Page 18 Advertisements Column 4

New Zealand Herald, Volume LXV, Issue 20112, 24 November 1928, Page 18

Hie NEW ZEALAND & ROSS SEA WHALING COMPANY LIMITED (To be registered under " The Companies Act r 1908.") CAPITAL ... - £500,000 Divided into 500,000 Shares of £1 each, of which 150,000 are held in reserve and 350,000 are now offered to the public for subscription on the following terms: —2/6 per Share on Application, 2/6 per Share on Allotment, and the Balance in Calls of 2/6 per Share at intervals of not less than one month. No Promoters' Shares are being issued. First Directors: (Who will hold office until the concluiion of uhe Fir«t Annual General Meeting.) CAPTAIN HUGH MONRO, Company Director, Manchester Street, Christchurch. FREDERICK EDMUND JONES, Company Director, Lichfield Street, Christchurch. HUGH VICKERMAN, Civil Engineer, Featherston Street, Wellington. CAPTAIN MATTHIAS ERIKSEN WIIG, Norwegian Consul, Bluff. FRANCIS TYSON, Company Manager, Rattray Street, Dunedin. JOHN RINGLAND, Company Manager, Crawford Street, Dunedin. JOHN GERRIE NEIL, Manufacturing Chemist, Cumberland Street. Dunedin. Bankers: THE NATIONAL BANK OF NEW ZEALAND, LIMITED. Solicitors: MOORE, MOORE, & NICHOL, Dunedin. Auditors: C. W. J. BELL, 8.C0m., A.P.A.N.Z., 24, Water Street, Dunedin. H. H. SYKES, A.1.A.N.Z., 150, Rattray Street, Dunedin. Secretary and Registered Office: R. CABLE, No. 4, Stock Exchange Buildings, Dunedin. Objects of the Company. The primary object of the Company is to purchase up-to-date factory ships and chasers for the purpose of catching whales and extracting the oil, etc., in the Southern Seas and the Ross Dependency. The Whaling Industry. Since 1868 the business has been gradually organised, and from a haphazard venture, a thriving and profitable industry has been developed. To-day the oldfashioned hand-flung harpoon is replaced by the gun-fired explosive harpoon, which makes a certainty of the catch. Now the old-fashioned whaling boats are replaced by fast-steaming and powerful chasers, which quickly harpoon the whale and tow it to the factory ship. The season in the Southern Seas generally lasts about four months, and the modern factory ship can handle from 20 to 30 whales per day. This Company will instal on the factory ship the latest type of continuous digester, which has been proved a pronounced success and which allows even a greater number of whales to be treated per day. The World's Production of Whale Oil. As whaling methods were improved, so the industry steadily developed, and to-day it is recognised as an established and sound business. The Norwegian whaling companies* output of oil has increased from £150,000 in 1906 to £4,500,000 in 1926; and whaling is now one of the main industries of Norway, while whaling shares are considered one of the best investments, figuring very largely in the transactions of the Norwegian Stock Exchanges. The world's production of whale oil has risen from 430,000 barrels in 1920 to 1,070,000 barrels in 1926 (Register of Whaleboats, 1926). For the season 1927-28, returns published in the Norwegian daily paper "Tidens Tegn" show that the Norwegian companies operating at South Georgia and the South Shetlands secured over 700,000 barrels of oil, valued at over £3,000,000. To this quantity must be added the oil secured in other whaling seas, including the £650,000 worth of oil secured by the Rosshavet Company, operating in the Ross Sea. World's Record Catch. This world's record catch of 132,000 barrels by the Rosshavet Company proves beyond a doubt the superiority of the Ross Sea as a whaling ground. Further, this record catch was obtained in a remarkably short time, the ships returning to Stewart Island before their anticipated time. Although it is intended that the Company will operate chiefly in the Ross Sea and Balleny Islands, it can if necessary carry on whaling in the seas round South Georgia, South Shetland, and South Orkney Islands, where, as will be seen above, over £3,000,000 worth of oil was taken in 1927. The market for whale oil is practically unlimited. The finer grades are used in the manufacture of high-grade lubricating oils and the manufacture of edible fats (e.g., margarine) by the hydrogenation process. The lower grades are used for leather-dressing, the batching of fibres such as jute, but chiefly for the manufacture of soaps. Translated extract from " Tidens Tegn " (Norwegian daily paper), May 4th, 1928: WHALE OIL SOLD FOR FORTY- . FIFTY MILLION KRONER (APPROX. 