Page 5 Advertisements Column 4

New Zealand Herald, Volume LXII, Issue 19124, 16 September 1925, Page 5

[(To be incorporated under " The Companies Act, 1908.") Capital - £300,000, Divided into 300,000 Shares of £1 each WHEREOF—--260,000 Shares are now offered to the public for subscription, payable as follows: 5/- per share on application; 5/- per share on allotment, and the balance in calls of 2/6 per share as and when required, at intervals of not less than two mouths from the date of allotment. But it is anticipated that the development of the Company's business will not absorb more than 10/- a share; 40,000 Fully paid-up shares of £1 each to be allotted to the Vendor-or as the Vendor shall direct. 300,000 Total. The amount said or payable as purchase money in cash or shares is J (a) £30,000 in cash. (b) 40,000 Fully paid-up shares of £1 each. It has been arranged that, in the event of the Vendor Company so desiring, 30,000 of these shares will be transferred to the Guardian Trust and Executors Company of New Zealand, Ltd., as Trustee for the persons entitled thereto. (c) The further consideration mentioned in Clause 18 of this Prospectus. DIRECTORS: THOMAS, WILLIAM, Newspaper Proprietor and Journalist, Queen Street, Auckland. HARDLEY, CHARLES EDWARD, Merchant, MaSon's Avenue, Herne Bay, Auckland. MARSACK, CHARLES CROFT, Barrister and Solicitor, Taumarunui. RALPH, WILLIAM JOSEPH, Coalmine Owner, 29, Princes Street, Auckland. GUY, GEORGE HERBERT, Newspaper Manager, Allendale Road, Mount Albert, Auckland. HOBART, JOHN BAIRD, Journalist, 35, Clonbern Road, Remuera, i Auckland. DRANSFIELD, GORDON, Retire*} Bank Manager, 16, Victoria Avenue, Auckland. * EDMISTON, HENRY JOHN, Bookseller and Stationer, 144, Queen Street, Auckland. • BANKERS: BANK OF NEW ZEALAND. SOLICITORS: RUSSELL, CAMPBELL AND McVEAGH, O'Connell Street, Auckland. AUDITORS: H. E. SIMMONDS, P.P.A. (N.Z.). Public Accountant, Auditor and Company Secretary, 39, Eridean'a Buildings, Queen Street, Auckland. REGISTERED OFFICE: NO. 409, QUEIEN STREET, AUCKLAND. BROKERS: C. P. GAVEGAN AND CO.. His Majesty's Arcade, Queen Street, Auckland. OBJECTS OF THE COMPANY. VA; ' 1 It is proposed to incorporate a company with a capital of £300,000, divided into 300,000. shares of £1 each, having for one of its objects the purchase of the well-known business of The Onset Press, Ltd., 409, Queen Street, Auckland, The business will be taken over as a going concern immediately on completion of the agreement with the Vendor. The property to be transferred to the Company -will comprise the following items:— (a) The secret process of offset printing. (b) Goodwill of the illustrated journal published by the Vendor Company under the name of the N.Z. Pictorial News. (c) Plant, machinery, office furniture and stock-in-trade. (d) The fee simple of the premises wherein the business is now carried on. i '■ (e) All advertising arid other trade contracts. (f) Book debts. - The freehold premises to be conveyed to the Company have been inspected and valued on behalf of the Promoters by Messrs. Richard Arthur and Co., Ltd., of Auckland, property valuers, land and estate agents, and will be taken over at their .valuation, viz., £17,600. A copy of their report is appended to this Prospectus. The plant, machinery and stock-in-trade have been inspected and valued by Mr. F. J. Dawson, of Auckland, master printer, and will be taken over at his valuation, viz., £12,177. A copy of his report is also appended to this Prospectus. The new process enables illustrations to be printed on very much cheaper paper than is the case with the ordinary methods of printing. To give an illustration of this: The quality of paper which must be used for the ordinary method of printing illustrations, in order to give good results, costs to-day between £3B and £6B per ton (depending upon the quality of paper); whereas as good, if not better, results are obtained by the Company's secret process on newsprint paper which costs only £2O per ton; and, for better class of' work, on paper costing not more than £3O per ton. The saving in "make-ready" in job printing is even more striking. The offset machine is capable of running twice as fast as the letterpress machine of equal size. These savings show a production of three times the quantity in the same time and on the same wages under the present methods. It is proposed to continue the business of the Vendor Company without break or interruption. But with the additional capital which the Company will have at its disposal, it is the intention of the Promoters that the Company shall enlarge and extend its business, and particularly to enlarge the N.Z. Pictorial News. It is now one of the best illustrated papers published in New Zealand arid Australia, and it is not, therefore, surprising to find that its circulation is rapidly increasing. The Promoters hope that the Company will ultimately establish a new daily pajper in Auckland. There is ampie room for one. While Wellington and Christ Church have three and four dailies, Auckland—by far the largest city—has but two. A very large section of the business community will welcome a little more competition for their advertisements than exists at present. While it is not the intention of the Promoters that the Company should undertake this venture at once, they hope that the management of the Company will enable it to do so in the near future. It is further proposed to appoint a representative of the Company to proceed to Australia, America, Europe, and other parts of the world to sell the right to use this secret process of offset printing in those countries. The Promoters are confident that very large sums will bo realised from these sales. The gentleman who discovered this secret process of offset printing is Mr. Thomas Ernest Richards, photo-engraver, Watervierw Road, Devonport, Auckland. He is on the staff of the N.Z. Pictorial News, and the Promoters of the Company have boen