"LEAN YEARS"

Evening Post, Volume CX, Issue 73, 23 September 1930, Page 12

"LEAN YEARS"

LOSSES BY INVESTOKS

AUSTRALIA'S REDUCED

INCOME

Reference to the general .. cablegrams will indicate that there has been another heavy fall in investment shares in the New York market, -with great losses to holders of what are consideied in the United States and iv London as high grade industrial investments. The reaction of this latest fall in the prices of American shares upon the London share market is yet to be seen, but hopes for improvement in the values of Australian and New Zea; land investments, such as bank and insurance and other first-class, shares, are centred in a recovery of the London market, and therefore any shock to that market is immediately felt in those of Australia) arid-New .Zealand. ' As.to Australia, Sir Kobert Gibson, chairman of the Commonwealth Bank, in his: recent half-yearly report of the bank, v referred to the lean years ahead and the necessity of sacrifice being made by all classes of the community without exception. The "Sydney Homing Herald." has. compiled a table of 115 companies listed on the Sydney Stock Exchange—and, iicidentally, in which many investors domiciled ' in Xew Zealand are interested—to show how dividends have been reduced -or passed altogether. A similar table, but necessarily containing fewer companies, was published in this column last Friday. The journal quoted shows that in the ease of investors in shares in public companies, who in recent years have developed into a widespread class, many have already fojind their income reduced, often drastically, or cut off altogether. Company profits are naturally feeling the effect oE the financial stringency, the falling-off in trade, and the reduced purchasing power of the community. • According to what extent trading operations are influenced by these factors, the returns to shareholders in the form of dividends are affected. Even in the tew instancies where profits for the, past year have not fallen heavily, due to the depression havrlg developed over only the latter part of the period, a conservative policy on the part of. the' directors, necessary if the difficult tiiiie immediately; ahead is1 to be guarded against,: has of ten precluded shareholders from receiving distributions on previous terms. .-.''-,

Among ..the companies quoted in which interests are held in \New Zealand are the following:— '.. ■' .'.■.-

' ■ . ' ' Dividend. ■.. ■ . '■.-■.■ ■ ■ ~ p.c p.a. ■' . . . ■ • *w-' • , ' vious Latest rate. rate. Kedaced. Compinyv £ . Anst Bank of ; Cora. .... . S 7 22,080 Bank of Adelaide ...*.. 10 9 12,500 Bank of N.S.W.: ...... VIVz 10 157,500 Queensland Nat. Bank ..10 9 17,500 Union Bank ...15 12% 100,000 Huddarf, Parker' ......10 S 15,000 Aust. Provincial Assee.- . 5 2y a 8,925 Federal Mut.lnsce. .... 10 S 2,040 Carltou Brewery .;■.... 14 11 . 24,507 Queensland Brewery/; ... ', 12& 10 7,470 Tooheys .............. 10 9 12,000 Aeolian, pref. ........ -8 nil S,OOO Anthony Hordcra: ...... 8 . 7 12,000 Aust.-Banner. ......... 10 nil 5,010 Aust. Drug .„. 10 nil 16,222 Aust. Wood Pipe ...... 10 9 1,050 Automobile Suppliers .. 10 nil 20,000 Automatic Totalisators,.. 7%. 6... 2,877 Barnet Glass 10 ft 22.000 B'erloi, Ltd. .....'...... 10 ' 7%' 2,800 Daigety /:....:.'...;.:. ir: io los.ooo: David- Jones ........... 10 S .12,000 Cuulop-Perdriau ■..'.■ .10 G 150,564 Electrolytic Zinc ........ 12 10 52,000 Goldsbrbugh Mort .... 15 ' '10 120,000 Cordon and Gotch - .... 12 10 10,000 Greater J. D/Williams .. 10 S 7,940 Hackshalls ■ 12 '/* nil 31,25* Harrington, pref. ...:... S • nil 3,600 Holdens -....:......... 10 . 5 :U,20». Howard Smith ....'.... -5 nil 100,000! ITumePipo (Aust.) ..'.. S 8. ■. 10,000 Lincoln Mills, pref. S 5 12,000, Lustre Hosiery .' 10 .5 12,500 Truth, and" Sportsman '.. 10 5 10,000 West's ...'......: 12Vj 10 0,750 Wuuderllch .......;..;. 14 :ll»i 12,350 Yellow Cabs 5 nil 15,045 Younghusband ........ 15. 12% 6,250 ■The aggregate reductions would mean a loss to; shareholders of £2,304,531 over a year; equal .to 3.78 per cent, of the paid-up capital of £60,849,304 represented by the whole'"115: share issues quoted by the. '.'Herald." .. . . ■