Island Plantations Limited

New Guinea

Particulars of Profit-Sharing Bonds Now Offered for Sale

Directors:

H. G. W. Hanson, Esq.

Owner, Same Plantation, Namatanai, New Guinea.

V. B. Pennefather, Esq.

Owner, Tokua Plantation, Kopoko, New Guinea.

H. J. Washington, Esq.

Owner, Kabaria Plantation, Rabaul, New Guinea.

ILAND PLANTATIONS LIMITED has been formed with a nominal Bond and Share Capital of £216,500, for the purpose of acquiring land in New Britain, 32 miles from Rabaul, and establishing a Coffee Planta tion. The whole of the Share Capital necessary to allow the Company to function and carry out its obligations has been subscribed. It has acquired 3,500 acres of first-class coffee land, and Bonds are now being offered to the public.

There are three series of Bonds —"A,” “B” and "C.” Xt is the issue of “A” Bonds, limited to 2,000, which are now for sale, at £29/10/- each, cash or terms.

Approximately 1,000 acres of the estate are to be transferred to Trustees on behalf of the ' A” issue Bondholders—that is, each Bondholder will own half an acre of the plantation. "B” and "C” Bonds, representing further divisions of the estate, are not yet for sale. The Company will commence operations with that portion of the estate represented by "A” Bonds.

The Company makes itself respons ible to the Trustees appointed by the Bondholders and enters into guaran tees that it will faithfully discharge the following obligations:

It will transfer to the Bondhold ers of “A” issue the ownership of approximately one thousand acres of suitable land.

It will plant the estate with cof fee and bring it to the production stage (approxi mately 3 years).

It will fully equip the estate with proper trans port facilities, plant and machi nery, and all the necessary build ings.

It will act as Managing Agents for the Bondhold ers after the ac tual stage of pro duction has been reached.

It will definitely contract with the purchasers of the first 1,000 Bonds of “A” issue, if the latter desire it, to re sell the Bonds in December, 1933, at a premium equal to 10 per cent, per an num on their face value. In other words, during the three years of plant ing and preparation, before production is reached, purchasers of the first Bonds are guaranteed 10 per cent, per annum on the amount they have in vested.

It will pay half the amount received from the sale of each Bond into a Trust Account, to be operated jointly by the Bondholders’ Trustees and the Com pany, in accordance with stated condi tions, as a guarantee that the Company will carry out its undertakings.

The Bonds carry a Death Benefit.

Should any purchaser die before his Bond is fully paid for, the Bond will be regarded as fully paid up and trans ferred accordingly to his legal heir.

The land is to be planted with Ro busta Coffee, a species thoroughly tried, tested and proved to be profitable.

Statistics show that it will yield from 10 to 15 cwt. of coffee per acre per annum; but in all estimates of profits only 10 cwt. per annum has been al lowed for. There is a steady, growing market for coffee. It is also calculated that there will be no production in the first three years after planting; half production in the fourth year; three quarters production in the fifth year, and full production in the sixth year.

These are highly conservative esti mates, as a Coffee Plantation, favour ably situated and skilfully managed, as this one will be, should be in full production in considerably less than six years.

On the basis of the above figures, purchasers in 1930 of “A” Bonds should receive on their £29/10/- investment a profit of £6/10/- in 1934, £l3/10/- in 1935, and £2O/10/- in 1936, and thereafter.

Planting And

Technical.

As regards the planting and tech nical side, the Di rectors have been fortunate in being able to retain the services of Mr. H.

G. W. Hanson, Plantation Owner, of New Guinea.

He will direct the planting opera tions, and will see that a careful up keep of the plan tation is provided; he will alvise his co-directors, all of whom are plan tation owners and men of practical experience, on matters of planting policy, and will indicate the most up-to date and scientific

lines on which to proceed.

The following are extracts from the report by Mr. George Murray, Director of Agriculture in New Guinea: “I consider the land acquired by the Company is ideal for coffee culti vation. The soil at the Karavat is a deep volcanic loam, well drained, and should produce good crops of coffee.

“Coffee now growing on this pro nerty is flowering at eighteen months from time of planting.

“I consider the Company’s land is ideally situated as regards transport by motor road and water, “There is not the slightest risk of damage to the plantation by fire or floods.

“I consider Mr. Hanson has the practical knowledge necessary for the planting and developing of the Company’s plantations.”

Special Advantages.

The establishment of a Coffee Plan tation in New Guinea has several pecu liar advantages. The land and climate are eminently suitable; there is an absence of the heavy taxation which is now being experienced in Australia; there is plenty of cheap, native labour; and there is in Australia alone a huge market for the product. Australia in 1929- imported 3,600,000 lb. of coffee.

Coffee from foreign countries is subject to a duty of 3d. per lb. Coffee grown in New Guinea is admitted into Aus tralia free.

This is one of the most attractive investments of this kind ever offered to the Australian public. The Directors invite anyone interested to make the fullest investigation of the detailed in formation, which they will supply in a handbook.