RUBBER COMPANIES PAY ENORMOUS DIVIDENDS.

Otago Daily Times, Issue 18325, 16 August 1921, Page 5

RUBBER COMPANIES PAY ENORMOUS DIVIDENDS.

THE PROSPECTS FOR PAPUAN PRODUCTS. Rubber companies have been known to pay as much as 300 per cent, to 400 per cent, dividends—in fact, it was not at all uncommon just prior to the war. At that time rubber was fetching 3a per lb, and upwards. During the war, however, the rubber market went to pieces, and has not yet recovered. There is very little question that to-day rubber has reached the bottom market price, and from now on is bound to climb steadily in value. The increasing use of rubber in countless forms—chief among which is tyres, of course—without a corresponding increase in production of the raw material can have but one effect.

This is why the Papuan Products Company, Ltd., can afford to pay as high as 10 per cent, for First Mortgage Debentures. Trading concerns that can look forward to only ordinary trading profits would find it difficult to face such a high rate of interest for fully secured debentures. It is interesting to study the steady growth and development of the Papuan Produpts plantation (which, by the way, is situated in British territory),' and a most detailed examination will furnish convincing proof of very rosy prospects for the future.

The issue of £12,000 is registered as a first mortgage over the whole of the company’s property and assets, valued at between £55,000 and £60.000. The security is therefore approximately £5 for every £1 invested. The Board of Directors consists of well-known Christchurch business men, among them Messrs G. T. Booth (chairman). Walter Hill. W. S. Godfrey. W. T. Robinson. A. M. Wright, and B. M. Moorhonse. M.B.

A limited number of Papuan Products 10 per cent. First Mortgage Debentures, free of income tax. are now available to the public, but early nnnlication is advised. Prospectuses and application forms may be obtained from any member of the Dunedin Stock Exchange or from tbe Pnp”an Products Comnanv. Ltd., Royal Exchange Buildings, Christchurch.—Advt.