COMMERCE AND FINANCE

Otago Daily Times, Issue 24422, 7 October 1940, Page 2

COMMERCE AND FINANCE

MERCHANDISE MARKET WALNUT MEAT Although orders were placed in India a month ago for walnut meat, advice has now been received that it will not be possible to land the goods in New Zealand before the end of the present licence period in December. Some merchants have now arranged to buy supplies of Indian meat from Australian merchants, but the meat will have to bear a high landed cost. Prices have been varied for the new season's Chinese walnut meat, but here again lack of shipping freight is being experienced, and shipments cannot reach here before the end of the fourth period licence. The opening quotations are much higher than those ruling last year. Presumably these goods will be allowed to be identified with fifth period licences. Brown Paper The local manufacturers announce a substantial advance in the price of brown and cap paper. Sugar Supplies The Waiana landed a cargo of sugar last week. Further supplies are due this week by the Waipiata and the Waimarino. Cigarettes The packers of one well-known brand of imported cigarettes announce that the line is to be produced in New Zealand, and that it will be on the market within the next few days. The cigarettes will be available only in 10's packets, tins being withdrawn from the market for the duration of the war. , Olive Oil Stocks of Italian and French olive oil continue in short supply. Canned Fruits Further supplies of Australian canned fruits have come to hand. Transhipments of Ceylon tea arrived at the same time. English Salt Further supplies of English salt are expected on the market within the next few days. Wringer Machines A limited number of Acme wringers has been landed in Dunedin. South African Brandy A shipment of South African bulk brandy has just reached the market. MINING NEWS ARGO DREDGE RETURN * (Per United Press Association) • GREYMOUTH, Oct. 5. The Argo dredge return was 18oz for 130 hours (11,500 yards). MINING NEWS WHITE’S ELECTRIC DREDGE The return of White’s Electric Dredge for the week ended on October 3 was 240 z of gold from 6300 yards of material treated in 79 hours’ dredging time. DIVIDENDS AND CALLS The following is a list of shares on which dividends will shortly be payable:— •Hume Pipe, ord., 6 p.c„ pref. 71 p. c Oct. 7 •Woolworths, 7 p.c Oct. 15 South British Ins., 17J p.c. .. Oct. 24 N.Z. Guarantee Corp.. 5 5-9 p.c. Oct. 30 Martha Mine, 6d Nov.— • Quoted ex dividend on Stock Exchange. FRIDAY’S CLOSING PRICES (United Press Association) (By Electric Telegraph—Copyright) LONDON, Oct. 5. (Received Oct. 6. at 7 p.m.) Yesterday’s closing prices were;— Rubber: Plantation smoked, Hod per lb; Para. 12d. Cotton: Spot. 8.31 d per lb; November shipment, 7.69 d. Turpentine, 55s per, cwt. PROFITS OF COX BROS. (AUST.)

