Page 11 Advertisements Column 2

Timaru Herald, Volume CXLVI, Issue 21360, 1 June 1939, Page 11

A copy of the Prospecfu? referred to Tn this advertisement has been filed with the Registrar of Companies at Wellington, for registration on the 25th day of May, 1959 A copy of this advertisement has been filed with the Registrar of Companies at Wellington on the 30th day of May, 1939. Issue at Par £200,000 51% First Mortgage Debenture Stock THE WHAKATANE PAPER MILLS LTD. (Incorporated in New South Wales.) Already, £68,000 of this attractive issue has been subscribed for in cash and allotted to existing Shareholders of the Company, £15,000 is being held in reserve for later issue, leaving a balance of £117,000 available for the investing public. Now Offered for Public Subscription at Par £117,000 Debenture Stock REPAYABLE IN AUSTRALIA The Company was incorporated on the 4th day of August, 1925, board of directors. Banker,. , . i UNION BANK OF AUSTRALIA, LIMITED, under the provisions of the Companies Act of New South Wales. Chairman: THEO J. MARKS, Messrs. Robertson and Marks. Architects, Sydney. . 1#“. . , g AA A Managing Director: H. A. HORROCKS, Whakatane. MESSRS. CAMPBELL, CAMPBELL, of Sydney Authorised Capital - £2,504,444 SecreUrT: J. W. WRIGHT, Chartered Accountant, Sydney. Subscribed Capital - £2,092,162 DIRECTORS : Registered Office: ■ ’ ’ E. T. GOULD, Retired, late General Manager British Traders’ Insurance Co., Ltd., Q.N. BANK CHAMBERS, 27 Hunter Street, Sydney. Paid-up Capital - - £2,045,208 H. H. CORBIN, B.Sc., Ag. Edin., B.Sc., Lend., B.Sc., Adel., Auckland Whakatane, New Zealand. S. J. FORTESCUE, Accountant, Otorohanga. Organizing Brokers: C. A. COPELAND, Manufacturer, Sydney. PHILIP PItING AND CO., Member of Sydney Stock Exchange. G. S. CRIMP, Public Accountant, Wellington. OBJECT OF ISSUE.— The object of this Issue of Debenture Stock is partly to c . E KERE> Grazier , Timaru. i. T» D ().« of fhn Cnmnnnv am consolidate the Company’s secured liabilities and partly to provide additional funds nrorcnv c<■ ik ASSET BACKING.— It uill be noted that it the assets or the Company are for working capital Raines w. s. DICKSON, Solicitor, Melbourne. taken at valuation, the asset backing of this Debenture Issue is £7/10/-to £l. C. O. GIBBS. Sawmiller, Auckland. jf, on the other hand, the assets are valued on minimum basis—at cost TERMS OF ISSUE.— T. B. Anderson, Farmer, Stratford. (excluding capital appreciation of the Plantations due to growth)—the back(a) The Debenture Stock now offered for subscription will be issued in denomina- J. a. INGRAM, Managing Director J. G, Ingram and Co., Ltd., Nelson. ing is £4 to £l. lions of Five Bounds or multiples thereof, and will be payable as follows „„„„„ £2/10/- per each £5 of Debenture Stock on application and the SUMMARY OF IMPORTANT FEATURES OF ISSUE—balance within 14 days of allotment. Allotment moneys not paid within (1) Investment at par in a sound 5J per cent First Mortgage Debenture Stock, the period fixed will be charged interest at the rate of £0 per cent, per ™ t ehnr ™ on nlI t he Company’s specified assets except the free- repayable in Australian Currency. annum. Failure to pay. any instalment at the date when it becomes due and mnehinw at WbaEe, wd.fch are a prior security for the < 2 > Secnrily of Capital with sound ° f will render all previous instalments liable to forfeiture subject to oO dajs London Gr0 * up of Debenture-Holders, hereinafter referred to, amounting to £55,806 ~, 1 ' h of Tn com? nlvSle hlff-vearlr in Australian ....registered PbsL . sterling (equivalent to £70,000 in Australian currency). As, however. £70,000 of (3) re » u^ 0 income, paya e a year yin us ra lan (b) INTEREST at the rate ot £oj per centum per annum will accrue rom t j Debenture Stock now offered is being reserved for the purpose of redeeming the , 4 v Pw-tioinnHnn in n Crwl Notional Industry with potential develoomenL date the Debentures are paid for in full, and will be paid half-yearly on the Debentures issued to the London Group, the Debenture Stock now offered will then ? 