COMMERCE AND FINANCE

Otago Daily Times, Issue 24417, 1 October 1940, Page 2

COMMERCE AND FINANCE

THE SHARE MARKET

DUNEDIN STOCK EXCHANGE WEEK COMMENCES WELL IMPROVED TURNOVER RECORDED The improved turnover recorded on the Dunedin Stock Exchange yesterday was unusual for the first day of the week, and indicated a stronger tone in the market than for some time past. Quotations generally were firm, with all sound lines in keen demand. Offers for long-dated New Zealand Government Bonds and Stocks were increased, and business was reported in the 1954-58 Stock at £IOB. , Banks were active, with business in New Zealands at £2 2s 6d, the long “ D shares at £1 8s Gd. and Unions at the advanced figure of £7 2s 6d. New Zealands were firm later, sellers standing at £2 2s 6d. Insurances were also more active. New Zealands were firm with a sale at £o Os Gd, and South British at £2 10,s. Standards had a close market at £2 17s 9d (buyer) and £2 18s 9d (seller). There were several sales of contributing New Zealand Refrigerating® at 9s Gd, and further parcels were available at the same figure, buyers standing at 9s sd. Mac Duffs ordinary shares again had an unsupplied buyer at 10s 9d, and the offer for McKenzies was increased to £2 os, sellers demanding 2s more. Australian mining shares continued to attract good support, up to £2 13s being offered for preferred Electrolytic Zincs, In the New Zealand section, Austral-New Zealand mining went to £1 4s 9d without finding a seller

YESTERDAY’S SALES DUNEDIN

AUCKLAND Sales on ’Change.—4 p.c. Stock, 1949-32, £lO6 15s; Mount Albert Borough, 1949, p.c., £105; Auckland Gas Perpetual Debentures, £lOl 15s; Bank of New Zealand (late sale). £2 2s 6d; New Zealand Insurance (late sale), £3 Os 6d. South British (late sale), £2 9s 9d; Auckland Gas 8s 4d: Booth Macdonald (pref.; late sale), ss: Colonial Sugar, £52 10s; G. J. Coles. £3 8s 6d; New Zealand Drug (late sale), £3 14s 6d; Wilsons Cement. 19s 6d. WELLINGTON Sales on ’Change.—Bank of New Zealand, £2 2s 6d; Wellington City H p.c., 1952, £lO6 12s 6d; McKenzies Stores, £2 ss; New Zealand Drug 14s 6d, Taranaki Oil Developments, 3s 4d; 4 p.c. Stock, 1958, £108; 4 p.c. Stock, 1958. £IOB ss; Auckland Gas (cont.), 3s 5Jd. CHRISTCHURCH Sales on 'Change.—4 p.c. Stock. 1954-58 (3) £IOB ss; New Zealand Refrigerating (£1 paid; 5), £1 0s 9d; Broken Hill Proorietary, £2 6s 9d. P Sales Reported.—New Zealand Insurance. £3 0s 6d; Broken Hill Proprietary, £2 6s lid- Mac Duffs, 10s 6d; Woolworths (New Zealand), 16s 7d: Addison’s Flat. Is, DREDGING IN VICTORIA COMPANY'S REMARKABLE SUCCESS Phenomenal success has been achieved by the Victoria Gold Dredging Company, which operates an area at Newstead. on the Lodon River, about 70 miles from Melbourne, on the main western highway —roughly, midway between Ballarat', and Bendigo, both important minefields in the early digging days in Victoria. The company has just declared its ninth quarterly dividend, which brings the total distribution to shareholders to £250,000 in its first two years’ operations. The highest return secured in any one dredging week was 716 fine ounces. On U occasions the weekly returns have exceeded 500 ounces. Only 16 returns were less than 200 ounces, this being due principally to broken dredging time and to the dredging of boundary line areas. The total gold recovered since dredging operations began on July 11. 1938, to September 20 of this year was 39,875 fine ounces —approximately one ton and a-half. Until recently no taxes were payable either on gold recovered or on dividends paid, the only tax applicable being on interest accrued on fixed deposits. As a special war tax, 75 per cent, on gold value received in excess of £9 5s per ounce is now payable. To-day's price at Melbourne Mint is £lO 14s per fine ounce. The net proceeds compared with New Zealand gold sold in the same market give the Victoria company an advantage of roughly 15s per ounce, but the New Zealand companies have also to pay divadend tax,' this still further reducing the returns to shareholders. An outstanding feature of the Victoria Dredging Company’s operations is the resoiling of the ground dredged, which is levelled, ploughed, and sown down in pastures and handed back to the original holders, to whom large sums were paid for the dredging rights. , . . During summer months the winter supply in the Lodcn River falls below dredging requirements, and to augment the supply 12-inch bores have been sunk into porous beds of a deep lead nearby, and the water is pumped to Ihe dredging paddock at the rate of 15,000 gallons per hour. To comply with the Victorian Mines Department’s regulations, providing that not more than one grain of solids per ton of water shall escape from the dredge paddock, the water used for dredging purposes is pumped into huge reservoirs a mile distant, where settlement takes place, the cleaned water returning by gravity to the dredge paddock. The dredge has a digging capacity ol 50 000 cubic vards weekly—about one-half lhat of the largest West Coast dredges. Power is derived from the electric supply, generated at Youllourn, in Gippsland, from a seam of low-grade coal, 180 feet in thickness, where two dry land bucket dredges each dig a face of 90 feet in depth, and where 3000 tons of coal daily are delivered to the furnaces for electrical energy and household briquettes. SOUTH OTAGO FREEZING COMPANY, LTD. (Per United Press Association) WELLINGTON, Sept. 30. The directors of the South Otago Freezing Company, Ltd., recommend the payment of a dividend of 5 per cent, for the year ended August 31.