Cox Brothers (Australia), Ltd., show a net profit tor the year ended July 31 of £61,084, to which Is added £3582 brought in from the previous year, making a total of £64,666, compared with £61,804 the previous year. From tills is deducted the interim dividends paid last March amounting to £26,836, and an amount of £llsO representing loss on the sale of a manufacturing business at Perth, leaving £36,680 available for distribution. . The directors recommend final dividends on A preference shares £5862, on B preference shares £4305, and on ordinary shares £14,144. the last-mentioned being at the rate of 10 per cent, per annum and making a total of 12| per cent for the year. It is proposed to add £SOOO to general reserve, £SOOO to provision for contingencies, and to carry forward £2369. FRUIT AND PRODUCE WORLD Reilly’s report selling;— Per Dozen.—Eggs: Standard, Is 4d, medium, Is 2d; pullets’, Is. Carrots, Is. Parsnips, Is. Lettuce, Is to 2s 6d; choice, to 4s 6d. Asparagus. 14s. Narcissi: Trumpets, 2s to 4s 6d. Hyacinths, 6d to 2s. Tulips. Is 6d to 2s. , Each. —Champion egg crates; 24 dozen, 18s 6d. „ r , T „ Per Half-case. —Pears: Winter Nelu. 6s 6C per Case.—New Zealand lemons: Market rates. Australian navel oranges; Market rates. New Zealand grapefruit, 15s. Bananas: Rlpes, 25s Pears: Winter Nells, 13s Apples; Extra fancy and fancy—Delicious 9s 6d to 10s 6d, Cleopatras 8s to 9s Stunners 9s 6d to 10s 6d, Granny Smith 8s 6d to 9s 6d, Tasmas 10s 6d; commercial grades. 7s 6d to 9s; cooking apples. 8s 6d. Queensland pineapples, 325, Spring cabbage, 2s to 2s 6d. Per Pound. —Green peas. Is. New potatoes: Locals, Is 2d; Nelson, 4d to 6d. Rhubarb, 21d. Kumeras, sid. Whitebait, 3s to 4s. Artichokes, Id. Butter: Storekeepers’, Is Id: bulk, Is 2d. Bacon: Prime, Is 4d. Clover honey, 8d to Bid. Beeswax, Is 6d. Walnuts, 8d to lOd. Per Bag.— Cauliflowers, 4s to Bs. Savoy cabbages, 2s. Per Hundredweight.—Onions: Canterbury, 14s. Potatoes; King Edwards. 4s. Whites, 2s 6d to 4s. Lime sulphur, 3s 9d gallon. Restar; agallon, 4s 6d. Semesan: 11b, 8s 6d. Red Rose nicotine sulphate; 101 b, 455; 21b, 15s. D.P. Derris for white butterfly control; 11b tins, 2s 3d; 101 b tins. 15s. Fowl wheat, to 6s 6d; second grade, 6s. Maize, 7s 6d. Oats: Cartons, 4s 6d per bushel. Crushed oats, 12s 6d. X Keys meatmeal, 15s per bag. Oyster grit, 6s 6d per bag. Bran, £5 10s. Pollard, £6 15s. Chaff: 8.0.5.. £6 5s to £6 10s. Oaten straw, £4 10s. Clover hay, £6 5s per tom Palmer’s chick food, 21s 6d per 1001 b. Per Pair.—Poultry: 34 cockerels at 2s to 2s lOd. 70 hens at 5s 4d to 7s, and 16 pullets at 6s 6d to 8s 6d per pair. REILLY’S CENTRAL PRODUCE MART, LTD., Moray place, Dunedin, C.l

BRITISH INDUSTRY REVOLUTIONARY CHANGES (United Press Association) (By Electric Telegraph—Copyright) LONDON, Oct. 5. (Received Oct. 6, at 7 p.m.) Despite the long struggle to maintain independence, there is now hardly a commodity which has anything like an open market in the United Kingdom. The few with any scope for the influence of supply and demand have fixed schedules for minima and maxima prices. Revolutions are occurring weekly in Britain’s business systems, despite a bard fight by traditionalists who fear that the restrictions imposed in war-time will be very hard to overthrow in peacetime. There have been many upsets and disruptions, but it is surprising that the switch from private to State-controlled industry has not caused greater chaos. COMPANY BALANCE SHEETS SOUTH OTAGO FREEZING COMPANY, LTD.

Some of the leeway lost by the net profit a year ago has been recovered, and the figure of £7658 brought out lor the past year shows an improvement of £2218. It is proposed to retain the dividend rate at 5 per cent., which will absorb £6630, and allow £IO2B to be added to reserves. The encroachment made upon x*eserves 12 months ago is thus almost made good. . , The stock handled shows an incx-easing quantity in sheep and lambs, which more than offsets the decreasing quantity in cattle. Gross trading profit of £39,521 is £5082 better than for 1938-39. but expenditure on account of a taxation provision of £16,000 is higher by nearly £3OOO. The general expenses group, which includes repairs and maintenance, as well as depreciation (£4930), has at £12,176 reverted to its position of two years ago, while the interest and salaries group at £2670 is again reduced. Directors fees (£450) and other charges bring the total expenditure to £31,870, of which one-half represents provision for taxation. In relation to gross profit, expenditure has stood as follows:

