FINANCE & COMMERCE

Dominion, Volume 37, Issue 202, 24 May 1944, Page 8

FINANCE & COMMERCE

STOCK EXCHANGE Sales Ln New Zealand Dealings iu stocks and shares recorded on New Zealand Stock Exchanges yesterday were as follows, the number of shares in each lot being shown in the case -tyf-' Wellington :• — WELLINGTON.

Second Liberty Loan, 3 per cent., 15/5/53-56, £99; 3rd ditto, 21 per cent,. 15/6/47-49, £9B/17/6; ditto, 3 per cent., 15/12/53-56, £lOO, £lOO/2/6; Inscr. Stock, 3 per cent., 15/4/60-63, £97/15/-; N.Z. Insurance, (2), £4/9/-; Queensland Insurance, £3/8/-; Westport Stockton, 3/4; Farmers’ Auctioneering, £5; Northern Steam, 10/8: Bruce Woollen (pref.), £l/7/6; A.C.1., £2/16/6; Colonial Sugar, £5B/12/6; K.D.V. Boxes. 12/9; Auckland Laundry, 19/-; Morris Hedstrom. £2/3/6; National Electric, £l/13/6; Woolworths (N.Z.), 18/6; Woolworths-(Sydney), 19/8: Broken Hill South, (2). £l/9/6. Unofficial list: Farmers’(Freezing, £l/5/6: Fletcher Holdings, £l/5/5. CHKISTCHUBCH. Wool Bonds, 1/2/48, £l/0/3; Union Bank of Australia, (2), £B/10/-; Christchurch Gas (fully paid), £l/6/-; Electro Zine (pref.), £2/19/-; Selfridges (ex div.), £1 6/7; Commercial Bank of Australia (ord.), 19/-. DUNEDIN. N.Z. Farmers’ Co-operative, first pref., £5/10/-’; Inscr. Stock, 24 per cent., 1948, £9B/5/-; ditto. 3 per eent., May 1953-56, £99; ditto, 3 per cent.., December 1953-56. £lOl/5/-; Bruce 'Woollen (pref.), £l/7/6; Kaiapoi Woollen (ord.), £l/4/9; D.I.C. (ord.), £l/0/6; Milburn Lime, £l/16/-; Northern Steam (ord.), 10/8; Woolworths (Sydney). 19/8; National Bank of N.Z., £2/15/-. Equitable Building Co. “Business activity has been .well maintained during the yeflr, and thanks to the company’s wise connexion there has been a steady demand for loans.” said the chairman of directors- of the Equitable Building and Investment Company of Wellington, Mr. M. Fraser, at its 66th annual meeting yesterday. “New advances total £34,300, while mortgages paid off amounted to £19,800. Practically all our loans are now on the table mortgage basis with repayments of principal just on £ll,OOO per annum, making a steady stream of funds available for new loan applications and continually improving our margin of security. In the profit and loss account interest revenue is down by £679, but this is offset by a reduction of £676 in the amount paid for deposit and bank inThere was no payment on account of debenture stock interest, which last year amounted to £320. That concludes a series of experiences through which the company had successfully passed. It was clear that had it not gone through these experiences the company could not, owing to the weight of taxation, have earned sufficient to pay a dividend of 3 per cent. Thu net profit, £l3BB/7/6, was only £l3/10/4 less than in the previous year. Perhaps the most striking feature of the profit and loss account was the allocation of £5473 for Government taxes, as against the £l3BB/7/6 for shareholders. The net profit before providing for reserves was £7667 14/6. Of that 71.4 per cent, was absorbed to meet taxation. The balance after providing for the usual prudent reserves was just sufficient to pay shareholders a year’s dividend of 5 per cent. Shareholders’ funds (share capital and reserves) amounted to £409.726. Owing to the unfair incidence of taxation on companies of that character (which was in essence a building society and whose business was confined to first mortgage advances on cottage dwellings) the return after providing for taxation on the investment of these shareholder-owned funds was only just under li per cent. To pay. a dividend of 5 per cent., the shareholders required to own invested funds four times greater than the share capital on which the dividend was payable. Though mortgages were lower by more than £31.060 compared with October, 1941, the number of mortgages was lower by only 10. The board deliberately concentrated on small cottage mortgages and with reductions by table payments. Investments were more spread than formerly, and the risk of loss correspondingly reduced. ■ , , “One cannot do other than commend those owners of homes now lightly mortgaged after several years’ reductions and reasonably adequate as to accommodation, who are not deluded into selling by the high prices being obtained," said Mr. Fraser. “Many have done so for various reasons, and have found that in buying larger and more expensive homes they have had to undertake much heavier liabilities. There is no finer asset for the person of small or moderate means than a home free of mortgage, and no better provision Mr advanced years than a wholehearted effort to get rid of liabilities.’ The report and balance-sheet were adopted and a final dividend of 3 per cent, approved. Mr. J. McEldowney was re-elected a director. 1 N.Z. Exchange Rates Telegraphic rates of exchange on overseas centres, as supplied by the Bank of

No. of Sale Price. shares, £300 laser. Stock, 4 p.c., 10/5/ £ s. d. 49-32 • *104 V 6 £4030 Ditto, 4 p.c.. 15/6/52-55 Ditto. 24 p.c., 1/10/53 *107 J 6 (two sales) Ditto. 21 p.c.. 1/10/53 03 ,) 0 £530 05 . 1 0 £200 Ditto. 3 p.c., 15/12/53-56 100 0 0 £2000 Ditto. 3 p.c., 15/12/53-50 . 100 0 6 SO Union Bank 8 10 0 3o0 Goldsbrough Mort. .... 1 11 1 200 Macduffs, pref Woolworths, N.Z. I 6 3 300 0 18 •7 50 Broken Hill 2 4 6 130 National Electric *Late sale Monday. AUCKLAND. l 13 .6

New South Wales, are as follows:— On Buying Selling. New York, dol. to £N.Z. 3.2542 3.2050 Montreal, dol. to £N.Z. .. 3.6039 3.5290 India, pence to rupee •••• 22 3-10 22 11-16 Cevlon, pence to rupee .. 22 3-16 22 11-10 London, £N.Z. to SlOOstg. 124 3-8 123 Aust., £N.Z. to £100A .. 100$ 100 Fiji, £NZ. to £100F. ... 90 88 5-8 S. Afrie. £N.Z. to £100S.A. 123 125 1-8 Chungking, N.Z. pence to 1 Chinese Natl, dollar . — 4