LATEST QUOTATIONS KEEN DEMAND FOR McKENZIES The following are yesterday afternoon’s buying and selling quotations on the Dunedin Stock Exchange, which are subject to the usual brokerage:~ N.Z. GOVERNMENT LOANS

DIVIDENDS AND CALLS The following is a list of shares on which dividends will shortly be payable;— •Hume Pipe. ord.. 6 p.c., pref. 7i p.c Oct. 7 ♦Woolworths. 7 p.c Oct. 15 • Quoted ex dividend on Stock Exchange. ROSLYN PROPERTIES ESTATE OF MR BUTTERWORTH SALE BY AUCTION Messrs Alex. Harris, Ltd., held an auction sale yesterday of properties in the estate of the late Mr C. P. M.- Butterworth. The first property offered consisted of an eight-roomed English bungalow, standing on a section of Ir 18.35 p, with a frontage to Wallace street, Roslyn, of 90ft. Bidding opened at £IOOO, and the property was knocked down at £ISOO. The bidding for lot 3, comprising 34.71 p, commenced at £SOO, and a sale was made at £7OO to Mrs T. C. Smith. There were only two bids for lot 1, comprising 20.54 p. The first bid was £350 and the next £375, at which figure the property was sold to Mr A. H. Boyd. Lot 5. comprising 32.91 p, was sold at £325 to Mr W. E. Matthews. Scott Bros., produce merchants and commission agents and licenced egg merchants, report:—Eggs: The associated agents quote eggs, heavy. Is 6d; standard, Is 4d; medium, Is 2d; pullets’, Is per dozen. Separator butter: Wanted to Is per lb. Honey. 7Jd to Old per lb; 101 b tins, 8s 6d each; 51b tins, Ss each. Beeswax, Is to Is 3d per lb. Poultry: Good demand; hens, 2s to 2s Gd each; heavy breeds, 2s 6d to 3s 6d each: roosters, 9d to Is each; cockerels, 2s 6d to 4s Gd each; ducks, 2s to 3s each; ducklings, up to 4s each: geese, 3s to 4s 6d each; goslings. 3s Gd to 5s each. Turkeys; Gobblers, 8d to 9d per lb; hens, 7d to 8d per lb. Fat, nominally 8s to 10s per cwt. Potatoes: Arran Chief, in over-supply, nominally £2 10s per ton: King Edwards, £3 10s per ton. Carrots, 2s to 2s Gd per sugar bag. Parsnips, slow, Is 6d to 2s per sugar bag. Swedes, Is 6d to Is 9d per sugar bag. Onions: New season’s Canterbury’s, 16s per cwt. Whole fowl wheat, 6s 3d to 6s 9d per bushel, sacks extra. New Zealand cape barley, 6s per bushel, sacks extra. Australian Cape barley, 4s per bushel. Australian Chevalier, 4s 3d, s.i., ex store. Under-grade wheat, to 21s per sack. s.i. Chaff: Prime oaten sheaf. £6 10s per ton ex truck, £7 10s ex store, bags extra. Whole maize, 7s 6d per bushel. Oyster grit, 6s 6d per 1001 b bag. Straw: Wheaten and barley, 2s 9d per bale, ex store. Lucerne meal, 12s per 901 b bag. Lucerne chaff, 8s 6d per sack. Oats; Cartons, 4s 6d to 4s 9d per bushel, sscks extra. Free use of fowl crates on application. We have in slock chick and pullet grit, new season’s chickfood, fine, mediufh, and coarse; bone meal, black leaf ” 40," etc. Prices on application. September 30. 1940.

