and industry

S. Pacific Commerce and industry

Bulolo Gold Dredging, Ltd.—Net Profit

for the year was 396,961 dollars, according to the report and balance sheet for the year ended May 31, 1956. This sum, added to the earned surplus balance at June 1, 1955, of 4,301,097 dollars made a total of 4,698,058 dollars. After deduction of 750,000 dollars for dividends in 1955-56 the earned surplus balance at May 31, 1956, carried to the balance sheet was 3,948,058 dollars.

The three operating dredges dug 9,481,236 cubic yards of gravel and 1,888,428 cubic yards were handled by sluicing during the year. From this 41,172 oz of fine gold and 18,361 oz of silver were recovered. The realised value of this recovery was 1,457,289 dollars, which represented an overall recovery of 12.82 cents a cubic yard.

Total gravel reserves at May 31, 1956, after allowing for gravel dredged and deleted, were estimated at 24,532,000 cubic yards. This comprised 18,204,000 cubic yards of dredgeable gravel of an estimated average value of 14 9 cents a cubic yard, and 6,328,000 cubic yards at an estimated average value of 14.4 cents a cubic yard to be mined hydraulically.

Plans have been made for Dredge No. 5 to handle gravel reserves previously allocated to Dredge No. 7, which capsized and sank in May, 1956.

The currency mentioned in the report is Canadian. * * *

Burns Philp Trust Co., Ltd—Profit In

the year ended December 31 was £8,190. This was an increase of £1,040 or 14.6 per cent, on the 1955 profit of £7,150. Gross revenue

rose from £35,130 to £38,478. The company will pay a 5 per cent, dividend absorbing £6,000. * *

Commonwealth - New Guinea Timbers,

LTD.—The company will pay a first dividend of 5 per cent., amounting to £75,000. Net profit at £140,732 for the year ended June 30 was a decrease of £28,878, after providing £20,931 more for depreciation at £122,237.

The profit was affected by the initial pro

duction difficulties attached to new lines, par ticularly waterproof and marine grade ply wood, but these will assist in marketing the company's products, the directors say.

The company is negotiating to acquire other sources of timber supply than the Bulolo Valley leases to enable the mill throughout to be built up to a more economic level.

The company's capital of £1,500,000 is held jointly by the Commonwealth Government and Bulolo Gold Dredging, Ltd. The Common'

wealth's holding of 750,001 shares gives it a controlling interest.

H 5 H 5

Consolidated Manganese And Mining

CO. OF FIJI, LTD.—Metal Traders Inc., of New York, is opposing a petition by some minority shareholders for the winding up of the com pany. The action was initiated by G. F. Hall and Co. Pty., Ltd., hotel brokers, of Sydney, and T. Falkingham, who, together, own about 10 per cent, of the shares.

A provisional liquidator has been appointed by the Supreme Court of Fiji, and the case has been adjourned for hearing next month.

Metal Traders Inc. owns 75 per cent, of the shares. Although it is registered in America it is a subsidiary of Metal Traders, of London, and is completely owned by British capital.

The Australasian agents of Metal Traders are Dickson Primer and Metal Traders (London) Pty., Ltd., which is an associate of Dickson Primer Consolidated, Ltd. * * *

Enterprise Of New Guinea Gold And

Petroleum Development, Nl.—The Company

offered 2,076,000 1/- ordinary shares to share holders, at par, in the ratio of one-to-two held on January 31. The issue will raise paid capital by £103,830 to £311,490. The shares will be payable in full (1/- a share) on application. Additional funds are required to enable the company to complete the geo physical survey of its permit area. The com pany made a one-for-three issue in February last year. Directors plan to start field work by the end of March or early April. * * *

Mac. Robertson (Australia), Ltd.—The

company plans to extend cocoa growing in New Guinea, according to the chairman of the company, Mr. N. N. Robertson. The company has acquired an additional 250 acres adjoin ing its 1,000 acre plantation at Wanaru, near Lae. Eventual yield from this property should be about 300 tons of cocoa beans a year. * * * MINING.—King Island Scheelite, Ltd., Loloma (Fiji) Gold Mines NL, and United Uranium NL (operating company for Northern Uranium De velopment and Uranium Mines) will undertake a joint prospecting and exploratory venture.

Each of the three companies will participate on an equal basis. Several properties in Northern Australia are under consideration and arrangements have been made to drill a large magnetic anomaly on the Tennant Creek field. * * Sjs OIL SEARCH.—"Rights" to the new issue had their last quote on January 31. The "new" shares will not come on to the official stock exchange list until they have been paid up (I/7 on application), and the contributing script has been issued. This may take some time. * * *

Papuan Apinaipi Petroleum Co., Ltd.—

A Sydney financial expert has commented that for those looking for a modest speculation in oil, Papuan Apinaipi options would be hard to beat. These entitlements to take up shares, good for five years, are selling for prices around 1/3. Their value would be enhanced by a strike on the neighbouring Australasian Petroleum (Oil Search) leases as well as their own They are a nice speculation. Margin for loss is less than with shares, but scope tor gain in the event of a strike is every bit as great. * * *

Sandy Creek Gold Sluicing, Ltd.—During

December about 44 oz 5 dwts of gold were recovered from about 3,000 cubic yards of material dredged. * * *

Sangara (Holdings), Ltd.—A Sydney

financial writer has suggested that an investi gation at Government level into Sangara (Hold* •"*)■ *•***•' > s . called for unless original lot noiders are given adequate representation on

the board. He also suggested that the shares be listed on the Stock Exchange.

