COMMERCE AND FINANCE

Otago Daily Times, Issue 24420, 4 October 1940, Page 2

COMMERCE AND FINANCE

THE SHARE MARKET DUNEDIN STOCK EXCHANGE GOOD TONE MAINTAINED Though a little quieter than at the beginning of the week, a good tone was maintained on the Dunedin Stock Exchange yesterday, with continued interest in mining shares and a somewhat stronger note in the Australian industrials. New Zealand and Dunedin Breweries were again easier, but the market for Australian breweries was improved. Bank of New Zealands remained steady, with another sale at £2 2s 6d, and Nationals were a little better, turning over at £2 Os 3d. Contributing N.Z. Refrigeratings continued to have a close market at 9s 4d (buyer) and 9s 6d (seller). Paid-up Australian Consolidated Industries were wanted at £1 15s. and oilers of £2 6s were forward for Broken Hills, sellers being Is 3d away. Coles had a buyer at £3 7s 6d. Interest in Mac Duffs was not maintained, but McKenzies again had a keen inquiry at £2 ss, with 2s Gd separating buyer and seller. N.Z. Drug (rights) were again firmer at £1 7s and £1 7s Cd. New Zealand Breweries were on oiler at £1 14s and a parcel of Dunedin’s was on the market at £ 1 2s 6d after , a steady decline over the past few days. Tooths and Carltons both had improved offers. YESTERDAY’S SALES DUNEDIN Sales Reported £ s. d. Bank of New Zealand 22 6 Martha 079 Sale Reported After Last Call National Bank 2 0 3 AUCKLAND Sales on 'Change.—4 p.c. Bonds, 1946-49 (2). £106; 4 p.c. Stock. 1946-49 (2), £106; Takapuna Borough, 1954, 3J p.c., £97; Amalgamated Brick (Auckland), 3944. 6 pc., £lOl 15s; Union Bank, £7 2s Gd; Auckland Gas, 8s 3d; Devonport Ferry, 2s: Bond’s Hosiery (late sale), £1 7s-6d; Dominion Breweries (2), £1 10s: New Zealand Breweries, £1 12s 9d: A.C.1., £1 18s 6d: Broken Hill Proprietary (2), £2 6s 9d: Milne and Choyce Debentures (cx dividend). 15s Ud. WELLINGTON Sales on ’Change.—3J p.c. Stock, 1957 (late Wed.), £lOl 2s 6d; 4 p.c. Stock, 1949 (late Wed.), £106; Huddart Parker (late Wed.), £2 12s; British Tobacco (late Wed ), £2 10s; 4 p.c. Stock, 1948, £lO5 ss; Equitable Building, 12s 6d; Auckland Gas (2), 8s 4d. 8s 3d; New Zealand Insurance, £3 0s 6d; Oamaru Woollen, £1 0s 6d; Bond’s Hosiery. £1 7s 6d; Dominion Breweries, £1 10s 3d; Wilsons Cement. 19s 6d; Broken Hill South, £1 6s 3d, CHRISTCHURCH Sales on ’Change.— Christchurch Gas (10s paid; 2s), 11s. , Sales Reported.—Christchurch Trams, 41 p.c., 1949, £lO5 15s; Christchurch Gas, £1 • ss; Australian Consolidated Industries (2), £1 18s 4d; Burns, Plnlp, £2 12s; Mossy Creek. Is 2d. Unlisted Stock.— Associated Gold Dredges (10s paid). 9s 6d. PROFIT CAPITALISED AFFAIRS OF PETROL COMPANY ORDINARY SHAREHOLDING INCREASED The Associated Motorists Petrol Comnanv Ltd., showed a surplus of £63,530 In its accounts for the year ended March 31, 1940. This figure included the total amount of the stocks reserve, after provision for income tax, the directors pointing out that alterations in the income tax regulations have required that stocks reserve, built up through the years, shall now bfe brought into account for the purposes of income tax assessment. The surplus, therefore, was in excess, of the actual