Page 7 Advertisements Column 1

New Zealand Herald, Volume LXVII, Issue 20596, 21 June 1930, Page 7

♦ Corporation Limited (Incorporated in New Zealand under the Companies Act, 1908.) Dated the Ninth day of May, 1930. (Copy filed with the Registrar of Companies at Auckland the Ninth day of May, 1930.) DIRECTORS: Frank Famswortn Foord, Managing Director, Auckland. Woolnocga Window Co. Ltd., and Metal Sprayers Ltd. James Alexander Pond, F.C.S., Analyst, Auckland. Formerly Government Analyst for Auckland District. John Edwin Ray, Barrister and Solicitor, AucklandSOLICITORS Rav 5c Olichant, 10 High Street, Auckland. SECRETARY D. G. Talbot, 10, High Street. Auckland. BROKERS: Tung Oil Sales Limited, P.O. Box 823, Auckland. Telegrachic and Cable Cede: " TUN'GSALE," Auckland.' REGISTERED OFFICE: 10, High Street. Auckland, N.Z. Wellington: O. A. Moller, Esq., Bos 702. Board of Trustees for Bondholders: William John Holdsworth, Warehouseman. Auckland. Roy Alstan Lippincott, F.N.Z.1.A., Reg. Architect, Auckland. James Preston Stevenson, J.P.. Managing Director, Auckland. WLittonie, Stevenscn Co., Ltd. First Issue of 10,000 Bonds of £25 each Terms of Issue: —£5 with application, £2/10/- in one month, 10/- each succeeding month until £25 in all is paid. Or Cash £23/10/Unique and Profitable Primary Industry for New Zealand SOUND YEARLY RETURNS TUNG OH. The Tung Oil Tree is a quick grower and a prolific producer, seldom exceeding 25 ft. in height, with many lateral branches. It begins to bear at the fourth or fifth year from the planting of the seed, and reaches maturity at the eighth to tenth year, continuing to bear profitably for a known period ot 30 years. Its fruit is apple-like, but hard-skinned, and each fruit contains from three to five large seeds, which somewhat resemble shelled brazil nuts. These seeds have a ,very high oil-content, which with modern machinery is readily extracted. The tree requires very little attention after the fourth or fifth year, and there is no known disease of either the tree or fruit, as the oily proclivity of the trees appears to repel parasites. The tree originally came from China, and can be grown in only specially suitable areas. Certain climatic conditions have narrowed down the regions where it can be grown to such an extent that China is the only country in the world where it is growing on a large scale. For this reason China controls the world markets for 1 ung Oil, and it is worth many millions to her annually. By private experiments in the northern parts of New Zealand, extending over a period of years., it has been definitely ascertained that the Tung Oil tree grows remarkably well, yielding very large and sound fruit of high oilcontent. To-day, in New Zealand, at Kaukapakapa, the N.Z. Tung Oil Corporation has over 60,000 healthy young Tung Oil trees actually growing on its property. USES.—Tung Oil is used extensively in the manufacture of firstgrade paints and varnishes, waterproofings, oilcloths, lacquers and car finishes, artificial leathers, brake-linings, medical preparations, electrical insulations, etc. America alone imports about $20,000,000 of lung Oil from China annually. By-Products.—There is no part of the fruit which is wasted, and the directors are informed and anticipate confidently that the returns derived from the sale of these by-products will more than cover the actual cost of collecting and refining. The chief by-product, ammonia, together with the hulls, has considerable value as fertiliser. .Markets.—The world demand for Tung Oil far exceeds the supply. It is known that with new supplies made available new uses will be made'of it and a greater demand set up. There is already a huge world market awaiting new sources of supply. Eminent British and American authorities state that it will be generations before the demand can ever be met. THERE IS A WONDERFUL OPPORTUNITY TO-DAY FOR NEW ZEALAND TO TAKE A PROMINENT PLACE IN THE PROFITABLE WORLD MARKETS. CORPORATION'S CONTRACT. The N.Z. Tung Oil Corporation, Ltd., contracts to plant with Tung Oil trees a net area equalling one-half acre for each Bond sold Drier to the closing of this issue, to tend, cultivate and fertilise the area so planted for a period of five years from planting, under properly qualified experts, and to transfer the freehold of the land, free from all mortgages and other charges, to the Trustees, tor the Bondholders not later than the 31st of December, 1936. By that time it is anticipated that the trees will be well esablished and in production. The Corporation will replace any trees which may have fallen off or died during this period. The Corporation must, at its own expense, purchase and erect a modern crushing and refining plant to handle the produce from the plantations and to prepare and refine the oil therefrom, at such time as in the opinion of the Trustees tor the Bondholders the areas planted under this issue shall be producing nuts in commercial quantities. For a period of two years from the date so fixed the Company will gather and harvest the crop, operate the plants, and arrange for the sale of the oil and other products. 