ABOUT DEBENTURES.
AN EXPERT’S ADVICE It is important that New Zealand investors should know the facts about de* bentures. There is no greater authority’ on this subject than Mr. Hartley With*' ers, the leading financial expert and an* thor in Great Britain. In his bookj “Stocks and Shares,” he says: “It is sometimes awnmed that an# security with the label debenture or bond attached has a special kind of sanctity, and may be regarded as sound investment without further enquiry concerning ite standing. A • debenture stock or bond should be secured by a trust deed giving it a definite mortgage on the real property of thd company, which should 'be valued at at least half as much again as the amount of debt secured on it. Thus, £.>00,900 of debenture stock eecured by a first charge on freehold land and buildings valued at £750,000 may be considered sound if the valuation is fairly recent.’’ Mr. Withers says in another part of the book that “it is very important they (the debentures) should 'be clearly shown to carry a mortgage on property and assets which appear from the valuation given in the prospectus to promise an ample margin if they should have to, be realised by the trustees for the de-benture-holders, owing to a default iaf the payment of their interest.” These conditions are adequately fillet? by the 7| per cent. Mortgage Issue of the Gisborne Sheepfarmers’ Frozen Meat Company, which is now be* fore the public. The £300,090 issue iM definitely secured by first mortgage oft property and plant valued at £615,263* The trustee for debenture-holders is th« New Zealand Insurance Co., Ltd., Auck* land. These facts, combined with tha above statements by Mr. Withers, wilt prove to intending investors that this) Mortgage Debenture Issue Is worthf prompt investigation.
The informative prospectus can M obtained locally from the Bank of Newi Zealand or any member of the Stocks Exchange, or from the Company's broker, Mr. W. Lissant Clayton, or the Company’s office, Gisborne.,
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Taranaki Daily News, 1 July 1921, Page 5
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333ABOUT DEBENTURES. Taranaki Daily News, 1 July 1921, Page 5
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