trading profit, which was pt disclosed in the directors’ report to shareholders. The company’s profit last year was £51,014, and in the, previous year £23 493. Including £7422 brought Into the accounts, the amount available for distribution was £70.952. The directors proposed a dividend on preference shares at the unchanged rate of 10 per cent., the dividend to be less social security tax. Payment would require £12,345. Capital Distribution The directors’ report then proceeded as follows: “ In view of the uncertain limes ahead and the greatly-increased capital requirement of the company to finance large stocks at high prices, and In this period of emergency to meet the Government s request to carry ample reserve stocks, the directors feel that no cash dividend should be paid on the ordinary shares, but that the profit which otherwise would be paid to ordinary shareholders should be capitalised and thus remain in the company to strengthen its position further. The directors therefore recommend that the company sanction the passing on or before August 31, 1940, by the directors of a resolution in the following terms:— " ’ That the sum of £50,000 being an amount in the hands of the company representing accumulated profits of the company available for dividend, be distributed among the ordinary shareholders on the basis that they become entitled thereto as capital, and that the said capital sum be applied on behalf of the persons who on May 30, 1940, were the holders of ordinary shares of the company, in payment in full for 50,000 ordinary shares of the company of £1 each, and that such ordinary shares credited as fully paid be accordingly allotted to and among such persons in proportion to the ordinary shares held by them respectively and that the shares so distributed shall be treated for all purposes as an Increase of the nominal capital of the company held by each such shareholders, and not as income.’ ” Record Turnover The directors then recommended that the balance of profit. £8607. be carried forward. Ordinary shareholders last year received a dividend of 150 per cent, and in the previous year 25 per cent. Ordinary share capital is £25,000, having been increased in 1935-36 from £SOOO. Preference capital is £130,000. The directors said in their report that sales for the year at £1,185,825, represented a new record. A substantial part of this turnover was business obtained in the pre-war period. The directors also mentioned that they had had under consideration the value as it appeared in the books of the company of buildings, fixtures, and plant following past writlngsotT lor depreciation. They had called-for an independent valuation of these assets and a report on them. This valuation and the report were expected to be available at the annual meeting and the directors were then going to propose that the balance sheet be amended In the light of the report, and then adopted. If there was to be any amendment, the directors would submit the necessary alterations in the profit and loss and the profit and loss appropriation accounts to (lie meeting. The report which the company usually supplies of proceedings at the annual meeting has not yet been received.