fortunate in securing his services for the Company for a period of ten years, upon terms highly satisfactory to all concerned. Owing to the cheapness of this new process of printing, the Promoters feel confident that the Company will be able to undertake job printing at rates considerably less than those prevailing in Australia and Zealand at the present day, but, at the same time, at rates highly remunerative to the Company. The process is peculiarly adapted for the printingof plans, music, and labels for tins and containers of nil descriptions. Illustrations, not only in black and white, but in colours, can be reproduced at lates hitherto unknown in Now Zealand or Australia. The Promoters feel, therefore, that the Company can look forward with every confidence to receiving a very considerable share of this class of business in New Zealand. A large number of the shareholders in the Vendor Company have agreed to purchase shares in the Company. The whole of the employees in the Vendor Company have also agreed to apply for shares in the Company. Both these circumstances are most gratifying to the Promoters. The following figures have been oompiled with all duo and an> based partly on the returns from the publication of the N.Z. Pictorial News, and partly on the general knowledge of the Promoters of the printing trade:— Upon a weekly circulation of 30,000 copies of the N.Z. Pictorial News, comprising 72 pages, the gross return from the sale of the paper (including advertisements) would be - £1,250 Note.—This figure is on the basis of advertisements v being charged for at the low rate of 5/- per inch. # Deduct cost of production (including all overhead expenses. rates, and insurance premiums) * - « - - £495 Leaving a net weekly income of h " " * w £755 This is equal to £39,260 per annum, which is a return of ov6r £l3 per cent, on the capital of £300,000. This estimate leaves out of consideration the returns from job printing. The Promoters anticipate that these returns will more than pay for the overhead expenses of the Company, leaving practically the whole of the proceeds to be received from the N.Z. Pictorial News as clear profit for distribution among the shareholders. Note.—The above figures do not take into consideration the proceeds which the Promoters anticipate will bo received from time to time for the sale or sales of the secret process of offset printing within or outside New Zealand. The minimum subscription on which the Directors may proceed to allotment is 40,000 shares. It is one of the terms of the agreement for sale and purchase hereinbefore mentioned that part of the consideration shall be the payment to the Vendor Company or its nominee of 50 per cent, of the net proceeds of all sales made by the Company of this secret process of offset printing. The chief Brokers of the Company are Messrs. Gavegan and Co.. to whew will be paid a commission of £lO per cent, on all contributing shares subscribed for and allotted, out of which a commission of 5 per centum will be paid on all contributing shares allotted, application for which has been made through any licensed sharebroker. As evidence of his confidence in the success of the Company, Mr. Hobait, one of the Promoters, is receiving from the Vendor Company no cash in payment of his services in connection with the flotation of the .Company, but has consented to accept, in lieu thereof. 10,000 fully paid-up shares in tho capital of the Company. Of the above-mentioned Directors, Messrs. Thomas, Hardley, Guy, Dransfield, and Edmiston are shareholders in the Vendor Company. The extent of their respective interests in the property to be acquired by the new Company is as follows*— (a) The Capital of the Vendor Company is £30,000. (b) Mr. W. Thomas holds 3340 shares of £1 each, fully paid up. Mr. C. E. Hardley holds 925 shares of £1 each, fully paid up. Mr. G. H. Guy holds 8600 shares of £i each, fully paid up. Mr. G. Dransfield holds 500 shares of £1 each, fully paid up. Mr. H. J. Edmiston holds 1600 shares of £1 each, fully paid up. Application for Shares: To the Directors, > NEW ERA PRINTERS AND'PUBLISHERS, LIMITED, G/o O. P. Gavegan and Co., Brokers, H.M. Arcade, /. Queen Street, Auckland. Gentlemen, — I hereby apply for „♦...shares of £1 each in the capital of the above-mentioned Company, «io be allotted to mo upon the terms of the Prospectus issued in relation to the said Company bearing date tfie Tenth day of September, 19215 * Herewith I hand, you the sum of.. being application money of five shillings per share upon the,,abovo number of shares; and I hereby agree to accept the same or any smaller number of shares that may be allotted to me and to pay five shillings per share on allotment, and the balance as provided in the said Prospectus, and I authorise you to register me as the bolder of the said shares subject to the provisions of the Memorandum and Articles of Association of the Company, and I declare that I am not, nor have I ever been, an alien enemy within the meaning of The War Regulations in force in New Zealand, and that I am not applying for such shares on behalf of an alien enemy. Name in full. Address..... ....... Occupation Signature. NEW ERA PRINTERS AND PUBLISHERS, LTD. WHAT CAMBIST " SAYS. The well-known New Zealand financial authority, " Cambist," in reviewing the prospectus of the New Era Printers and Publishers, Ltd., says • " 'Cambist' will preface .this article by announcing the fact that he has invested money in this particular company. For the past ten years or more the investing public of , the Dominion have listened to, and acted upon, his candid criticisms regarding the prospectuses of new companies, as well as his comments on the doings of numerous established .joint stock concerns which are on the register of joint stock companies, Hundreds of his readers have made considerable sums of money by acting upon his advice, or opinions, in these matters. He has never had any pecuniary