EXCEPTIONAL SECURITY AND 7½ PER CENT. TAX-FREE INTEREST.

Taranaki Daily News, 25 June 1921, Page 8

EXCEPTIONAL SECURITY AND 7½ PER CENT. TAX-FREE INTEREST.

On another page will be found *he prospectus of an issue of £250,000 in 7i per cent, debentures, free of income tax, by Macky, Logan, Caldwell, Ltd , the well-known firm of woollen manufacturers and drapery warehousemen. • The debentures are being issued in sums of £5O. and are repayable in full in five years. Interest will be paid half- . yearly in exchange for coupons attached Ito the debentures. The issue is secured, as shown by the prospectus, by the sur--1 plus assets of the company, which exceed the amount of the issue more than three times over, so that the investor is amply protected. A feature of the issue is that the interest coupons may be cashed at any ; branch of the Bank of New Zealand, or at any. of the company’s offices, free of exchange. To the investor with a small income the issue offers a strong attraction, as the actual return, free of income tax. is equivalent to £8 12s 6d per cent. The abnormal financial stringency at the present time compels such high rates of interest being paid, and the investor with capital at his disposal is fortunate in being able to take advantage of the opportunities which are now being presented.

The business of Macky, Logan, Caldwell, Ltd., was established in 1881. Today the capital of the company is over half a million, and it has branch warehouses in every important centre of the Dominion. In addition the company operates big woollen mills at Oamaru and Timaru; also a hosiery factory at Palmerston North. During the past nine years the turnover of the business has increased 460 per cent. Large sums > have regularly been placed to reserve and profits have been capitalised from time to time.

The ability of the companj' to produce its own materials places it in the strongest possible position for meeting competition, and it is safe to assume that under the capable management which has been responsible for its phenomenal growth in the past the company is destined to play an even greater part as the prosperity of the Dominion expands. Applications for the debentures will be free of exchange, and are being received at all branches of the Bank of New Zealand, or by any member of the Auckland or Wellington Stock Exchange, or they may he sent direct to the company’s head office in Auckland or any of its branches. It is announced that already more than £30,0G0 of the issue has been subscribed. The company will pay exchange also on interest, and repayment of principal.