Page 10 Advertisements Column 3

Sun (Auckland), Volume III, Issue 720, 20 July 1929, Page 10

* SAVE MONEY WITH 1 1 SECURITY I I AND I t IMMEDIATE ACCESSIBILITYE; IAN!) 5 PER CENT. INIEREST.I Deposits accepted in amount: I of 15 upwards, with facilities for withdrawal in accordance with I usual Savings Bank practice. I Special Rates for Fixed Deposits I . ITHE DOMINION INVESTMENI" AND BANKING ASSOCIATION. I (FIRST FLOOR) VICTORIA ARCADE. I QUEEN STREET, AUCKLAND. i 1 Phone 47-398. P.O. Box 720. I‘

I . _ Authorised Capital - £250,0(X) of which £146,000 is issued and fill-1y paid. Off f S b ' t ' h F’ t S ' f 3 000 t e zrs erzes 0 , Bonds of £3O each. 500 bonds have been firm underwritten before the publication of the prospectus. Guarantees. The corporation gives the following guarantees to the holders:—1. THAT it will guarantee to the Bondholders in the present issue interest at the rate of 8 per cent. per annum on all fully paid bonds from the date of payment in full until the 31st July, 1931. ‘2. THAT for the three crops for the seasons 193031, 1931-32, and 1932-33, it will guarantee the sale of the whole production of the bondholders’ areas at the then current market prices for the respective grades of leaf, and thereafter will act as the agent of the bondholders in ofl'ering the annual crops for sale in the English or other markets. It is not intended to provide this guarantee in respect of any subsequent bond issue. Trustees for the Bondholders. The Corporation undertakes that as soon as 500 bonds of the present issue are sold, it will arrange for a. committee of Bondholders to be formed for the purpose of appointing trustees to act on their behalf. The Corporation will not require any representation upon such committee, and agrees to take all necessary steps to assist their appointment, and further undertakes to provide such committee with an audited annual report, and to afiord such further assistance and information as may reasonably be required. Such committee shall be appointed solely by the bondholders themselves, and no director of the Corporation shall be a trustee or s. member of the committee. The expenses of such committee shall be borne by the bondholders out of the proceeds of the crop. C I Estimated Profits. It is amply proved that the usual yield per acre from tobacco grown in New Zealand is from 800 to 1,000 pounds weight of leaf. The best flue—cured leaf is worth up to 3/G per Ib., while lesser grades realise approximately 2/8. The average sir-dried leaf ranges between 1/- and 1/6 per lb. On the above basis, returns from £BO to £IOO per acre are usually obtained by small growers in the Nelson district. Independent authorities quoted in the separate booklet, “The World Market for Tobacco,” state that the average nett yield per acre in New Zealand is £55, and 'this has been established for I. period of three years. In the present case it is desired to make a very conservative estimate of the profits to be obtainecl from the plantations which the Corporation intends to cultivate. Therefore, it has been assumed that the average nett profit per acre, after allowing for the cost of replanting over the whole area, will be only £3O per acre. At that figure each bondholder would receive £7/10/- per annum on each bond (which represents an area of a quarter of an acre), and this yield is equal to a dividend of 25%. No income tax is payable on this profit under existing legislation. It is believed that such a profit will be obtained by the bondholders, and this estimate has intentionally been made on much lower than the usual return, in order to allow for any unforeseen difiiculties which may have to be overcome in developing the industry on a very large scale. It must be realised that with such a return. as this, the bonds of the present issue must attain a. value much greater than their present price—namely, £3O. The crops from all the Corporation's areas will be pooled, and the bondholders shall all share equally in the profit therefrom. USE THIS COUPON! ...—.__—_————-——# To The Empire Tobacco Bond Sales Ltd., 304 Dilworth Buildings, Box 887, AUCKLAND. Please post me, without obligation, a copy of the prospect!!! and other publications issued by The Empire Tobacco Corporation Ltd., regarding its issue of Guaranteed Bonds. ADDRESS ..