Commerce, Mining, & Finance

Evening Star, Issue 21753, 22 June 1934, Page 7

Commerce, Mining, & Finance

THE SEARCH FOR GOLD BEN LEDI SLUICING The manager, Mr D. J. Deegan, reports as follows under date Juno, 16:— Excellent progress has been made with the construction of the water race during the past fortnight. Twentylive men are engaged on the job, and there have been practically no stoppages on account ot weather. The entire length from the deviation to the intake (268 chains) has been stripped, with the exception of about twelve chains of rock work, and considerably more than 100 chains have boon completed. Arrangements arc being made to have the portion from the deviation down to the foot ol the race (1.01 chains) excavated by plough and scoop, which should not take long and will result in a considerable saving in cost to the company. As the result ot a visit from some of the directors earlier in tbe month, together with Messrs M. Murray and R. M'Quadc, who had prospected the claim, the point at which operations will commence was determined, and in view of the excellent headway being made with the race, it is confidently anticipated that sluicing will be started in the early spring. GCLCOHOA MINES The latest Golcouda report states’: — During the week in the main drive we drove sft into the reef. There is no footwall showing. The quartz is heavily mineralised, and shows silica and a little zinc blende. The reef has the right • dip for the Cambria reef, and the appearance of the quartz is more like this reef than any other body of ore that we have cut in this section of the mine. There are grout possibilities of getting a rich rim of ore between here and the main slide, as the reef is well defined and is a very strong ore body. The water has eased off. but there is still a .little gas coming from the reef. SHIPMENT TO AMERICA A shipment of bar gold from the West Coast for the United States was taken by the Rangatira from Lyttelton on Tuesday evening. The gold amounted to 2,6000 z, of the approximate current value of £IB,OOO. WORKSOP EXTENDED DREDGING The 1 contractors constructing the dredge for the Worksop Extended Gold Mining Company report that a trial run. was taken out of all the gear, which was found to be satisfactory. The dredgemaster arrived on the claim on June 19. NEVIS DIESEL COMPANY MEETING OF SHAREHOLDERS. The Dunedin shareholders of the \evis Diesel Electric Dredging Company Ltd. met on Tuesday evening to discuss various aspects of the company s affairs. Mr J. L. M'lncloe occupied the chair. The chairman briefly reviewed the company’s position, which he stated was not up to expectations. He then called upon the chairman of directors (Mr D. S. Mackenzie', to address the meeting. . Mr I). S. Mackenzie staled tnat the directors had been laced with many difficulties owing to the nature ot the country in which the claim was situated, but that these had been overcome satisfactorily ami an excellent job made of the dredge and plant. The expendsture had been niuch heavier than the estimates, largely owing to the fact that there was a great deal more work to be done on the dredge and at the claim than was stated by the engineer (Mr W. W. Begg). The expenditure on the water races and hydro plant was not provided for by the engineer. The directors, however, were justified in utilising the water and keeping the Diesel plant as a standby in case of snow in the races. The Diesel plant would also lengthen the dredging season. The dredge returns had been poor, but he liimself was confident of ultimate success, and had backed up his opinion by taking up further shares in the company, with the result that he was now one of the largest shareholders. Mr Mackenzie answered numerous inquiries From shareholders, and stated,that after friendly negotiations Investigations Ltd. had offered to put down twenty bores at their own expense to test the claim. The directors had accepted tipoffer, and recommended that no dredging be clone until the result of the bores was made known. The directors appreciated the action of Investigations Ltd., which would be of great value. The Secretary of the company (Mr F. R. Thompson) reviewed the financial position, and stated that the company was at present approximately £3.000 in debt, and three of the directors had guaranteed the bank overdraft. He showed where capital expenditure had been in excess of the estimates shown in the prospectus. Mr Thompson pointed out the need for further capital, and outlined the terms of the proposed debenture issue. A resolution was put to the meeting—" That the Dunedin shareholders support the debenture issue, and recommending other shareholders also to give it their support." The resolution was carried unanimously, and substantial offers were made to take up debentures. The opinion was expressed that, while the shareholders appreciated the work done by the directors, the company would be managed more satisfactorily if a majority of tbe directors lived in Dunedin. Mr Mackenzie stated the directors concurred with this view, and t° facilitate the bringing about of tbe change he and bis fellow-oflicers were prepared to vacate office on being released from their guarantee to the bank. A resolution was passed recommending the reduction of the qualification of directors from 4,000 shares to 2.000 shares, and increasing the number of directors from four to five, not fewer than three of Whom should be resident in Otago. Mr George Thompson was nominated as director. TWO DIVIDENDS The Waihi Grand Junction Company is paying the same dividend as last year, 4d a share, which absorbs £6,906 of the profits, £13,771. Last year the profit was £12,211. Income tax provision is £2,637. Dividend equalisation account takes £3,500, and the carry forward is £3,761, more than a halfyear’s dividend. North Broken __Hill, which paid dividends equal to 15 per cent, last year, has declared a fourth dividend, payable on June 29, of Is fid a share. The year’s distributiou of os fid is equal to 271 per cent.

