ABOUT CERTIFICATES

Hokitika Guardian, 4 July 1921, Page 2

ABOUT CERTIFICATES

AN EXPERT’S ADVICE. It is important that New Zealand investors should know the facts about debentures. There is no greater authority on this subject than Mr Hartley Withers, the leading financial expert and aptlior in Great Britain. In his hook, “Stocks and Shares,” he says:—

••lt, is sometimes assumed that any senility with the label debenture or bond attached has a special kind of sanctity, and may he regarded as a sound investment without lurther enquiry concerning its standing. A debenture stock or bond should he secured by a trust deed giving it a definite mortgage on the real property ol the company, which should he valued at least half as much again as tlie amount of debt secured on it. Thus, £590,000 of debenture stock secured by a first charge on freehold land and buildings value dat £750,000 may he considered sound if the valuation is fairly recent.”

Mr Withers says in another part of the hook that “it is very important that they (tlie debentures) should he clearly shown to carry a mortgage on property and assets which appear from the valuation given in the prospectus to promise an ample margin it they should have to he realised by the trustees tor the debcntuio-lmlders, owing to a. default in the payment ol their interest.’ These conditions are adequately tilled by the 7) per cent Mortgage Debenture Issue of the Gisborne Shoepfaritiers’ Frozen Meat Company, which is now before the public. The £300,000 issue is definitely secured fiy first mort-

gage of property and plant valued at £615,263. Tlie trustee for dehenttireholders is the New Zealand Insurance ( <>., Ltd., Auckland. These facts, combined with the above statements by Mr Withers, will prove to intending investors that this Mortgage Debenture Issue* is worth prompt investigation.

The informative prospectus can bo obtained locally from the Bank of New Zealand or any member of the Stock Exchange, or Ironi the (oinpanv s broker,".Mr W. Lissant Clayton, Gisborne, or the Company’s office, Gisborne.