FINANCE & MARKETS

Sun (Auckland), Volume III, Issue 871, 15 January 1930, Page 10

FINANCE & MARKETS

Insurance Steady AUCKLAND GAS FIRM THE insurance market shows little change, occasional sales being reported. Auckland Gas are firm at 24s lOd.

Taranaki Oil Progress The Taranaki Oil (N.Z.) Company reports: Gisborne No. 2 Well. —Drilled to 3,354 fret: three days mudding off water to 3,306 feet in limey shale, with very hard bands. Show of gas persistent and increasing. Business on the Auckland Market Transactions on the Auckland market over the past 24 hours included: At the morning early call. —Auckland Gas. XI 4s lOd. At tie midday call.—Commercial Hank of Australia. XI 4s lid: British Tobacco, X- ss; Taranaki Oil Fields, 6s Id. a * * Mine Managers* Reports Mine managers report as follow: Tui Gold Mining Company.—We have pushed on with the rise in the No. 2 level: the lode continues about the same width (3ft), and is carrying a little gold. Have started to open up the Atlantic level, the tram-line is laid, and necessary timber is being put in to pick up the ground. Market at Midday The bank section is quiet. Australian of Commefee buyers have advanced 6d; sellers have reduced to 29s 3d. Wales are unchanged. New Zealands have steady buyers at 57s 6d, seller holding for 58s 3d; the D xnort. issue are unsupported. Union of Australia are steady, with little activity. Coal shares are somewhat neglected. Hikurangi have strong buyers for all shares. Pukemiro are-offered at 745-6 d without attracting buyers. Renown, both pref. issues. have persistent buyers. Taupiri ord. are offered at 29s 3d. no buyers quoting. More activitiy is registered in timber shares. Kauri have buyers at 15s 9d,

sellers asking 16s 3d. Leyland-O’Brien have buyers at 28s. National are also quoted. Brewery shares are active. Innes have persistent buyers at 21s. New Zealand have buyers at 87s 9d. sellers appearing at S9s. Staples are slowly improving. Yesterday’s New Zealand Sales Sales made on New Zealand Exchanges yesterday, showing the approximate return on investment based on the latest dividend, included:

• * * Dividends Payable Due. A.P.A.—final, 2$ p.c Jan. 15 N.Z. Insurance —interim, lid a share Feb. 12 Victoria Nyanza Sugar—interim, 2 h P-c Feb. 25 Union Bank —interim, 12$ p.c. p.a

TO-DAY’S QUOTATIONS

METAL PRICES QUOTATIONS IN LONDON LONDON, Monday. (Quotations on January 9 are given in parentheses.) Copper.—Spot. X7l 17s 6d (X7l Ss 9d): three months. X 69 6s 3d (X 69 15s 7*d). Electrolytic Copper.—Spot. XS3 5s (XS3 3s); three months, XS3 15s (X S 3 15s). Wire Bars. — XB3 15s (X S 3 15s). Head.—Spot, X2l 12s Cd (X2l 11s 3d); three months, X2l 12s 6d (£2l 12s 6d). Spelter.—Spot. £l9 7s 6d (£l9 10s); three months, £2O (£2O 3s 9d). Tin. —Spot, £174 18s 9d (£l76^6s 3d); three months, £l7B 3s 9d (£179 16s 10id). Silver.—Standard. 21 7-16 d (20 13-16 d) an ounce: line, 223 d (22$d). Wheat Wheat.—Cargoes are steady, with fair inquiry. Parcels are in fair request at 3d to 6d dearer. Futures: London, January. 47s 6d: March, 47s lOd: May, 48:5 2d: Liverpool, March, 9s 3 3-Sd: May. 9s Bid; July. 9s 7 1-Sd. Bradford Tops The market is stagnant. Crossbreds are weaker, and users are inactive pending the opening of the London sales on January 21. BUTTER AND CHEESE Merchants report receipt of overseas ealbegrams as follow': Joseph Nathan and Co., Ltd., from London, dated January 14: Butter, 1455; cheese, white 86s, coloured 84s; both markets are quiet.