interest in any company which he has coramepted upon, and,, to that extent, his opinions were entirely unbiassed. In this case he would ask'the readers of this column to accept his deductions regarding the above prospectus as also an unbiassed criticism, but with,the additional weight of over sixteen months of the closest investigation of the whole proposition set forth in the prospectus nnder notice. The fact that 'Cambist' is putting into the proposed company may be honestly regarded as sound evidence that he, at least, Kas the utmost confidence in its soundness and, in the end, expects to receive something more than the ordinary dividend return upon his hardearned money. Personally, he is prepared to endorse all that is set forth in the prospectus, for, as already stated, he has given the whole proposition a close and searching investigation. The Main Feature in This Proposition is the fact that the New Era Printers and Publishers, Limited, is purchasing the business of The Offset Press, Ltd. In that purchase the new company will become the owner of the 'N.Z. Pictorial News,' a very fine, modern brick building in Queen Street, Auckland, at a part that is rapidly rising in value, Mid all of the plant used by the vendor company (over £12,000). In addition to the foregoing the secret process used by The Offset Press, Ltd., will pass to the purchasing company, and the inventor of that process is engaged for a period of ten years to give his service and further improvements to the latter concern. In this writer's opinion these assets are of. a total value far exceeding the capital of the proposed company. No real valuation can be put upon the secret process at present. It may be worth a million sterling, more or less. The fact is that this process will very likely revolutionise the whole of the printing world, and torn into scrap iron many huge printing plants which have cost hundreds of thousands of pounds. The Offset Press, Ltd., has, for over a year, 'tried oat' the process on various works—the 'N.Z. Pictorial News' as a means of testing its adaptability in the production of an illustrated newspaper. As regards the latter, the readers of this paper will have ample evidence of how successful this illustrating method is. It will have been noticed that the paper used by the 'Pictorial News' is of the. cheapest kind and of a class much below that of any other illustrated paper in the world. TJje object of printing on such low-grade paper was to show one of the great advantages which come from offset printing, namely, cheapness in production, coupled with the superior illustration power of this particular process. Anyone who will take the trouble of comparing the illustrations which have appeared in this journal must be struck by the fact that tbey are true photographs of the subjects set forth and that they greatly differ from the work done by the ordinary process block which other papers use. Process block or relief printing is a very costly matter. Large staffs of artists etchers and other highly-technical employees have to be employed, and it must be admitted that under, these conditions quite an artificial appearance pervades even the most perfect illustration done by the oldfashioned methods now in general use. " 'Cambist' has had a wide experience of the commercial and Eterary side of printing and journalism. He is quite confident that this new process of printing has arrived at a commercial stage from which Huge Profits Will be Won. "He has spent over eighteen months in watching the various stages of experiment in this direction. There are several methods of offset printing in the world at present, but not one of them approaches the process which will become the property of this company and its fortunate shareholders. All other processes, no matter how beautiful their production, are hampered by serious productive costs, weaknesses in the plate used, and a slower outturn in the printing. All advanced master printers are looking forward to the development of offset printing. "In the Prospectus will be found a conservative estimate of the profits wbidi can be earned by operating the N.Z. Pictorial Nerws on a 72-page basis, with a weekly circulation of only 30,000 copies. To get on this level some printing machinery will be required in addition to that already, on the premises. This will not involve a great expenditure of capital—a matter of approximately £IO,OOO should be more than sufficient lor the purpose. The paper is at present making satisfactory progress in every department. Its advertising columns are growing, and so is the circulation. Every edition is sold out in record time. There is not more than 3 per cent, of returns from the agents, which is a wonderfully low rate of experience for a puEHcation of this land. Over and over again rejre»t supplies have had to be declined, for the present printing plant is working to the fullest capacity and it i|g impossible to keep pace with the public demand. " 'Cambist' expects that the company will soon go to allotment. Investors should therefore hurry on with their application moneys in order to avoid disappointment. Owing to an announcement in the columns of this journal last week that its business and undertaking would be enlarged, a great number of applications for shares have come to hand. These could not.be underwritten until the prospectus was filed; that has now been accomplished, so the way is cleared for action on the part of investors. 'Cambist' hopes that all classes may become financially interested in the New Era Printers and Publishers, Limited; the man with ten pounds, and the Tnaji with his thousands. It is not expected thai more than ten shillings per share will be called up, and, if that he so, then the estimated dmdeod of thirteen per cent, will be doubled. Let every reader of this pwmioo his part; take all the shares they can afford. There is big money m ttna offset printing companyl" jV " ' '>v \