I STOCK AND SHAREBROKERS,

CASH IMMEDIATELY. Listed and Unlisted Shares and Bonds, Building Society Shares, Insurance Policies, Mining Stocks, Mortgages may be turned into Cash immediately by consulting

The securities corporation. 20 Crawford street, Dunedin. 'Telephone 11-777 (two lines). Investors are ftsked to note that we are an independent firm ot Stockbrokers and not connected with or controlled by any similar firm in N.Z

DISPUTES SETTLED The dispute in tbe northern district is reported to bo settled, after a secret ballot taken among members of the Ohinenuiri Mines and Batteries Employees’ Union. The terms provide for* the payment by the Waihi Gold Mining Company of an increase in wages of Is 4d per shift on the current rate, and of 8d per shift by the Golden Dawn Mining Company at Owbaroa. In the case of the Waihi Company, 8d of the increase of Is 4d per shift is to be added to schedule rates, and 8d paid by way of bonus quarterly to day workers. The Golden Dawn employees may reopen the question of wages after three months. The agreement is retrospective to March 19. The dispute regarding wages at the Blackwater Company’s mine is also reported to have been settled. The mine liad not been worked for about fourteen weeks from February 24. The miners accepted a restoration of the reduction made in wages in 1931, and the shift men will now be paid a minimum wage of 16s a day instead of 15s. Those working under a contract basis will receive 2s extra a day for work in wet places. The men affected number more than 200.

NEW GUINEA FIELDS A recent report from Sydney of New Guinea Goldfields Limited states that the April production was 1,9910 z of bullion from alluvial'operations. The estimated profit from alluvial work in March was £6,343. and from the mill £11,867. The milling output in April was ],9400z of fine gold.

NATIONAL BANK DF NEW ZEALAND A London 'Cablegram to the National Bank of New Zealand states that the board of directors has recommended a final dividend at the rate of 4 per cent, per annum for the half-year ended March 31, making 4 per cent, for the year, free of tax.—Wellington Press Association.

NEW ZEALAND CO-OPERATIVE DAIRY COMPANY

RECORD PRODUCTION [Per U.viteb Press Association.! HAMILTON, June 21. Assisted by tbe generally favourable weather conditions, a substantial -increase in production is recorded by the New Zealand Co-operative Dairy Coin puny for the year, the dairy produce manufactured reaching the record ot 61,280 tons, an increase of 4,854 tons on iast year. The suppliers to the company now total 10,139.