i SOUTHERN GRAIN MARKET POSITION IN CANTERBURY Press Association CHRISTCHURCH, Tuesday. There is still little business passing on the local grain and produce markets. So far as the position in regard to the removal of the duty on bran and pollard is concerned, the opinion is expressed that it is problematical whether this will make very much difference in the price here. It will be some time before it will be possible to tell the effect on the poultry industry of the removal of the duties. There is a good demand for fowl wheat at 6s lsd a bushel, f.o.b. The demand comes chiefly from the North Island. Supplies are sufficient to meet the demand. The weather has altered the outlook for milling wheat, compared with that of two months ago, and there will be an improved yield, though not as good as that of last year. The result is that millers are displaying a cautious policy In buying. Today’s values are 5s 9d for Tuscan, 6s for Hunter’s and 6s 3d for Pearl, on trucks, sacks extra. Merchants are waiting for the new crop of oats. Gartons are nominally quoted at 3s to 3s 3d on trucks. There are a few old Algerians about and these are quoted at about 3s 3d on trucks. Good bright chaff is worth £5 5s to £ 5 10s a ton, on trucks. The weather is favourable to the growing of linseed crops, which look well. So far as small seeds are concerned, there is practically nothing doing. Merchants are waiting for the new' crop to reach the market. There is some ryegrass now in stock. Some merchants are importing Irish seed. of which the landed price will be about Cs, c.i.f. This will probably have the effect of limiting the demand from the North Island until southern seed is on the market. Machine-dressed cocksfoot is quoted at 13s lid, f.0.b., sacks extra. Sales have been made at this figure. White clover prices are unchanged. Crop prospects are for a fairly good yield. There is no demand for red clover. A little forward business has been done in potatoes this week at £3 10s for Whites, to £3 32s 6d for Dakotas, on trucks, for April-May delivery. For July-September delivery £5 12s 6d, f.0.b., s.i., is the price. CHICAGO WHEAT i Rccd. 9.5 a.m. CHICAGO. Tuesday. j Wheat. —March, 1 dollar 253 cents; May, 1 dollar 292 cents; July, 1 dollar j 311 cents. 1

INVESTMENT OUTLOOK MARKET ON CHANGE POSITION REVIEWED By “NOON CALL” Even the most optimistic would meet with difficulty in an attempt to find evidence of brightness and pep about the opening market for 1930 on ’Change. The depression of the close of 1929 has been carried forward and the outlook for most shares is clouded with an air of considerable uncertainty. A more or less bewildered market which had received blow' after blow during the close of 1929 suffered a further shock immediately the Exchanges opened with the news of the new Government loan to be issued at a price approximately 76 Cd per cent, above the market rate ruling when the Exchanges closed. For one thing, it created the impression that the Government was more or less desperate in its search for funds and had adopted drastic means with which to corner all surplus in the country available for gilt-edge securities. The result has been that, although there has been a certain response to the appeal, many investors are -still holding off and adopting a wait-and-see policy without any real idea of what the near future holds. Much has been said about the wisdom or otherwise of the Government’s move. It seems, however, that few are in a position to judge as the public are absolutely in the dark as to what lias been done in respect to meeting Government present and near future conversion and other financial commitments. Those who have followed the market knew that a rise in the general interest rate was pending; the writer foretold it weeks ago; the Government's present application to the country had also been predicted. Although Government 5i per cent, stocks had been selling at under par prior to the holidays, it does not follow that the Government would have met with success in floating the present big loan. At the moment the whole market is depressed with investors chary about placing much faith in any particular section. Banks in response to reactions from across the Tasman, are suffering most, on a comparative basis. To the longsighted, however, a silver lining is already apparent on the clouded horizon. Signs are not wanting that a further reduction of the London bank rate is not far away; this will react to the advantage of the market for our primary produce. In New Zealand and Australia there has been a tightening up on expenditure all round, and affairs in this respect may get worse before they improve; already, however, there are signs of a general move to “take stock” in industry and, although the market may appear to be going further into the mire over the next three months, a general improvement must be looked for before the year closes. It is this knowledge that gives rise to the contention that there is good buying in several sections at the moment. It is the shrewd buyer who invests carefully at a time when the general tendency is to take fright and sell. He almost invariably comes out on top in the end. THE WEEK’S BUSINESS

