97

H.—3o

The company's lands, buildings, and plant to be charged consist of the following : — («.) The following assets of the company (prior to the acquisition of the assets of the Tokomaru Sheep-farmers' Freezing Company (Limited) and the Gisborne Farmers' Co-operative Companv (Limited)) : — £ s. d. Freehold lands and buildings at Gisborne, valued at .. 101,406 711 Freehold lands and buildings at Hick's Bay, valued at. . 101,827 3 3 Leasehold lands and buildings at Gisborne, valued at .. 79,280 5 6 Machinery and plant at Gisborne, valued at .. .. 76,681 18 7 Machinery and plant at Hick's Bay, valued at .. 36,291 5 9 Lighter plant and vessels at Gisborne, valued at .. 26,874 11 6 (&.) Freehold lands and buildings, being assets acquired from the Tokomaru Sheep-farmers' Freezing Company (Limited), at Tokomaru Bay, valued at .. .. .. .. 116,542 4 8 Plant valued at .. .. .. .. .. 38,298 19 5 (c.) Freehold lands, buildings, and plant acquired from the Gisborne Farmers' Co-operative Company (Limited) : — Land and buildings .. .. .. .. 29,504 2 8 Plant .. .. .. .. .. .. 8,556 5 1 £615,263 4 4 The values (except as to the Hick's Bay property) were recently made by or on behalf of Messrs. McCulloch and Wheeler, auditors and accountants, of Napier and Wellington, as independent valuators for the purposes of the acquisition of the businesses herein referred to. The valuations may be inspected at the registered office of the company at any time during office hours. The Hick's Bay property is shown at cost. The value as an investment and security of the debentures now offered may be seen from the fact (hereinafter more particularly referred to) that the New Zealand Shipping Company (Limited), has agreed to take up debentures to the extent of £30,000. Reasons for the Issue. Early this year the company increased its nominal capital from £250,000 to £1,000,000. This was necessary to enable the company to make a distribution of reserves amongst its own shareholders, to issue fully and partly paid shares to various freezing and mercantile companies and firms whose businesses it acquired, and for future issues of capital. In 1919 the company acquired the business of Messrs. Bennett and Sherratt, as general merchants, stock and station agents, woolbrokers, &c., and it has now acquired other businesses —namely, those of the Tokomaru Sheep-farmers' Freezing Company (Limited) and the Gisborne Farmers' Co-operative Company (Limited). The company also recently purchased the assets of the Hick's Bay Farmers' Meat Company (Limited), and imdertook the building of freezing-works and the establishment of the freezing industry at Hick's Bay. These works were opened on the Ist March last. The acquisition of land and erection of freezing-works at Hick's Bay called for a total expenditure of about £140,000. The company will also assume further liabilities upon completion of the agreements with the companies and firms above referred to. It was therefore decided to raise £300,000 by an issue of 7f-per-cent. mortgage debentures charged on the company's land, buildings, and plant. As a large number of the company's shareholders were interested in the other companies taken over, and as it was deemed advisable to extend the company's operations, the respective directors realized the wisdom of amalgamating the various interests and thus bringing about more effective and more economical administration. Progress of the Company. The company was formed in 1902, and has had an extremely successful career. Since its formation the large sum of £174,795 14s. 7d. has been distributed amongst shareholders. This sum is exclusive of the distribution of reserves amounting to £123,352 now to be di&tributed as share capital. Every year, with the exception of 1914, when conditions were uncertain, a dividend has been paid, ranging from 2 per cent, in 1902 to 12J per cent, last year. The average rate has been 6| per cent. But the primary object of the company as a co-operative concern has not been to make profits, but to safeguard the interests of producers. Its rebates have amounted to £100,527 15s. 10d., besides which it has kept down the rates to the farmers of Poverty Bay. That there is ample margin to meet the interest charges on the debenture issue is evidenced by the net annual profits for the past three years : — To 31st August: — Gisborne Sheep-farmers Tokomaru r r , . (afterpayment Sheep-farmers. oa. of rebates). £ s. d. £ s. d. £ s. d. 1918 .. .. .. 26,419 12 4 1,762 11 4 28,182 3 8 1919 .. .. .. 44,777 5 3 4,500 15 9 49,278 1 0 1920 .. .. .. 36,690 110 1,432 11 7 38,122 13 5

13— H. 30.