Finance, stocks, and Mining.

Free Lance, Volume III, Issue 129, 20 December 1902, Page 24

Finance, stocks, and Mining.

THE operations of tue Kauri Timber Company for the year ended 31st August last were not as profitable as in the preceding year. The net profit totalled £31,294. as against £57,437, but it is explained m the report that, in calculating the trading profit, provision has i^een. made for the value of the timber out off the company's land during the year. Had the same oourse been pursued as in previous years, the profit shown would have been £47,156. Thus, it will be seen that about £16,000 has been written off for a depreciating asset, which is of course, only right. The Kauri Timber Company is an important concern, and its success is of interest to this colony. We do not hear very much about the timber industry now, but a year or two ago there was much agitation about the probable exhaustion of the colony's timber area. At that time, millers were anxious to advance prices, and, having succeeded in their object, the question of exhaustion has ceased to occasion any concern. It is rather a matter for consideration how the industry can be further developed, and the Department of Industries and Commerce is taking: steps to see if white pine can be converted into wood pulp for paper-making. * * * There are still vast areas of suitable timber in the country, but these are at present in inaccessible localities, a difficulty that we may reasonably hope to see overcome before many years pass. The colony possesses a remarkably fine asset in its white pine timber, which is undoubtedly the best wood for butter boxes. It is. surprising that no effort is made to utilise the waste products of the timber mills. Fruit baskets and berry boxes could very easily be manufactured with the improved American machinery, and the sawdust also could be turned to profitable account. * * » The balance-sheet of the Gear Company, just issued shows that £11.396 is available for distribution, and of this amount £3680 is distributed in a dividend equal to 7\ per cent, on the oaidup capital, leaving £7716 to be carried forward. The directors of the G&ar Company always make ample provision for depreciation, and it is a matter for congratulation that the two Wellington freezing companies are strong financially — stronger, probably than any of the other freezing companies m the colony. Thia is the best guarantee that the farmers of the Wellington-Taramaki district have for the prompt disposal of their surplus fat stock. * # The Oamaru Woollen Company has presented its shareholders with a satisfactory balajice-sheet this year. The profits have been large enough to admit of £2000 being carried to the reserve fund £250 to the employers' liability reserve, a distribution of £1654 to the shareholders, equal to 9 per cent. on the paid-up capital leaving £1531 to be carried forward. All the woollen companies appear to have done well this year, and the prospects are for a continuance of profitable trade. The Wellington Woollen Company is reported to be very busy just now. * * * The railway concessions recently made by the Government have caused no decrease in revenue — on the contrary, there is an appreciable increase. For the four- weekly period ended Bth November, the railway revenue totalled £138,490, or £7659" more than in the corresponding period of last year. An increase of nearly £2000 per week cannot be regarded as other than satisfactory, and, with the continued prosperity of the colony, even better results may be expected. The railway expenditure for the period under review totalled £98,682. "or £8727 more than for the corresponding period of 1901. The increase in the expenditure, it will be noted, is somewhat larger than the increase shown in the revenue, but this was to be expected with the increased travelling facilities afforded the public. The holiday traffic this year ought to exceed all previous records. * * * The opinion expressed by the Premier, that there would likely be a slight tightening of the money market in this colony has given some neople the desired opportunity of airing their financial ability and some decidedly pessimistic views have been expressed For all legitimate enterprise plenty of monov is available, and this is readily seen bv rcforrine; to the quarterly bank-

ing returns and the Post Office Savings Bank returns. The high prices now being realised for all kinds of produce will enable our fanners to meet all engagements, and have a little to spare for general expenditure, and, while this is so, trade must remain good and any slight advance in money, should such take place, will not affect us very aeriously. # Land values are not likely to be affeoted either by any advance in the money rates. The value of farm lands must be based on the return per acre, and, as produce prices remain good, it is difficult to see how the value of broad acres can fall. The value of city lands is, to a certain extent, governed by the condition of the farming community. The increased returns obtained by* the farmers is being spent in keeping city workers fully employed at good wages, and it is the economic condition of the working classes of the city that, to a large extent, helps to maintain land values in urban and suburban localities. The value of land in and around Wellington may be high, but there is no place in the colony where the prospects are brighter, or where invesrtment in real estate is more certamlv profitable and safe. * * ■*• The Sharebrokers' Act conies into force with the first day of the New Year and most of the local brokers have been before the magistrate for a certificate of good character. The fee for registration is the nominal sum of £2 but the brokers would not have objected had the amount been £20. For a very long time the sharebrokers in the colony have been endeavouring to put a stop to the poaching that has been carried on for some time past , mostly by lawyers and merchants. When shares are placed with a broker for sale by a lawyer, acting under instructions from his client, the unfortunate sharebroker has hitherto been, obliged to share his commission with the lawyer, but there is no record of anyone sharing in the profits made by a lawyer on the introduction of business by a shiarebroker or land a^ent * • • The Sharebrokers' Act will enable the registered brokers to prevent the objectionable practice of "sharing" the brokerage. Stock Exchanges get legal recognition, and the public will, to a very large extent, be safeguarded. * * * Business in investment shares has been particularly dull. In view of the approaching holidays, there is nothing surprising in this. The business year for sharebrokers nraotically closes this week, and the period ha® not been unprofitable. The shrinkage in mining business has been very heavy, but, as some slight compensation, there has been steadiness in investment shares, and prices on the whole have been well maintained . * * * Mining continues dull and inactive, but, as the year will close with a very much larger increase in production, there is some hope that next year investors will give greater attention to the industry. The revival of mining is one of the probabilities of the new year, and dredging will be in greater favour than during the nast two years.