RESERVE BANK DEPOSITS SLIGHTLY HIGHER ADVANCES RISE SHARPLY STERLING FUNDS STEADY (Per United Press Association) WELLINGTON, Oct. 3. The following is a statement of the assets and liabilities of the Reserve Bank as at the close of business on September 30: — LIABILITIES

LATEST QUOTATIONS DRUG RIGHTS STRONGER The following are yesterday afternoon’s bviving and selling quotations on the Dunedin Stock Exchange, which are subject to the usual brokerage;— N.Z. GOVERNMENT LOANS

SOUTH OTAGO FREEZING COMPANY DIVIDEND UNCHANGED Tlie annual report of directors of the South Otago Freezing Company, Ltdstates that the stock dealt with in the past season comprised 360.543 sheep and 2057 head of cattle, as compared With 317,223 sheep and 2698 cattle in 1938, and 335,601 sheep and 2371 cattle in 1939. After making provision for depreciation and transferring £16,000 to reserve for Income tax and social security and national security tax, the profit remaining (inclusive of last year’s balance) is £16,051 13s. The directors recommend that a dividend at the rate of 5 per cent, per annum also be paid absorbing £6630 10s, and that the balance of £10,021 3s be carried forward.

MINING NEWS GREY RIVER RETURNS (Per United Press Association) WELLINGTON, Oct. 3. The Grey River return for the week ended October 2 was 186ioz in 109 hours (18,555 cubic yards). The totals for September were 13620 z, 532 hours, 392,033 cubic yards. DIVIDENDS AND CALLS Tlie following is a list of shares on which dividends will shortly be payable.— ‘Hume Pipe, ord., 6 p.c., pref. 71 Oct. / ♦Woolworths, 7 p.c <• £ c |- South British Ins., 171 p.c. .. Oct. *,4 N.Z. Guarantee Corp., 5 5-9 p.c. Oct. 30 Martha Mine, 6d Nov. 1 • Quoted ex dividend on Stock Exchange. AUSTRALIAN MARKETS (United Press Association) (By Electric Telegraph-Copyright) SYDNEY, Oct. 3, (Received Oct. 3, at 11.15 p.m.) The wheat market is quiet. Silo grain is quoted at 3s lUd, bagged at 4s 2jjd. Flour, £l2 10s. Pollard and bran, £6. Potatoes: Tasmanian brownClls £ls, others £l3 10s, New Zealand white skins £l3 10s, Dakota red £l2. Onions: Victorian brown, £O. Maize: Yellow ss. AUSTRAIIAN~STOCK EXCHANGES (United Press Association) (By Electric Telegraph—Copyright) SYDNEY, Oct. 3. (Received Oct. 3. at 11 p.m.) The Stock Exchange to-day displayed a rising trend and scrip was difficult to secure The Morning Sales.—Toohey’s, £1 8s 4Jd; Anthony Hordern, 14s Id; Australian Consolidated Industries (third Instalment paid), £1 3s; Broken Hill Proprietary, £2 4s 6d: Cash Orders. 15s; Colonial Sugar, £4B Additional Sales.—Coles £3 6s 6d, Morts. Dock 17s, Consolidated Industries (con.) £1 2s lid, General Industries 16s 6d. Standard Cement 19s 3d, Henry Jones £2 14s 3d Electrolytic Zinc £2 11s 6d, Mount Lyell £1 9s 9d, Mount Lyell (New Zealand delivery) £1 9s 101 d, North Broken Hill £1 17s 9d, South £1 5s 9d, Placer Development £3 9s, Oil Search 4s. MELBOURNE, Oct. 3. Felt and Textiles (ex rights) £1 13s, Broken Hill Proprietary £2 4s 6d, Mount Lyell £1 9s lid Emperor 10s 6d, Loloma £1 3s 9d.

Last week. This week. £ £ 1. General Reserve Fund .. 1.500.000 1.500.000 2. Bank notes 20.099.248 20,108.913 3, Demand liabilities— (a) State 5.038,880 5.574.380 (b) Banks 15,412.657 16,450, Ib5 (c) Other 177,955 264,473 4. Time deposits — S. Liabilities in currencies other than New 76aland currencies .. .. 12,511 22,497 6. Other liabilities .. .. 377.748 810,498 Total £43.218,978 £43.736.926 ASSETS 7, Reserve— (a) Gold 2.801.852 2.801.852 (b) Sterling exchange .. 10.101.854 3,987,894 (c) Gold exchange .. .. — 8. Subsidiary coin .. .. 1 18,588 116,048 9. Discounts — (a) Commercial and agrlcultural bills — (b) Treasury and local body bills .. •• ■* 10. Advances— (a) To State 01 State undertakings— (1) Primary Pioducti Marketing Department 3,034.087 2,076,021 (2) For other purposes 24,040,000 25,040.000 (b) To other public authorities — (c) Other “ II, Investments 2,553,220 2,553.220 12. Bank buildings .. -• — — 13. Other assets 569,383 261,990 Total £43,218.978 £43.736,926 Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities .. 31.651% 30.84% Sterling exchange 1s expressed In New Zealand currency.

