Page 6 Advertisements Column 1

New Zealand Herald, Volume LXVI, Issue 20306, 13 July 1929, Page 6

A SOUND ENTERPRISING INVESTMENT. ABRIDGED PROSPECTUS. ,1 cov>j Of this Prospectus tins been filed with the Jlcyistrar of Joint Stock Companies at, Auckland, this sixth day of July, M'J. (incorporated under the Companies Act, 1905.) Capital £15,201 Divider! into 15,000 Prcfcrcnrc Shares ot £ I Men. carrying a cura«»iuvn v.,v............ ... - ■ »-• annum with riuht to further participation in profits us hereinafter mentioned and 'IO2O Ordinary Shares of /- each of which «458 shares have been allotted. 5000 Preference Shares are held in reserve for issue to potential subscribers r ». fk#* /licrr#»Hnn nf thrr IJirector:?. cumu'ntlva preferential dividend of £lO per centum per auoneu. iuliv i . in Great Britain or at the discretion of the Directors. Available for Subscription: issue to potential subscribers 10,000 10% Cumulative Participating Preference Shares of £1 each. On the following terms: — 5/- on application. 5/- on allotment. The Preference Shares will entitle the holders thereof: — (a) To fi cumulative preferential dividend at the rate of £loe'e per annum on the capital for the time being paid up thereon and to participation with the holders of the remaining Preference Shares Jor this time being issued in the division of onequarter of nil further profits available for distribution. Such division to bo on a pro rata basis in accordance with thi? umount pnid up on their respective thures. Such participation shall, howTh<| holders of the Ordinary Shares are entitled to divide their respective shares three-quarters nt all profits available for Preference Shares as above-mentioned. 5/- on October Ist, 1929. 5/- on January Ist, 1930. ever, be proportionate during the current financial ycur of the Company only to the. period unexpired at the time of allotment. (b) To priority over the Ordinary Shares in the distribution of assets on a winding up. (c) Upon repayment of nil capital subscribed to share pro rata in the distribution of nil surplus assets on the same basis and in the same ratio as for the distribution of profits. pro rata in accordance with the amounts paid up on distribution after payment of £lO% per annum on the Facts About Fur. There is on enormous, ever-grow-ing demand for fur and n ready sale for all that can be produced. About eighty-five per cent, of all fur used commercially is Rabbit. Tho Chinchilla Rabbit Is the finest nll-round fur producer in existence to-day, Tho fur of the Chinchilla Rabbit is worn by some of the best-dre3scd women in tho world. Tho Rabbit was worth to France, last year, twice as much as New Zealand realised from its dairy export. New Zealand is an ideal country for fur production. Board of Directors: , LEO ROY HEY WOOD. ESQ. (Managing Director of the Company under its original name, The Industrial Rabbit Breeders' Co-operative Association Ltd.), . of Auckland. Company Manager, Chairman. EDWARD FITZGERALD, ESQ. (Director 1.R.8.C.A. Ltd.). of Auckland, Retired Farmer. Li'LY MATILDA GARNER (Late Manageress Royal Angora Wool Farm, Surrey, England), of Greenwood Road, Mangerc, Industrial Rabbit Specialist. Solicitors: MESSRS. EARL, KENT. MASSEY A: NORTHCROFT, Solicitors, of Swanson Street, Auckland. t Bankers: THE COMMERCIAL BANK OF AUSTRALIA, LTD.. Queen Street, Auckland. Auditors: MESSRS. SEAMAN «c SHOVE. Public Accountants, of Wyndham Street, Auckland. Official Agents for the Company: MESSRS. HATHAWAY & COMPANY, IS'ew Zealand Insurance Buildings, Queen Street, Auckland. Secretary and Registered Office: E. FITZGERALD, 212/13, Southern Cross Buildings, Chancery Street, Auckland. Other than a maximum of 500 Preference Shares, which may be issued as hereinafter set out, no shares have been nor will be allotted otherwise than for cash. FOREWORD. The Company has already proved its ability to seize a promising opportunity and has established a successful record. Formed in October, 1928, it met, with immediate and continued success, tho audited figures for the Urst half-year showing a balance to the credit of profit and loss account ot £ll2O/0/3. Tho estimated profit for the first twelve months of working is £2300, or sufficient to pay the preferential Interest