NEW ZEALAND POTATOES

Press, Volume LXXII, Issue 21811, 17 June 1936, Page 13

NEW ZEALAND POTATOES

Enquiries From South

America

POSSIBILITIES OF MARKET

A series of enquiries have been received in Christchurch for shipment of potatoes to the Argentine and Uruguay. No sales have yet been made, but as the South American crop is particularly short this year, merchants are hopeful that the negotiations at present in progress will end in export orders being secured.

Approximately 2000 tons of New Zealand potatoes, almost all of them from Canterbury, were shipped to the erder of the Uruguayan Government in 1933. This was the first export to South America for seme years. This purchase had an immediate and healthy effect on the New Zealand market. The price received for the exported potatoes in that year ranged up to £7 a ton f.o.b. from about £5 10s. Shippers in 1933 were a little unfortunate in that a small part of the potatoes exported were round on arrival to be slightly infected with moth. This, however, caused no concern to the Uruguayan authorities, who have placed no ban on the import ot New Zealand potatoes, nor have they tightened up their regulations. Potatoes for export to South America require to be packed in cental bags.

The enquiries that have come in so far have been received mainly by Christchurch and Wellington firms, but one or two have been sent direct to merchants in Timaru.

The New Zealand potato market has in many respects this season been unsatisfactory. There is no means of arriving at even an approximation of the actual amount of damage done to the crop by the wet weather earlier in the growing season, and this, in the main, has caused merchants to avoid committing themselves to anything but the very lightest forward business. An impression earlier in the year that damage was heavy, combined with the lateness of the crop, sent prices up to a fairly high level, but in the last week or two the market has weakened.

If negotiations with Buenos Aires and Montevideo are successful the effect on the New Zealand market should be a pleasant one for farmers. The enquiries have been made for potatoes on consignment. The business in 1933 was done on a cash basis. TUDOR HOSIERY, LIMITED NEW MANUFACTURING COMPANY Every year the necessity for providing productive employment for urban population is increasingly insistent and the enlargement of manufacturing activities in Christchurcn by Tudor Hosiery, Limited, should represent a forward movement of value both to Christchurch and to the Dominion.

Tudor Hosiery, Limited, has been formed for the purpose of further developing a branch of manufacturing that has been profitably conducted in Christchurch for some years past. The company has acquired the Selwyn Hosiery Manufacturing Company, Ltd., as a going concern and will extend the factory and install additional machinery of the latest type. The new machinery will manufacture ladies’ fullyfashioned silk hosiery of the highest grade in one operation and will be the lirrt of its kind to be operated in New Zealand. All present machinery in New Zealand and most of that used in Australia for the manufacture of this class of hosiery necessitates the stocking being made by two operations —a method that has a tendency to leave a visible join across the instep cf each stocking. This new machinery will avoid this drawback and should give the company important manufacturing advantages. In other countries, where these new machines are being installed, there is a strong demand for the output, and it can be reasonably assumed that a similar demand for the new hosiery will be experienced in New Zealand.

The capital of Tudor Hosiery. Limited is £50,000, divided into 40,000 ordinary shares of £1 each and 10,000 6 per cent, cumulative preference shares of £1 each; 20,000 of the former and 7500 of the latter are being offered to the public and the terms of issue are—2s 6d a share on application, 2s 6d on allotment, and the balance in calls of 2s 6d. The directors’ estimate of capital outlay as shown in the prospectus appears to be reasonable and conservative. The requirement for new building and first instalment of new plant is set down at £II,OOO, and the sum of £7OOO is allotted for working capital. The estimate of the annual earnings of the company is based on the actual operations of the Selwyn Company and the estimated production of the new machinery. All figuring has been done on a 40-hours a week basis and an allowance of four weeks per annum has been made for holidays and stoppages. The estimated annual sale value of the company’s output is set down at £42,042. Against this is £36,653 for manufacturing and selling costs (including administration), leaving an estimated profit margin of £5389. Which, after deducting £3OO for directors’ fees and £1302 for incofne tax, is estimated to leave £6OO for the 6 per cent, dividend on the preference shares, £l6lO for a 10 per cent, dividend on 3600 fully paid £1 shares and 10 per cent, on 20,000 ordinary shares paid to 12g 6d, leaving a balance of £1577 for reserves.

Tudor Hosiery, Limited, will avoid all the handicaps involved m commencing a new business in that all the “spade-work” has already been done .by Selwyn Hosiery Manufacturing Company, Ltd a company that, for the last eight years ending March 4, 1936, has averaged annual net profits equal to £7 11s per cent, on subscribed capital for that period. There will be no interruption of the successful Selwyn operations as manufacturing is being continued without a break. In effect the formation of Tudor Hosiery, Limited, has been an expansion of a manufacturing concern that has been successful since its inception, The new company retains all the experienced staff of the Selwyn organisation, which will have the assistance of new directors who are wellknown successful business men. Certain features of all new companies are always critically regarded by investors, and in this respect the Tudor prospectus presents a very satisfactory case. The buildings, plant, stock, and other assets that have been acquired by the company have been secured on good terms. There is no payment for goodwill—the goodwill of the Selwyn business was obtained without cost. There are no promoters’ shares. The directors and shareholders of the vendor company are confident of the success of the new enterprise and have accepted a liberal discounting of the assets taken over. There is no tieup of a large amount of capital in existing building and plant; the new capital will be used for new machinery that will give the company exclusive manufacturing advantages. Present political and economic conditions are considered by many people to be favourable to the development of manufactures in New Zealand and investors who favour sound industrials will, no doubt, find much to interest them in the prospectus of Tudor Hosiery. Limited. The organising brokers are Hamilton and Hamilton.