Commerce, Mining, Finance

Evening Star, Issue 23376, 20 September 1939, Page 6

Commerce, Mining, Finance

Australian Metal Scrip Weak Sold S+ill Held at Fixed Price Australian scrip again captured most attention on the Dunedin Exchange this morning. Metal sh ares were almost neglected, only three vendors coming forward, and then at weaker levels. Common- „ wealth industrials displayed a firm ing tendency, while Dominion stocks were generally stable. ' Gold was held at £8 8s an ounce in London yesterday.

SWEDISH IRON ORE LARGEST EXPORTS IK THE WORLD • SUPPLIES FOR GERMANY GREAT BRITAIN SECOND BEST CUSTOMER Sweden is the largest iron ore exporting country of the world, ranking after France in terms of quantities, but before France if the actual iron content is taken as the basis. Her iron ore reserves amount to about 11.1 per cent, of the total European reserves. There are two large mining districts, the Norrbotten district, in the far north of the country, producing mainly for export, and the central and southern Swedish districts, producing mainly for the home market. The former are by far the richest mines, holding reserves •of over 1,000 million tons with an iron equivalent of 738 million tons. The ore in this district is mainly of the magnetic type, with a high phosphorus content and an iron content of between 58 and 70 per cent. The largest mines of Kiirunavaara and Gaelivare‘'are owned by the Luossnavaara A. 8., which in turn is controlled by the Swedish'State and by the Traffic A.B. Graengesberg-Oxeloesund equally. .The Kiirunavaara-Euossavaara mines, containing about 738 million _ tons of ore, are situated about 100 miles from Narvik (Norway), and nearly.2oo miles from Lulea, on the Baltic. 'As the latter port is frozen from December to March, the ore is mainly shipped via Narvik, where it is transported by rail; this, incidentally, was the first Swedish railway to be electrified. The Gaelivare mines, with 265 million tons reserves, situated 130 miles north of Lulea, were formerly worked by several' foreign companies. " , At the eastern end of the field a largo deposit, the Koskullskulle mines, is owned by the Freja Mining Company, which is controlled by the Czechoslovak Witkowitz Steelworks, now under German domination. ;The iron ore deposits of central, Sweden contain about 116 million tons reserves, with an iron content of about 66 million tons. Several hundred sipall mines are operated in this 'district,;' producing low-phosphoric ores, with the? exception of the Graengesberg mines, whose product averages a phosphorus content of 1 per cent.,, and is mainly shipped via the port of Oxeloesund, 164 miles dis-' taut. ■ '

BROKEN HILL ISSUE QUESTIONS IN H.S.W. ASSEMBLY . PRDFIT LIMIT SUGGESTED RAILWAY FREIGHT REBATES Operations of the Broken Hill Proprietary Ltd. were discussed in the Legislative Assembly of New South Wales recently. The Premier, Mr A. Mair, was asked by Mr- H. Knight (Australian Labour Party) whether the company received railway freight rebates of about £250,000 a year, and whether, as the company was paying back about £4,500,000 a year to its shoreholders in increased dividends, he would cancel the railway concessions now given. Mr Mair said that he was prepared to consider the matter. He did not know whether the amounts were as mentioned. The company did receive railway freight rebates, and it had been able to build up its business and make substantial profits, but that had enabled it to provide employment for many thousands of men. ■Mr W. Davies (Australian Labour Party, illawarra) asked whether the company was paying a 64 per cent, dividend by distributing 64 bonus shares to every 100 shares already held; and whether the Premier would consider introducing legislation to limit profits, the extent of the limit to be determined by Parliament to bring about a more even distribution of wealth. The Premier said that he did not think, that the distribution of the bonus shares could be described as a 64 .per cent, dividend. It had been brought about by the company paying a lower dividend than was necessary and allowing funds to accumulate. He would consider the suggestion and let 'Mr Davies have an answer at an early date.

