GET IN EARLY!

NZ Truth, Issue 1212, 21 February 1929, Page 9

GET IN EARLY!

Financial Reviews

John Fuller and Sons' Offer To Investors DEBENTURE ISSUE

(By "Fiat Lux") For those with laboriously-acquired saving's the opportunity now presents itself to invest them at a substantial interest rate with unassailable security of capital and every prospect of capital increment. But get m early is the writer's advice, because the issue will probably be oversubscribed before closing date.

JOHN FULLER AND SONS, LTD., Christchurch, the New Opera House J are presenting to the New Zealand and the Majestic Theatre now under investing public an unique oppor- construction. tunity of investing £50 or multiples The Princess and', His Majesty's m thereof m their huge^Dominion under- Dunedin also belong- to the firm, but taking at a very fair rate of interest— the site of the latter is leasehold. 6y 2 per cent. During the past three years the firm Due to the fact that the investment has been spending a lot of money on takes the form of a first mortgage rebuilding, remodelling and refurnishdebenture security over the whole of ing its theatres, and its programme the- firm's landed property throughout still requires the Majestic Theatre, New Zealand (except the new Majestic Christchurch, to be completed. Theatre m Christchurch) and which is Then there is a new block of buildvalued at £615,488, the most conserva- ings to be erected adjoining His Mative investor cannot help but feel that jesty's, Wellington, and further expenhis capital has an ample margin of diture upon shop and office buildings security behind it. ' m Auckland. But an investor wants other as- The present issue of first mortsurances m addition to those gage debentures is being made for covering the safety of his capital the purpose of completing the and the principal one is an assur- building programme outlined above, anc© that the actual or potential and of consolidating the firm's inearnings of the borrower are suffi- debtedness into one permanent and ciently buoyant to ensure prompt convenient form. and continuous payment of the Just a word of explanation regarding interest upon. the remark m the leading paragraph This aspect of the investment has of this article: " • • • ever >' P ros " been fully covered m the prospectus » ect of capital increment." toy way of a report and certificate from Many people are unable to underji firm of public accountants which m- stfind wh > r an investment which carvestigated Messrs. Fullers' audued >ies a fixed rate of return should be accounts over a period of five years to liable to fluctuations of price on the March 10, 1928. ■*. • Stock Exchance, and, by the way, FulThe information derived from tho lers'antend to have this debenture stock above - mentioned lltJ tod throughout

report and certificate show t h/a t the present deben-, ture issue, when fully subscribed, will enable the firm to pay off till property •■ encumbrances (except the Maj c s t ie, Christchurch) and complete its present building- programme. When this is done it is shown that exterior rentals then receivable by the comj pany would • be more than sufficient to meet the interest on the present issue of debentures, quite apart from the firm's income from the theatrjeal business which, needless to say, is tremendous.

Send It In POMPANY promoters, stock- • ' brokers, shareholders and investors . generally are invited to forward to "Fiat Lux," c/o Editor, "N.Z. Truth," prospectuses, reports, balance-sheets, and other documents relating to stocks and shares, for scrutiny and review. In future, m addition to • commc-nting on company affairs, as set out m official documents, "Fiat Lux" will answer, m theso columns, any questions concerning investments. A norn de plume may be used by an enquirer, but m addition the writer's name and address must accompany each question, not for publication, but as a guarantee of good faith.

the stock exchanges thus iiiffording a free market, for tne securities. The reason Is a very simple one, really, urul perfectly logical. It is summed up by saying 'that the market price of a securil5 r is governed by the market pi ice of money. As an example, tiike the case of a well -known commercial firm -which some years . ago, when money was much dearer than it is to-day, issued 10 per cent. de-\ bentures without much security. ln tlie intervening years that concern has prospered exceeding-iy, and, at the same

Can fin investor time. . the return In reason ask for anything further? investors require upon such an invest John Fuller and Sons, Limited, was lnL>n t has dropped considerably, i i. ■ i i iaij i. i • ju« The consequence is that those deincorporated m 1914^ taking over the bentures to _ t { ay are worth 26/ . upon theatrical business founded by the late UIQ ope n market, and' even at. this, price' John Fuller m Dunedin m the middle the interest of two shillings m the £ nineties ""' l )er annum is equal to" £7/13/10 per „- ..... .. „ cent., which is quite a good return toFrom'very small beginnings the firm d is now one of the leading theatrical Now, take the case of the debenconcerns of the Southern Hemisphere, tures beinar issued by John Fuller and and its New Zealand capital alone is So "^ Limited. „_....„ „ „,..,. , „ n The annj.al interest upon each £1 £300,000, all of wmc.h is subscribed at 6% pei . cent Is . l/S% . and fully paid up. Now, assuming the market value of Associated concerns m which the money for this class of investment Fuller family's interests are para- falls d . urin & the " ex t few , y? a ™' aa , , _, „ , „, there is -every indication of it -doing, mount, include Fullers' Pictures, and the market is con tent to accept Limited (of New Zealand); Fullers' a return of 5, per cent, on- such a highly Theatres, Limited (of Australia); secured investment, it will follow that Fuuers' Bunding L, ml ted (of Sy d- l\Z''^ £^^"^l ofSeS ney) ; and Fullers 1 Buildings (South debentures must rise for some years to Australia), Limited. around 26/-. The New Zealand company, which But they will ultimately come is now offering the present debenture down to par value, as the date of issue, owns a number of freehold pro- "payment [*"* dve > as *•)•«:• does 1 not appear to be any provision for perties, including the St. James' repayment, except at the par value. Theatre, Auckland, together with a But there is ahvays the chance that three-storied shop and office building the firm may convert the debentures adjoining; shop property m Symonds into cumulative preferred shares Street and v,. Prince Edward Thoa.ro, TZ^L^ Newton, Auckland. ' t he proposition from every In Wellington it owns His Majesty's angle, it looks good to this critic — only Theatre and adjoining property, m get m early.