Financial Reviews FROM A TROPIC ISLE

NZ Truth, Issue 1196, 1 November 1928, Page 2

Financial Reviews FROM A TROPIC ISLE

• . . — ■ ♦ The Fijian Pineapple Company Ltd., Prospectus Under Review (By "Fiat' Lux.") .

If The two outstanding: points about this concern are firstly || If the fact that the directorate contains the names of some well- || If known Auckland business men and secondly that the vendor || I| company is taking its whole consideration out m fully paid-up || || deferred shares. fi

§;„„ umniiimiMnmimmmmmmimimiiimiumimiiiiimiiimiliiili I minimum .iiiiiiiiiiiiiMiiiiitmimiiimiimimimimiiimimmmimmmimimiuiimuimimimnniummmimmi ""THE prospectus devotes an extra--1 ordinary amount of attention to the laudation of the pineapple, canning business m Hawaii and to the presentation of statistics relating thereto, including the yearly output of the Hawaiian Pineapple Company, Limited, from 1903 to 1926, together with the financial history of the same company from 1912 to 1926. All this is very interesting no doubt, but m this critic's opinion it can hardly be offered as substantial evidence m favor of the establishment of canning works on Ovalau Island, Fiji. What would have been very interesting and valuable to the potential investor would have been some certificates as to the values of the land and plant which the new concern is to take over and also some very definite information regarding the liabilities which it has to take over. Then some detailed estimates of the cost of running the plantation, the cost of breaking m new country and similar vital information should certainly have been given. Apparently, however, those responsible for the production of the prospectus did not consider anything of this nature necessary, contenting themselves with such trite and overworked platitudes as: "All preparations have been made to ensure that a profit-earning basis will be established immediately." Further, no indication is given as to how the new capital is to be employed beyond -a statement that "Since the estimate of outlay for handling the first crop is under £ 10.000, the minimum (share) subscription has been fixed at that figure." I The company is being formed with a nriiHUHNtiNfiMiiiiiiitifiiiiiiiiiiiitiiMiiiiiiiififitiiiifHiitiiiiiiiiiiiiititniiintiiiiuiiiMuitiiitiiiiiiiiiiiiiiuiini

iiiiiiitiiiiiuniiullllilliltltuiiliMiliiiiiiiiitiiiiititiiiiiMiiiiiuiiiiiiiiiitiiuiHuiiiiliuutiiuitliiilinunK* •* 'iii'i'iiiiiiiiiiiiiiiiuimiiniiiiiiiiiuiH'uiiiuiiiiililliitiiiiliiiiiiiiillitilllliiilllllliiiiiiiiiiiiiiiiliiuiiiiiiio calendar months after incorporation of the company. "It is hereby expressly stated that the liabilities of the vendor company as at the date hereof (October 15, 1928) do not .exceed the sum of £3500, the whole of which amount represents wages and expenditure on tangible assets with the exception of the amount mentioned m para. 10 hereof." [Note: Paragraph 10 declares the expenses of and incidental to the promotion of the company not to exceed £750, which is to be borne by the new company.] . . What does the new company get for its £23,207 worth of. deferred shares plus £3500 approximately of liabilities which it has to pay? Firstly, it gets the Waidau Plantation comprising 1039 acres of freehold and 333 acres of leasehold situated on Ovalau Island where Levuka stands. Secondly, a modern canning plant with a capacity, of 6000 tins per day now erected at Suva (which is a long water journey • : from Levuka) and the lease of a can-forming and sealing plant also at Suval , It is. stated that* expenditure approximating £25,000 has been made m bringing these assets to their present state, but no information is given a's" to the area now planted .m pineapples, the area prepared for further planting, nor the area remaining m bush. Altogether, this.'critic considers that, whatever may . be the prospects for pineapple canning' m Fiji this prospectus is so lacking m essential- information as to be almost useless to an investor. In any case, Fiji is a long way from New Zealand and "Fiat Lux" would