on the whole of the present issue of shares moro than twice over without tho now capital being called upon to earn a penny. Iu presenting the figures which demonstrate the remarkable success and progress of Ihe undertaking, the Directors feel confident in asking tho public for Ihc further capital which is required for expansion. Sales of stud slock lo May 31st, 1929, aggregate £2iOO for seveu months' trading. OBJECTS OF THE COMPANY. The objects of the Company are fully set out in tho Memorandum of Association. The principal object of tho Company in the widening of its present scope is lo farm Chinchilla Habbits for their valuable polls and carcases. The Company proposes to establish in New Zealand a chain or fur-producing farms similar to the highly-successful undertakings already well established in England and America. The returns fop 1928 of wild rabbit skins exported from tho Dominion place the annual value at the surprising figure of £582,000. Had tho wild rabbit pelts Included In those returns been replaced by an equal number of firstgrado Chinchilla rabbit pelts tho export would have yielded approximately £6,000,000 and it would havo cost relatively little moro to produco It is perhaps not going too far to suggest that this industry could be made to mean as much to New Zealand as dairying or sheepfarming. GENERAL. There are few, if any, openings for the investment of capital which snow so substantial a return ou a small outlay as farming Chinchilla Rabbits for their fur and carcases. From a commercial point of view the future of fur farming appears Ic, bo secure. There is an ever-increasing demand for skins at pood prices, while wild fur-producing animals arc becoming more and more scarce. Natural Chinchilla Fur now commands a fabulous price and is, in fact, almost unobtainable. Of late years the rabbit has supplied an everincreasing proportion of commercial fur and Has steadily improved in value. The new breeds of rabbits produced by carcfu. selective line breeding are many ofUiemvery beautiful in the natural state. This applies particularly to tho Chinchilla Rabbit, which produces a beautiful fur closely resembling the natural Chinchilla, being silky and soft In texture and remarkably dense. In colour it is tho true Chinchilla 41 blue," wjilch cannot be imitated by the dyer. Grey fur, although much in demand, is extremely rare in the natural state, squirrel and the Chinchillu rabbit being the only two real sources of supply To quote on English authority: Pelts of the real Chinchilla can only be purchased by the vcry rich. However, the beautifully soft colouring and the delicate texture of the fur is very n™rly approached by the fur of the C/dac/iMta rabbiL To-day garments made from Chinchilla rabbit pclU aro worn bv some of the best-dressed women in the world and IT TAKES TIIE CLOSE INSPECTION OP AN EXPERT TO DISTINGUISH THEM FROM Her<?, then, is the strength of the Chinchilla rab~ bit industry. No other rabbit has this powerful attribute for success." . Owing to the closo resemblance to the real Chinchilla, tho pelts are holding their price in Ihe world's markets, and at the present time are placed at tho top of the list of quotations for rabbit pelts of all classes. The Fur Board, Limited, an English corporation, during January of this year was advancing as much us 10/0 per pelt against first-grade Chinchilla rabbit pelts sent in to them for disposal. An advance of this amount indicates a firm market at a figure well ahead of that taken as a basis for estimates in this Prospectus. The Company intends by careful initial and future selection to produce only such high-grade pelts as are at present fetching top prices in the world s markots. There is a wide difference in the prices obtained, but, whereas the lowest price for firstgrade pelts is placed at 12/8, it will be seen that for tho purpose of this Prospectus the price upon whloh estimates of Income has been based has been taken as low as 6/8 per skin. Ignoring the valuable carcase, which weighs from 4-slb. upwards and gives a fine white meat resembling chicken, it can be shown that a very handsome profit could bo made from skins alone based on the above exlremely low figure. To quote again references to the ease with which