Rubber Plantations Sell

To R. C. Syme

ireholders of the Solomon Islands Rubber ations. Ltd. (which has copra and not r interests in the BSIP), at the extra ary general meeting held in Brisbane in decided to accept the Directors' recom ation to sell out their islands freehold

to R. C. Syme Pty., Ltd., of BSIP.

R. C. Syme had offered £20,000 for the freehold property owned by the company in the Solomons. . - ... ... .. .

It rs proposed thaf with the money realised from this sale to repay preference capital in full (T6/6 per share). A reorganisation of share structure will follow. It is not proposed to dispose of the company's assets in Australia —income-producing investments and bank credit balance. ... , .

The reasons why the directors urged share holders to sell were set out in a circular: • The estates deteriorated during enemy occupation and since the war this deterioration has continued due to the difficulty in obtaining labour and materials and regular sea trans- . p ;e , ,a.e? o i. sc t hr e Pr.;:c,”:: e Dama,e ' nsu,ance • The plantations are at present leased

and if at the termination of the lease in three years time it was decided to rehabilitate the estates, and make necessary replacement of buildings and equipment with a view to the company operating again, it would be neC essary to call on shareholders for further P • In view of the almost lifeless market for the company's shares and the absence of any dividend on the ordinary shares over a number of years, it is felt that the required finance would not be forthcoming. « The securing of suitable local manage and the direction of operations from Australia presents a most difficult and costly problem. The planted areas are grossly overgrown ?»■> r*'°: ■■ •» « Due to lack of labour for clearing, many of the trees need replacing because of age.