FINANCE & MARKETS

Sun (Auckland), Volume III, Issue 679, 3 June 1929, Page 10

FINANCE & MARKETS

FARMERS’ FERTILISERS A YEAR OF PROGRESS BOTH WORKS BUSY "The best since its inception." In these and similar terms the chairman of directors, M-. A. A. Ross, described the progress made by the New Zealand Farmers* Fertiliser Company, Ltd., during the year ended March 31, 1929, to the annual meeting of shareholders held on Saturday. THE profit earned during the year, “*■ stated the chairman, had been sufficient to pay a dividend of 8 per cent., and provide £6,300 for writing down the rights and concessions account. It was the aim of the company to bring the selling price of fertilisers to the lowest possible level, as it was realised that low prices would do much to stimulate the demand. As a result of the pursuance of this policy during the past year the output from both works had been on a large scale. “There are three very important factors conducive to low-selling prices/* said the chairman. ‘ These are large scale production, low cost of manufacture and economic administration." VALUE OF SUPER Continuing, the chairman said that while the directors could be relied upon to look after the latter two, the question of output depended on the farmer and, at the moment, there were big quantities of other phosphatic manures being imported. Years of research and experimental work had proved that superphosphate, as a topdressing fertiliser, was pre-eminent. The fact that world consumption has reached the enormous figure of 15,000,000 tons was convincing testimony to the value of super. Mr. Ross reviewed the balance sheet, already published in The Sun, and referred to the fact that gross profit

showed an increase of £17,626 on the figures of the previous year. The company’s debt to the bank was £18,627 .less than on tho previous year. “The company has now been in existence for 13 years, but only three changes in the personnel of the board have taken place during that period, so that most of the present members have carried the responsibility, and have faced and overcome many problems and difficulties,” concluded the chairman. “I may be excused, therefore, if I say that your directors feel justifiably proud of the success which lias been achieved Taking account of the capital of the company, which exceeds £250,000, and the financial position as disclosed by the balance sheet, I think I can say In no boastful spirit that tho company can be ranked among tho substantial indus trial concerns of the Dominion." PLEA FOR SUPPORT A plea for greater support from the farmers of Taranaki was made by Mr. J. S. Connett, of New Plymouth. The company had spent a large sum of money in that province, said Mr. Connett, and he considered that the farmers there should show their appreciation by giving the company a greater share ot' their business. Mr. R. 11. Mather, of Auckland, questioned the policy of the directors in not making greater provision for reserves. He considered that they would have been better advised to have left the dividend at 6 per cent., and have placed the balance to reserves. Mr. S. I. Crookes, of Auckland. said that the company’s shares were now regarded as a good investment in stock exchange circles. An explanation of the bank overdraft was made by the chairman, who said that the only way to clear it off was by the issue of further shares, which would involve the payment of more in dividend and income tax. The interest of 6i per cent, to the bank was free of incorpe tax, but if paid out in dividend would incur the payment of tax. The use of an overdraft was a convenient way of financing as far as it went. The directors had one© had an idea of issuing further shares, but there was no proposal of the kind before them at present. The company had come through very difficult times and the bank had stood behind it. Tho directors who retired in rotation. Messrs. J. Rod die, Te Kuiti, J. Connett. New Plymouth, .T. G. A. Ruddenklau. Oamaru. F. It. Flatman, Gera Kline and Cl. L. Marshall, Marton, were re-elected unopposed. The company's auditor, Mr. J. A. Duncan, was also re-elected. A vote of thanks to the directors, proposed by Mr. Mather and seconded by Mr. W. O’Ryan, was carried. Mr. Crookes then moved that the meeting should place on record the excellent and loyal services of the staff. The motion, which was seconded by Mr. 11. R. Mackenzie, was carried unanimously. WHEAT MARKET CRISIS AMERICAN RELIEF MOVE (Australian and N.Z. Press Association) WASHINGTON, Saturday. In view of the wheat crisis, which calls for world attention, it is stated that the President, Mr. 11. C. Hoover, is exerting pressure to secure a speedy passage for the Farm Relief Bill, so that its provisions may immediately Hk be invoked to overcome the depression ■ in the wheat market, and th< syi ipathetic drops in other farm products, which, it is asserted, will cost agriH -ulturists £ 100,000,000.

