CEMENT INDUSTRY

Evening Star, Issue 19407, 16 November 1926, Page 10

CEMENT INDUSTRY

In general acceptance, the word “ sterling ” signifies the lawful money of England, or the standard of fineness of English coin in,its relation to the standard British money of account. The term is now chiefly applied to a specified sum of lawful British money. It, however, has a further significance —namely, that of full value, or conforming to the highest standard of excellence, being genuine; and it is in this latter' sense that the term may bo aptly applied to the British Standard Portland Cement, Limited, because that venture is genuine, having a good commercial object with undoubted facilities for its special purposes. Further, the project is well backed by men recognised as frontiankers in the commerce of New Zealand. After lengthy deliberation and personal inspections they have put up eighty thousand pounds in cash, and in addition have guaranteed payment to other shareholders of post office ii> terest until the estimated time -when their mill will produce cement. Is this not a sterling offer? For what could be more genuine than the liberal support abovementioned, supplemented as it is by the guarantee of post office interest to others investing in the same project? Questions have been raised as to why a site in the North Island was selected for a cement mill. The reasons are—first, the South Island businesses have not advanced to the same extent as those producing from the North Island deposits. These northern deposits, in the opinion of the directors, give an ascendancy Secondly, nearly twothirds of the people of New Zealand are now in the North Island, and half of that proportion is in the Auckland Province. Thirdly, gravel for roads is expensive in the Auckland Province, so much so that the territory is referred to as “ The Roadless North ”; consequently the making of permanent roads there to meet the requirements of the growing population anti for the transportation of what it produces is an absolute public necessity. Fourthly, from investigations made it is clear that Auckland is the territory where the bulk of the cement trade is going to be done from 1928 onwards. Fifthly, the British Standard Portland Cement site, fronting deep water eighty miles from Auckland, in a perfectly safe harbor, coupled with its other assets, will enable this company, in the opinion of its directors, to, if necessary, out-distance all rivals for its full proportion of the business which will be offering. Sixthly, the loading facilities contemplated will load a ship with . one thousand tons of bagged cement in eight hours, a performance which no cement company at present operating in the Southern Hemisphere can equal. Investors are asked to consider these points and to also ask themselves if they can remember any company in New Zealand where the promoters have put eighty thousand pounds in cash and guaranteed interest to other investors for two years. It can be safely said that there has been no superior or even similar public offer made in the history of New Zealand. Then, again, investors with increasing confidence will note that a strong group of recognised sharebrokers of good standing have accepted positions as “appointed brokers.” The appointed sharebrokers, all members of tho New Zealand Stock Exchange, are as follow:—Geo.. Crcagh, L. T. Symes, H. E. Forde, Auckland; W. Lissant Clayton, Gisborne; P. S. Heaney, Napier; Eberlet and Morgan, New Plymouth; Hubert L. Nathan and Co.. A. M. Adams (organisingbroker), Wellington; A. F. A. Woollams,Wanganui; F. J. M‘Cahe, Nelson; J. S. Thompson, Blenheim; Hamilton and Hamilton, Christchurch; M. J. Fogarty and Co., Greymouth; Mackisack and Gow, Oamaru; Fenwick Bros., Dunedin; and W. A. Ott and Co., Ltd., Invercargill. In addition to the foregoing, applications for shares may bo received by any sharebroker who is a member of an exchange affiliated to the Stock Exchange Association of New Zealand.

Inquiries have been made as to when the company is going to allotment. The answer is that the company could go to allotment now, but it will not do so until after preliminary arrangements with the Whangarei Harbor Board have been finalised by tho directors, and in due course formally confirmed by tho Harbor Board.

Applicants for positions aro advised that the directors intend making no appointments at present hoyond that of Mr James Snell Wilson as works manager. However, for convenience in transacting interim business, one of the directors, Mr C. W. Salmon. A.M.1.C.E., is, at the request of his colleagues, temporarily occupying the position of acting-managing director.,, Explanations in regard to the “ layout” of the factory have also been requcsl 1, and in this connection investors arc asked to examine the panorama photograph on page 17 of the prospectus, and to note that deep water lies between the small island there shown and the liguro 1 on the sea front. It is proposed to form a small reclamation at this point. The mill will then be constructed partly on the reclamation and partly on the Hat land adjoining, whilst a quarry will bo opened on the hill of natural cement rock immediately behind the works at or near tire place where the figure 3 appears on the photograph. Accordingly, it will be seen that the cement rock will run down the lull of its own weight into the back of the works, where, after treatment of the rode, the finished article will go out the front of the works direct into ship. In reference to the necessity for an additional cement mill in New Zealand, and to the doubts in this respect expressed since the appearance of an advertised .statement in, the ‘Free Lance ’ that the output capacity of one existing company alone is more than the total demand for cement in New Zealand, it is suggested that this statement can hardly be accepted without qualification, because at the time it appeared an established southern company decided to scrap its old plant and to install a new one to cost about £70,000. Therefore, if one company is sufficient, why should another experienced one put down a new plant, and, again, why are the directors of the British Standard Portland Cement, Limited, proved and competent business men, proceeding with their project instead of dropping the proposal? The truth of the matter is that the British Standard Portland Cement, Limited, is a very good thing, because, first, it will not require to bring large quantities of white limestone into its works to mix with its cement rock, for the reason that its deposit of rock is not deficient in carbonate of lime. Secondly, its coal supply can be economically obtained. Thirdly, it will not he put to the expense of hauling its supply of cement rock to its works. Fourthly, it will not require to pay for hauling the finished article for any distance whatever when delivering its output into ship. Fifthly, its works will be the last word; the latest and most efficient available, and what this means may be judged from the_ fact thnt cement of standard quality is sold from up-to-date works in the United States of America to-day at £2 2s 6d per ton, barrels included, showing what can he done with a modern plant even where wages are higher than in New Zealand. ,

After taking everything into account, the proprietors of the British Standard Portland Cement may be confident that:

(a) The demand for cement throughout this country will increase, and' particularly so in the-. Auckland Province,

(b) That their company will secure a fair and lucrative proportion of tho New Zealand trade.

Finally, it may be observed that every pound sterling put into tho British Standard Portland Cement goes in at par (20s); further, each pound sterling invested will obtain good value, will be safely and judicially invested, and will go towards creating a productive, valuable, and creditable asset in this country. Correspondence, including instructions to tentatively reserve shares, pending receipt of official prospectus, will please be addressed to the Interim Secretary, P. E. Pattrick, Esq., F.P.A.N.Z., Druids’ Chambers (P.O. Box 542), Wellington.—[Advt.]