The Stock Exchange

Hawke's Bay Herald-Tribune, Issue 208, 18 September 1937, Page 15

The Stock Exchange

"Cum Prof"

Review of Share Movements

By '

The New Zealand stock exchanges coatinua to react against . holders. In spite of the increascd activity in business and industry, business during the past week was recorded at lower levels. At the opening saies prices were maintained at the levels of the previous week. Later, however, 'Teports frorn London and New York indicated a niarket depressingly affected by the international situation. This combined with the unsettled political situation in Australia has combined to weaken the Australian markets, which to a lesser extent has been reflected in New Zealand. Limited Trading in Government Loans. The turnpver in Government Loans was restricted to a few parcels on a limited range. Three and a-kaif per cent. stocka were traded in the 1939-52 and 1953-57 isses. The former chang9d hands at £104 10/- and £104 15/-, while the latter were sold at £98 15/-. Further supplies were demanded at ten shillings nnder recorded saies, but -there were no sellers' quotations. Business in the 4 per cent. issues was conffned to stocks at opening saies, but at the close of the week several parcels of bonds changed hands. Transactions recorded in stocks were at prices lower than sellers' quotations. Five per cent. Rural Bonds had buyers at £102 17/G, , but there were no supplies available. Heavy Burden of Taxation. The chairman of directors of C. L. Innes and Co., Ltd.., brewers, reported at the annual meeting of tho company a record turnover of £67,000. The higher xeturn was reputed to be due to the incerasing spending power of the public. The chairman drew attention to the heavy taxation, howevert and stated that the burden has become so great as to become a menace to industry. The company paid in direct taxes £17,000 on a capital of £13,000 and a gross profit of £19,000. He stated that the restriction of working hours had resulted in a heavy increase in expenditure, and if business had not increased, the year*s result might have been unsatisfactory for shareholders. It is tsignificant that the heavy company taxation introduced by the present Government has had the effect of cramping normal industrial expansion which in tum has prevented industry absorbing unemployed. This aspect of the taxation should tend to influenco the Government to modify the burden carried by industrial concerns. Tho vital issue which has been overlooked, however, is that investors, many of whom are relying on investments for a moderate income, have been deprived of the reward of industrial recovery after having experienced a period of depression when their inveslments yielded a small return. fiome Company Reports. 'Advice has been received that the directors of Selfridges (A'sia), Ltd., declared an interim dividend for the current financial year at the rate of 4 per cent. on all shares fully paid as at February 1, 1937, and on contributing shares at the rate of 4 per cent per annum on the amount paid-up. This interim dividend, which is payable to all shareholders registered on the books of the company as at September *25, will be paid on September 30. The books will be closed for that purpose from September 25 to October 2, both dates inclusive. An increase in profits of £6300 to £28,960 ie shown in tho accounts for the year ended June 30 of Wcro's lnvestment Trust Ltd. A tlividend of 6 per cent. on old shares and pro rata on shares is recommended. Tho directors have deeided to offer to shareholders 360,000 shares of 5/- each at par in tho proportion of one new shafe for every flve sharen he7d. This will increase the paid capital to £540,000. The market value of investments at June 30 wax £881,520 (£44,410 in excess of cost) compared with £641,630 (£16,430 in excess of cost) at June 30, 1936. An extraordinary meeting has been convened to change the name of the company to Australian Foundation Investment Trust Ltd. The directors are applying for listing on the Melbourne Stock Exchange. . The Australian Gas Light Co. announces that 30,000 "A" ehares of £6 each will be sold by auction on Soptember 27. As required by the Gas Act, a reserve has been placed on tho shares. Last Thursday's closing quotations of existing shares were buyer £7 4/6, sellor £7 5/6, but in these the accrued dividend would be allowed for. The previous iesue of share capital was made by auction sale on September 7, 1936, On a range of prices from £7 5/- to £7 8/- the average was £7 5/5 The previons issue to that of 1936 was in October, 1928, whcn 35,000 sharen were sold at an average pricc of £6 39/6J. Present issued capital is £4,260,000 in 710,000 shares of £6 each There aie also debentures totalling £2,250.000. An increase in tho nominal capital the Southland Frozen M-eat Co. to £450,000 by creation of 300,000 ordinavy shares of £1 each, to be distributod among shareholders, is recommended bv the directors of that company Tbidirectors state that they are of tho opinion that the company is under-capi-talised, and they recommend that tho distribution be made of the basis of two shares for each £] of paid-up capitaL The distribution will be made up as follows: — Holders of fully-paid preference and ordinary shares reeeiving two fully-paid shares for each share ( held, while holders of contributing. shares (10/-N'paid) will have these shares fully paid to £1. and in addition will receive one fully-paid "1 share for ' every two of such contrihnting shares held. Thus the proposed distribution will plaee all sharehohlers on an equality. Higher Profits for Drapers A recovery in the earnings of Milue and Choyce Ltd., is shown in the accounts for the year ended July 31. Nnt profit amounted to £13,323, against £313 a year ago, when a licavy reduction occnrred duo to non-recurring adjustgients. Tho directors again proposc to

