Page 13 Advertisements Column 4

Evening Post, Volume CII, Issue 5, 6 July 1921, Page 13

Report by "Cambist" concerning the issue of • £300>000 71 per cent. Mortgage Debentures by Frozen Meat and Mercantile Co., Ltd. HfyAMmSV has already taken notice of this Nftttire of Comoanv. f debenture issue In another place. To those nwuw pi vompany. ' V«/ persons who may have missed* his article, To make a short lununation of the business aitf# he now addresses himself, and in doing of the company offering th» 7i percent, debentnures, so, flndis that what he has already put on record It may be said that that business is dtv£ded. / mtQ can be' further emphasised by taking a wider range two branches, one of which is concerned with' of the suDject, and by delving deeply into numerous refrigeration, and the other with mercantile affairs small but important details, which were missed in connected with distribution, selling, and shipping, his first essay. . ' These branches cover the full range of production It is only within the last few months that the name and consumption necessary for the. benefit of the of the present company was extended to include 1 individual, also the general stability and progress the words "and Mercantile" in its title. Develop- of the Dominion as axwhole. ments on the East Coast had rushed ahead so fast, tj^ 6 authorised capital of the Company ia that it is safe to say, that during the last ten £1,000,000 in £1 shares. The present position is years the fixed wealth of the district, and its sur- the subscribed capital is now £637,136, and' plus earnings, have increased many fold in volume. tne paid-up capital is £395,754 10s. The uncalled It is a misnomer to call this wealth-producing capital is £241,382; Viewed'as a local joint stock district, Poverty Bay, for every record made of it, undertaking solely, this capitalisation entitles the ; proves that it is a natural storehouse of every • concern to a high position on its own. merits. The form of pastoral, agricultural, and dairying pro- uncalled capital, spread over its 1.600 shareholders, duce. The evolutionary movements connected works out at £150' per head, while the subscribed with these matters, have made it necessary to ' capital on the same method of computation givea bring about a huge merger of interests relating to £398 per head. This line of argument in a manner the fundamental productions of the district. The points to the fact, that the shareholders have so freezing works at Gisborne, Hick's Bay, and Toko- much at stake in the venture that they must sooner maru Bay, are now placed under one control, and or i a ter put the quarter million pounds, into the. are "sure to make good by this-economical arrange- capital account that they are liable for. This ia ment, which ensures the total vested interests proof that the corporation is a virile, association in these concerns being better looked after, and w ith plenty of financial blood running through it.-. more efficiently managed. The benefits to be The company question may be disposed of with derived from*this branch of the business will prove these remarks. It has been shown that on every to be of first-class importance to the whole district ground, co-operative' and financial, its constitution served by the company, and also to the intimate i S excellent, and that it bids fair. to->grow aud to benefaction of the shareholders in this concern. exist for all time. Then, there is the other side of the company's operations to consider, namely, the mercantile REAL Debenture* ■ ' ' : branch' of the business. To reach this end, some „ . . *-****. *».wto*«m,w» private and corporate competing firms had to be Now comes the consideration of the class tit,. •• brushed aside from the path of true progress. debenture this company is offering to investors. This company bought them out, and the whole of The debentures are real debentures, for they are these valuable businesses are merged^ secured by first mortgages^ to Trustees, for the . -. 'it j '"» 1 • debenture-holders, of the freehold and leasehold A True Co-operative Undertaking. .properties and plant of the company. The value To the mind of this writer, the/manner of achieving of the security com«, to £615^63 4s 4d and the th* nvpcpnt comcanv is as wonderful as It is debts chargeable against the pledge only amounts cussfcatin theTcordS of New leallud company to . £800,000. The Trustees for ,the debentuiepromoting There has been ho inflation of assets h?W«s are the New Zealand Insurance Company for the purpose of making agreeable sales on be- % wanted, . ■ half of disgruntled shareholders, who were to pass To make the security as complete and absolute as on their assets to the hew concern. Still more human and legal cunning could devise, the 6ianoticeable is the fact that not one penny hai been borne Sheepfarmers' Frozen Meat and Mercantile ' paid for goodwill to any of the merged concerns. JCompany, Limited, have bound themselves "not to On the other hand, however, the- large sum of create any mortgage or charge ranking in priority £123,352 has been distributed as share capital, to or pari, passu with the debenture-holders' and that transaction means that the above sum of security over the said freehold and leasehold pro~ accumulated profits remains conserved in the perties and plant." In a word, the investors ia '' shareholding of the new company- This kind qt these debentures are given an iron grip over finance is peculiarly of a co-operative nature, and £615,263 worth of conservatively-valued assets, it stamps at once the whole venture as a true co- the bulk of which will appreciate with, the rising operative undertaking. Any outsider, and parti- values that must grow during the next ten years--* cularly a prudent investor, must see how important th,e time of the debentures' currency, this is for the future success of the company. \ .Under the co-operative impulses of such a pro- No Better investment. •prietary, every branch of its co-operative under- ' '; _ '. „ . ' ■' ~.s ". * \lLl':- ,- takings is assured of permanency, growth of "Cambist is satisfied that no better investment business, and the elimination of competitive evils. was ever offer*! to this country. Nothing could In the days of competition between the merged be safer, for the security Is unimpeachable. He companies £123 352 of profits were accumulated; advises everyone with saved money.; to take up as - 'how much better the position will be without that much of this offering «r they can afford to. The competition, "Cambist" is unable to say. One prospectus is worth refcding, and what is more, it remark he will with safety venture upon, and that is believeable, every line of it. Sewn and a half is that the elimination of competition gives capital per cent, for ten years, free of worry, is better on .positive assurance of the fullest returns possible the whole, than speculmttn* in shares carrying a under the present system that we live in; it pre- high premium. No doubt, when these facts «et dicates success from the yery moment that com, widely known, the whole debenture iasue will b« petition is stifled. ' „ ' in record time. GET PROSPECTUS TO-DAY directors: ' from the Bank of New Zealand, any *•*?■*» '%*•**\^ m ■ * o^ ••'-n't. j.t. A. J.Cameron H.D.dcLautour member of the Stock Exchange, or the John C i aric j. w# Nolan Company's Broker, Mr. W. Lissant F.Haii _ g.m. Reynolds Clayton, Gisborne. Enquire, To-day! H-Kenway awaito The Gisborne Sheepfarmers' Frozen Meat & Mercantile Co., Ltd. GISBORNE > v*^ A Special Representative of the Gisborne Sheepf arnfers' Frozen Meat and Mercantile Company, Ltd., will be in attendance at The Farmers' Co-operative Wholesale Federation, N.Z., Ltd. (First floor, Farmers* Institute Buildings, Featherston Street, Wellington) to give full information to all enquirers, relative to the Mortgage Debentures mentioned above. ' :

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