Below is a summary of sales made on New Zealand exchanges over the week ended January 14, giving the approximate return on investment, based on the latest dividend:

♦Owing to the reconstruction taking place in this company’s capital, we do not give the return on the latest dividend basis. N.Z. REFRIGERATING COMPANY BIG LOSS ON YEAR Special to TIIE SUN CHRISTCHURCH. Tuesday. The annual report of the New Zealand Refrigerating Company, Limited, states: —“It will have been apparent to everybody that the continuous fall in prices during the past year in nearly all the principal products exported by the company could only result in a heavy loss. So far as we are concerned, the losses have to a large extent been minimised by a prudent forward selling policy, and the stability of our balance sheet remains unimpaired owing to the fact that the directors have in the past, by a conservative handling of accounts, made provisions for such contingencies, and from such provisions have this year transferred £3 00,000 to the credit of the profit and loss account. “The directors regret, however, that they are unable to recommend the payment of a dividend. The amount available for appropriation is £39,103. which the directors recommend should be carried forward to the credit of profit and loss account.” As a balance of £44,445 was carried forward last year the loss for the year was apparently £105,000. The company did not pay a dividend in respect of its operations in 1925-26, the profit announced having being only £4.690. In 1926-27 its profits were £60,589. and a bonus of 2$ per cent, was added to the 5 per cent, dividend. Last year’s 'profits were £45,145, the dividend being 5 per cent. The company’s capital is £636,310.

STORY OF “BAY” SHIPS

POPULARITY OF ONECLASS STEAMERS SERVICE WITH LOW FARES The story of the Australian Commonwealth Government’© unsuccessful attempt to run a passenger steamship service between Great Britain and Australia, the subsequent purchase of the fleet by Lord Kylsant and the popularising of the one-class ships under private ownership, was told this morning by Mr. E. A. Eva, Australian representative of the White Star and associated steamship lines. During the war the then Prime Minister of Australia, Mr. W. M. Hughes, conceived the* idea of purchasing a number of steamships to run between Australia, the United Kingdom and the Continent, Mr. Eva said. The Prime Minister bought 16 vessels known as the Strath Line. Later on Australia embarked on the building of ships and it number of vessels between 5,000 and 6,000 tons were built, the total number being 19. At the same time Mr. Hughes placed in America two contracts under which a number of wooden ships were built. The Government of Australia took over several ex-enemy ships, and in 1920 built five of the well-known “Bay” ships for passenger service. Subsequently two cargo steamships were built in Australia. The war ending the wooden vessels were never brought into use to aijy extent. The 5,000 to 6,000 ton cargo steamers were not used in Australia very widely, except in the carrying pf phosphates and small local carrying. RUN AT A LOSS As the years progressed and freights were reduced the cargo ships were found unremunerative and they were gradually all sold by the Australian Commonwealth Shipping Board, which in the meantime had been created by Act of Parliament. The Australian Commonwealth Line then ran only the five “Bay” boats and the two cargo vessels built in Australia. When Mr. Bruce became Prime Minister his Government decided that the amount of money being lost in running the ships was not warranted and he called tenders for private purchase. At first there were no purchasers offering. Tenders were again invited in 1928 and this time White Star Line, Limited, bought the five passenger ships and the two cargo boats. The purchaser. Lord Kylsant, handed over the management of the ships to Messrs. George Thompson and Company, Limited, of London. This firm, until its association with the Aberdeen-White Star Line, had been connected with the United King-dom-Australia trade for 100 years. The result of this association is that a line now known as the Aberdeen and Commonwealth Line was evolved and the ships still run in the Australian trade, the “Bay” vessels being well-known as one-class passenger vessels. In the purchase contract the purchasers gave the Government an undertaking to improve the service and also to run the ships six months after taking over the last ship. The service was to be a fortnightly one from London to Australia. The new company actually started a fortnightly service six wseks before the last ship was taken over, not six months afterward, and the “Bay” ships were reconditioned. This had been done so comprehensively and thoroughly that the ships are practically new vessels. COMFORT AND LOW FARES