The Chairman of the company at the annual meeting referred to the misapprehension about the percentage of profits on.capital, which was exagger- _ ated by the fact that most of the company’s shares were issued at a substantial premium. As £4,459,790 was subscribed in premiums in cash, the directors decided to issue, shares for approximately a like amount, which would work out at about 64 shares for each 100 shares. Since none of this issue would come out of past profits it would not be a bonus issue in the ordinary sense. It would not enable the company to earn larger profits, and no greater amount would thereby be rendered available for dividend purposes. MILBURN LIME AND CEMENT COMPANY'S ANNUAL MEETING The annual meeting of shareholders in the Milburn Lime and Cement Company Ltd. was held in the company’s premises yesterday. Mr Edgar C. Hazlett (chairman) presided. Messrs Crosby Morris, W. E. C. Reid, and B. H. Nees (directors), and about 23 shareholders were in attendance. The Chairman moved the adoption of the report and balance sheet. This was seconded by Mr B. H. Nees and carried. The adoption of the report carried with it the payment of a dividend of 83 per cent, for the year. Messrs G. R. Ritchie and B. H. Nees were re-elected directors, and Messrs Barr. Burgess, and Stewart were reelected auditors. A hearty vote of thanks was passed to the directors and staff for their services during the year. This was replied to by Mr Edgar C. Hazlett on behalf of the directors, and by Mr Mackersey for the staff. GOST OF HARBOUR LOAN A £25,000 loan will cost the Hokitika Harbour Board £45,000. This was reported bv the secretary (Mr R. Wild) when, at its last meeting, the board discussed the prospects of raising a loan for the proposed Hood protection scheme. The Hokitika correspondent of the ‘ Star-Sun ’ reports that when re'porting on the present loan of £25.000. secured from the State Advances Corporation 28 years ago, Mr Wild said it had already coat the board £33,802 2s 6d The repayment of the loan would continue until 1946, and there was £9.123 10s still to be paid off. When the loan was finally paid off in 194 C, it would have cost the hoard £45,000, added the secretary. CABLE AND WIRELESS LTD. INTERIM DIVIDEND DECLARED LONDON, September 19. (Received September 20, at 11 a.m.) Cable and Wireless Ltd. have declared an interim dividend of li per cent.

The chief importers of Swedish iron ore are Germany and Great Britain; last year these two countries took 41 and 25 per cent. ■ respectively of their, import requirements from Sweden. The British steel makers mix high-grade phosphoric Swedish ores with low-grade phosphoric domestic ores, whereas their requirements of low-phosphoric ores arc supplied mainly by the North African mines. Germany has in recent years made efforts to secure a larger ore supply from Sweden and to prepare strategic measures to ensure the maintenance of supplies in case of war. _ As the Swedish State controls practically the whole domestic iron ore mining industry and has enforced an output restriction, an increase can only bo obtained through the Swedish Parliament. The production quota for the North was increased last year from an average of nine million tons spread over three years to one of 11 millions, and it was anticipated that in the event of a European war the allowances would bo increased, for the equal benefit of all purchasers. _ It would be possible for Great Britain to secure the transport of Swedish ore in time of war both from the northern mines and from those in central Sweden, if the port of Gothenburg was used for the latter. The transport of Germany’s supplies, at least during the months when Lulea is froze?, would be more doubtfulECONOMIC SOLIDARITY The new president of the International Chamber of Commerce. Mr Sigfri'd Edstrom, speaking Recently at the congress held in Copenhagen, emphasised the need for economic collaboration between the Powers. The time had come to make an end of the atmosphere of suspicion and hatred that prevented the indispensable victory of economic solidarity over political passions. “ One of the most discouraging aspects of the world to-day (he said), perhaps of this whole epoch indeed, is that it should be necessary to recall time and again the most elementary truths. Is the principle of the international division of labour really an outworn principle, which can be repudiated without harm to national economies? Just imagine what the state of a country would be' where specialisation was abandoned. Chaos, impoverishment, wasted effort, falling standards of living would be the inevitable outcome. Economic cooperation is not an abstraction, but a truth, which, however much < denied today, can never cease to exist.”

Firms in Sheffield last July received orders from the British War Office for £40,000 worth of knives, forks, and spoons to meet the demands of the new militia. This is a very In rye order, even for the Sheffield cutlery industry, and increases in the regular personnel of all three services will have a further effect on the “ domestic ” output of the city.

AUSTRALIAN STOCK EXCHANGES Press Association—By Telegraph—Copyright SYDNEY, September 10. A further slight reaction was noted on the Stock Exchange to-day, hut there was no marked change in prices. ■Broken Hill stocks were actively traded. MORNING SALES. £ s. d.