DOMINION PRODUCE , HIGH COMMISSIONER'S REPORT The Department of Agriculture has received the following cablegram, dated June 16, froin the High Commissioner for New Zealand, Loudon: — Tallow.—Market inactive, with values about unchanged. Hemp.—Manila: Market quiet, but steady. Values about unchanged. Output January 1 to June 11, , 601,000 bales, against 485,000 for the same period last year. Stocks in the United Kingdom at June 1, 26,033 bales, against 13,068 at the same time last year. Stocks iu Manila at June 11, 110,000 bales, against 140,000 at the same time last year. African sisal: No I grade for -luly-September shipment sold at £lO. New Zealand: Market unchanged. Stocks in London at June 1, II tons, against 152 at same time last year. Fruit.—Cumberland’s cargo in good condition. Markets weak and trade very slow. Current prices are:— Apples: Ballarat, 8s to 9s 6d; Cleopatra Statesman, and Stunner, 6s 6d to 9s; Delicious, os 6d to 8s 6d ; Bulked small. 5s 6d to 6s 6d ; Dougherty, 10s; Dunn’s Favourite. 7s to 9s 6d; Granny Smith. 9s to 12s; Jonathan, 6s to 10s; bulked small, 6s to 7s 6d ; London Pippin and Ilyrner, 7s to 8s 6d ; Newtown Pippin. Ss to 9s; others, 6s to Ss. Pears: Winter Nelis, 10s to 15s; Trays, 4s; Josephine. 12s 6d to 14s; P. Barry, 10s to 12s; Keifi’er, 7s to 10s; Vicar of Winklielcl, 9s; L’lnconnue. 9s to 9s 6d ; Bonne Easter, 8s to 9s 6d.

STATISTICS OF TIN WORLD POSITION IMPROVES ? In spite of recent increases permitted in production, the world statistical position of tin continues to improve. Stocks at the end of May had fallen to 16,788 tons, and it is recognised that about 15,000 tons is a minimum stock needed to meet the demands of consumers. Consumption in recent months has been about 8,000 tons, and tbe monthly production quotas fixed for April to October this year are equal to 8.063 tons. With all important producers in agreement in supporting the restriction plan, the future course of prices tor tin depends largely upon consumption. The United States consumes normally 50 per cent, or more of world production, and figures there have shown a substantial improvement. Estimated production ol motor car units in April was 400.000. compared with 189,284 units for April, 1933, and production of tinplates was placed at 4,000,000 boxes, compared with 2,250,000 boxes for April, 1933. In the meantime prices for tin have been fairly steady, and at the present level of prices production by most of the producing companies is on a profitable basis.

INTERIM SHEEP RETURN

DECLINE OF FLOCKS ARRESTED SUBSTANTIAL INCREASE IN YEAR [Per Uxited Press Association.] WELLINGTON.. June 21. An interim return compiled by the Department of Agriculture shows that m April 30 last there were 28,550.770 sheep in the dominion, compared with 27.750,96(1 on the corresponding day of last year. Despite this increase of 794,804, the latest return is still below the figures for the four years preceding 1933. , An analysis of the returns lor the past few years indicates that the heavy slaughtering o( flocks during the depression has been arrested. Trends of this type are typical of slumps. flock owners being forced into realisation on mature stock and lambs in an attempt to find liquid cash. , . Although there is a decrease of 22,916 in the sheep in the Marlborough-Nel-son-'Westland district, the greatest increase in number took place in the South Island, where the sheep increased bv 536.393 to 13,338,330.

' The largest individual increase for a district was in the Canterbury-Kai-kouia area, the sheep there increasing bv 415,632 to 5,607.015. 'ln the North Island the increase amounted to 258,411, and of that number 162,247 were represented by extra sheep in the Wellington-West Coast distinct. According to the latest return there arc now 5,802,189 sheep in this district.

BEET SUGAR Press Association—By Telegraph—Copyright. LONDON. June 21. (Received June 22, at JO a.m.) Beet sugar; July 5s 04 d. DOLLAR AND FRANC Press Association—By Telegraph-Copyright. LONDON. June. 21. (Received June 22, at 11 a.in.) The dollar is quoted at d.o3| and the franc at 76*-. PRICE OF GOLD Press Association—By Telegraph—Copyright. LONDON. June 21. (Received June 22, at 11 a.m.) Fine gold is quoted at £6 18s osd per oz.