CUSTOMS RETURNS

TOTAL RECEIPTS HIGHER HEAVY DECLINE IN IMPORTS BEER DUTY DOUBLED Although there was a particularly heavy decline in the amount received by way of Customs duty during the past month, compared with the figures for the same period last year, the decrease representing over £60,000, the total receipts from all sources collected by the Customs Department for the Port of Otago in September was £185.593, which was nearly £12:000 better than the aggregate amount of, £173,696 received in September. 1939. The total receipts for the half-year amounted to £970.304, as against £830,797 for the same, period last year, an increase of nearly £140,000. The actual Customs duty for the month totalled £39,497, indicating the heavy reduction in imports cleared in the port compared with the same month last year, when the receipts were £103,010. Sales tax receipts, however, improved. £31,453 being collected during the month just concluded, compared with £27,020 last year. Beer duty also increased sharply, the month’s total of £47,571 being almost double that for September. 1939, which was £24.283, The restrictions on the use of petrol affected the amount collected by way ot petrol tax, last month's total of £9402. being well below the receipts from This source, Totalling £16,296, obtained in September of last year. The following are the principal items (shillings and pence omitted):— September Figures

AUCKLAND (Per United Press Association) AUCKLAND. Sept. 30. The Customs revenue collected in Auckland In September totalled £272,059, of £164,764 less than In the same month Ot the last year. The total for the past nine months was £2.970.749. a decline of £418,956 compared with the same period of 1939. Details of the month’s collections are as follows, the figures for September. 1939, being given in parentheses:— Customs, £230,965 (£365,736). Motor spirit tax at 6d a gallon, £38,440 (£288,711). Tyre duty, £2654 (£2376). Total, £272,059 (£436,823). Excise on beer, £25,892 (£16,286). Sales tax, £94,990 (£84,267). The collections payabe to the war expenses account, including 5 per cent, sales tax and proportions of additional duties on spirits, beer, tobacco, and gold exports, amounted in September to £109,676, compared with £96,506 in August. The total amount collected since the beginning of the year Is £335,026. WELLINGTON (Per United Press Association) WELLINGTON, Sept. 30, The net Customs revenue collected at the Port ol Wellington In September was the lowest figure since last October, and compared with September, 1939, shows a decrease of £196,454. The figure lor September last year, however, was easily the highest ever collected in Wellington. Decreases are shown in the sales tax and the motor spirit collections, but the beer duty and tyre tax collections last month were, above those for September, 1939. The revenue from the sales tax since August has been taken out under two heads, that from the original tax and from the recent increase, the revenue from which benefits the war chest. In consequence of this the war tax in September reached the record level of £ 124,524, of which £96,634 was derived from sales tax. The figures for the past month, with those for September, 1939, iij parentheses, are:— ■ X '' A- . Net Customs ..revenue, (£412,292). , : War tax. £124,524. Sales tax. £97,402 (£114,037). Beer duty, £7973 (£6637). Motor spirit duty. £23,388 (£44,989). Tyre tax, £2374 (£2218). CHRISTCHURCH (Per United Press Association) CHRISTCHURCH. Sept. 30. The yield from the special war duties on tobacco, cigarettes, spirits and beer, and the extra sales tax collected in Christchurch in the last six months, was £117,891. This is shown in the monthly and half-yearly statistics of the Collector of Customs at Christchurch. Notwithstanding this big addition to the revenue the total amount collected in the six months was £2119 less than for the corresponding period of 1939. The receipts from Customs as a result largely of the restriction of imports declined by £101,399. The figures for September show a remarkable, drop in Customs receipts which totalled £58,932, compared with £149,204, a decline of £90,272. The receipts from petrol tax are down by more than £12,000 for the month and by £41,604 for the six months. The following are the detailed figures:— Sept.. Sept., 1939. 1940.

