Finance Stocks And Mining

Free Lance, Volume V, Issue 221, 24 September 1904, Page 5

Finance Stocks And Mining

THE fire business of the Royal Insurance Company, according to the recently published accounts, shows that the premiums have increased 1 by £84,000, and losses, decreased by £59 000. The Royal is the laigest fire office in the world, and its figuies are of inteiest. The net premium income was £2,848,340, against which there were claims £1,386,883, expenses of management £990,163, and increased hability about £28,234, or in all £2 405,340 thus showing a pure trade profit or £443 000. The receipts from interest amounted to £116,780, making the total profits for the year £509 780 The Ere and general funds of the Royal stand at £3,594,000, and the subscribed capital is £2,612,000. * * * The balance-sheets of seveial cooperative Associations have been issued during the past week or two and, while they are all interesting, there is nothing of special moment. It is strange that this form of trading is not mmc extensively taken up. The tiouble seems to be in finding adeouate capital, and in the fussy inteiference of ignorant men. in the management. Ine directors of these concerns are not always men with commercial ability, and consequently some veiy stupid things are done. * ■+ * The balance-sheet of the Wairarapa Farmers' Co-operative Association discloses a balance of £21,714 ss. which includes the amount of £9425 5s 4d Wought forward from last year. The appropriations recommended by the Erectors are The payment of a dividend of 6 per cent, and a bonus of 3 pei cent, on paid up capital , bonus of 3 per cent, to shareholders on their purchases, and a similar bonus to employees, on their salaries. * * * Managers and heads of departments showing a substantial increase of profitable trade are to have a further bonus; £200 is to be placed to the credit of the employees' accident fund ; and there will be left a balance of £11,502 to be carried' forward. The balance-sheet shows that the share capital paid up amounts to £68,570, the reserve fund is £10,145, the debenture capital is £20,000, the deposits, with accrued interest, are £27,506, and the overdraft at the bank is £7297. The assets include stocks on hand and afloat £79,232, and book debts £45,087. * * * This latter item is large, but it is one ■o f the inevitable features oi store-keep-ing. The company takes m unexpued insurance premiums and) licenses as an asset. Surely this is more in the nature of a trade expense? The v company must insure, and must have its license, just as muchi as it must pay wages and salaries to its employees. Anyhow, the Association is stiong enough to eliminate this questionable item from its assets. The general charges, for the year amounted to £10,366, while the profit on sales, commissions, and sundries totalled £22,655. The expenses were thus less than 50 per cent, of the gross profits, which is very satisfactory. The balance-sheet of the Canterbury Farmers' 00-operative Association discloses a net profit of £18,308 for the year ended 31st July, and there was brought forward a balance of £2808, making £21,116 available for distribution. The shareholders leceive 8 per cent, dividend on paid L up capital, and there are the usual bonuses ; £3000 is carried to the reserve fund. The capital of the Association is to be increased bj the further issue of 3000 shares, and the nominal capital when these are issued will stand at £125,000. * » * The North Otago Farmers' Co-opera-tive Association has just issued its third annual statement of accounts, and, for a young concern, makes a very good showing. The net profit for the year was £1924, and there was brought forward £542, making in all £2466. Out of this 7 per cent, on the paid-up capital goes to the shareholders, and there are bonus payments on sales and salaries and £500 is carried to reserve, leaving £600 to be carried forward. The paid-up capital of the Association is only £11,572 », * ♦ Notwithstanding that the London money market is in an apparently easy condition there is no disposition to countenance colonial borrowing. The New Zealand Government last week managed to arrange for £320,000 and,

from the woi ding of the cable message, it would seem that a moiety of the loan was obtained at pai, the balance naturally bemg at a discount. Tlrs means that for some of the 4 pel cent, debentuies the full £100 per cent, was obtained, and foi the otheis less than that amount. There aie several large paircels of shoit-d'ated debentures falling due next yeai , the total being nearly two millions sterling, but there is no leaeon to anticipate any difficulty 'in arranging for the lemewal. * * * There has been very little business done in the sharemarket, and the sales are confined to the high-class investment stocks. Nationals changed hands at £4 17s. Bank of New Zeal an ds aie wanted at £5 15s, sellers' asking £6. In financial shares, Equitable Buildings had quittance at £9, and Metropojitan Buildings at £11 10s. Wellington Trust and Loan scares aie offeiod at £7 4s, National Mortgages aie wanted at 45s 6d, and New Zealand and Eiver Plate at 25s 3d. * • * Gas shares are now in active demand, and at full rates. Thei c are bids of £4 ]3« for Ashburton Gas, 22s for Feilding Gas, £4 10s for Palmerston North Gas, and £18 and £9 for the lespective issues of Wellington Gas. * * * Insurance shares aie quiet, but steady. Nationals aie wanted at 22s £V, and New Zealands at £4 19s. South British are offered at £7, piesumably cum rights. * * * Meat shares show some revival, and there is a demand foi Chnstchurah Meat shares at £10 7s 6d, and for Gear Meats £6 15s and £1 15s for the respective issues. Canterbury Frozen Meat shares are offered at £9, and Wellington Meat Export, £5 paid, at £6 15s. * ♦ • In woollen shaies there is quietness, and holders seem anxious to realise. Kaiapois are offered at £6 3s 6d, Mosgiels at £4 Is, and Wellingtons at £5 2f. The recent discussion about shoddy depressing the local markets is perhaps the cause of the easier tone of the market. * • « Manawatu Railway shares are very firm, buyers offering £1 10s, and! sellers askine a trifle more. New Zealand Shipping shares are offered at £6 12s 6d, with no decla.rcd buyers. Taupiri Coal snares are on the market at 19s 3d, and Westports at £6 17s. * * * In the miscellaneous section there are bids of 19s 6d' for Avondale Brick, £13 for Donaghy Rope and Twine, 39s 6d for Leyland and OBrien Timber, and £4 3s for Manning and Co Brewery shares, Mauriceville Lrme shares are offered at 275, Sharland's ordinary at 22s 6d, and Ward and Co. Brewery at £4 17e 6d. * * * The mining market has got back to ito usual quietness, and, so far as dredging is concerned, this dullness will rather be accentuated than otherwise, because from now on the successful working of the riversi becomes difficult owing to the rivers rising. In quartz mining, matters should improve, especially in the Northern fields, where there is a considerable amount of development work to be undertaken.