7½ Per Cent MORTGAGE DEBENTURE ISSUE.

Hokitika Guardian, 29 June 1921, Page 4

7 ½ Per Cent MORTGAGE DEBENTURE ISSUE.

GISBORNE SHEEPFARMERS’ CO. OPPORTUNITY FOR INVESTORS. The public have already shown their faith in the farmers and in farmers’ trading concerns, and. it has been proved that there is plenty of money in the country ready to be lent where it will do most good. Therefore considerable interest is attached to the announcement in this issue, of the issue of 7J per cent. Ten-year Mortgage Debentures by the Gisborne Sbeepfarmcrs’ Frozen Meat and Mercantile Co., Ltd. This concern is the pioneer farmers’ company in Poverty Bay, having been established nineteen years ago. The additional capital is required to finance its present and future expansion, the company having acquired the Tokomaru Slieepfaimers’ Freezing Company, Ltd., and Hie Gisborne Farmers’ Co-operative Company, Ltd. The striking feature of the prospectus is the fact that the £300,000 Debenture Issue is secured by first mortgage of properties and plant valued at £015,203. The company is not at liberty to create snv mortgage nr charge ranking m priorii y to or pan passu with the dotie a i mv-holders' xeeurip over ihe said properties, li ■ i 1! tlicrefcne he seen that the security amount • to over £':: for every I; I invited from investors. The debentures ate in denominations of £SO, £lO9, £SOO, and £IOOO. the currency being for ton years from 3lsi. August, 1921. Interest at the rate of 7', per cent per annum will be paid half-yearly free of Debenture Tax. Roth the debentures and the interest coupons arc to bearer, and are readily transferable. Applicants may pay lor the debentures in full or in instalments.

The Company was formed in 1902, and although its chief aim lias been to saleguard producers’ interests rather than make profits, its average rate of dividend has been 0} per cent. It lias distributed £174,795 among share holders, rebates amounting to £100,527. and the sum of £123,352 of reserves is now to be distributed as share capital. The Company’s main business is concerned with the killing and freezing ol moat, and it operates on clients’ account only. From the point of view oi killing and storage capacity its plant is one of the largest in New Zealand. The Kaiti (Gisborne) works will store 122.000 freight carcases, the Tokomaru Bay works 135,000 and the Hick’s Bay Works 00,000. The killings at the Kaiti works reveal the consistent growth of the company, the carcases put through b&ing as follows: —

1904-5, 191,791 carcases; 1909-10 34 1,039 carcases.

1911-15, 381,820 carcases; 1919-20 171,978 carcases.

The company lias 1.600 shareholders, and it. employs over "(!() men during seven or eight months of the*year. It is well known that the East Coast districts which are served by this company are of tremendous potential wealth They have a great future before them. The number of sheep in that region is 2,885,528. The exports from Gisborne arc increasing at a rapid rate, as the totals for the following quinquennial periods show ; —- £ 1916-1920 2,144,566 1911-1915 1.373,145 1906-1910 992,551 1901-1905 512,749 Altogether, the soundness of thatdistiict and the strong position of the Gisborne Shecpfarmers’ Frozen Meat Company make this financial scheme worthy of most careful investigation. The interest is liberal, a currency of ten years is assured, and the security is solid. The directors are: Messrs F. B. Barker, A. ,J. Cameron, J. Clark, F. Hall, 11. Kenway, C. A. de Lautour, IT. I>. de Lautour, J. W. Nolan, G. Al. Reynolds, and 11. Williams. The informative prospectus can be obtained locally from Hit' Bank ol New Zealand or any member of the Stock Exchange, or from the Company’s broker, Mr AA'. Lissant Clayton, Gisborne, or the Company’s office, Gisborne.