There was no doubt that one-class ships are rapidly gaining in popularity; continued Mr. Eva, and the Abedreen and Commonwealth Line is now offering to travellers accommodation in twoberth rooms on the promenade deck, running water in cabins, electric fans, wardrobe and a chest of drawers for a fare of £52 from Australia to the United Kingdom. Fares in other parts of the accommodation are as low as £3B. From New Zealand the fares are just £1 more, and travellers are provided with their passage from the port of booking to Sydney without any furtheir expense to themselves. Another innovation which has contributed to the popularity of the oneclass boats under the new ownership is that although under the old order passengers were given breakfast, dinner and tea, today a more pleasing arrangement has been instituted under which dinner is served at night, lunch being given in the middle of the day. Messrs. Dalgety and Co., Ltd., have been associated with the Aberdeen White Star, and the ‘White Star Lines for very many years, and the firm is agent for the new company throughout the whole of New Zealand.

FRANKTON STOCK SALE From Our Oxen Correspondent HAMILTON, Tuesday. There was an average yarding of beef at the Frankton saleyards today, when choice quality bullocks brought slightly more than last week. Prime cow and heifer beef sold at late rates. There was a fairly large yarding of sheep and a good number of store lambs were penned. A large yarding of fat and store pigs sold at improved rates. The auctioneers report as follow: New Zealand Loan and Mercantile Agency Company, Ltd: —Fat bullocks, £l3 30s to £l4 9s; prime fat cows, £9 14s to £ll 13s; lighter, £8 2s 6d to £9; plain fat cows, £7 12s to £7 17s; prime heavy baconers, to £4 6s; lighter, £3 10s to £4; porkers, according to quality, £2 15s to £3 os. Dalgety and Company, Ltd: —Choice young cows, to £lO ss; heavy cows, to £lO ss; medium quality fat cows, £7 15s to £8 17s Od; light cows, £5 17s 6d to £7 ss. Small yarding of store cattle sold at late rates. Cows and calves made to £6 15s; cull aged cow's, £‘3 10s to £5 17s 6d. Fat sheep were a shade lower than last week. Best wethers made to 27s sd; others, 24s Od to 265; fat ewes, good, to 18s; light and inferior, 14s; store aged wethers, 18s lOd; 285 shorn wether lambs, 14s 3d to 14s 7d; cull. 12s 7d; 300 cull shorn lambs, 7s 3d to 8s 2d; 150 woolly mixed-sex Jambs 13s; cull, 7s 7d; cull ewes, 11s Od. Extra heavy prime baconers made £4 4s to £4 8s; heavy, £3 16s to £4 2s; medium, £ 3 8s to £3 12s: heavy porkers, £2 ISs to £3 3s; light, £2 10s to £2 15s; large stores, £2 8s to £2 17s; medium, £1 18s to £ 2 4s; slips, £1 10s to £1 16s: best weaners, £1 3s to £ 1 Bs. Farmers’ Co-operative Auctioneering Company:—An average yarding of fat cattle and sheep. Some very good quality fat bullocks met with keen competition and sold at an advance on last week’s quotations. Cow beef, of which there was also a good yarding, sold much the same as last week. Fat sheep sold at last week’s quotations. An extra heavy yarding of all classes of pigs, baconers and porkers, sold under keen competition at increased prices, while store and wearier pigs met with spirited bidding. Fat baconers sold at equal to 6id to 7d a lb; while porkers realised 7d. Quotations: —Heavy fat steers, £l4 5s to £ls; medium fat steers, £l3 5s to £l3 12s; heavy fat cows, £9 15s to £lO 16s: medium fat cows. £8 Is to £9 9s; light, £6 14s to £7 17s Gd; forward conditioned cows, £5 17s to £6 9s: store cows, £3 10s to £5 3s; bulls, £5 15s to £9; vealers, £1 to £3 3 4s; fat wethers, £1 5s 2d to £ 1 6s Id: fat and forward wethers, £1 3s lid; fat lambs, 19s 4d to 19s lOd; fat ewes, 17s Id; heavy*.baconers. £4 4s to £4 8s: medium, £3 16s to £4 Is: light, £3 9s to £3 13s: heavy porkers, £2 ISs to £3 ss; light. £2 13s to £2 16s; good stores, £2'4s to £2 15s: slips, 35s to £2 Is; weaners. 21s to 31s.