Buyer. Seller. £ s. d. £ : s. , d. 32 p.c. Stock, 1941 101 0 0 — 4 p.c. Bonds, 1943-46 .. 102 10 0 — 4 p.c. Stock. 1943-46 .. 102 10 0 104 0 0 4 p.c. Stock, 1949-52 .. 109 150 — 4 p.c. Bonds, 1954-58 .. 107 10 0 — 4 p.c. Stock. 1954-38 .. 107 10 0 — MINING Austral N.Z. Mining 9 (£1) 1 5 0 1 0 Big River (Is) .. .. 0 0 6 0 0 7 Clutha River (2s) 0 1 9 Gillespie’s Beach (Is) 0 0 5 0 0 6 Martha .. 0 7 8 — Mossy Creek (Is) 0 — 0 1 9 Nokomai (5s) .. .. 1 ■ 0 “ 9 Okarito (5s) .. .. 0 0 7 • 0 0 Sandhills (Is) .. .. 0 — 0 0 1 Waitahu (5s) .. .. 0 7 0 0 BANKING N.Z. (£1) 2 2 3 2 2 9 N.Z. (Long D £1) .. 1 8 0 1 9 0 E.S. and A. (£3) .. — 0 4 Id 0 Natl. o£ N.Z. (£2 10s) 2 0 2 1 Union (£1) ' •• •• 7 1 0 INSURANCE National (7s) .. .. 0 18 3 0 19 0 New Zealand (£1) •• 3 0 0 — Standard (£1) .. •• 2 18 0 — SHIPPING P. and O. Def. Stock (£1) — 1 4 0 U.S.S. Co, (pref.; £1) 1 6 0 MEAT PRESERVING N.Z. Refrig. (paid; 10 £1) — 1 0 N.Z. Refrig (cont.; 9 0 9 8 10s) 0 4 South. Froz. Meat 17 (£1) •• — 1 0 South Otago Freezing 5 (£5) 2* 0 LOAN AND AGENCY Natl. Mortgage (£2)._. — 2 0 0 Natl. Mortgage (B 0 issue; £1) .. .. 1 0 Perpetual Trustees (18s) 2 11 0 — Trustees. Executors (£3) 4 3 0 — Wright, Stephenson (ord.; £1) 1 0 COAL AND OIL Kaitangata (16s) — 6 1 11 6 Westport (10s) .. *. 1 2 ■— Westport - Stockton (ord.; 10s) .. 0 2 4 Westport - Stockton 0 (pref.; 10s) .. ■■ 5 3 Taranaki Oil (£1 4s 7d) _ 0 6 6 WOOLLEN COMPANIES Bruce (ord.; £1) 0 18 3 — Bruce (pref.: £1) •• 1 0 0 — Kalapoi (cont.; 7s) .. 0 5 0 Kaiapoi (pref,; 17s) .. 0 16 3 ' Wellington (pref.; £o) 6 15 0 “ MISCELLANEOUS Aust. Consolidated 15 0 Inds. (£1) •• 1 — Broken Hill Pty. (£1) Chas. Begg and Co. .. 2 6 0 2 7 3 1 1 0 — Crystal Ice (£1) 2 1 0 * D.I.C. (pref.; £1) 1 3 6 — Dominion Fertiliser 0 (£1) Dominion Rubber (£1) 1 7 1 ~ 6 G. J. Coles (£1) .. 3 7 6 0 — MacDufVs (pref.; £1) — 18 0 Milburn Lime (£1) 2 0 0 — McKenzies Dept. Sirs. £1) 2 5 0 2 7 6 Natl. Electric (£1) 0 17 0 0 18 0 N.Z. Drug Co. (£2) 1 — 0 3 14 9 N.Z. Drug (rights) .. 7 1 7 6 Otago Daily Times (£1) •• Regent Theatre (£1).. - 2 1 1) 0 3 6 Southland Ice Cream 10 0 (£1) — 1 Woolworths (Syd.: ord.; 5s) — U 10 9 BREWERIES N.Z. Breweries (£1) — 1 14 0 Dunedin (£1) •• 12 0 1 2 6 Tooths (£1) •• 2 2 15 0 Carlton (£1) 3 4 0 AUSTRALIAN MINING Broken Hill South (5s) 1 5 6 — Electro. Zinc (ord.; 11 6 £1) •• 2 Electro. Zinc, (pref.; 13 £1) 2 6 — Emperor (10s) .. .. 0 10 9 — 0 Mount. Lyell (£1) 0 — 5 I li Mount Morgan (2s 0d) 8 0 0 9 North Broken Hill (5s) 1 16 0 —