Finance Stocks and Mining

Free Lance, Volume III, Issue 114, 6 September 1902, Page 5

Finance Stocks and Mining

THE Wellington Woollen Compam presents a very satisfactoiy bal-ance-sheet for the year ended 31st July. This is the first complete year since the date of the annual balance was altered from the 30th September to the 31st July, and it is therefore impossible to make comparisons. The credit balance on the year's operations amount to £10,724, which is very gratifying and indicates that the business of the company is being well maintained * * * With the amount earned over from the previous year, the sum of £12,277 is available for distribution. Of this £2500 is taken for depreciation, £2000 has been added to the reserve fund, and £1000 to the Employers' Liability Reserve. The shareholders get the usual dividend of 8 per cent., which is very satisfactory, and there remains £1640 to be carried forward. The other figures in the balance-sheet are also satisfactory. * - 1 * The meeting of shareholders is to be held next week, when a motion to raise the fees payable to the directors will be submitted to a vote. It is to be hoped that he shareholders will see the justice of increasing the fees. lne Wory of the Wellington Woollen Company discloses many disagreeable eisodes, but since the management ot the concern was reorganised, and the present directors assumed the control, the company has made considerable progress # The measuie of progress is recorded in the prices of the shares There was a time, and not so very long ago, when 30s was considered a fair price but that was when investors refused to place any confidence in the management, but now the Wellington Woollen shares are at a splendid premium, and are regarded as a very desirable investment. "* * * The present direct ois have the confidence of the public, and that this is fully deserved is proved by the excellent business that has been built up tor the company during the past six or seven years. The directors well deserve an increase in the amount of their fees, and incidentally it may be mentioned that the executive officers of the company are also entitled to some consideration. A small bonus to them would not be amiss. # * The Kaiapoi Woollen Company has also enjoyed a prosperous year. The report states that the mills have been, kept fully employed with the usual trade orders, and with the manufacture of outfits for the several contingents. The results, of the year's trading leave a profit sufficient to pay a dividend of 7 j>er cent. , to add £2500 to the reserve fund • and £500 to the accident insurance fund. The balance to be carried forward is £777 . The woollen mills of the colony are now turning out some very excellent materials. In the matter of blankets, they will compare favourably with similar productions, of other countries, lhe tweeds may not be of the same choice designs as those of the West of England and other parts of Great Britain, but the quality is every bit as good. « * * The woollen companies are also devoting considerable attention to woollen and knitted underclothing, and in this respect also the comparison is not at all unfavourable to the local concerns. It an export trade could be opened up it would be very satisfactory to the colony, but when it comes to competition, the cheaper productions of other countries have the reference. * • • The Metropolitan Building Society of Wellington, and the Standard Insurance Company, have just paid out their interim dividends. *. • Trade with South Africa is steadily kept in view, but the most cheering feature is that the Government has broken off the long-drawn-out negotiation® with the Blue Star Line, and called for fresh tenders. It will be interesting to watch the result of thos new move. A direct service between New Zealand and South Africa is impossible, but if the vessels are permitted to call at an Australian port it becomes quite feasible.

The point for consideration is whether the port of call in Australia shall be Sydney, Melbourne, or Albany. If

either of the former, then this colony will be practically paying a subsidy for the benefit of the sister colom&s, if Albany is selected, then the subsidy of £30,000 a year will be insufficient, because the cargo off ci ing in New Zealand is very small, with a tendency to decrease which means that the vessels must go away empty, while calling at Albany means increased expense for coal. it * * If the direct steamers are allowed to call at Sydney or Melbourne to load cargo for" South Africa, then, instead of subsidising a direct service, we shall be really paying for a regular intercolonial service, with this advantage that shippers will haye no transhipment charges to pay. In sipite of what many neonle say, the South African trade is a diminishing quantity. It is larger now than it would be under normal conditions, because of the drought in Australia. Were it not for this, New South Wales and Victoria would be able to suppl- all the lequirements of the Gape, and with the advantage of regular fortnightly, if no<t weekly, shipments. * # * There are no War Office contracts to bolster up the trade, and the frozen meat contracts to supply the army in occupation w ill not amount to very many cai cases in the month. Even in respect to meat, the Cape will find it cheaper and better to draw supplies from Australia. * * * The Australian drought has not broken, but the rains reported during the week have saved the island continent many millions.. The rains have fallen all along the coast, and in Australia this means a pretty wide stretch of country. On these pasture lands the immediate requirements of the colonies can be easily met, and probably a small surplus will be left for exnort The rams, then, for which thanksgiving services are to< be held in New South wales spell bad luck for our pastoralists who have been exporting cattle and sheeo to Sydney. Already it is> reported that the speculators from the other side, who are nowoperating in this colony, have ceased to buy sheep, and caution is being exercised in purchasing fat cattle In another month or so the Sydney market will cease to be attractive. The frozen meat market is dull, and the outlook is not very promising. If, then South Africa, ceases to afford us an opening, and Australia dispenses with our aid, a season of low prices for stock is fast approaching. * » » The butter industry is expected to be a shade better than last year, and substantially higher prices are being offered for butter fat by the dairy companpanies. It is to be hoped that the optimistic anticipations for the season will be realised, for a break in prices or anything- in the nature of a slump would cause widespread disaster in many districts. V- * * Considerable interest is, being taken in the sale of the Miramar areas acnuired bv several syndicates. The first sale is to be held towards the end of this month, and the range of prices will be closely followed. * * *■ The sharemarket has witnessed a little activity. Bank shares are fairly steady. Nationals are wanted at 81s., and Bank of New Zealand at G2s 6d. Sales of the latter have been reported at 625, 6d, with sellers now at 645. * * *■ Financial shares are steady. Metropolitan Building are quoted at £12 cum dividend. New Zealand and River Plate shares changed hands at 22s 6d and 23s Od for the respective issues. Af * * Gas shares continue firm. There are inquiries for Feilding Gas at 20s, and PaJmerston North Gas at 85s. Wellington Gas shares are offered at £20 cum dividend, or just double the face value. At this price the return to the investor would be 5 per cent., which indicates the high favour in which this concern is held by investors. * » * Meat shares axe inactive, which is not surprising. The industry has been subjected to numerous unwarranted attacks by men who possess just that "little knowledge" which is a dangerous thing. There is, of course, a feeling that nothing will eventuate as the result of the labours of the Parliamentary Committee now sitting, or of the report of the unfortunate Mr. F. Moore, but, all the same, the pin pricks are not calculated to maintain the confidence of the investors in the future of the tryThe other shares in the list call for no comment except woollen shares, which are in firm request because of the satisfactory balance-sheets just circulated. Kaiapoi woollens are in demand at £6 3s 6d, and Wellington Woollens at £4 3s.

The mining market maintains a quietness that seems hopeless. The dredging returns, however, are good, and have been good for some time past, but the leeway to be made up is very great. There is nothing for it but to wait the return of confidence.