MINING NEWS OKARITO DREDGING COMPANY ANNUAL MEETING OF SHAREHOLDERS The annual meeting of shareholders of the Okarito Five Mile Beach Gold Dredging Company* Ltd., was held in the secretary’s board room last night, Mr J. L. Wheeler presiding. Adoption of Report The adoption of the annual report was moved by the chairman, who stated that during the past two months a certain amount of progress had been made by the dredge towards the south end of the claim, but it was now obvious that a considerable time would yet elapse before the dredge reached really payable ground. Shareholders might be wondering why the directors allowed the dredge to proceed right to the northern extremity of the claim without making provision for the return cut southward. When it was decided, after boring the area, to dredge the northern end, the intention was to dredge the whole width of the claim on the northward cut. and when the northern extremity of payable ground had been reached to float the dredge back southwards in the lagoon to a point which gave ready access to undredged ground. After the mishap when the. dredge became stranded in February the dredge continued northwards until it was abundantly proved that the ground in this vicinity was not payable. At the same time the proposed method of returning southwards was being more fully investigated, and the conclusion was reached that to float the dredge back by the lagoon was a fairly risky proposition on account of sunken timber and the danger of the lagoon level suddenly dropping with the breaking out of the Five Mile Creek. The possibilities of an alternative route were examined, and it was finally decided to abandon the project of floating the dredge back and to adopt the alternative route, which made use of a number of old dredge paddocks, thus minimising the amount of digging to be done by the dredge. There was also .the consideration that In following the alternative route a

certain amount of gold would be won which would help to reduce the cost of transferring the dredge to the south end of the claim. Unfortunately, up to the present time, progress had not been as rapid as had been hoped for, and it would be almost the end of the year before the dredge reached the point aimed at. The slowness of progress was forcing the directors once:again to consider the possibilities of the lagoon, and they had received a report from the dredgemaster which Indicated that it might be possible to use the lagoon and thus avoid several weeks of profitless dredging. ' In view of the serious difficulties with ■ which the company had been faced since the beginning of 1940, it was surprising that it had managed to show any profit at all. Although there had been a,substantial drop in the quantity Of gold won. the price had risen to an average of over £8 10s per ounce for the year, ahd this factor had contributed materially to the profit shown. On July 22, 1939, alO per cent, dividend was paid, largely out of the balance brought forward from last year. The Income tax in respect to this dividend was payable next February, and was estimated at approximately £4OO. t After providing for this tax there was still a balance of £276 to be carried forward In the profit and loss appropriation account.' Mr J. M. Stewart seconded the adoption of the report, which was carried. Election of Director The retiring director (Mr J. E. Wheeler) was re-elected unopposed. The directors’ remuneration was fixed at the same sum as last year—namely, £275. Mr C. E. Richards was appointed auditor. CLUTRA RIVER DREDGE RETURN For the week ended September 27 the dredge of Clutha River Gold Dredging, Ltd., operating at Alexandra, worked 126 hours and recovered 500 ounces. ’ ARGO RETURN The following is the Argo Gold Dredging Company, Ltd.’s, return for the period ended September 27:—29 ounces for 170 hours’ work (17,000 yards). GILLESPIE’S RETURN The secretaries of Gillespie's Beach Gold Dredging Company, Ltd., report that the wash-up for the week ended Saturday, September 28. was 40oz 18dwt for 133 hours from 16,285 cubic yards. McBRIDE’S HOTEL Messrs James Samson and Co. offered the well-known Mcßride’s Hotel at Queenstown for sale by auction yesterday, but as the upset price was not reached the property was passed in. AUSTRALIAN STOCK EXCHANGES (United Press Association) (By Electric Telegraph—Copyright) SYDNEY. Sept. 30. (Received Sept. 30, at 11.30 p.m.) The investment market to-day was quieter than usual pending the reaction of the overseas market to the pact between Germany. Italy and Japan. The Morning Sales.—Commercial Bank of Sydney. £l9 13s; Bradford Cotton, £1 18s 6d; British Tobacco. £2 9s 3d: Broken Hill Proprietary, £2 4s; Colonial Sugar, £47 10s. Bank of New South Wales, £27 Is: Huddart, Parker, £2 Us 6d; Howard Smith, £1 Os 6d; Wool worths, 17s lOd; G. J. Coles. £3 5s 6d; Anthony Hordern. 12s 9d; Standard Cement, 19s; Mort’s Dock. 16s 10d; Newbolds, £1 6s 3d; Adams, 13s sd; Mauri Bros.. 16s; Rawang, 7s Id; Electrolytic Zinc (pref.), £2 12s; Mount Morgan. Bs. • MELBOURNE, Sep,t. 30. Commercial Bank of Australia (pref.). £8 13s; National Bank (£5 paid), £5 15s: Gordon and Gotch, £2 10s; Myers. £1 10s 6d: Woolworths, 18s; Dunlop Perdriau, 13s 7d; Loloma, £1 3s 3d. .' " ,