The writer, after reviewing the history of the Sangara rubber venture, which began in 1938, said that gradually a cluster of satellite concerns appeared, all registered at Port Moresby. Sangara Rubber Plantations, Ltd., was the first company, registered with a paid capital of £6,110, which had grown to £15,000 in 1951.

The satellite concerns were Sangara Cocoa Plantations, Ltd., Sangara Investment Co., Ltd., Kokoda-Buna Tourist Co., Ltd., Lamington De velopment Co., Ltd., and S.W. Investments Co., Ltd. All the companies were merged into a new operating company, Sangara Plantation and Development Co., Ltd., in 1953, when a new holding company, Sangara (Holdings), Ltd., also exchanged its shares in Sangara Planta tion and Development Co., Ltd.

The writer comments that there appeared to have been some liberal writing up of the book value of the assets before the merger.

But exactly what shareholders in the various companies got in relation to the rubber and cocoa lot or certificate holders as a result of this juggling was never made plain, though their assets constituted the main source of earnings for the new operating company.

The promoter of the venture was Mr. D. S.

Wylie, who had been a principal figure on and off stage throughout. He was first secre tary of Sangara Plantations then managing director of Sangara Plantation and Development Co., Ltd., and later secretary and managing director of Sangara (Holdings), Ltd., with a substantial shareholding in the undertaking— believed by a Sydney committee of share holders to amount to virtual control.

Mismanagement, according to Mr. Wylie, called for his personal intervention. He blamed the plantation manager, who was dis missed.

Comments the financial writer: "Obviously supervision of the manager was lax".

At January 31, 1956, the holding company

had a paid capital of £295,883, of which £74,489 carried a cumulative 6 per cent, a year. The balance was made up of ords.

Together with a profit and loss balance, etc., of £9,568, the capital was represented by shares in Sangara Plantation and Develop ment Co., Ltd., £294,077, cash £10,455 and preliminary expenses £Bl9.

For the year to October 31, 1955, the operating company produced 369,000 lb of rubber and one and a half tons of cocoa, for a profit of £18,618, of which £10,361 was paid to the holding company in dividends.

Profit of the holding company was £9,464, of which £9,179 was used to pay two years' pref. div. A similar payment is needed to bring payments up to date.

Mr. Wylie estimates profits for the six months to April 30 last year at more than £16,000. A profit of £32,000 for the full year would enable the company to pay two years' pref. div., and then show 10.4 per cent, on the holding company's £219,394 of ord. capital.

The writer concludes: "Still, compared with other rubber producers in New Guinea, in par ticular Mariboi Rubber, Ltd., and Kerema Rubber, Ltd., Sangara is an over-capitalised, relatively low yielding and high cost pro ducer".

Sydney shareholders recently discussed alleged mismanagement of the venture, its unified control, and the scant consideration for rights of original lot holders (now share holders). The original lot holders, who put up the money which made the venture possible, have no direct representation on the board, and therefore no direct voice in the conduct of what is virtually their business.

Directors of Sangara (Holdings), Ltd., are J. P. Couve, S Clare, D. R. Wylie and D. S.

Wylie. * * * UNION STEAM SHIP CO. OF NZ, LTD.—Net profit increased by £19,677 or 3.97 per cent, to a record of £515,239 in the year ended September 30. In the previous year net earn ings showed a rise of £176,800 or 55.46 per cent. The directors said the result was ad versely affected by industrial troubles in the maritime industry in Australia.

Taxation on the year's profits was given at £348,696, comprising £18,696 tax paid during the year and £330,000 provision for unpaid faxes. Depreciation on fleet and properties was £878,587.

Dividend on ordinary capital, all of which is held by the Peninsula and Oriental Steam Navigation Company, has been maintained at 5 per cent, and requires £200,000 on the fiigher capital. The 5£ per cent, preference dividend absorbs £55,000. The sum of £150,000 (£200,000 in the previous year) has leen transferred to reserves, leaving £110,239 of the net profit to increase the carry-forward to £625,757.

Profit before taxation, depreciation, directors' fees and audit fees amounted to £1,745,852, comprising £1,624,076 profit from shipping and other interests, £108,556 income from Investments and £13,220 transfer from capital reserve of taxation on the sale of fixed assets.

Mr. John Grierson, Auckland, and Sir Leonard Wright, Dunedin, joined the board on

Tebruary 1.

t One Public Works Department employee was killed and another

injured in a dynamite explosion

which shook Papeete at 7 p.m. on Christmas Eve. The man killed was William Berniere, and the injured man was Pau Colombani.

Cause of the explosion was not Known and the men were apparently not authorised to be m the Public Works Department explosives store at the time. An inquiry is to be held.