IMPORTS FROM BRITAIN

HEW ZEALAND HEADS LIST Figures quoted on Monday by Hie Minister of Finance and Customs (Mr .). G. Coates) show that New Zealand's imports from the United Kingdom have continued to compare favours blv botb iu percentage of total imports and per head of population with other parts ol the world. The statistics, which wore for 1933. were mentioned at the reception in 'Wellington to Mr Uobort Monitor C'M.Gr.. who lias recent l.v been ap* pointed His Majesty's Trade Commissioner in New Zealand. . Imports from the Hinted Kingdom had been 51 per cent, of the total lasi vear, Mr Coates said. For South Airier r,hey’ had been 46 per cent., for Australia 43 per cent., for India 37 per cent., for Canada 24 per cent., and for, Denmark 22 per cent, (now 28 per cent.). 'This showed bv comparison that Non Zealand had been by no means an unimportant factor in the purchase o manufactured goods from the H niton Kingdom.

KAURI GUM MARKET

CONDITIONS STILL DULL A total of 224 tons of kauri gum was received into store in Auckland last month. According to local merchants the overseas market for the better quality gums still shows little improvement. 'The use of kauri gum is now praclically confined to the manulactnre ot linoleums, and it is considered that a falling-off tn the demand lor the manufactured article has been the chief cause for decreasing the demand tor cm in. The higher grade gums, which are used for varnishes and paints, are meeting with keen competition from substitutes. In the present state or the retail market, where price is a consideration, the substitutes are being widely used. However, local merchants are confident that with an improvement in world economic conditions the kauri gum market will regain some of its former vigour.

THE MARGARINE TRADE EFFECT OF LOW BUTTER PRICES The viewpoint of the English margarine trade, which has .suffered owing To low prices of butter, was expressed by Mr D’Arey Cooper, chairman of directors of Unilever Limited, at the annual meeting in London recently Mr Cooper quoted the following table, showing consumption per bead of butter and margarine in pounds during tin last six voars:—l92S. butter 16.7. mar o-arine 13.i1; 1929, 17.0. 12.9: 1930. 18.6 11.8; 1931, 20.6, 10.3; 1932, 21.6, 9.2; 1933 , 23.3 . 8,4. .Air Cooper said export bounties were paid on butter from Australia for which the Australian consumer had to pay, an obvious case of “ dumping.” The result was an unduly low price for Australian butter in England, not only to the disadvantage of the margarine industry, but to the detriment of the English farmer.