24 MILLION STERLING). CONTRACTS CLOSED ON A THIRTYPOUND BASIS. The contracts include the whole of next season's catch of Oil, which is estimated to produce from 80-90 thousand tons of Oil, representing a value of from 40-50 million Kroner (approximately 2\ million pounds sterling). It will be seen from the annual report of the Marine Department that whaling in the Ross Sea is extremely profitable. The Norwegian Company started in 1923 with the " Sir James Clark Ross " (which now can hardly be called a modern whaler) and five chasers. That Company did so well that in 1926 it added to its fleet five chasers and the " C. A. Larsen," the largest floating factory ship yet used. During the season 1927-28 the two factory ships handled over one thousand whales, and returned from the Ross Sea with approximately 22,000 tons of oil. the value of which is over £650,000. £SO Shares Selling at £ll3. Intending investors will be interested to know that the Rosshavet Company's £SO shares were being sold in Norway, on the Oslo Stock Exchange, at £ll3 ("Tidens Tegn," April 28th, 1928). Later advice quotes a rise of £5 per share and a rising market. .It is the intention of this Company to acquire in England a suitable ship of about 12,000 tons, capable of carrying a cargo of about 14,000 tons, and have her converted into a modern factory ship. Owing to the continually increasing demands for more modern passenger ships, it is comparatively easy to secure good ships of about 12,000 tons suitable for converting into factory ships. This is done by taking out the passengers' cabins, using this space for the digesters, and fitting tanks into the holds. Five chasers will be purchased. These will be new ships, embodying all the latest improvements and fitted with wireless. The ships will be fitted out in England and Norway, and it is expected they will be ready to start operations in the season 1929 to 1930, leaving Port Chalmers at the end of October for the Ross Sea. From quotations already received the cost of the factory ship and five new chasers will be approximately £250,000, .made up as follows: Converted factory ship of 12,000 tons gross register £150,000 Five new whaling chasers at £20,000 .. .. . . 100,000 £250,000 The present issue of Capital is £350,000,' so that it will be seen that ample provision hasi been made to cover victualling, stores, flotation expenses and working capital. £175,540 Surplus on Conservative Basis. The average catch of an existing modern factory ship of 12,000 tons register for the past two seasons shows at 10,318 tons of whale oil per season, which, at £3O per ton, amounts to £309,540. The estimated surplus, £175,540, is equivalent to 50 per cent, on the Issued Capital. Small wonder that the shares in existing whaling companies are quoted at £! 18 for shares paid up to £SO. However, if the revenue is based on a I 3,000-ton catch (the actual catch for last season of the C. A. Larsen, vide extract from Christchurch "Sun"), it will be seen that the surplus is £256,000, equivalent to a return of 73 per cent, on the issued capital. The recent advance in the price of whale oil to £3l per ton would add over £IO,OOO to the profits as shown above. This clearly shows that the increasing production of whale oil is unable to cope with' the everincreasing demand. The Company is fortunate in having as one of its Directors Captain Wiig, who has been connected with whaling for many years. It is the intention of the Company to engage experienced Norwegian whaling officers and harpooners, as Norwegians are recognised as being the most efficient whalers and are the people who have brought the whaling industry to its present state of efficiency. Captain Wiig will proceed to Norway to engage the officers for the Company's fleet and superintend the purchase of equipment. Ail whaling is one of the chief industries of Norway, there are always competent officers and men-available; and Captain Wiig, with hi« knowledge of men and conditions, will ha.ve no difficulty in obtaining expert officers and crew. The officers and responsible members of the crews will, within a reasonable time and at the Directors' discretion, be allowed to acquire at par 20,000 of the shares held in reserve. Norwegian whaling men are generally owners of shares (nearly always purchased at a premium) in Whaling Companies, and it will be in this Company's interest to have the personnel of its fleet shareholders as well as employees. To W. J. POTTER, Sole Auckland Agent, Campbell's Buildings, High Street, C.P.O. Box 1505, Auckland. Please send me, Post Free, and without obligation, a Copy of the Prospectus of the New Zealand and Ross Sea Whaling Company, Limited. Mr, Name Mrs. Miss