113 * Industry with lar o e potential development, last day of the in n i jiLs of March and September in each year. also constitute a first charge on the freeholds of the Mill Site, plant and machinery nlimtinn will Hp m<idp a* won as practicable to the Australasian Stock Ex(c) DEBENTURE CERTIFICATES will be issued for fully paid stock. ( . yviriHt-inc Application will be made as soon as practicame to tne Australasian olock isx(d) DEBENTURE-HOLDERS may, at any time prior to the 30th day of Sep- y. lve a ‘ s ‘ ab ‘ ov< ; tlle Company is not at liberty to create any mortgage or charge chan^s for official Quotation of the Debenture Stock. tember, 1940, exchange their Debenture Stock for 7 per cent. Cumulative Bar- ranking in priority to or pari passu with the Debenture-Holders’ security. STATUTORY INFORMATION’.— The following further Statutory Information i( ticipating Preference Shares of a like amount at par. supplied:— (c) THE DEBENTURE STOCK is repayable on the 30th day of September, 19-13, ALLOTMENT TO NON-SHAKEHOLDERS.— No allotments will be made to non- 1. There are no founders, or management, or deferred shares in the capital of the provided, however, the Company may redeem the Stock at par at any earlier Shareholders of the Company until the minimum number of Debentures applied for Company. time after the 30th day of September, 1941, subject to 3 months’ notice. totals not less than £150,000, to the specific intent that upon such allotment to 2. The following shares have been issued by the Company during the two years pre(f) HALF-YEARLY INTEREST PAYMENTS as well as repayments of this non-Shareholders, repayment of the prior first mortgage debentures issued to the ceding the date hereof, namely, 29,915 ordinary shares of One Pound each issued Debenture Issue will be in Australian Currency. New Zealand Investors London Group is assured and the allottees secure inter-alia a first charge on the as fully paid to certain holders of the Company’s A and P> bonds in surrender for should note this advantage. freehold of the Mill site, plant and machinery at Wliakatane. such bonds. The following debentures and debenture stock have been issued withTo facilitate the investment of New Zealand funds in this essential Do- , in the two years preceding the date hereof for a consideration otherwise than in minion enterprise, the Company is, however, prepared to accept New Zealand AUDITORS’ REPORI— cash, namely:— currency for a limited amount of the Debenture Issue at par. The Managing Director, 22ud February, 1939. Five Debentures of varying amounts, totalling in the aggregate £55,806 (g) If no allotment is made, the deposit will be returned in full. In case the amount Whakatane Paper Mills Ltd.. (sterling), have been issued in payment of balances owing on plant, machinof Debenture Stock allotted is less than that applied for, the balance will be Queensland National Bank Chambers, pry and pulp acquired by the Company. applied in reduction of the amount payable on allotment. 27 Hunter Street, SYDNEY. £60,390 worth of debenture stock of the present issue has been issued by the .x.m ata iii i 11 i.o-i i. io"Q Dear Sir. Company as security for an aggregate amount of £23,491/10/- (Aust.) owing (h) TRUST DEED.