly, this would account for the valuation of the goodwill at £27,000. The prospectus, however, declares, .."the. value of the goodwill, assessed on four 'years'' purchase,' would bo £92,000," and evidently-it is intended to impress upon investors that the company is'getting a great bargain of tho goodwill 'at £27,000. ■ What- valuo could there be in the goodwill of that section of the business comprising "outside speculation in shares, land' syndicates, etc."? In any case the new company does not appear to contemplate engaging in such business, as the capital they are asking tho public to subscribe -will all- be re-' quired .to carry on the "tannery,: grindery, wool and pelt industries." If my interpretation of the prospectus is all at fault, I hope.; the authors of that document will promptly correct me.. I am anxious to be satisfied as to the future of the company, and if they can show a reasonable prospect of 12 per cent., or even 8 per cent, dividends 0n,£150,000 from ordinary trading, I shall be an applicant for shares, and hope my application will not be too late.—l- am, etc.,

INVKSTOH. TTho Bowron Bros.' prospectus has been discussed)at' some' length iuHho financial column of the "Sydney Morning Herald," several correspondents taking ' part. Amongst the .number was Sir Joseph Carruthers, ex-Premier- of Now South Wales, .and one of the directors of the proposed :new company. In the course of a somewhat lengthy reply to various points raised by critics of the prospectus, he makes ;the following statement, which ■ bears in —art on our ..correspondent's .inquiries: "I can only, repeat that the litigation Tthe income tax cases! is no concern of the pro-' .posed company. It has,-however, resulted in this: that' the directors are in a position to do what perhaps no other company has ever been able to do, viz., to put be- ; fore the public the authoritative' figures of the officials of the Government •as to the profits extending over a period of <ux years, viz., £222,481, or an average "of £37,013 per annum. The fact that I have reduced the figures of the Government officials by £74,000 is already accounted for from the faot that London debits have to be taken off tho New Zealand profits, which bring net profits down to £148,481 or £24,746 per annum."l ■ ■

CANTERBURY GRAIN MARKET. ; (By Telegraph.—Press Association.) Chrlstchurchi August 23. Business in the grain market has been very ouiet during the last few. days. Wheat is still offering fairly freely, but it is in more or loss damaged condition. A few growers are, however, willing to accept prices which will enable buyers to turn over the grain. The latter point out that, even with the preseut low freights, the London market—the only outlet—can only be taken advantage of at a certain figure as there is littlo demand for New Zealand damaged grain. As soon a-s the wool season opens in the North Inland freights rise. There would then require to be a corresponding rise in London prices lo enable shipping business to be continued. This, however, is not anticipated in event of the crops in the Northern Hemisphere ■ being successfully harvested. The free sale of Australian wheat is due to the fact that the grain is of exceptionally good Quality this year, and is specially suitable for mixing with tho softer English wheats now coming on the market. Though statistics of tho late grain season are not reliable, the quantity exported so far is comparatively small, and there is evidently much more wheat in New Zealand than will be required before next crop, is available. There is no change in ' the oats market, as the south still" continues to supply northern requirements at a lower rate than business can be done from here. There is ;ood demand for potatoes, as growers will not now accept less than £6 7s. 6d. It is also reported that a few sales have been made as high as £6 10s., but the lower figure is what buyers are generally offering. » .