Page 2 Advertisements Column 3

Timaru Herald, Volume CXXV, Issue 18651, 21 August 1930, Page 2

TIMBERLANDS WOODPULP LTD. (Extract from The Merchants and Traders “ Weekly Trade Report” (Sydney), June 30, 1930). This Company was incorporated in New South Wales with a Nominal Capital of £IOO,OOO. and has a Subscribed Capital of £90,000. Our readers should note that the control of the Company is in the hands of a Board of Management comprising well-known insurance, banking and legal interests, the Board consisting of— Theo J. Marks (Chairman). E. Trevor Gould (General Manager of the British Traders Insurance Co., Ltd. and Union Insurance Society of Canton Ltd.) O. Morrice Williams (late General Manager of the London Bank of Australia), And Messrs A. C. Willis and C. A. Copeland—whilst the New Zealand Management is controlled by A. Kernot, of the Norwich Union Life, and Henry A. Horrocks, a well-known New Zealand Solicitor, in addition to which the Company has retained as Director of Technical Operations, H. H. Corbin, B.Sc. London, B.Sc. Edinburgh, Professor of Forestry, New Zealand University, and at one time Consulting Forester to the Government of South Australia. A very satisfactory feature of the Management Personnel is that the qualification of a Director is the holding of not less than 3,000 £1 Contributing Shares. The Company’s programme embraces the erection of a Pulp Mill with an annual output of 100,000 tons of highgrade chemical woodpulp for export. In this respect the Company would appear to be assured of a highly profitable market for its products, insomuch as England and America are already, between them, annually importing over 3,000,000 tons of chemical woodpulp, at an average price of £ls per ton. The Company will then have its own supplies of raw material, i.e., pulpwood, and expects to be in active production in 7 years’ time. On the statements furnished, the Company is apparently favoured to the extent of at least £4 per ton under the heading of production costs, as compared with pulping corporations in the Northern Hemisphere, and with the proposed output of margin under this heading alone, which amounts to £400,000 sterling per annum, is more than sufficient to pay for a very satisfactory dividend on the development capital. Owing to development operations being financed by a Bond Issue, there would appear to be further substantial savings in taxation, which, together with the ordinary trade margin of profit, indicates a probability of the Company being able to distribute annually approximately £BOO,OOO sterling to its Bondholders by way of dividends. The Bond Issue is restricted to 40,000 Profit-Sharing Secured Bonds, and we understand from the Company’s Brokers (Commonwealth Underwriters Ltd.) that over half of this Bond limited number of Bonds are available to investors. Out of the Bond moneys subscribed £500,000 sterling is being reserved to finance the capital cost of the Pulp Mill, and, until required for this purpose, is being placed on deposit with the Public Trustee of New South Wales. The prospectus gives a great deal of valuable information, and the figures contained therein have been carefully checked by several leading firms of public accountants, and the project carries their certificate to this effect. It is not the policy of this paper to recommend any particular investment, however sound it may appear to be, but the general comment may be made that the programme appears to be economically sound, with adequate initial Share Capital behind it, and with every prospect of fulfilment. The investment being sponsored by such an able Board of Directors should appeal to those who are prepared to make available a portion of their capital during the development period.