Sales Reported £ s. a. 4 p.c. Stock, 1954-58 . 108 0 0 Bank of N.Z • • • • • . 2 2 Bank of N.Z. (long D) .. . • 1 8 6 B Union Bank . 7 2 New Zealand Insurance .. . . 3 0 0 6 South British . 2 10 . 0 9 N.Z. Refrig, (cont.) Sale on ’Change N.Z. Refrig, (coni.; 2) .. . . 0 9 6

Buyer. Seller. £ S. d, £ s d. 3i a.c. Bonds, 1953-57 100 5 0 — 34 13,c. Stock, 1953-57 100 5 0 — 3? d.c. Stock, 1941 101 0 0 —- 4 p.c. Bonds, 1943-46 .. 102 5 0 —- 4 is.c. Stock, 1943-46 .. 102 5 0 •— 4 n.c. Bonds, 1946-49 .. 105 5 0 —■ 4 D.c. Stock, 1946-49 ., 105 5 0 — 4 d.c. Stock, 1949-52 .. 106 12 6 — 4 d.c. Bonds. 1952-55 .. 106 17 6 — 4 d.c. Stock, 1952-55 .. 106 17 6 — 107 10 0 —. 4 p.c. Stock, 1954-58 .. 107 10 0 108 5 0 MINING Austral N.Z. Mining (£1) 1 4 9 — Big River (Is) .. .. 0 0 6 0 0 7 Clutha River (2s) 0 1 0 0 2 0 Gillespie's Beach (Is) 0 0 5 0 0 6 Martha 0 7 5 — Nokomai (5s) .. .. 0 1 0 — Okarito (5s) .. .. 0 0 6 — Waitahu (5s) .. •• 0 0 7 0 0 BANKING N.Z. (£1) _ 2 2 6 N.Z. (long D; £1) .. 1 8 0 1 9 0 E.S. and A. (£3) .. — 4 15 0 Natl, of N.Z. (£2 10s) 1 19 6 2 1 6 Union (£5) .. .. 7 1 6 — INSURANCE National (7s) .. .. 0 18 6 0 19 0 New Zealand (£1) .. 3 0 0 — South British (10s) .. 2 9 6 — Standard (£1) .. .. 2 17 9 2 18 9 SHIPPING Howard Smith (£ 1).. 1 0 0 — P. and O. Def. Stock (£1) — 1 0 U.S.S. Co. (pref.: £1) 1 6 0 — MEAT PRESERVING Canterbury Meat (pref,: £5) .. .. B 10 0 — N.Z. Refrig. (paid; £1) — 1 0 0 N.Z Refrig (cont.; 10s) .. 0 9 5 0 9 6 South. Frozen Meat (paid: £1) .. .. — 1 16 6 South Otago Freezing (£5) 15 0 0 — LOAN AND AGENC7 Natl. Mortgage (£2) — 3 0 0 Natl. Mortgage (B issue; £1) .. .. 1 0 0 — Perpetual Trustees (18s) 2 10 0 — Trustees. Executors (£3) 4 2 0 —- Wright, Stephenson (ord.; £1) .. .. • 1 0 3 Wright. Stephenson (pref.: £1) ■■ 0 0 COAL AND OIL Kaitangata (16s) — 1 11 6 Westport (10s) .. .. i 2 6 — Westport - Stockton (pref; 10s) .. .. 0 5 0 — Taranaki Oil (£1 4s 7d) — 0 6 6 WOOLLEN COMPANIES Bond’s Hosiery (£1) i 7 0 — Bruce (ord.; £1) 0 18 3 — Kaiapoi (pref.; 17s) .. 0 16 3 — Mosgiel (£4) .. .. 