WORTH CONSIDERING ! SUGGESTIONS FOR INVESTMENTS AN ATTRACTIVE RANGE By “Noon Call" With prices for all sound investment stocks on comparatively high levels, the difficulties of selection tend to become greater every week. In many instances, there is considerable reason to believe that shares in the better-favoured concerns are too highly priced. f IXE of the first principles to consider in building up an investment income is the question of a spread of interests. Investments spread over a wide range minimise the risk ot loss, in the fact that a possible loss on one investment can be made up by the gains in another direction. Wise investments cannot all fail; the tendency is the other way. It is with this principle well in view, and having in mind also the knowledge that the average investor desires something more than a mere 5 per cent., that the writer suggests the following spread tor a saving of approximately £SOO. Commercial Bank of Australia: These shares have been meeting with an improved demand over the past week or so, and sales have been made at up to 30s sd; on Saturday’s market, however, they could have been purchased at 30s 4d. At that price, the approximate return, based on the latest dividend would be £4 18s lid. This bank is well managed with a wide spread of interests, and there is every reason to believe that shareholders will benefit from time to time by bonus distributions of capital. To the holder prepared to take a long view, there should be considerably more than the immediate return in store.

Farmers’ Trading: Returns for this company’s year up to the end of March last, show that the concern is well on its feet after the bad times of five years ago, and there is considerable justification for the directors’ forecast that, at no time in the history of the company, have prospects been so bright. One hundred of this company’s shares to help the spread would return 10 per cent., and are well worth considering. Goldsbrough, Mort: This company is very firmly entrenched in Australian wool, stock and station business. It has paid a steady 15 per cent, since 1922, and has a record of progress and sound management which make the shares well worthy of consideration. Tho market has certainly weakened over the past month, but this is no doubt due largely to the fact that it is held that wool prices will not be quite so high next season, and cannot have any permanent effect on the value of the shares. On the present market £125 of the £SOO in Goldsbrough, Morts would return approximately £7 10s per annum. Taupiri Coals: In view of the many problems confronting the industry one hesitates to recommend coals as an investment. To receive tho £7 IBs lOd per cent, offered by Taupiris on the present market, however, the investor must bo prepared to take a certain amount of risk. With Taupiris it has to bo remembered, too that the directors work on a very conservative policy, and have built up a solid trade connection. New Zealand Guarantee Corporation: Shares in this concern cannot be termed exactly gilt-edged, but, nevertheless, they have a certain undoubted attraction in making up a spread of investments. On tho presetH market they offer a return of approximately iC7 4s 2d per cent. Although the company deals in a rather risky class of business it does it extremely well, and, during tho short time it has been operating, has made steady payments to r °WUh approximately £SOO to place in tho above shares the spread could be made as follows: Commercial Bunks, 100, costing approximately £152 10s, and returning £4 18s lid per cent. Farmers' Trading, 100, costing £4U, and returning £lO per cent. Ooldsbrough, Mort. 50, costing £!—•>. and returning £ 6 per cent. Taupiri Coal, 100, costing approximately £127, and returning £7 16s lOd per bent. Mew Zealand Guaranteed Corporation, 100, costing approximately £4 b, and returning approximately £7 4s -d Pe, The total investment on this schedule would amount to approximately £4JU, and the annual return £32 0s Id.