Chinchilla pelts can be marketed: " There is no need to hawk or advertise the produce when furriers arc clamouring for tens of thousands more of the best British-grown article than present producers can ever hope to supply." " The market door gapes wide to welcome ANY NUMBER OF GOOD PELTS AT ASSURED PRICES." PRODUCTION. Tho full production of the plant at present under contemplation is estimated at 30,000 mature pells per annum. Apart from tho sale of these pelts the (Jpmpany will dei'ivo its income:— (1) By the continuation and expansion of its existing business, viz., the supply of valuable stud stock. „„„„„ (2) By the sale of carcases—these aro of exceptional size and quality and may b£ expected to fetch considerably more per lb. than the carcase of tho wild rabbit. PROPOSED application of the proceeds of P ROPOb THE NEW CAPITAL ISSUE. £ 3. d. Land Estimated .. • • •• i < ooo 0 0 (Mortgago liability SI,500). Dwelling House for Manager .. sno 0 o Additional Rabbits ror Foundation Stock »• •• •• *>ooo o o Wire Netted Enclosures .. .. 210 0 0 Accommodation for breeding and Shelters Tor- Growing Stock Truek" rSt UnU3; .. 200 -0 0 Farm Implements, Cow 3, etc. 200 0 o Legal Expenses "l f , Brokerage, 5 p.c. on f,0,500 ;'?•> 0 0 Advertising", etc. 0 " '4,815 0 0 Working Expenses for the next months are estimated at •• 3,500 0 0 The operations of the Company to 30th April last (being tho first six months of working, including preliminaries) are shown in the Profit and Loss Account and Balance Sheet, as audited by the Company's auditors and detailed in the full prospectus. The period discloses a credit of £ll2O/6/3 in the Profit and Loss Account. Seven months' sales of Stud Stock made by tho Company reach the satisfactory total of £2400. RETURNS FOR THE PERIOD (FIFTEEN MONTHS) ARE ESTIMATED TO PRODUCE A PROFIT OF £3958/6/8. Taking into account the period covering tho calls, this balance Is sumccnt to pay tho interoat or 10% on tho whole of tho present issue of Preferred Ordinary Shares moro than thrco and a-half times over. In arriving at the estimates submitted it must be borne In mind that both pelts and carcases have been taken on a basis of one-half (or even less)of tho pricos obtaining at tho prooont time both in England and America. Having this In view, It will be realised not only that tho Company is building on a safely conservative foundation but that If prices remain at anywhero near their present level, tho margin or profit mado by l;ho Company -will be very considerably greater than is. hero indicated. ESTIMATES FOR FIRST FULL WORKING SEASON. The balance for the' first full working year, based on an cffectlvo capitalisation of £IO,OOO, and arter ■writing olf hair the preliminary expenses, is estimated at £10,005. This balanco would moot the preferential dividend of 10% on tho whole of the present issuo of Preferred Ordinary Shares 10 times over. Tho participation In further profits artor receiving a dividend of 10% makes these shares a particularly attractive investment. The Issuo of participating preforenco shares Is limitod to £15,000, so that no matter how groat may bo tho expansion of this Company's profits thoao 15,000 sharea will retain thoir right to divide pro rata one quartor of tho divisible balanco of all such profits. PRODUCTION — £ s 30,000 Mature Pelts, at 0/8 10,000 0 0 Immature Pelts .. •• '>j>oo !} !' 1 oi).OOOlbs. Carcases, at Id per lb. v,r,00 o o sale of Stud Stock, etc -'.&00 0 0 WORKING EXPENDITURE Labour •• •• 0 ' General Salaries, eti;. 050 0 ( Extra Feed (Cereal) SSO o Seeds, Manure, etc. 2">o o i Renewals, Depreciation r»oo 0 i Legal and General .. 150 o < Freight and Marketing 100 0 < Interest, Rates, Insurance, etc. . . . . I sr, 0 l Advertising and Sundries <iuo 0 i Preliminary Expenses Account .. 