HOW TO SECURE 6½PER CENT. FREE OF INCOME TAX.

Press, Volume LVI, Issue 16884, 12 July 1920, Page 7

HOW TO SECURE 6½PER CENT. FREE OF INCOME TAX.

! An investment returning GJ per cent., I free of income ta», is, in these days, one that must attract immediate attention. StUh a satisfactory offer as that made bv the Glaxo Manufacturing Company (N.Z.), Ltd., has raxely been placed before the public of New Zealand. The company is issuing £100,€00, twenty-five year per cent, debenture stock to the public in sums of £10 and upwards, to acquire as a going concern one of the finest businesses in the Dominion, tihe manufacturing'department ;of Glaxo and milk powder products, I established by Joseph Nathan and Company, Ltd., the well-known proprietors of these famous products. ! The debentures are free of income tax up to the present assessment, under the Land and Income Tax (annual) Act, 1919, and a mortgage over freehold and leasehold properties, and fixed assets, amounting to £135,000, fully secures the debentures. Joseph Nathan and Company, Limited, have entered into an agreement with the company to purchase the whole of the output of Glaxo and first-grade full cream milk powder manufactured at factories operated by the company. Under this contract Joseph Nathan and Company, Limited, are to pay a sum equivalent to not less than £7 per ton in excess of the cost price of the manufactured article, and in estimating the cost price all the expenses of the company are to be taken into consideration, but" not interest on capital. It is proposed to increase the capacity of the factories to an output of about GOOO tons, but even if the present output of 4500 tons were not increased, the company would still derive on the sale of its output under its agreement with Joseph Nathan and Company, Limited, a profit, on the basis of £7 per ton, of £31.500. As the interest on thp total issue of debenture stock is only £6500, it k obvious that apart from the tangible assets of the company the holders of the debenture stock will have a first-class and safe investment, with an ample margin for a satisfactory dividend.

This is an opportunity for safe investment tliat should not bo missed, and intending shareholders should obtain, copies of the prospectus and forms of application from the offices of the company in Pnlmerston North, from Joseph. Nathan and Company, Limited, Yvellington, or from any branch of the Union Bank of Australia, Limited, or from the loral brokers, C. G. and J. H. Aitken and Co., Christchurch; Frank Graham and Son, Christchurch; and li. Hill Fiyhcr a.nd Son, Christchurch. 4