Sale Bet i urn on Price. Investment. £ s. d. £ s . d. South British .... 31 0 4 4 a G Mt. Lyell 1 18 3 10 0 2 Christchurch Com. Bank Sydney 23 15 0 5 5 3 Nat. Bank of N.Z. . . G 10 0 Com. Bank Aus. (3) 14 IS 10 N.Z. Farmers’ Co-op. (A pref.) . . . . 2 IS 0 0 G Ditto 2 4 11 5 G 11 Wellington Bank N.S.W. .. 41 0 0 4 17 6 Nat. Bank Aust:.. £5 paid) .. .. 7 10 0 6 13 4 Wellington Gas .. 1 10 Taranaki Oil 0 6 4 Dunedin Com. Bank Aust. . 1 5 0

i Closing quotations at today' ’s midday 1 Buyers. Sellers. £ s. d. £ s. d. BANKS— Aust. ©if Com 1 IS 0 1 19 3 8 Com. ol’ Australia . 1 4 5 Ditto (pref.) TZng., Soot. <fe Aust. 6 16 7 .Vat. of N.Z Nat. of Australasia 6 7 0 G 11 (con.) 40 10 41 New Zealand 17 6 Ditto (D Mort.) . . Union of Aust 12 4 INSURANCE— National .. © 15 6 4 0 0 2 17 South British .. .. 3 0 0 3 2 LOAN AND AGENCY— Dom. Invest. and Banking 1 « loldsbrotigh, Mort Newton King (pref.> 10 N.Z. & River Plate N.Z. Guar. Corp. N. Auck. Farmers* 1 - 0 0 9 0 Co-op. (pref.) 10 — COAL— Hikurangl 0 1 6 0 3 0 Ditto (pref.) .. .. Ditto. A (pref.) .. 0 0 Pukemiro Renown Ditto ( pref. ) . . Ditto, new issue . . 0 0 Taupiri 1 9 AVaipa AVestport Stockton — GAS— Auckland 1 4 S 1 0 Ditto (con.) .. .. 0 IS 0 IS SHIPPING— Devonport Steam .. 1 2 6 1 3 9 Howard Smith .. .. Northern Steam Ditto (con.) .. - Union Steam (pref ) 1 — TIMBER— Kauri Timber . . . 0 15 0 0 1 G 3 Ley land-O Brien 1 S 0 National 0 s Parker-I.amb .. .. — 0 17 6 WOOLLEN— Wellington BREWERIES— - 6 3 G Ditto »pref.) .. .. N.Z. Breweries .. .. 1 4 1 7 4 — 0 J. Staples *- 15 3 2 1G 0

