COMMERCIAL ITEMS.

Dominion, Volume 5, Issue 1486, 8 July 1912, Page 10

COMMERCIAL ITEMS.

INVESTMENT SHARES The sales recorded on Saturday were:— Standard Insurance at 315.. and Ley-land-O'Brien at 275. The buying and selling quotations were as under:— Buyers. Sellers. £ s. d. £ s. d.. National Bank : 6 2 0 6 4- 0 Well. Trust and Loan ... 7 8 6 — Fcilding Gas — 110 National insurance — 1 19 3 Christehurch Meat 15 0 0 — Meat Export (525. 6d.) ... 3 0 3 — Kaiapoi Woollen ' — 5 8 6 .Viosgiel Woollen — 3 7 6 Well. Woollen 3 7 6 — Westport Coal 18 0 — Taringamutu Totara 2 7 0 2 8 0 Donaghy Hope and Twine 14 9 — Golden Day Ceniqnt — 12 3 N.Z. Con. Dental 10 6 116 S.'i. Paper Mills — 12 0 ■YALTJK OF AX AUDIT. The value of an audit as a check upon reckless trading on the part of public companies depend* as much upon the ronrage as upon the skill of those entrusted with the scrutiny »f tho transactions under review. The lack of definition as to the duties of an auditor is responsible for failure to call attention to dubious practices m many instances, more especially if complaisance in existing methods may mean reappointment for a further term Auditors stand in n twofold-capacity—Micv are watch dogs for the shareholders, and also m a sense servants of the public, since they perform statutory duties. In such work there must arise many questions which are near the. border line, and auditors are human, and liable to make errors of .mdsnicnt. If disastrous consequences ensue owing to any laxity on the part of auditors, a misfeasance summons could be • issued under the English Companus Act, and the auditors would have to pay compensation to the shareholders. This risk is recognised by the profession oi accountants in Great Britain to an extent that has induced its members to insure against loss in this connection, and the utility of this practice^has heen illustrated in respect to the Law Guarantee Trust and Accident, Society, which recently came to grief badly. The auditors concerned were threatened with legal'proceedings for failing to detect the rash character of, the business conducted, and thev have paid £20.000 to the liquidator in ordec to sscurc immunity from litis.-It.ion. A large part of this sum came out of th» pockets of the insurers, and the question is now being debated in London as to whether such protection to fh- auditors constitutes a fresh danger to tho public. SUEZ CANAL.

The great expansion in the traffic through the Suez Canal since the toll was reduced to 6.75 f. per ton has enabled the directors to increase the return to shareholders. The dividend for th" past year is 165 f. net per capital share, as compared with 158 f. for 1910, equivalent to 33 per cent, on the paidup capital and to 23 per cant, on the market value. A further reduction in the dues to 6.227 f. per ton his recently bc«n announced, to take effect from January 1, 1912. This concession, it ;.i believed, is due to representations lately addressed to the company by the British' Government, '"hs Australian Government perennially reminds the Imperial authorities of the advantages to be gained to inter-Imnorial trade by further reduction of the excessive dues, and the increase in the traffic fully justifies this contention. It is not quite clear why the administration of the' canal has decided upon the fine figure of 6.227 f. Previous alterations have been in fractions of francs, but the intention may be to fix the new rate at a convenient enniralent to la. The reduction will mark an additional step towards the fulfilment of the promise which it. de Lessens originally gave to the shiu owners—namely, that when a dividend of 25 per cent, was reached anv further revenue would be applied towards' reducing the canal dues until they were down to sf. per ton. The present concession follows reduction 1 ; of £0 c. in 190J, 50 c ill 19C6, and 50 e. in 1911. The importan-e of lower dues to ship owners in the United Kingdom will be realised wlion- it is understood that the traffic through the canal in 1910 comprired 23.054,901 tons gro*«, of which 14,363,539 tons were under the British fine;.

E.T.S.N. COMPANY. The British India Steam Navigation Co. was originally registered in 1856 as the Calcutta and Burma S.N. Co., and ita present name was adopted in 1862. The authorised capital is £1,700,000, of which £700,000'13 in 5 per cent, cumulative preference stock, all issued and paid up, and £1,000,000 in ordinary shares of £50 each, of which £957,200 has been subscribed and paid up There arc also debentures for «5'..500. Beyond the rate of dividend, which has been 1\ per cent, for the nine year? to KID, 110 information has been disclosed as to tile financial results. There Ins, however, now been if.-ucd by the directors a statement, t) the ell'ect that the report Tor til's year 1911 recommends a (dividend of 5 per cent, on the preference stack and 71 per cent. 011 the ordinary shares. Also Hint the i°.alp of ten old steamers and tin- disposal of fame property which the enninnv was ohlilted to part with under the Land Acquisition Act at prices in cxciws uf the value at which they stood in the company's books, together with I he remit of the year's fineriitiuiis and freedom from serious accident have enabled the directors, nft'ir providing for I'epieciation,, lo add £500,000 to the reserve and insurance funds. The report a:hU thai v.lti'.e it mislii have been possible io pay ■». higher dividend than 7* per cent., the directors believe that the shareholder- will iiTce with them lh.it it is wiser to strengthen tli- company's rc-f-ouvces against the possibility of less prosperous years than to make a larger distribution at, th'j prrsent time. The issue of this statement, in view of the many rumours or amalgamation and working arrangements about shipping undertakings, '? regarded as rather significant. TIIK REVOLT OF INVESTORS. The yield on the shores of nritith banks has steadily increased for some years post, owing to the decline in the market value of such investments. In the banking number of the "Economist." the cuoslioii is treated at considerable length, and figures are published shcnvlr.z that the premium oa Enyliwi "hsres lias fajlen to the low row 1 of 172 ner cent., at compared wltS

