FLAX CULTIVATION SHARES

Nelson Evening Mail, Volume LXI, 11 June 1926, Page 6

FLAX CULTIVATION SHARES

A SUMMARY OF FACTS Fred Seifert Co., Ltd. (Flax Growers and Millers), capital £IOO,OOO in £1 shares, payable 2/6 per share on application, i/6 per share on allotment and 16 monthly calls of 1/- each per share. Land, 4375 acres, richest part ofi Piako Swamp. Whole scheme, with land cultivated and planted and mills erected to cost not more than £4O per acre. Average realised price all grades, including tow, past 6 years (including slump) £33 8s 6d per ton, as per Gov. eminent Year Book. Average cost of production per ton of hemp under good conditions with miller dealing with his own planted leaf not more than £2O. Margin of profit per ton at least £l3 8s 6d. A production of 2!j tons fibre per acre per year utnder cultf-vated conditions easily obtainable. This equals on above figures a net profit per acre of £33 lis 3d on a capital of only £4O, equaj to a return of 84 per ceiit. per year. What should shares be worth ? The chief fibre expert of the British Government, Dr. GoUldiiig, states that New Zealand cultivated flax is capable of yielding 5 to 7 tons of fibre per acre per year. On above margin of profit per ton this would mean a net value of from £67 to £94 per acre per year, on a capital expenditure of £4O up 1o over 200 per cent, net return. Cultivated flax with selected plans enables a miller to improve the quality of his hemp. Hemp is sold on grading. Every increase in grade means higher price per ton of from £2 to £4. Cultivated flax enables the elimination of all poor fibre bearing varieties. The varieties number up to 40 and range from 2 per cent, to 22 per cent, in fibre content. A 2 per cent, variety would take 50 tons of leaf to hiake a ton of hemp. A mixed wild area averages 8 to 10 tons df leaf to a ton of hemp. Selected and cultivated flax enables a miller to produce one ton of fibre from 5 to 7 tons of leaf. Cultivated flax cut by modern method called "side leaf (cutting once a year and leaving heart intact instead of cutting whole plant every 3rd or 4th year) increases the yield per acre, easily 100 per cent., as against cutting the wild native grown flax. The Department of Agriculture states that every pound of fibre that New Zealand produces will be eagerly snapped up. The world's markets are capable of absorbing 50 times more fibre than is at present produced. The present output is approximately 16,000 tons. This Company on a low basis can only increase the country's production by about 5000 tons. One manufacturing company in America could SToue absorb 50,000 tons per year. New Zealand needs exports. Hemp is a primary exportable product; it is of importance to the country. It is a national asset capable of tiftmendous development. An output of fibre per year of only 50,000 tons would be worth £1,500,000 to the country, per year. Flax grows best on difficult to bring in for profitable dairying. It pro- i vides therefore, an avenue for developing a lot of the country's waste land, j Its scientific treatment will, absorb a lot of labour. Every 100 acres will employ 20 men. It will provide a channel for the absorption of immigrants. Such land is low in price now—the same as dairy land was years ago. Its combined development means a gradual appreciation in values. Shares in a good company formed now will likewise increase in value.

It is on a low basis of average prices at least 5 times mora profitable than dairying, and income from the industry is free, of income tax. This Company has for its Manager, Mr Fred Seifert, a practical experienced miller with over 20 years' successful experience behind him. He is backed by the soundest Board of Directors possible to obtain.

There are other interesting facts and information about this excellent proposition—yours to be had for the asking. Write or call on our local representative, Mr J. Cowie Wilson, C'/o. Messrs Jackson and Twiss, Nelson, or send direct to Wilson Bros., Brunswick Buildings, Queen Street, Auckland. (Published by Arrangement.)

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