—A copy of the Trust Deed dated the 10th diiy of the WHAKATANE PAPER MILLS LIMITED. by the Company for the purchase of additional plant and machinery, and together with the Company s Memorandum and Ai liclcs ot A. s< .it . . j )ave |- 0 r( >port that as the Mills of the Company were in course of construction cash advances. f £23 ’ 491/10/ -’ *° be Paid Minell and lioanld V. Frazee, Chartered Accountants (Aust.), 3. The names and addresses of the persons holdin. the above-mentioned Delwntnre. by way of interest applied in reduction of such general expenses. No accounts have and Debenture Stock and the amounts respectively owing to them (and which WHAKATANE WORKS. — The Company’s Pulp and Pape.r Mills at Whakatane been made up in respect of any part of the period since 30th Juno, UK'S. Particulars are to be discharged out of the proceeds of the present issue) are as under:— have taken two years to erect and equip, and over £500,900 has been expended (here- of each class of shares of the Company as at 30tli June, 1936, 1937 and 193 b were as £ on. These {Swedish works comprise one of the largest industrial units in the Dornin- follows. 4. (n) A. B. Karlstad Mekaniska Verkstad of Sweden .. .. •• 25,000 Stg. ion and are the last word in equipment and efficiency. They were planned by one Subseribed Capital ° * ' ' (L) Elof Hansson of Gotebnrg-Swedenlo,SOO „ of America’s foremost Pulp and Paper Mill Engineers in collaboration with the En- 1,488,970 Ordinary Shares £ s. d. 2G.000 7% Cumulative Pref- £ s. d. John Thompson Water Tube Boilers Limited of England .. 2,739 „ gineering Staff of the well-known Swedish firm of Pulp and Paper Machinery Manu- o p * eac ij f u n y ' ’ erence Shares of £1 ** * (d) Beiliss & Morcom Limited of England •• 7,267 „ facturers, the Karlstad Mekaniska Verkstad, by whom the plant was installed. , paid 1.488,970 0 0 each, fully paid .. 26,000 0 0 (e) Asea Electric Limited of Sweden •• 10,000 „ The Mill Superintendent, Air. E. Frastad, an expert from Sweden, has been brought 428,159 Ordinary Shares 102,128 7% Cumulative Pre- r ]'be above parties are previously referred to as to New Zealand by (lie Company, and other key men have been secured from Swed- of £ 1 each ference Shares of £1 “The London Group of Debenture-Holders.” £55,806 „ .sb, Uauadinu and American Mills. Y."‘.*? 2=1,722 18 5 2S,m 1 » (1) POWER. Electrical Power is generated by two Steam Turbines of 3300 h.p. 87,315 Ordinary Shares 371,872 7% Cumulative Pre- * th * • r • -a i c a i » * each. Steam is generated by two massive boilers, the steam being superheated of £1 each un- ference Shares of £1 J'; Asen Electric Limited of » weden 2,.>00 Aust, to a final tcmpinunre o£ 750 degrees Fahrenheit. each, uaallotted g 1 V? I'k-’ 5 ' Un - ' IV ” t2 ’ lutlr.nilli.'.n’gMhin trough mrv. .. .. Jii.i-jn.-.irj is 6 SttO.OOO Shares .. .. .. xit.Htt 1 3 (i') T.‘ J. Mark?&H. A. Ho°rro'ek S ofsydne/ 7,390 L’ a filtration plant, and is thus available tor lite requirements of the Mill. . (3) TRANSPORTATION. The Company has rail and water access to its works s l ,i ls ,. r ii l c ( | Cupitnt— °*' The Woi'k's".^ 1 most modern in every respect, and capalde of extensive production '.(''''r’l been paid or is payable for goodwill. No amount has been paid at economic cost. paid 1,050.253 0 0 '.tel luilv paid . 20,000 0 0 wt btn the two years preceding the date hereof, or is payable as comnnsston for . ... , , , • X- 1 273 176 Ordinirv Shires r->'loo 7-inn iil'ii ico Pre- subscribing or agreeing to subscribe, or procuring or agreeing to procure subscripREADY MARKET FOR OUTPUT.— Allhough the Mill has been in operation only ’ each . ” ference Shares of £1 tions for any shares in, or Debentures of the Company. The Company reserves since March of this year, the Company has substantial orders tor its products. Amount paid each. Amount paid the right to pay brokerage up to 5 per cent, on the nominal amount of any debenStalistirs show that over 16,000 tons of board products, to the value of over thereon 161,702 4 0 thereon 54,693 15 4 lures allotted where applications in respect thereof have been received from any £300,000 are imported annually into New Zealand. 