call were:— Buyers. Sellers. £ 3. d. £ s. d. MISCELLANEOUS— Aust. Iron and Steel British Tobacco . - 5 Bycroft, Ltd 1 — Colonial Sugar . . . . Dental and Medical — Dominion Pictures .. Ditto (pref.) .. .. 1 0 0 Electrolytic Zinc 13 Ditto (pref.) .. .. 0 S 4 Ditto B (pref.) .. 9 Gear Meat 6 Grey and Menzies . . Hamilton Theatres Hayward's Pictures Hill & Plummer . . H. M. Theatre Arcade (pref.) .. 1 N.Z. Drug Milne and Choyce, deb. stock 1 7 0 1 Morris Hedstrom 0 N.Z. Farmers’ Fert. 1 Northern Boot .. .. 0 S 0 Robinson Ice Cream Sanford, Ltd S. R. Maxwell . . . . 0 V Taranaki Oil Fields 0 5 10 Union Oil Whitome, Stevensons Wilsons Cement .. 2 0 3 2 MINING— Moanataiari (paid) 0 1 0 0 2 0 Ditto (con., 2s 2d paid) 0 o « 0 0 11 Ditto (Is 6d paid) 0 0 6 Lucky Shot (4s pd.) 0 2 Ohinemuri (ord.) .. 0 3 0 0 6 0 Waihi ). 0 13 5 0 14 0 Waihi Grand June. 0 1 2 0 1 7 Mount Lyell 1 IS 9 Kuala Karapar Tin 0 9 6 Kampong 1 3 0 — DEBENTURES— City of Auckland, 1932, 51 p.c9S 10 0 Gisborne Sheepfarmers 96 10 0 Williamson’s Films 100 0- 0 104 0 U GOVERNMENT BONDS — War Loan, 1938, 4^ 99 10 0 100 2 6 Ditto, 1939, 4i p.c. 1*9 10 0 — INSCRIBED STOCK War Loan, 193S, 4i 99 15 0 100 0 0 Ditto, 1939, 4i p.c. 99 15 0 100 0 0 Ditto, 1933, 51 p.c. 99 0 Ditto, 1933, 51 p.c. 99 0 0 —

Latest Approx. BANKS— Com. of Australia . 1 18 10 Com. of Sydney .. 23 0 5 National of N.Z. . . 6 10 0 National of A’asia (con.) 10 0 6 13 4 New South Wales.. 41 0 0 4 17 G Union of Australia 12 0 0 5 4 2 INSURANCE— New Zealand .. .. 2 4 6 4 2 4 South British . . . . 1 0 4 Dalgety and Co. . . 12 15 0 6 13 4 Dominion Bank and Investment 1 0 6 6 16 7 Goldsbrough, Mort . 1 If? (5 S 4 4 National Mortgage . 4 5 0 5 17 G GAS— Auckland 1 4 10 6 S 10 Christchurch (con.) 0 33 0 6 1 Wellington 1 10 6 5 4 11 TIMBER— Kauri Timber .. .. 0 16 0 4 13 D BREWERIES— *N.Z. Breweries 4 8 0 Staples 2 15 3 4 10 7 MISCELLANEOUS— British Tobacco 2 5 0 5 6 8 Colonial Sugar . 46 0 0 5 8 8 Farmers’ Trading . 0 8 4 9 12 0 Milne and Choyee (deb. stock) .... 1 7 6 5 16 4 Mount Lyell .. 1 18 3 10 9 8 N.Z. Farmers’ Fert. 1 6 7 2 3 N.Z. Refrigerating (con.) 0 4 0 Taranaki Oilfields . . 0 6 3 Wilsons Cement 2 0 6 4 18 9 GOVERNMENT BONDS — War Loan, 1936, 5i 99 10 0 5 12 0 INSCRIBED STOCK N.Z. Inscribed Stock, 1939, 4i p.c 100 0 0 4 10 0 Ditto, 1933, 5ii p.c. 99 10 0 5 13 9