DIVIDENDS AND CALL LIST. DIVIDENDS PAYABLE. Howard Smith —Interim half-year, ' 2 per cent. (September 11) ... Sept. 21 Apex Investment 'trust—Final, 4j per cent, per annum Sept. 21 Auckland Farmers’ Freezing Co. — 6 per cent, per annum Sept. 23 North Broken Hill—Quarterly, 6d a share (August 29) Sept. 27 George Farmer, Sydney—Ord., 2^ per cent, per annum .. ... Sept. 29 Felt and Textiles—s per cent., making 10 per cent, per annum . Sept. 30 British Tobacco Co. Ltd. —Quarterly ord., 2 per cent. (September 9) Sept. 30 Dunlop Perdriau Rubber—Finals cum pref.,s per cent., making 10 per cent., and ord. 3| per cent., making 7 per cent, per annum respectively (September 14) ... Sept. 30 Barnet Glass Rubber—Finals cum pref., 6 per cent., and ord.. . 8£ per cent., making 10 per. cent, and 12J per cent, per annum respectively Sept. 30 N.Z. Newspapers Ltd.—lnterim, 8d a share Oct. 2 Wairarapa 'Farmers’ Co-op.— Pref. 3£ per cent, per annum Oct. 2 Hume Pipe (Australia) Ltd.Final ord. and prof., 3J per cent, per annum, making 7J { per cent Oct. 2 Nestles and Anglo-Swiss Condensed Milk (Australasia) Ltd.—Quarterly pref. at 8 per , cent, per annum Oct. 2 Bank of Australasia —Interim 3s 6d per share (less British income tax, Sentemher 11) ... Oct. 6 Woolworths (N.Z.) Lid.—Halfyearly pref,, 9 per cent. (September 24) Oct. 15 Woolworths Ltd.,' Sydney—Halfyearly ord., 6 per cent. (September 24) Oct. 15 (Dates in parentheses signify the closing of transfer books and registers.) CALLS DUE. ' Toohoys Ltd.—Bs a share, making 16s paid ... Sept. 21 G. J. Coles—los a share, making £1 paid Jan. 15

Commonwealth Bonds— 33 p.c., 1949 98 15 0 3J p.c., 1951 3J p.c., 1954 07 97 15 5 0 0 3J p c., 1955 98 16 3 4 p.c., 1941 100 10 0 4 p.c., 1944 100 10 3 4 p.c., 1950 99 13 9 4 p.c., 1953 99 U) 0 4 p.c., 1955 99 7 0 4 p.c., 1957 99 3 9 4 p.c., 195!) 99 15 0 4 p.c., 1961 98 7 6 Commercial Bank of Sydney 10 18 0 Tooths . 2 8 0 Austral Gas (A) 6 18 0 Australian Consolidated Industries 1 12 0 Broken Hill Pty. 3 4 3 Colonial Sugar 44 0 0 Huddart, Parker 2 16 9 AFTERNOON SALES. £ s. d. Bank of New South Wales 26 18 0 Commercial Banking of Sydney 17 0 0 Colonial Sugar 44 0 0 United Insurance 10 0 0 Howard Smith 1 0 4 Burns, Philp . British Tobacco (New Zea2 11 0 land delivery) ... 0 5 0 2 4 9 Tooths 2 8 3 Coles ... 3 7 3 Woolworths (New Zealand delivery) 1 0 9 Australian Consolidated In1 j *■3 dustries ... 1 12 Australian Consolidated industries (rights) 0 3 7 Hordern 0 12 10 Mort’s Dock 0 15 9 Adams 0 12 9 Cash Orders 0 14 3 Felt and Textiles 1 10 0 Felt and Textiles (second pref.) 0 19 0 Peters 2 11 9 Australian Guarantee Corporation (ex div.) 1 0 0 Newbold ... 1 7 6 Winchcombe Carson ... ... 1 8 0 Electrolytic Zinc 2 13 0 Electrolytic Zinc (pref.) ... 2 14 3 Mount Morgan 0 6 10 Mount Lyell 1 9 6 Broken Hill Proprietary ... 3 5 0 Broken Hill Proprietary (New Zealand) 3 4 9 North Broken Hill 2 6 3 South Broken Hill i 7 7 MELBOURNE,' September 19. National Bank (£10 paid) 11 12 0 Goldsbrough, Mort 1 8 7 Dunlop Perdriau 0 16 7 Electrolytic Zinc 2 12 0 Electrolytic Zinc (pref,)' ... 2 12 9 Broken Hill Proprietary ... 3 5 3 South Broken Hill ... ... 1 7 0 Mount Lyell '... 1 9 3 Loloma 1 2 2 Emperor 0 8 8