2-14 per cent, in ISSr9. The market valuation of English hanking capital in May, 1911, was £178/61,000. as against £160.639.tC0 last month, the actual amount paid up bein? £59,119.000. It will lie rccounised that, the fall ill the market valuation of hank shares is part of the downward movement ill all iuvostninnt securities of recent years, hut tha "Kconoinist" considers that there arc special reasons to account for the reaction in hank stock. ' Depreciation of invest men l* held by the banks, the liability on the shares, competition of other securities, and changes in the methods pi investors, are the special causes indicated. Durini* 1911 the joint stock hanks of the United Kingdom provided £1,600,000 for depreciation of investments, half of which was taken- out of profits and the balance out of reserves. In regard to the lability on ha.uk shares there is no doubt that since the failure of the Law Guarantee and Hank of Egypt, uncalled capital nls b"cn a. strong detorrent to investors, aim a deadweight on any security so circumstanced. 'Ihe competition of other securities if keenly felt by bank shares, more especially that of British railway stock which yields miite as much return as hank shares, and is free from liability. A nijper return on their money is now demanded uy nil investors, due in nart to the necessity for increasing their income owing to tne grcator cost of what-mans recard as necessaries of life.

SILVER PRODUCTION. The estimated production of silver in the world during 1911, according to a statement supplied by the President of the Board of Trade. Mr. S. Buxton, in reply to a, auction by Mr. Touche. JI.P., amounted to the record total of 224,000,000 fine ounces, against 222.897,3630z. for 1910, 211,215,63302. for 1909, 203.236,661 oz. for 1908, 184.206,9840z. for 1907, and 165,054.4970z. for 1906 The estimated production in the United States, Mexico, and Australia for the last few years is shown as follows:— United States. Mexico. Australia. Fine oz. Fine oz. Fine oz. 1906 66,517,900 55,225.868 13,909,371 1907 56,514,700 61,147,203 17,949,099 19C8 52,440,800 73,664,027 17,175,099 1909 .... 54.721,500 73,942,432 16,359,284 1910 57,137,900 72,982,157 16,011,064 The estimated production in the United States for 1911 was 57,800,000 fine ounces. EXPORTS OF PRODUCE. The values of the principal products oxported from New Zealand during the last month, compared with the figures for the corresponding mouths of last year, show as under:— June, 1912. June, 1911. Butter .' 22,268 7,885 Cheese 91.686 39.708 • Beef" , 65,57 V 27,073 Mutton— Legs and pieces ...' 6,819 4,947 Logs and pieces ... 6,819 4,947 Lamb 253,875 200,964 ' Wheat 9,839 39,116 Oatfi 70,639 997 Potatoes 5,263 838 Hemp 42,565 20,238 Rabbits 1,004 583 Tow 3,164 1.309 Kauri gum 23,971 48,367 Grain end pulse .... 25,711 8,650 Hops 5,096 136 Hides 19,161 19,634 Skins 90,736 67,587 Tallow 62,861 59,871 Timber 27,170 32,272 Wool 277,592 260,136 - Gold 50,191 96,435 1,303,237 For the twelve months ended Juno 30 last the exports of the above - products wero valued at £18.959,997, ,as compared with £18,993,895 for the preceding twelvemonths. CUSTOMS. Customs revenue collected at the port of Wellington on Saturday totalled £1309 2s. lid., the total for the week being £10,382 4s. 2d. The returns for each of the past eight weeks; compared with tho figures for the corre.spondiug periods of last year) show as under:--,1912. . 1911. £ £ May 18 ; 18,298 14,954 May 25 11,452 15.012 • Juno i 10,224 15,011 •Tunc 8 15,564 9,164 June 15 ...:,.■.... 18,429 15,570 June 22 , '...: . 8,254 . 9,565 Juno 29 .......; 21,732 9,087, July 6'.. ; : .10,382-, 21,442 '. U4I3T ~109,'805' The beer duty for the week totalled £277 6s. 6d,, as compared with £205 4s. 6d. for the corresponding week of last year.