METAL MARKET

Press Association—By Telegraph—Copyright. LONDON, Juno 20. The following arc the official metal quotations Copper.—Standard, £32 Is 10Jd per ton; forward, £32 8s 9d. _ •Electrolytic.—Spot, £3o os; fonvatd, £35. los. Wire bars, £35 los. , Lead.—Spot, £ll D 3d; lorwaid, Spot, £l4; forward, £ll 3s —Spot, £226 3s' 9d; lorward, £226 Ss 9d. , r Pig Iron.—Homo trade, £•-> <s > evnort. £3 2s 6d. . Antimony.—British, £l2 Ids ; foreign, Wolfram. £2 95.6 d. • Silver.—Standard, • 19|d per oz; hue, 21 7-16 d. _______ AUSTRALIAN STOCK EXCHANGES Press Association—By Telegraph- Copyright. SYDNEY, June 21.. _ • On the Stock Exchange industrial trading shares continue quiet anti weaker, but the mining market recovered from the nervousness outlined yesterday, and the buying inquiry lot many market leaders was strong; indeed, the whole gold group, was hrmer. VLater sales were; — Bank of New South Wales, £3O 2s 6d; Commercial Bank ot Sydney, £l7 , Bank of New Zealand 49s 6d; Asso dated News, 21s ltd (pref. 22s 8d), Tooth’s, 425; W. H- Carpenter (paid), 40s 6d; Amalgamated Textiles, 10s i a, Dunlop Perdrian, -17 s 9d; Hordern, 14s: David Jones, 36s 9d, Winclicombc, 'Carson, 29s 6d 5 Morgan, 26s 4}d; Broken Hill Pi qpnotarvf 445; Euratha Gold, 11s 9d;Luaa Kampar, 8s lOd; Mahm Nawar, los 6d , Tongkah Harbour, 20s; _Rawang lm, 8s lOd; Taranaki Oil, Is lUd. MELBOURNE, June 2,. ‘ Hera id’ and ‘Weekly Times, oOs; National Bank (£5 paid), £6 +rnlr+ie Zinc 255; ditto, pret, 33s 3d, GoffiJS Mo’rt. 80,'M; Mount Lyell, 20s 6d. “TIME BARGAINS.” STOCK EXCHANGE ACTION. Press Association —By Telegraph-Copyright. SYDNEY. June 21. On the Stock Exchange The chairman (Mr F. Steel) announced to-day that “time bargains” would, until f ’irther notice, be prohibited, except those transacted in the vestibule.. A large part of tbe business in mining shales recently has been on the basis of toward delivery, and while sharebrokers regarded the new edict as drastic, it u believed to be the outcome ot the Tiillamore disclosures. INSURANCE BUSINESS BRITISH COWANIES ABROAD Colonel L. H. Hanbury, chairman,of the Guardian Assurance Company, London in his annual speech to shareholders, said; “ The .business ol insurance became increasingly, difficult, especially abroad. The premiums derived from sources outside these islands tend to decrease. It is officially stated that Great Britain’s share, ot the total ot world trade was slightly less m the past year, but at home there is some revival of trade, probably stimulated by 'tariffs placed upon imports. It seems that some foreir Governments regard insurance as a iry lucrative business from which high taxation may be obtained. Tbe reduction made in the standard rate of income tax in Great Britain was very welcome. It is tne case however, that complete recovery in Greet- Britain depends upon the recovery of the rest of the world and the revival of international trade. Thev were confronted also m uiany countries with nationalist sentiments urging the support of national institutions, assisted by legislation discriminatory against foreign insurance companies. The prestige of British insurance companies was such that it attracted business to them notwithstanding,. but to maintain their former position was made a more difficult task. Another difficulty had been to find remunerative use for their money. The prices of gilt-edged securities made it extremely hard to find safe investments which gave anything but a verv low rate of interest This is caused, no doubt, as in most other markets, by supply and demand, and the supply of money for investment has been increased through inactivity in trade, the lack of opportunity of investing money abroad, and the influx of funds from abroad. BRADFORD MARKET Pres* Association—By Telegraph—Copyright. LONDON, June 21. (Received June 22, at 11.35 a.m.) The Bradford market is quiet. Quotations: Seventies, 33}d; sixty-fours, 3l|d; sixties, 29}d ; fifty-sixes, 23d ; fifties, 16}d; forty-sixes, 12d; forties, lOfd. BUTTER AND CHEESE Brest Association—By Telegraph—Copyright LONDON, June 21. (Received June 22, at 11 a.m.) Butter is quiet. Danish, 86s; choicest salted New Zealand, 78s; Australian, 745; unsalted New Zealand, 81s to 83s ; Australian, 75s to 765. Cheese: dull. New Zealand white, 495; coloured, 475; Australian, 48s to 45s 6d.

The value of imports per bead ol copulation had been as follows:— New Zealand ... ... £6 4 2 Australia 1 i* South Africa 2 lo 9 Canada „ , in India — 0 1 l | Denmark ... ... <5 o C1 So, you see,” concluded Mr Coates. ; we still have pride of place.”