80,713 ordinary Shares 330,700 7% (’uinulative Pre- person authorised to receive applications on behalf of the Company. AUSTRALIA AS A MARKET.— Australia imports annually approximately eaeh ’ un * f ;’*' *i ° f £1 No arnount has been T )ai(l within the two years preceding the date hereof, or is 10,000 tons of Paper Board (over £200,000) most of which is foreign, and the anoueu. eacu, unaiwuea. intended to be paid to any promoter. Company is favoured as an exporter Io the Commonwealth by preferential tariffs, . 2,n0t,111 Shares .. .. £1,811,955 4 6 50t),000 Shares £80,693 15 4 7. There are no material contracts. giving an advantage over foreign board of from £2/15/- to £6/16/8 per Lon. Already auditors of the Company are Messrs. Robertson, Crane * Gibbons, Chartered the Company has accepted orders for this market. 30th JUNE. 1938. Aecounlants (Aus.). 117 Pitt Street, Sydney, and for New Zealand records. . . . ... .... rz.ti nii.DD-i, ... i/.-v vw Subscribed CapUnl— J. IL Huddle. Esq., Public Accountant, Rotorua, New Zealand. COMPANY FAVOURED BY NEW ZEALAND IMI Ohl RESIKH I I()Nb. 1,829,404 ordinary Shares 108,762 7% Cumulative Pre- 9. No part of the proceeds of the issue is to be applied directly or indirectly in the U’he New Zealand Government Exchange Control and Import (Selection Regulations O f rj each, fully ference Shares of £1 purchase of any business are enabling the Company to enjoy a virtual monopoly of the domestic market, and paid 1,829,104 0 0 each, fully paid .. ..105,762 0 0 , p . .. . * ensu e a steady and increasing demand for its products. 107,931 Ordinary Shares 39,737 7% Cumulative Pre- 'he list of applications will be closed on 28th June. 1939. For ,ne final six months of 1939 overseas importations of board have been cut by ’J 1 ' £ 1 ea c h ference Shares of £1 FILM OF COMPANY’S OPERATIONS. —A film depicting the Company’s rz>gnearly 4000 tons, with a consequently increased demand for the Company’s pro- ii,."!.’!',! U 1 P :l 1 d JJ'’'- mun pai ging and Pulp and Paper-Making operations is being screened in Auckland, Welducts. 67,109 ” Shares' “ 351,501 I'? Cumulat'ive ' hngton, Christchurch and Dunedin. Admission tickets are procurable from any CAPACITY OF WORKS. — The plant has an annual manufacturing capacity of of tl each, un- ference Shares of £1 mem >er o e oc 'jxc ange. 20,000 tons of Paper Board and 12,000 tons of Ground Wood Pulp, must of theallotted. each, unallotted. un j ers jg ne( j t DO HEREBY CERTIFY that the above advertisement has latter being required by the Company for its Paper Boaid Mill. <, l)nj g|j, ires f , iss9 5 0 .$ IS 2 500000 Shares £l°7 869 6 2 Pen approved by Resolution of the Board of Directors of the Company (such ANTICIBATEI) SALES.— During Ihc coming twelve months the Company —— Board of Directors being the managing body thereof) on the 2flth day of May. 1939. anticipates making and selling 12,000 tons of Board, and thereafter it should PREFERENCE DIVIDEND in arrear to "Oth June. 1938. did not exceed £20.001) Signed by the Chairman and (Signed) hi* 'dde to snimlv Hie whole, of the Dominion’s requirements. Yours faithfully. two other Directors in the THEODORE J. MARKS ante ro suppo LUC wnmt «' ROBERTSON, CRANE & GIBBONS, presence of: by hi 8 authorised agent, G. S. CRIMP. EXCELLENT WOOD SUPPLlES.— Appreciating the suitability of New Zealand- Chartered Accountants (.Aust.), Chairman, grown Finns Insignia for pulp and paper-making purposes and the comparative Auditors to the Company. C O CIBTS cheapness of this principal raw material, when established under large-scale opera- . { ... ... f A ... , . . * (oign^il) J u o. lions, the Directors some 14 years ago embarked on a long-range programme of BROKERAGE.