BUTTER AND CHEESE BOARD’S MARKET REVIEW The New Zealand Dairy Produce Board has received the following market report from its London office, dated May 31, the prices for the previous week being given in parentheses:— Butter New Zealand: Salted, 165 s to 1675, up to 168 s a cwt.; (L63s to 1675); unsalted, 165 s to 16Ss, up to 170 s (164 s to 168 s); first whey, 156 s (150 s); second whey, 152 s (148 s). Deliveries New Zealand this week, 970 tons. In store New Zealand this week, 9,750 tons. Australian: Finest salted, 158 s to 162 s (158 s to 1625); unsalted, 160 s to 164 s (15Ss to 1645). Argentine: Finest unsalted, 15Ss to 162 s (156 s to 1625). Irish creamery: Salted, 162 s (158 s to 160 s); unsalted, 166 s (162 s to 1645). Danish: F. 0.8., 157 s (1575); spot, 162 s to 165 s (164 s to 1665). Dutch: Unsaited, 160 s to 1645. Esthonian: 158 sto 162 s (160 s .to 1625). Latvian: 15Ss to 162 s (160 s). Siberian: 154 s (1545). Ukranian: 354 s to 15Gs (1565). French baskets, salted, 154 s to 164 s (152 s to 160 s). Market steady. Retail prices unchanged. Continued dry weather is causing uneasiness. Danish butter closed 3s, New Zealand, Australian and Irish butters, 2s above official prices. Cheese New Zealand: White, S9s to 90s (S7s to 88s): coloured, 91s to 92s (SSs to S9s). Deliveries New Zealand this week, 26,435 crates;in store, 145,700 crates. Canadian: White, 304 sto 310 s (104 s to 310 s); coloured, 104 s to 108 s (104 s to 308 s). Australian: White, SSs (S7s); coloured, SSs to 89s (SSs). Market quiet. Retail prices unchanged. English finest farmers’ cheese stocks, small, nominal price. North American Market The board has also received the following advice from its agents in Canada:— Butter: Xew York. 43 cents (Is 9!d): Montreal, 342 cents (Is 5 3-Sd). Stocks, 17,000 boxes; last year, 10,500 boxes. Merchants’ Reports Merchants report receipt of overseas cables as follows: A. 11. Turnbull and Company, from their London principals. W. Weddel and Co., Ltd., under date May 31:—Butter: Xew Zealand salted, 165 s to 168 s: unsalted. 165 s to 3705. Danish. 162 s to 1655; market firm. Cheese: Xew Zealand, white. 89s to 90s; coloured, 91s to 925; market quiet. Canadian, white, 104 s to 110 s; coloured, 104 s to 108 s.

LONDON MEAT MARKET SMITH FIELD QUOTATIONS The Xew Zealand Meat Producers’ Board has received the following cablegram from its London office, dated May 31, advising Smithfleld delivered prices averaged for the week ending that date as follow: — • Xew Zealand Wethers and Maidens.— Canterbury quality, selected brands. 561 b and under, 7d a lb; 571 b to 641 b, Gd: 651 b to 721 b, sjd. Other brands, 561 b and under, 6 7-Sd; 571 b to 641 b, 5 7-Sd; 651 b to 721 b. sid. New Zealand Ewes.—64lb and under. sd. New Zealand Lambs.—Canterbury quality, 361 b and under, Did; 371 b to 421 b, 8 7-Sd; 431 b to 501 b, S 1-Sd; seconds, 8 7-Sd; selected brands, 361 b and under, 9£d; 371 b to 421 b. S2d. Other brands, first quality, 361 b and under, 9id; 371 b to 421 b, S 5-Sd; second quality, 301 b to’ 321 b average <i l-Bd. ■ilian Lambs.—Victorian, first <i- 361 b and under, 82d; 371 b to 421 b, line Lambs.—First quality, 361 b and uader, Sd; 371 b to 421 b, 7td. Argentine Chilled Beef.—Ox fores, 4 3-Sd; hinds, 6 1-Sd. Xew Zealand Frozen Pork.—Porkers, 601 bto SOlb, 9d; 831 bto 991 b, 82d; 1001 b to 1201 b, Sid; baconers, 1211 b to 1801 b, Bld. Lamb.—The market is steady. Consumption is improving slowly. Better demand for lighter weights. Mutton Market.—Trade in wethers and ewes is slow; market quiet. Xew Zealand Porker Pigs.—The season is now at an end. Nominal prices. Xew Zealand Baconer Pigs.—There Is very little inquiry owing to lower prices of Continental bacon. FLAX GRADING RETURNS Compared with the corresponding period of last year, May returns of flax and hemp graded at the port of Auckland show a comparatively big increase. The figures for the month are as follow, those for May, 1928, being given in parentheses:— Hemp.—Good fair, 391 bales ( —); high fair, 625 (236); fair, 49S (730); common, 179 (147); rejected, 45 (43). Total, 1,528 (1,156). Tow.—Xo. 3, 105 ( —); No. 2,2 SS (16S); No. 3, 180 (147); condemned, 36 (13). Total. 609 (325). Stripper Tow.—Xo. 2, S bales (—). Stripper Slips. (passed for export, 5). SOUTHERN EXCHANGES SATURDAY’S SALES Press Association Wellington.—Union Bank of Australia, £ls 15s 6d. Dunedin.—New Zealand Breweries, 70s; Bank of Xew Zealand (D issue), 295; Xew Zealand Paper Mills, 19s 4£d; HuddartParker (ord.), 45s 7d.