Page 10 Advertisements Column 2

Sun (Auckland), Volume III, Issue 660, 11 May 1929, Page 10

A Safe, Sound Profitable Investment! The RELIANCE Loan, Mortgage & Discount Corporation Limited Capital: £160,000. Divided into 100,000 Preference Shares of £ 1 each carrying a preferential and cumulative dividend of £8 per centum per annum, and 60,000 Ordinary Shares of £ 1 each (of which 48, 75 0 have been allotted ) . OFFERS FOR SUBSCRIPTION. £IOO,OOO in £l, S" Cumulative Preference Shares On the following terms: 2/6 on Application, 2/6 on Allotment, and the Balance in Calls of not more than 2/6 per share at intervals of not less than three months. Directors: W. CHISHOLM WHITNEY, Esq., Manager and Director Colonial Ammunition Co. (N.Z.), Ltd., Mount Eden, Chairman. JOSEPH S. EMANUEL, Esq., Managing Director. WILLIAM V. WORTH, Esq., if Chambers, Worth & Chambers, Public Accountants and Auditors, 23 Shortland Street, Auckland. I. GOODMAN, Esq., Retired Manufacturer, Dunedin. Bankers: THE NATIONAL BANK OF NEW ZEALAND LIMITED, Shortland Street, Auckland. Solicitors: EARL. KENT. MASSEY & NORTHCROFT. Swanson Street, Auckland. Secretary: M. R. RATCLIFFE. 308 Dilworth Building, Queen Street, Auckland. Auditors: MACKLEY & CROCKETT, Public Accountants and Auditors, Alliance Assurance Buildings, O'Connel Street, Auckland. Broker: CAMPBELL PATERSON, 23 Shortland Street, Auckland. This is an exceptional opportunity for you to secure a Gilt-Edged Investment, carrying the right to a fixed cumulative preferential dividend at the rate of £8 per centum per annum on the capital for the time being paid up thereon payable half-yearly. Object of this Issue Return to Investors The object of this issue is to increase the, capital of the Reliance Loan, Mortgage and Discount Corporation Limited to meet the growing demands which are being made on its reserves from day to day. The Corpora.tion occupies a sound, well-established position, but the demands for finance are larger than it can at present undertake. It lends on First Mortgages. Second Mortgages, Discount Mortgages, Bills of Lading, Shares, Interest under Wills, and Chattel Security. Its service provides assistance for thousands of people who are in urgent need of temporary financial accommodation, and it is the ONLY CORPORATION IN THE DOMINION OPERATING AND FINANCING ON EVERY CLASS OF SECURITY. Success of Similar Organisations Independent Auditors’Report The following independent certificate has been prepared by two of the best-known firms of Auditors in Auckland. We certify that we have examined the audited Balance Sheet of THE RELIANCE LOAN, MORTGAGE & DISCOUNT CORPORATION, LIMITED, as at March 31, 1929, together with Profit and Loss Account for the eleven months ended same date, and in our opinion the Balance Sheet discloses the THE EIGHT PER CENT. PREFERENCE DIVIDEND IS ASSURED TO INVESTORS, ON THE PROFIT BEING EABNED BY THE FIRM’S PRESENT TRADING. The New Capital will be called up as required in calls of not less than two shillings and sixpence per share at intervals of not less than three mouths. It will be invested immediately as it is received, mainly on operations in the Mortgage Department. In this particular class of finance, where a corporation is lending on mortgages and discounting, the rate of interest is between 10 and 12 per cent.. Naturally, on chattel securities the interest charged is higher to cover any additional risk—therefore, when the preference capital is fully paid up and invested, this capital, with the present turnover of the business, will ensure a gross annual interest return of between £20.000 and £24,000. The above figures are based on very conservative estimates, and therefore it can readily t>e that after allowing for administration costs, the net result will be that THE ANNUAL INTEREST WILL COVE.I TWICE Y THE This business is not an experiment but a proven success, as is evidenced by the impregnable position held by the Corporation to-day, and its phenomenal success since its commencement. It is a well-known fact that similar organisations, operating in other parts of the world, have been highly successful. It is also worthy of note that losses on this class of business are practically nonexistent. The Shares of Financial Companies almost invariably bring high premiums on the Stock Exchange, and are usually quoted above par, for the following good reasons:— Ist. —Your Capital is absolutely safe. 2nd.