. FEILDING MARKET BEPORT. Mossrs. A. H. Atkinson and Co., Ltd., report very few pigs offering at present time, and a keen demand' for all good sorts. Porkers are eagerly competed for, medium weights malting up to 245. Poultry was in good supply, and sold at top prices, over 100 birds making nil average of Es. per pair. First-class dessert appka are coming forward regularly, and make from 3s. to 3s. 6d. per half-case for Kturmers. Five Crown Pippins, etc. Good potatoes slow of sale, at 3s. per hag, with good lines offering at £5 to £5 ss. per ton for table, aud 255. for pig. We quote:— Wcaner pigs, 10s.; medium-weight porkers, 265. to 345.; aged horses, £4 to £6 155.; pullets (per pairl, 55., ss. 9d., 6s„ (is. W.. 10s. 6d., to lis. 3d.; hens, 2s. 9d., 3s. 3d., 3s. 6d., 45., 4s. 3d., to 45.6 d„ cockerels,. 3s. 6d., 45., 4s. 6d.. 4s. 9d.. 55., 6s. 6d.: ducks, <s., 55., to 7s. 6d.; turkey hens, lis.

GRMN AND PRODUCE. (By Telegraph-Press- Association.) Oaniaru, July 7. There is no activity in the wheat market, millers being fully supplied, and values have reduced the uncertainty of this Home, market, and the absence of cheap freights i 3 largely accountable for tins. Many holders are not prepared to accept the lower values. The business during the week has been done at 3s. 7}. d., or at 3s. 7}d. less commission, both on trucks and at country stations. x Oats also show a downward inclination, and very few Bales have been made. Tho prices paid have been Is. lid. for A grade Gartons, 1«. lljd. for B grade, and Is. lOd, for C grade.

Oatsheaf chaff sells at £2 10s. net on trucks. . .

The potato market has,revived owing to the slump in Sydney.- The Waihora, loading here on Monday, takes 800 tons for that market. The £3 10s/ offered at the beginning of the week v*is quickly displaced by £4, and rose to Oi 55.. .£4 7 3 6d., and £4 lCs. The present value of potatoes that will subscribe to the Commonwealth ■ conditions Is £4 15s. net on trucks at country stations

Christehurch, July 5. There is no change to report in the wheat market, which is exceptionally quiet Millers, who stocked up heavily some time ago, are not yet in the market, and in the absence of cheap freights there is no ejsport trade to be done.

The oats market is much weaker, and prices on the ba6is of business that is being, done between merchants show a decided decline. There are no Algerians and few Duns on the market, and of Gartons second sales have been made at prices equivalent to only Is. 9d. to ls>. lOd. at country stations for ,"A" or "B" grades' The principal holders of oats are those morchants whp purchased in view of the continuance of the Australian demand which was interrupted by the' late rains breaking up the drnght. ' Potatoes are'rather firmer in view of the high prices ruling in Australia inducing merchants to take the risk of shipping there. The quantity available in North Canterbury fit for shipment is, however small, as growers are not prepared to sign the certificates relating to freedom from blight The prices offered ran»o from £3 to £3 ss. at country stations, according to distance.

, STOCK EXCHANGE. (By Telcgraph.-Press Association.! Auckland, July 6. Business done:—May Queen, Is. 3d,; Talisman, 415.; Waihi, 365. 3d.; Grand Junction, 2Zs.; Saxon, lid.. Hid.; Union Steam, 4fa 6d.; Auckland Trams (ord.), 245. 6d. Chrlstchurch, July 6. Sales reported;— Mason Struthcrs, 255.' Grand Junction, 228. 3d., 22b. ljd. ' Duncdln, July 6. A sale of Waihi Grand Junctions was -effected on the Stock Exchange to-day at £1 2s. 3d. The following e'alo was reported :-Bank of N.Z., £11 7s. LONDON MARKETS. By Telegraph—Press Association—Copyright (Rec. July 7, 5.5 p.m.) London, July 6. Kauri—The stocks total 383 'tons. Copra.—Business is restricted owing to strike. South Sea, in bags, £23 7s. 6d.for June to August shipment, £20. Hemp is steady: June-August shipment!! are nnoted lit £22 ss. Cotton.-July-August shipments,' 6.32 d.-per lb. . ' li übher, 4s. BJd. per lb. The New Zealand Loan and Mercantile Agency Company, Limited, and Iteduceil. have received the following cablc,;v.\i\i from their London house, under date July 5; Frozen meat: There is a fair imniiry for mutton', the market is slightly weaker for lamb, but is unchanged for beef. LONDON WOOL SALES. By Telegraph—Press Atssocialion-Copyriight (Rec. July 7, 5.5 p.m.) London, July 6. The wool sales were animated, and all sorts showed a hardening tendency., American buyers are operating freely. Wool—The following prices were realised for the (lecce portions of the dips ""mentioned:—Richmond, top price 12d., overage lOiel.; Brookdale, top price. 12} d.. average 12d. ..