7½ PER CENT MORTGAGE DEBENTURE ISSUE.

Manawatu Herald, Volume XLIII, Issue 2295, 28 June 1921, Page 2

7½ PER CENT MORTGAGE DEBENTURE ISSUE.

GISBORNE SIIEEPFARMERS’ Col

OPPORTUNITY FOR INVESTORS,

The pubic 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 74 per cent. Ten-year, Mortgage Debentures by the Gisborne Sheepfarmcrs’ Frozen Meat and Mercantile Co., Ltd.

This concern is the pjoneer fanners’ 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 Tokomavu Sheep-farmers’-Freezing Company, Ltd., and the Gisborne Farmers’ Co-op-erative Company, Ltd. The striking feature of the prospectus is the fact that the 000 Debenture Issue is secured by plant valued at £015,263. The company is not at liberty to create any mortgage or charge ranking in priority to or pari passuc with the de-benture-holders’ security over the said properties. It will therefore be seen that the security amounts to over £2 for every £1 invited from investors.

The debentures are in denominations of £SO, £IOO, £SOO, and £I,OOO, the currency being for ten years from 31st August, 1921. Interest at the rate of 74 per cent, per annum will be paid half-yearly, free of Debenture Tax. Both the debentures and the interest coupons ore to bearer, and are readily transferable. Applicants may pay for the debentures in full, or in instalments.

The Company was formed in 1902. and although its chief aim has been to safeguard producers’ interests rather than make profits, its average rate of dividend has been 04 per cent. It has distributed £174,795 among shareholders, rebates amounting to £100,527, and the sum of £123,352 of reserves is now to he distributed as share capital.

The Company’s main business is concerned with the killing and freezing of meat, and it operates on clients’ account only. From the point of view of killing and storage capacity its plant is one of the largest in New Zealand. The Kails (Gisborne) works will store 422,000 freight carcases, the Tokomaru Bay Works 1.35,000. and the Hick’s Bay Works 00,000. The killings at the Haiti works reveal the consistent growth of the company, the carcases put through being as follows : 1904-5, 191,791 carcases: 190910, 344.039 carcases. * 1914-15, 231,820 carcases; 191920, 474,978 carcases. The company has 1,600 shareholder.-., and it employs over 700 men during seven or eight months ot the year.

It is well known that the East Coast districts which arc served b\ ibis company arc of tremendous potential wealth. They have a great future before them. The number oi sheep in that region is 2,885,528. The exports from Gisborne are increasing at a rapid rate, as the totals for the following quinquennia' periods show:— 1916-1920 £2,144,560 1911-1915 .. .. 1,373,145 1906-1910 .. .. 992,554 1901-1905 .. .. 512,749 Altogether, the soundness of that .district and the strong position of the Gisborne Sheepfarmers’ 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. •!. Cameron, J. Clark, F. Hall, H. Kenway, C. A. do Lautour, H. D. de Lautour, J. AM Nolan, G. M. Reynolds, and H. William--. The informative prospectus can be obtained locally from the Bank of New Zealand, or any member of the Stock Exchange, or from the Company’s broker, Mr AM Bissau! Clayton, Gisborne, or the Company’s office, Gisborne.