10 0 0 Wellington, (pref; £5) 6 15 0 MISCELLANEOUS Aust. Consold. Indus. (£1) 1 15 0 — Aust. Iron and Steel (pref.; £1) .. .. 1 6 0 — Broken Hill Pty. (£1) — 1 6 6 Chas. Begg and Co. .. 1 1 0 1 3 6 Colonial Sugar (£20) 49 0 0 rr Crystal Ice (£ 1) 2 0 0 — D.I.C. (pref.; £1) .. 1 3 6 — Dominion Fertiliser (£1) 1 7 0 — Dominion Rubber (£1) .. .. .. .. — 1 i 3 Stock Exchange Pty. (£1) - 1 15 0 G. 'J.i Coles (£1) iv 3 6 0 — MacDuffs (ord.; £1) 0 10 9 — MacDuffs (pref.; £1) — 0 19 3 Milburn Lime (£1).. 2 0 3 •— McKenzies Dept. Strs. (£1) .. 2 5 0 2 7 0 McLeod Bros. (£10).. — 28 0 0 Natl. Electric (£1) .. —r 0 18 0 N.Z. Drug Co. (£2) 3 14 0 3 14 9 N.Z. Drug (rights)' .. 1 6 10 — Otago Daily Times (£1) 2 0 3 Regent Theatre (£ 1).. — 1 0 6 Southland Ice Cream (£1) •• — 1 5 0 Woolworths (N.Z.; ord.: 5s) — 0 16 9 Woolworths (Syd.; ord.; 5s) 0 18 4 0 19 0 BREWERIES Bailln’s (£1) .. .. — 0 13 6 N.Z. Breweries (£1) 1 14 0 Dunedin (£1) .. .. —- 1 3 9 Tooth’s (£1) .. .. , 2 15 0 Carlton (£1) .. .. 3 2 0 “ AUSTRALIAN MINING - Broken Hill South (5s) 1 5 6 — Electro. Zinc lord.; £1) . 2 11 6 — Electro Zinc (pref.; £1) 2 13 0 — Emperor (10s) .. .. 0 10 9 Mount Lyell (£1) .. — I 10 0 Mount Morgan (2s 6d) 0 8 2 — North Broken Hill (5s) 1 16 0 —

1940. 1939. £ £ Customs duty .. .. 39,497 103,010 31,453 27,020 Beer duty 47,371 24,283 Petrol tax 9,452 16.926 Tyre tax Gold export duty .. .. 752 1,103 744 812 Half-yearly Figures 1940. 1939. £ £ Customs duty .. . • 343,049 396,537 185,772 158,267 Beer duty 223,052 191,908 69,662 96,419 Tyre tax .. 3,402 3,458 Gold export duty .. .. 6,993 7,468

£ £ 149,204 58,932 12,648 15,558 29,093 16,951 665 1,177 Sales tax 41,595 38,801 Light dues 564 306 Export levies— Wool 124 3 Meat 904 — Honey — — Hides 10 War expenses account 85 43,776 Miscellaneous .. ■ O0 Total . £234,967 £175,586 The following are months:— the figures for six 1939. 1940. £ £ 618.084 516.685 68,461 88,814 162,119 120,515 4,945 5,551 Sales tax 246,961 258,001 Light dues .. .. Export levies — 3,197 2.904 Wool 1,702 969 Meat 8,326 — Honey 1 — Hides War expenses ac85 count 117,891 Miscellaneous 377 345 Total £1,114,258 £1,112,139