Finance Stocks and Mining

Free Lance, Volume IV, Issue 175, 7 November 1903, Page 5

Finance Stocks and Mining

THE balance-sheet of the National Fire and Marine Insurance Company is not available for analysis this week, but will be dealt within our next issue From the telegraphic leport it is evident, that the company has done about as well as in the previous year. * The remarks of the chairman at the half-yearly meeting of the Colonial Sugar Refining Company were, at an optimistic character, showing that Australia is rapidly recovering from the late drought. The most important point about the affairs of this company is the projected increase of the capital by the issue of 44,800 new shares of £20. The company wants £oyb,UUU, and will get it readily enough. * * * It is however probable tha,t onh' a portion of the money will be called up but whatever be the amount, it will tend to impair the value of 4 per cent. Government debentures with the investing public. The company has been a regular dividend payer, and, even on the increased' capital, would, in all likelihood, continue the present 10 per cent. rate. The excellent outlook tor the sugar crops should help to bring down the prices to a lower level than is now the case. * * * At last we have some cefinite information respecting the Ironsand Company that has taken Sir A. J. Cadman to England twice within recent years. A preliminary company, or rather the syndicate holding the right to purchase the options acquired by the Nenv Zealand promoters has registered as a joint stock companr- with a capital of £25,0U0. The syndicate has already despatched experts to examine and report upon the ventures, and the future of the industry, so far as this particular syndicate is concerned, depends upon the nature of the reports. * - * It is not merely a question of the extent and value of the iron deposits, but also the possible future consumption, the cost of working, the conditions of labour and transportation, and the ultimate profit, that will have to engage the attention of the experts. Everyone- will be pleased if the conditions prove acceptable, and lead to the development of the latent resources of Taranaki. At the same time, ironsand has been exploited on various occasions, generally with loss to those concerned, and it will not be surprising if the experts decide against spending British capital. . . • The only item of importance in the commercial cablegrams of the week is the heavy decline in the value of frozen meat. The connection between meat and mone^ needs no demonstration, and the fall in values will not be very nleasant for the farmers. There appears to be extra keen competition among the importers of River Plate mea,t, and this is leading to the cutting of prices to effect sales. * * * There are also other causes operating to bring down values. General trade in Great Britain is getting depressed, and the unemployed trouble is becoming serious enough for special efforts being made to relieve distress. Our meat is feeling the competition also of supplies from Australia, and supplies from this quarter give every indication of increasing rapidly. So far as can be seen there will be compensation for our farmers in the price of wool, wh'ch promises to keep firm for some months to come. # The prospectus of the British-New Zealand Meat and Produce Company, Limited, has been circulated andtheie is scant hope of its meeting w ith support from the general public. The promoters must depend upon their friends both in the colony and the Mother Country if the affair is to be a success The capital of the companyis £150,000 (with power to increase), divided into £1 shares, of which 75,000 shares aie offered in New Zealand, 50,000 in Great Britain, and the balance of 25,000 goes to the promoters on certain conditions. * * * The objects of the company aie inter aha to deal directly between producer and consumer, and this seems laudable enough if it can be managed. The chief object, however, appears to be to acquire the Chapman defrosting patent, which had been offered at Home and

to the New Zealand Go\ eminent. The pioinoters get 25,000 shaies conditionally upon subscribing £5000 towards the preliminary expenses. That is to say, for every £1 subscubed the piomoter gets 2\ "shaies thus paying only 8s per shaip, as against £1 to be paid by the ordinary inve&toi . In its Memoiandum of Association, the company takes extensive powers of acquiring othei businesses, and amalgamating with other concerns. No pa.it of the initial issue of 7.5,000 shares has been underwritten, and sharebrokers are offered the meagre brokerage of 2 per cent, on all sales effected. * * * The New Zealand Stud Company, with a capital of £9000, in £1 shares, is the latest promotion in Wellington, and is backed by a strong provisional directorate, and the seven signatories to the Memorandum of Association each take up 100 shares. Of the shares, 2500 will be reserved at the option of the directors for the purchase of a property offered which comprises 320 acres at Kereru, Levin. * * The company is being formed for the purpose of breeding, buying, and selling thoroughbred and other horses pjid cattle, somewhat upon the lines of Wellington Park and Sylvia Park concerns. The company w ill proceed to allotment as soon as (3000 shares are subscribed. * * ■*• The sharemaiket exhibits a weakening tendency and some of the hitherto most eagerly sought after shares are now hanging in spite of slightly reduced prices. This dullness is inexplicable, unless it is assumed, that investors are holding back with a fanciful idea that money will harden, and share values decline. What warrant there is for any such views being entertained remains to bei seen, but the fact that the market is dull is significant. There axe no indications of any immediate advance in money rates, but it is possible that company promotion, which has taken a very strong- turn recently, is claiming the floating capital. * * * Bank shares are quiet. Nationals continue to be offered at £4 12s 6d, \\ ithout meeting with any response from buyers. Bank of New Zealand shares aie quiet, at £3 19s. Financial shares are also dull. There are buyers of Metropolitan Building shares at £12, and National Mortgage at £2 4s 6d. * * * Insurance shaies aie in better request at about late rates. Nationals are w anted at 21s cum dividend, and New Zealands at 86s South British shares changed hands at £5 8s 6d ex dividend. * * * Other shares are very quiet. Sales are l eported of Westport Coal shares at £6 16s. There aie sellers of Gear Meat shares at 355, Wellington Meat Export (52s 6d paid) at 755. Mana,watu Rails at 27s 6d, Wellington Woollens at £5 5s 6d, and Ward and Co., Ltd., at £5. * ■* * Mining is quiet. There is a big list of dredging returns, hut in no instance is the w eek's output of any magnitude. The season for dredging operations is practically over and the continued spell of dry weather is a factor in the situation. There is more interest in the reefing outputs. The Talisman has eiven another good return, which will be pleasing to the colonial shareholders, and particularly to a number of speculators in Wellington who have> been heavy purchasers of the scrip.