—Your Dividends are assured. 3rd.—Reserves always increasing add to the stability of the Corporation, and thus create a constant demand for this ompany to be in a sound financial position The profit, on its present capital, for the above eleven months, after making all due allowances, is sufficient to pay an 8 per cent, dividend on the proposed issue of 100,000 Preference Shares paid up to 10/- per Share, without such new Capital earning any interest In our opinion, the Company, on the basis of its present earnings should have no difficulty in paying an 8 per cent, dividend on the proposed new issue of Preference Shares, and leave a substantial amount available for dividend on Ordinary Shares. (Signed) MORRIS, DUNCAN & GYLLIES GILFILLAN & GENTLES Auckland. May 1, 1929. THE AMOUNT REQUIRED TO EIGHT PER CENT. ON IE PREFERENCE SHARES. Method of Operating class of share In England and Scotland, preference shareholders only receive on an average five and 4>ne-half per cent. In most cases, preference shares showing eight per cent, are quoted on the New Zealand Stock Exchange to-day at twenty-six to twenty-seven shillings. Exceptional Security Offered All mortgages are valued by recognised experts in this particular branch, in co-operation with the Managing Director, and in all eases nothing less than a 50% margin is allowed, while in most cases the margin is considerably more. Consequently when the preference share issue is called up and invested, in conjunction with our original capital of £.60,000, IT IS ESTIMATED THAT THE SECURITIES WILL BE WORTH APPROXIMATELY £400,000, ON A VERY CONSERVATIVE BASIS. It is the intention of the Directors to gradually call up the additional capital, and to invest it as received, but even if the shares were called to ten shillings each, and the money remained uninvested, THE COMPANY COULD, ON ITS PRESENT TRADING, PAY EIGHT PER CENT. ON THE ADDITIONAL CAPITAL SUBSCRIBED. As previously mentioned, advances are made on every class of security, the most conservative valuations being made in every case. Loans run from between £2O and £IOOO, thus spreading the securities and minimising the risk. Second Mortgages will in most instances be backed up by collateral securities, and will be on a reducible basis, thus improving the security all the time. Another guarantee of the security is the care with which the Managing Director personally supervises and inspects all securities offered No loan goes through—no security is accepted —without his personal approval. Every possible precaution is taken to ensure that the borrower can repay the advance on the terms agreed upon. Thus preference shareholders are assured that investments made by the Company are sound and gilt-edged. Mr. Emanuel and his father, the late Mr. Aaron Emanuel, have for many years been associated in every branch of finance, and to-day the Managing Director is a recognised authority on the subject. The wonderful growth of this company has keen made possible largely through his unfailing policy of “ Fairness. every transaction negotiated. Honesty, and Integrity ” Where to Apply for Prospectus This Abridged Announcement is for information only. Applicants for shares should obtain the full Prospectus from any branch of the Company's Bankers, the National Bank of New Zealand Ltd..: from the Corporation’s broker, Mr. Campbell Paterson, G.P.O. Box 129 C, Auckland, or 23 Shortland Street, Auckland: Chambers. Worth and Chambers, Public Accountants, Shortland Street, Auckland, at the Corporation s office, 308 Dilworth Buildings, Queen Street, Auckland, or from any Registered Sharebroker. In view of the attractive nature of this issue, intending investors should send for th< ir .-..py of the Prospectus at once Post this Application for Prospectus Nou To the Lure THE RELIANCE LOAN. MORTGAGE DISCOUNT CORPORATION, LTD. C/o Campbell Paterson, Esq.. G.P.O. Box 1206, AUCKLAND. Please forward me, without obligation pany’s Prospectus. Name a copy Address 3 Points for Investors 1 2 Security estimated on a very conservative basis will be worth approxi mately £400,000 when the total Capital has been invested. The annual interest will cover twice the amount required to pa: the eight per cent. Preferential Dividend. The Corporation could, ON ITS PRESENT TRADING alone, paj the interest on the new Preference Capital called up to 10/ per share, even if such Capital remained uninvested.