503 0 0 £10,500 0 0 £ s. d. 2,2.">0 O O yr.o o o SSO 0 0 25 0 O o r.no o o 150 0 II •100 0 0 £10,005 0 0 APPLICATION FOR SHARES. Application for Shines should be made on the form accompanying this Prospectus, ;ind may he lodged with the Cornpuny's organising agents, with any licensed sharebroker. or with the Secretary of the Company, toother with the amount per share payable on application. A COPY OF THE FULL PROSPECTUS WILL BE SENT ON APPLICATION TO THE SECRETARY. FORM OF APPLICATION FOR PREFERENCE SHARES. To tho Directors, FUR FARMS LIMITED, C/o Messrs. Ilnth,iway ft Co., Ntw Zealand Insurance Buildings, Queen Street, AUCKLAND. I HEREBY APPLY for Preference Shares in the abovenamed Company upon thei terms of the Prospectus dated the sixth day of July. 1929, AND 1 HEREBY AGREE to accept the same or any lesser number that may be allotted to inc. I enclose herewith the sum of £ being the amount of 5/P er share, payable on application. AND 1 AGREE to pay a further sum of 5/- per share on allotment, and the balance in tvo amounts of 5/each on October Ist, and DATED this Name in fu11....^. Occupation. Address January ls»t, 1930, respectively, • t,n y of 1929. Ordinary Signature Points for Investors. Tho Company has already proved lis ability to seize a promising opportunity and has established a successful record. The present issue of Preferenco Shares will be dividend-earning from the time of tho first payment The Preference Shares are entitled to 10 r /o per annum (cumulative) befor,n any dividend is payable on the Ordinary Shurcs. The entimated profit for the current year would he sufficient to pay the Preference Dividend on the whole of the present issue twice over •without any earnings from the employment of fhe new capital. The total Issuo of these Preference Shares Is limited to £15,000. These shares will divide pro rata one-quar-ter of all surplus profits Irrespective of the Company's growth. Such estimated surplus for the first full working year would mnl;o the Preference Shares n 25% Investment. FUR FARMS Ltd. Prospects. Apart from iho existing farm aL ."Mangerc, the Directors have :t ntimJjer of suitable properties in view which have been carefully examined anil reported upon. Each unit in the chain of farms should bo capable of producing 30,000 pelts per annum. Indications from the work already carried ouL by Ihe Company leave no doubt that the Chinchilla will thrive in the Dominion. Quality of Slock, Tho Directors have left no slono unturned in their endeavour lo secure the 11 in'.st foundation slock. Miss Carner, Ihe expert who gave up a leading position in England to take charge of the breeding operations on the Company's farm, has been in the fur and wool rabbit industry almost from its start in England. Together with the Company's representative she spent two months in the careful selection of every rabbit shipped, with the result that the Company iiiis outdistanced ils competitors and is regarded as the soundest source of supply in the Dominion to-day. Amongst other advantages Ihe sole agency iias been secured for Lady Victoria Percy's famous Norihfleid Chinchiillas, which stand alone for uniform excellence of pelt, markings and texture of fur and for suitability to Dominion conditions. Disposal of Carcases. Negotiations have been opened with the Oalcdale liacon Company, Limited, for the handling and disposal of carcases. Mr. William Cray, I lie Managing Director of that Company, is satislled that <id per lb. overall is a minimum liguro upon which it is quite safe to work and is confident that a higher price than this will be forthcoming when the market settles down. Latest London quotations (wholesale) are: Ostend Rabbit —lid per lb. English Rabbit—Bd, 9d per lb. The American price (retail) for selected carcases is as high as 2/per lb. Cultivated rabbit is extremely high In l'ood value and excellent in llavour and texture. The local market is expected quickly to appreciate this cheap addition to the meat larder. Apart from the local market, export and canning offer an outlet for carcases. The rabbits will bo farmed strictly In accordance with tho Government's regulations relative to the rabbit Industry in tho Dominion. It has been estimated from average yield weights of greeu feed, etc., obtained from the class of land which has been selected as best for the purposes of the Company, that 10 acres will feed 3000 to 4000 rabbits for pelt production per annum. At the outset it is proposed to put 100 acres under intensive cultivation. PARTICULARS REQUIRED BY THE COMPANIES ACT, 1003. 