A SPLENDID INVESTMENT.

Auckland Star, Volume LI, Issue 201, 23 August 1920, Page 7

A SPLENDID INVESTMENT.

6 PER CENT. FREE OF INCOME TAX.

In these days when so many company issues are being placed before the public it behoves every investor to carefully discriminate between those offering an immediate return., and secured on an established business, and those which while the future may hold excellent prospects, must nevertheless wait some years before these prospects become actualities. Non-speculative and providing a certain and immediate return is the issue of 10,000 6 per cent, cumulative preference .£1 shares and 10,000 ordinary £1 shares in the old-estab-lished and profitable business of Booth, Macdonald and Co., Ltd., with its head office at Christchurch. and its branches in ten of the main towns of the Dominion.

Booth. Macdonald and Co., Ltd., are among the largest manufacturers of farm machinery in the Dominion —its ploughs, harrows, windmills, etc., are in daily use on thousands of farms throughout New Zealand, and have -won an enviable reputation for Quality and service. The firm also specialises in the sale of machinery for roadmaking. *tc, and holds tho sole New Zealand representation for many of the finest i agencies in these lines. * |

The firm's balance sheet discloses an ■"xceptionally strong position. Indeed, 'or the year 101!) the total assets of the company total £270,922. after providing for all depreciation, and are suf--leient to pay off all liabilities (excluiive of capital) three times over. As iroof of the propress made it may be -leniionnd that the increase in assets .rom 1914 to 11)19 totalled the huge mm of £143.926.

Tn 1910 Booth, Macdonald and Co.'s .<i>les amounted to .€156.003, and its net profits to £12,899. while the firm nns never missed paying a dividend.

The additional capital is required for business extension. The demand for machinery is rapidly increasing in the North, and the firm has decided to build a factory in Auckland to cope with it. A factory site has already been secured in a favourable location, where ample accommodation is available. Auckland fanners and investors will therefore warmly welcome this proposition, for it means a further addition to the manufacturing industries of the North.

The issue enables investors to select tne proposition which most appeals to them. Those who want a certain 6 per cent, investment will no doubt subscribe to the cumulative preference issue, whicli secures a constant 6 per cent, return, and is fully preferred both as to dividend and capital, the dividends being paid half-yearly in March and September. Those who prefer the chance of lnrger dividends are offered the ordinary shares, with dividends payable in March of each year.

The dividends on both classes of sdiares are, of course, free of income tax, while dividends will accrue from the dates on which payments are received. The terms of issue are very favourable^—payments may be made in one sum or in four instalments. Applications can be made through any sharebroker who is a member of the Stock Exchange, or direct to the company. Full prospectus end further information will be sent on application to Booth, Mac Donald and Co.. Ltd.. Christchurch. or can be obtained from the firm's branches at Hamilton or Auckland.

It is. not often that so exceptional an investment is available, for Booth, MacDonald and Co., Ltd., have never missed paying a dividend, and have distributed £93,406 to shareholders to date. — (Ad.)