Except for the addition of £IO2B, undistributed of the net profit, by which the floating balance is raised to £10.021, reserves are unchanged. General ana consignment advances loss reserves remain at £2141 and £I2OO respectively. Each account stands as it did when recourse was made to it towards supplying the bonus share issue some three years ago, but it may be expected that steps will be taken shortly to rebuild. Liabilities as a whole, have diminished. The sundry creditors group, which has risen from £19,841 to £41,373, includes a taxation provision of £16,000 instead of £BOOO, but there must also be considerable growths in other directions. As the group covers provision for contingencies, the excess may not represent larger indebtedness entirely. Drafts against consignment at £28,877 are more than halved, which movement with a corresponding reduction to £25,739 in the relative asset of advance to owners without recourse, may be traced to the special conditions now prevailing. Among the floating assets, stock and materials on hand have fallen as low as £2774, but sundry debtors have risen to £9605. Conjointly there is a comparatively small sum tied up in these two items, and the cash assets are all the stronger in consequence. Money on fixed deposit has grown to £50.000, and the bank current account balance to £7329. There are sufficient funds on hand to meet all sundry creditors, and leave a substantial balance. Capital expenditure on the fixed assets as a whole outweighs the depreciation provision by nearly £IOOO. Land and buildings have swelled to £47,320. against which a wastage allowance of £2370, or 5 per cent, approximately, has been applied, leaving a balance of £44.950. Plant and machinery raised to £25,549 have received a depreciation provision of £2560, or 10 per cent, approximately, and stand at £22,989. In each case, the allowance looks generous and more than sufficient to cover all wear and tear, so that invisible reserves should benefit. Investments, which are entered at their book value of £59,833, continue to grow, their Increase being nearly £7OOO. The nature of the investments is not disclosed, but the revenue from this source should contribute materially to the gross profit. Assets aggregate £223,249, a decrease of some £B6OO. against which there is a reduced indebtedness of some £9600.

BRADFORD TOPS (United Press Association) (By Electric Telegraph—Copyright) LONDON, Oct. 4. The following are the new Home trade issue prices for Bradford tops:—Merinos: 70’s, 45Jd; 64’s, 433 d; 60's, 423 d. Crossbreds: 58's, 40Jd; 56’s, 38d; 50’s 33Jd; 46’s. 30Jd; 44’s, 30Jd. LONDON STOCK EXCHANGE (United Press Association) (By Electric Telegraph—Copyright) LONDON, Oct. 4. The Japanese-Axis agreement had a short-lived effect on the Stock Exchange markets. A notable feature has been the increased interest in the leading equities. Gilt-edged securities are slightly easier, but ordinary shares of prominent industrial companies experienced an increased demand. EMPIRE HONEY PRICES (United Press Association> (By Electric Telegraph—Copyright) LONDON, Oct. 5. (Received Oct. 6, at 7 p.m.) The Minister of Food. Lord Woolton, has fixed the maximum prices for Empire honey, including New Zealand 70s and Australian 655. AUSTRALIAN CORPORATION The net profit of the Australian 1 Guarantee Corporation. Ltd., for the year ended June 30 was £73,599, compared with £79 942 for 1938-39. The result was shown after provision for £56,000 for taxation, against £35,562 the previous year. Trading profit increased to £ 128,655,.fr0m £116,448. Ordinary dividend at a steady rate of 10 per cent, requires £40,884, and preference dividend of 6 per cent, absorbs £6OOO. Turnover fell during the closing months, due mainly to the war, and the dislocation in the motor trade caused by the proposed petrol rationing. An announcement of a more liberal scale of rationing and action by the company to secure business by assisting in industrial development later brought a slight upward trend. HENRY BERRY’S YEAR Henry Berry and Co. (Australasia). Ltd., and subsidiaries, show for the year ended June 30 a profit of £37,342, before providing for Australian taxation, but after charging £12,847 for New Zealand taxation. In the previous year net profit, was shown at £4513, after providing £3179 for income tax. Dividends of 10.4 d a share on the A and B preference shares paid by the parent company require £21.033', leaving £16,227 to be carried forward, out of which Australian income tax will'be paid.

Paid-up Net Divicapital. Reserves. Profit. dend. £ £ £ p.c. 1920 .. 65,327 8,011 5,461 1925 66,597 18.059 *3,587 — 1930 .. 66.305 12.408 1.065 5 .. 66,305 44,385 I4.G50 8 .. 66.305 48,999 9.918 8 1937 .. 66.305 .. 132.610 57,254 13,524 14,885 9,207 10 5 1939 . * , .. 132.610 12,336 5.440 5 1340 .. 132,610 13,362 7.658 5 * Loss

Expenditure. Grose Profit. Ratio. 1 £ p.c. 1934-39 . .. 23.398 38,048 61.50 1935-36 . .. 28,953 36.871 73.10 1936-37 . .. 27,570 42.455 64.94 1937-38 , .. 25,312 34,519 73.33 1938-39 . .. 29,002 34.443 84.20 1939-40 . .. 31,870 39.528 80.63