FLAX CULTIVATION SHARES

Nelson Evening Mail, Volume LXI, 10 June 1926, Page 6

FLAX CULTIVATION SHARES

AN INVESTMENT YOU SHOULD

NOT :MISS

One of the most profitable investments open to public subscription to-day is iq the Fred Seifert Co. Lid (l'lax Growers and Millers) with a nominal capital of £IOO,ODD. ■This Company' is formed for the first lime in the history of New Zealand to cultivate the native flax plant, which is the most, prolific fibre plant /n the world. Cultivation select ion. of seeds from plants with high fibre content, and cutting by the new side leaf method every year instead of every three years as of old, and with'scientific, up-to-date treatment of the plant, means the profit that can be made per acre is quite 300 per cent, over the old system of cutting ancl milling wild native grown flax.

The area to be immediately cultivated and planted by the Company is approximately 2000 acres. Such area, once under cultivation, and growing flax, will increase at maturity (progressively up to 10 years) by at least five times the original cost and maintain the value indefinitely. The cultivated land itself, for dairying purposes alone, would he worth the full capital of the Company. Thereiore any investment nOw made will undoubtedly be more than protected and secured over its full amount by the everincreasing value cf the cultivated land, and your shares likewise increase in value in proportion.. There is a full valued asset in the freehold of the land.

There is a certain preliminary period of waiting for a return, but the profits should show a .minimum average net profit of 20, per cent, per year for the first .eight. Or -TO/years, and thereafter anything over 50 per cent, per year. The investment is not a bond issue : it is a share issue, in which the shareholder owns the freehold of the land and business and receives all the profit there is to be obtained. The management will be in the personal hands of Mr Fred Seifert, well' known throughout New Zealand as a flax miller of undoubted knowledge of, and success in, the business, covering a wide experience during the past 20 years. The board of directors is composed of wellknown successful business men, amongst whom are the managing directors of

some of the loading hemp exporting houses and manufacturing companies. Jn a nutshell, the investment means lliis: The area to be immediately cultivated is 2000 acres (approximately). Capital of the Company is £IOO,OOO, therefore each 2000 acres cultivated, growing flax, with mills, working capital, and reserve, will represent not more than £SO per acre. This, will leave a, fuiili cr 2375 acres in hand and paid for, so that at the completion of Urn Company's scheme for development the whole area, with mills erected and flax at maturity will cost less than £4O per acre.

A production of only one, ton of fibre per aero per year at a profit of £5 per ton would show2ooo acres at £5, equal to £IO,OO0 —10 per cent, on full capital. Therefore this Company lias only to produce one ton of fibre per acre per year at £5 a ton profit for shares to maintain their full value of 20s in the £ and show 10 per cent. The average price for the last six years (including slump period) for all grades, plus 12/- per cent, for tow represents £33 8s 6d per ton. The cost of production plus all other charges, including grading and f.0.b., would not be more than £2O per ton to this Company. This would show a profit of £l3 8s 6d per ton. It is expected that at maturity at least three tons of fibre per acre will be produced. J hree tons of fibre at, say £lO (not£l3, 8s 6d) per ton, would be £3O per acre net profit. Two thousand acres at £3O is equal to £60,000, or 60 per cent, net profit on £IOO,OOO capital. Can this be done?

Dr. Gobbling, chief expert of the Imperial advised the Government that cultivated New Zealand flax is ■capable, of a return from five to seven tons of fibre per aCfe. 'Yet’ bnly ‘one ton production of fibre and only £5 profit per ton will return 10 per cent, net profit! Ts there anything better, sounder, or safer that will show such a return on money invested with such security behind it?

New Zealand’s total export of fibre for 1925 was only 15,500 tons. Yer this is what the general manager of the International Harvester Company of America said to a New Zealand merchant: “You show us that you have 50.000 tons per annum to offer us, and we shall then bn prepared to put up special machinery and plant for dealing with it and specialise in it.” New Zealand’s export balance is much behind that of our imports. This is detrimental for the country. Hemp fibre is an exportable product, and its increased production will help to lessen that dangerous breach that how exists between our exports and imports.

The trouble is, New Zealand does not produce enouglf’fibre for big manufacturers to depend upon us for constant. supplies. Much of the fibre exported is also not up to a first-class standard. Such a company as this, with capital behind it, will engage experts and chemists to make a scientific study and research of the flax industry. Much, improvement is possible in the manufacturing of flax into finished fibre, more especially in the process of bleaching and finishing. Such improvements are already almost assured, and finally in this respect will mean the elimination of drying paddocks, and a great saving of labour with a consequently higher profit per ton. Tt is quite' within the range of possibilities that before tills Company is actually milling its flax a reliable commercial process will have been perfected, whereby the fibre will be milled in such a manner as to place it into the textile industry. Its value there would be quite £IOO a ton. Cultivation and scientific research and experiment promises all this and more. What better, sounder, safer, and more profitable investment is there offering to-day? Why be content with 4| per cent, and 5/ per cent, on your money on fixed deposit? Invest in shares in this Flax Growing Co. and provide a handsome return for the rest cf your life, with security behind it. £IOO invested to-day should be worth quite £SOO in ten years’ time. Applications for 25 shares is the minimum subscription accepted. 25 share,s will cost £3/2/0 deposit 50 shares will cost £6/5/0 deposit 100 shares will cost £l2/10/0 deposit 1/0 per share on allotment and the balance at the rate of 1/- per share per month thereafter until paid for. Fill this application form in and post it at oncer— * To Directors, Fred Seifert Co. Ltd. (Flax Growers and Millers), C/o J. Cowie-Wilson, P.O. Nelson. Sirs, — Kindly post, me, without liability on my part a Prospectus of the Fred’ Seifert Ltd. (Flax Growers and Millers). Name Address To Directors, Fred Seifert Co. Ltd. (Flax Growers Millers), 1 and 2 Brunswick Bldgs., ‘ 174 Queen St., Auckland. Herewith please find enclosed being deposit of 2/6 per share on shares in the Fred Sefiert Ltd. (Flax Growers and Millers), and I agree to pay 1/6 per share upon allotment and 1/- per share per month when called upon until the shares are paid for in full. . Name in full Occupation Address Prospectus is available from Wilson Bros., 171 Queen Street, Auckland, or from the local Bank of New Zealand, or from local agent, Mr J. Cowie-Wil-son, e/o P.O. Nelson.—Published by arrangement.