-A brokerage of 2J per cent will be paid on the nominal amount L. B BROWN n s CRIMP Directors, development work involving the acquisition of some 63,000 acres of virgin country ?£ any Delamtures allotted pursuant to applications beartng the stamp of any mcm- N Z Secretary. (Signed) G. S CRIMP, (freehold) and the establishment thereon of 50,000 acres of pulpwood forest at a ber of the Stock Exchanges of Australia and New Zealand. Dated this -Mb day of May. IJ3J. capital cost approximating £300,000. This work was completed by 1935 and the plantations in their now advanced stage are considerd to be worth over . ~ ■ „ —-—■■ - - £1,000,000. Within a few years these plantations will afford the Company a per- .v/’ir cnipipm nv manent supply of low cost wood sufficient to support an output of at least 150,000 BALANCE SHELL Or COMI ANY. tons of pulp per annum. Hereunder is a summarised statement of the assets and liabilities of the Company and its subsidiaries as shown by the Books at March 31st, 1939. The VAIjUER’S REPORT ON PLANTATION.— The Prospectus reproduces copy oi detailed Balance-Sheet, duly signed by the Company’s auditors, may be inspected at the Company’s Registered Office. a valuation report prepared in 1939 by Professor H. Hugh Corbin, B.Sc., Ag. Edin., r ,.. T1 . ASSETS B.Sc. Loud., B.Sc. Adel. The report stales that the total valuation of Pulpwood LIAbILLIIEb. *- • and Land is £1,104,100. and draws attention to the fact that insignis or radiata pine Capital—Paid Up 2,045,298 Plantation and Forest Properties at Valuation .. .. 1,06072 pulp wood is equalfo the world’s best pulp wood as a raw inateriai. Dcbpnture Stock— Pulp and Paper Mill—comprising Mill Site. Buildings and Plant— EARNING CAPACITY. — The Directors consider that the existing plant New' issue' 1 ° U Isi,ue ' ie,,oPmable ex new ,ssue •• •• *“57’167 Raiiwav—Awakerl-Whakatane—at cost 5 3t’562 should earn a nett profit of at least £5 a ton on its Paper Board output. Thus, 127.203 Logging Plant Machinery and Equipment (including £6870 development men on (lie initial sales estimated foe the first year of the Comimny’s opera- and PorMted Share * Rese " e I'. V. 7. 7. eVst “UXrVe't’ttJn -° D Bu ” <l,nes and anM lion—12,00(1 tons—there should be a total margin of over £60,000, or over Sundry Creditors— ” ” Stocks of Raw Materials—at cost 31.868 live times the sum required to meet the annual Debenture Interest, £ll,OOO. St-cured £27.104 Commonwealth Loans and Investments. Sundry Debtors and Cash , x Unsecured 22,683 Balances 44,123 “ GOODWILL.— No valuation for goodwill appears in the Balance-Sheet. 49.787 Establishment and Bond Conversion Account •• .. 519.877 SECURITY FOR ISSUE.— The Debenture Stork constitutes a fixed charge on the £2,228,702 £^228.792 freehold lands comprising the Mill Site at Whakatane, together with all buildings, ..--J— —— plant and machinery thereon, and also the Company’s valuable pulp wood forest « at Pukahunui of which 35 000 acres is owned by the Company exclusively. Also As is usual in n business of above nature, the Company has entered Into contracts for the supply or future requirements of Pulp, siacnine Furits shareholding in the subsidiary Company, Timherlands Woodpiilp Extended nfsblngs, etc. These continuing liabilities are not Included in the above statement. Limited (owner of the 21,000-acre Matahma Plantation). ———... ■ , ■■■ , ■ ■■■ ~ , , COPIES OF THE PKOSrECTOS.—Copies of the Prospectus with forms of application may he obtained from the Company's Brokers, Sydney, or any member of the New Zealand Stock Exchange, or from any branch of the Union Bank of Australia Ltd., or direct from the Head Office of the Company, 27 Hunter Street, Sydney, New South Wales, or from the Company’s Office at Whakatane, New Zealand.