1. A copy or ihe Memorandum of Association, together with the names, addresses and descriptions or tho signatories and the number of shares subscribed for by them respectively, will bo found printed at the end hereof and l'ornis part of this prospectus. Tho shares subscribed in the Memorandum of Association aro all contributing shares. 2. Tho amount payable as commission for subscribing or agreeing to subscribe or procuring or agreeing to procure subscriptions for any shares in tho Company 1* 5 per cent, on Iho nominal value of such shares. 3. By tho Articles of Association of tho Company it is provided::—: (a) No person shall bo eligible for the olllco or Director unless ho holds a minimum or 40 rully paid up Ordinary Shares In thu Company. (b) Any person holding 400 or more rally paid up Ordinary Shares shall bo entitled to hold the oillcc of Director. (c) Tho Directors shall bo paid out of tho funds of tho Company, by way of remuneratlou lor their services, such sum or sums as tho Company may from time to time fix at a general meeting, and such remuneration shall bo divided amongst them In such proportions and manner as the Directors may determine. (d) Tho Directors may Trom time to tlmo appoint onu or ruoro or their body or any other person to ho a Managing Director or Directors either Tor a fixed term or otherwise, and may fix his or their remuneration either by way or salary or commission or both by giving a right to participate In tho profits of the company or h.v a combination of two or moro of these methods. •i. Tho minimum subscription upon which tho Directors could proceed to allotment on formation or tho Company was 2020 shares, and these were subscribed for In tho Memorandum of Association. A total or 2458 Ordinary Shares havo been subscribed for and all aro fully paid. In addition to the capital available to tho Company as the result or tho subscription or shares tho Company obtained certain capital by tho issue of Bonds or a nominal valuo of £5 each redeemablo ror tho most part by the supply or rabbits, tho basis being two rabbits for each Bond. Tho maximum number of Bonds which might be issued was restricted by resolution to 500 out or tho total nominal issue or 2000. Tho Company's outstanding liability as at the 30th April, 1920, for Bonds then Issued had, as shown by tho statement or accounts abovo set forth, boon reduced by such dnto to £llOO/15/10. Somo further Bonds have slnco been taken up. 5. Tho only shares which aro botng Issued as fully or partly paid otherwise than ror cash are such number not exceeding 500 Prererence Shares as may be allotted to Edward Fitzgerald Tor services rendered and to be rendered In terms or tho Agreement rererred to In the next succeeding clauso horcof. . 0. Tho material contracts arc:— <l) Agreement dated tho 3lst day or May, 1020. mado between the Industrial Rabbit Breeders' Cooperative Association, Limited, or the ono part and Edward Fitzgerald of tho other part. (2) bonds of tho nominal value of £5 each as above-mentioned. (3) Deed of Trust bearing date the 18th day or October, 1028, made between Leo Roy lleywood, Edward Fitzgerald and Francis James Quick, as Trustees ror the Company then about to bo formed, and Alexander I'otherlnghain. and Herbert .Tenner Wily or tho other part, affecting the said Bond Issue. Copies or tho said documents and of the Memorandum and Articles or Association of tho Company may be inspected at tho olTlnes of tho Company's Solicitors at any time during Business hours. 7. The preliminary expenses (exclusive. or brokerage and advertising) or and Incidental to the promotion and establishment of the Company and until it, commenced business amounted to £ll4/18/1 and were borne by it. s. Of tho Directors of the Company the said Edward Fitzgerald Is Interested in the proposed Issue to tho extent or the preferenco Shares (not exceeding r.on) that may bo Issued to him in terms of tho said Agreement of Hie 31st day or May, 1020. The said Edward Fitzgerald also has the right under the said Agreement to acnulro at par at any time prior to the 30th day or June, 1030, a certain number to bo determined as therein provided but not exceeding 1185 Ordinary Shares In the capital or tho said Company. DATED at Auckland this sixth day or July, 1020. L. ROY IIEYWOOD. E. FITZGERALD. L. M. GARNER. Early Application is Advisable. FURTHER FINANCIAL, ADVERTISING APPEARS ON PAPR