Finance Stocks and Mining.

Free Lance, Volume IV, Issue 190, 20 February 1904, Page 5

Finance Stocks and Mining.

SOME beJated balance-sheets ha^e come to hand duung the week, and deserve consideiation. The profits of the Westport Coal Company and the distribution of same have already been noted. The liabilities of the company, apart from shareholder' capital, show debentures £25,000 and sundry liabilities £41,381. The insuiance fund and the reserve fund togethei total £48,173. The assets aie Property account, £35fa,693, sundry debtors, £54,280 , bills receivable, £1411, and cash, £33,343. * # * The expenses of management totalled £3470, which is very moderate , rates and taxes account for £5036; contnbution to accident fund under the Coal Mines Act, 1891, £1177, and interest, £1517. This concern is in a very good way, and the prospects are all that could be desired. Investors recognise the soundness of the shares as an investment, and a very heavy premium is now being paid. * # * The New Zealand and River Plate Land Mortgage Company is only nominally a New Zealand concern. A great many shares are held in the colony, but the business is almost entirely in the River Plate. The change was effected some years ago, and, as things have turned out, it was a wise decision. The investments in the River Plate on a gold basis total £494 470, while the amount at stake i^ New Zealand is only £5678. These are the figures m the balance-sheet for the year ended 31st October last. • * • During the year 20,252 new shares were issued at a premium totalling £2531 10s, which sum is carried to the reserve fund. In addition to this, £14,468 10s is being transferred from profits. The paid-up capital of the company is £300,000 in two sets of shares, there being a liability of £4 per share on 177,685 shares. This liability is however, to be wiped out immediately, and an application is to be made to the Court to achieve this. The terminable debentures amount to £167,413 10s. » * * The cash in hand amounts to £82,193, and the investments include British Government Treasury Bills, £10,000, investments in London, £71,314. The expenses of management totalled £721 o, and taxes in London, River Plate, and New Zealand £1004. The mortgages in the River Plate are apparently of a sound as well as a profitable character, for the foreclosed propeities total onJy £6688. The company draws in interest from the River Plate £48,137, and a further amount of £10,995 has been paid in advance. * * * The balance-sheet of the New Zealand Loan and Mercantile Agency Company for the year ended 30th June last is interesting reading. This concern is making a brave attempt to overcome the difficulties of 1894, and there is reason to believe that it will in time succeed. The company is still doing a very large business, and earning a big profit, the gam last year being £226,286, but expenses of management and taxation absorbed £125,236, and the interest on prior hen and second debenture stock absorbs a further £100,657, leaving £392 to be credited to third debenture stock interest account. *■ * ■* The total cash readily available is £343,130, the advances on wool and produce amount to £488,322, secured loans and other advances £1,094,393, propeities and stock £211,346, company's premises £259,677, are among the principal items on the credit side. The scheme of dealing with the trustees' certificates,

which the Couit was unable, on technical grounds, to sanction, is to be made the subject of a pin ate Bill dm ing the piesent session of the Imperial Pailiament. * * * The New Zealand Accident Insurance Company is growing in stiength and importance. The company is operating in a cry laige area, and the Workeis' Compensation Act and the Employeib' Liability Act, and the other legal enactments that make the employer an insuring individual, help to swell the business of the company. The past year has been very profitable, and the capital of the company has been written up to £37,500 paid up. The net nremiums for the year totalled £-39,551, and interest, rent and transfer fees yielded £4361. The investments of the company amount to £137,901, mostly in Government and municipal securities , the cash in hand, balance at branches and agencies, and accounts owing to the company, bring the total assets to £148,069. There is plenty of scope for the accident companies operating in New Zealand, but it is to be feared that some of them are being blackmailed in a way by faked accidents and malingering. The London money maiket is not so \eiy seriously affected by the outbreak of hostilities in the Far East. The Stock Exchange has feigned a scare, and gilt-edged securities have fallen slightly. There is no danger of any serious depression so long as Britain is not drawn into the conflict. Russian securities are very much depressed, and financially Russia is in a worse condition than Japan. Russian credit is at a low ebb, and she will have to pay very dearly for any war loans that may be floated. Japan is well in credit, and can draw upon several funds to piosecute the war. * * * Furthermore, the war game is costing Japan much less than her antagonist. There does not seem to be much sain to the colonies from the war, the demand for produce being lestricted to a shipload or two of wheat which is being drawn from Australia. However, the contest must develop very considerably before we can say what real effect it will have upon the economic and industrial conditions of the colony. • *■ * Locally there is nothing special to leport in the money market. Government and municipal borrowing is the outstanding feature of the moment. Tw o Southern local bodies lequire between them £80,000, while efforts are being made to renew the 4 per cent. Government debentures falling due on Ist May, and fresh debentures are being offered in Australia. Money is not seeking investment quite so freely, holders view - mg the position with extreme caution ♦ * * Business in the sharemarket appeal s to be confined to Bank of New Zealand shares and Westport Coal shares. The foimer changed hands at 82s 6d, 84s 6d, and 85s, buyers offering to take more at the latter price. The advance is attnbuted to the optimistic speech of one of the directors at the recent meeting of shareholders but the moie conservative are not being carried aw ay by the enthusiasm of the moment.

While they are pleased to see the advance, they are at the same time inclined to the view that it is not really war1 anted by the actual circumstances. The piospects of a 10 per cent, dividend are not quite so near as the optimistic w ould desire. However, in the interests of such shareholders as wish to lealise it is to be hoped that the shares mil continue firm. Westport Coal shaies sold up to £7 Is cum dividend, which is a very good price, and seemingly fully w arranted. There is nothing to lepoit with legard to other investment shares. * * * Dredging returns have recently shown considerable expansion, owing to one or two di edges yielding exceptional results On the whole, the indications are foi an increased output, with perhaps a little more activity m scrip transactions. The market is not quite so dull and depressed as it has been, although the transactions reported are few .