90 %at least per average halfacre of these returns shall be returned to the Bondholder in respect of each £23 Bond. The Trustees for the Bondholder will" at all times represent him and guard his interests. With them will be established a Trust Fund of £3/10/- in respect of each £23 Bond to enable them to see that the Corporation fully carries out its contract to the Bondholders. W hen the two years have expired, the Bondholders, through ballot with the Trustees, may decide whether they will take over the refining plant and run it through their Trustees as a separate Company, or whether they will allow the present Corporation to continue operations on mutually agreeable terms. This is a unique option that ensures the Bondholder getting the ultimate value for his money. It safeguards him in every way. In addition, the Board of Trustees for the Bondholder will make careful and periodical visits to the Corporation's plantations and report upon these to the Bondholders. In addition, and a most important point, the Board has been given ample powers to employ such experts as in its opinion may be deemed necessary to assist the Board in the performance of its obligations to the Bondholders, not only in relation to the planting and the tending of the areas in trees, but also in regard to the control, management and operation of the refinery and sale of the oil and other products. THE BONDHOLDER MAY AT ALL TIMES REST ASSURED THAT HIS INTERESTS ARE ABSOLUTELY SAFEGUARDED BY A BOARD OF RESPONSIBLE TRUSTEES WITH EXTREMELY WIDE POWERS. FROM THE BONDHOLDER'S VIEWPOINT. SOUND PROFITS. Freedom from worry is the keynote of the Bondholder's investment. The £25 that he pays in covers everything, and by its contract the main obligations of erecting a refining and crushing plant, and arranging the sale of the oil, devolves upon the Corporation itself. At least 90 fc of the returns per net average half-acre per £25 Bond must be returned to the Bondholder for two years, so the Bondholder's profit will be limited only by the price obtained for the refined oil. This is a point that should be clearly borne in mind. The by-products, as already shown, should largely cover all overhead costs. t' After this period the Bondholder, by postal ballot or by proxy, will decide whether he will, through his Trustees, take over the whole concern, or whether he Will allow the Corporation to continue operations as at present on similar terms, as they are prepared to do so by the terms of their Contract. The exceedingly rapid growth of the Tung Oil trees make the time of waiting for a first return remarkably short- From four to five years at the utmost should see the first return, and by eight to ten years the maximum will have been reached, after which the returns will continue to come in, as explained, virtually perpetually. Based on authenticated figures from American and British authorities, the returns from an acre of mature Tung Oil trees should be between £SO and £6O. This represents an annual return to the holder of a £25 Bond of from £25 to £3O annually after the trees reach maturity in the eighth to tenth year, and from the fourth to fifth year the returns will start to come in. This New Zealand venture has already attracted large attention from interested overseas firms, and the Directors state definitely and with the fullest confidence that the market for New Zealand Oil should be an extremely ready and favourable one. Points to Consider.—-The investment is based on a staple commodity of which there is a world shortage that is likely to continue for a long period. The security offered in the shape of improved freehold land, together with the amount of £5/10/- held in reserve in respect of each £25 Bond, is unique for this class of investment. The terms for the purchasing of the £25 Bonds place them within the reach of all. By the time the last payment has been made the trees should be coming into production. The rate of return is over three times the rate of paying out. The large annua! return make the possibilities of this investment almost boundless. The Directors have the fullest confidence in the value of the investment to the Bondholders, and they urge and invite the fullest inquiries. The Possibilities of the onderful Tung Oil Industry Both from the point of view of world markets and returns to the investor, the venture should be extremely sound and profitable. With the utmost confidence the Directors invite every inquiry. Copies of the Prospectus and all information may be obtained at the Registered • Office, 10, High Street. With only 5 YEARS to wait for the S'WHraiiitfiwmmMumnjmmiiwiMiMtninimiiumiMmimimiiuniimiiiitO NATIONAL S ii.iiiimmiiiHimsiinisimiiwmtiKmmmwmmtiflmmiaiiWflmw