raise the dividend on the ordinary shares and dcbenturo stock, recommending iinal distribution of 3 per cent. malcing 5 per cent. for the year, against 4 per cent. in 1936. Trading profit for the year was £27,975 from which was deducted £8208 income tax provision and £6444 depreciation on plant and buildings. Last year the profit before deduetion of £6915 for depreciation was £7258. With £24,553 brought into the accounts there was £37,876 available. Interim dividends required £5395 and the directors now recommend further dividends as follows; 3 per cent. on the preference shares making 6 per cent. for the year; 3| per cent. on B preference shares making 7 per cent. for the year; 3 per cent. on ordinary shares and debenture stock making 5 per cent. for the year. The final dividends absorb £7575, leaving £25,006 to be carried forward. The directors report that the volume of trade again ehowed a satisfactory increase. Shareholders in Hay's Limited, drapers and fancy goods stores, Christchurch, retailers, are being offered ihe* remaining 15,000 shares- of the company 's capital still unissued, to finance further extensions to premises and trading. The issue will be at par and shares are offered in the proportion of three new shares to every seven existing shares held. These will become shares of 15/- paid — such shareholders may elect to pay up to £1 at their op« tion. The company has arranged for a lease of a Colombo street frontage, with adjoining shops for five years from January. 1938, and has an option for a a further five years' term. Arrangements have been made to connect the new premises with the inain store: The directors report that turnover is now greatly in excess of the figure indicated in the prospef tus less than four years agO; and profits on this year's balance sheet, shortly to bo presented, will allow them to advise repetition of last year's 6 per cent. dividend, after stocks on hand have been carefully valued. The following table gives the highest and lowest prices and, in brackets, the number of parcels which changed hands on New Zealand stock exchanges during the past week: —

Highest. Lowest £ e. d. £ s. d. GOVT. STOCKS AND BONDSInscribed Stock, 3i p.o. 1938-52 (1) 104 6 0 - Inscribed Stock, 3i p.c. 1939-52 (3) 104 15 0 101 5 0 Inscribed Stock, 3i p.c. 53-57 (2) 99 0 0 98 15 0 Inscribed Stock, 4 p.c. 1913-46 (3) 103 5 0 103 2 G Inscribed Slock, 4 p.c. 1946-49 (1) 101 15 0 Inscribed Stock, 4 p.c. 1952-55 (5) 105 5 0 105 2 6 Government Bonds, 4 p.c. (1) 1934-46 103 5 0 p.c., 1952-55 (4) 105 5 0 105 2 C BANKS— Australasia (1) 11 12 6 Com. of Aus. contr. (2) 9 5 0 Com. of Aus. ord. (10) 17 7 17 4 Com. of Sydney (1) ... 20 0 0 Nat of Aus. £5 paid (1) 6 15 0 Nat. of New Zea. (1) 2 18 0 New South Wales ... 32 0 0 31 17 6 New Zealand 2 5 2 2 4 9 Union of Aus. (1) 9 12 0 INSURANCES— National (2) 18 3 IS 2 New Zealand (4) 3 3 6 3 3 3 South British (2f) 4 17 0 4 16 6 LOAN AND AGENCYDalgotys Ltd. (3) 10 2 3 10 1 0 Golsbrough Mort. (5) 1 13 ^ 1 13 2 Dom. Investment (2) ... 17 10 FROZEN MEAT— N.Z. Refrig. (£1) (2) 110 10 6 N.Z. Refrig. (10) (11) 9 11 9 10 GAS— a Auckland contr. (3) ... 15 1 Auckland ord. (3) 1 1 11 119 Wellington (1) 1 16 0 SHIPPING — Northern Steam contr. (1) 9 COALGrey Valley (1) 8 9 Westport Stockton pref. (2) 5 8 5 0 TIMBER— Kauri (2) 12 0 Rotoiti (1) 4 9 WOOLLEN SKaiapoi, 7/- paid) (2) 5 3 5 2 fcaiapoi (1) 14 0 Oamaru (2) 19 3 19 2 BREWERIES— Carlton (1) .....\. 3 3 3 Dominion 2 1 0 2 0 7 New Zealand contr. (1) 1 14 3 New Zealand (3) 2 10 0 Tooths (1) 2 15 4 MISCELLANEOUSAnthony Horden pref. (3) 19 2 18 9 Aust. Glass (7) 4 13 0 4 11 0 British Tobacco (8) .... 2 9 9 2 9 3 , Broken Hill Prop. (51) 3 18 3 3 15 6 Hume Pipe (Aust.) Ltd. (ID- 10 2 10 0 G. J. Coles (26) 4 17 0 4 11 6 Colonial Sugar (11) ... 17 5 0 17 0 0 Consol. Brick and Pipe (C) 8 3 k Dunlop Perdriau pref. (11) 1 18 6 Dunlop Perdriau (5) 12 9 12 2 Elec. Zinc. (9) 2 17 0 2 14 0 Eleo. Zinc. pref. (6) .... 2 16 6 2 15 9 Farmers' Trading pref. (11) 1 2 9 . 'armors Trading ord (1) 1 1 0 Shillings Ltd (2) 19 9 19 C Radio (1936) Ltd. (3) ... 13 0 12 6 Kempthorne Prosse) (N.Z. Drug) (1) 3 14 9 l'aradale OiOi (43) 7 2 6 2 N.Z. Farm Fertilizer (1) 10 9 McKeuzie's Dept. Stores Ltd (9) 8 0 16 0 Woolworths iS Africa) j (19) 16 7 16 1 Wilsons Cement (1) ... 10 9 Woolwortlis (N.Z.) (1) 5 9 0 Woolworilis N.Z. pref. (2) 1 18 6 1 18 3 Woolwortlis Sydney (25) 6 18 6 6 1 vllNTNGMarlha (1) 15 3 Mount Morgan (28) ... 11 2 10 It)