Pacific Commerce and Produce

In NG Individual

Planters Move Out

A NOTICEABLE number of Euro peans in the New Guinea Islands area appear to be getting rid of their plantations and “going South finish”. • Most of the well-established planters have in recent years—de spite export taxes—reaped a com fortable reward from prevailing high prices of copra and cocoa, and now think longingly of retirement in a cooler climate. • For a long time, owing to the anti-European-enterprise policies of Socialist Ministers, there was limited new planting and re-planting by individual Europeans—only by the European companies and the native co-operative societies —so that there is not a post-war corps of young planters now moving in to take the places of the older planters, moving out. • The older brigade are not in clined to leave their money in the country, or encourage their sons to stay there. This was a natural result of the Hasluck policy of the ’Fifties; and it has become sharply accentu ated since the income taxation plan was produced. • Since they acquired post-war riches and Australian citizenship, the Rabaul Chinese have become very eager buyers of established plantations. The retiring planters know that the market is there and the cash is prompt.

One old hand, making the usual sweeping generalisation, says that “within a very few years, most of the plantations in New Guinea Islands area will be owned by either the European companies or the Chinese”.

Companies Take Over Mr. Dyson Hore-Lacey’s Garua Plantation, copra and coconuts, for long years one of the show places of the Talasea district, has been sold to Carpenter interests for an undisclosed sum. A newly-formed company, Garua Plantations Ltd., took over the property in May Messrs. Hopper and Co., of Rabaul, have promoted an Australian com pany to take over Mr. H T Cold ham’s well known freehold planta tion of 1,175 acres on Unea Island, in the Witu group (off the north coast of New Britain). It is called Bali Plantations Ltd., and an issue of 400,000 10/- shares has been underwritten by the Sydney stock brokers, Messrs. Wolff Dunlop and Co.

The prospectus indicates that the

price being paid Mr. Coldham is £240,000, of which £50,000 remains on mortgage for five years.

The area is planted up in coconuts and cocoa, and the promoters, bas ing their calculations on prices current in recent years, expect the company to show a profit of be tween 20 and 30 per cent. The first Directors are Messrs. Jack Dunbar Read, of Kabanga, Kokopo; Alfred Alex Hopper and Harry Neville Green, of Rabaul; and E. A. Davis, solicitor, and Nevill Charles Ryrie, sharebroker, of Sydney.

Other Properties Named It is reported—but not confirmed —that Mr. Wally Allan, of Kokopo, has sold his Kokopo cocoa planta tion to Mr. Shew Loon, for some thing over £60,000; and that Dewau, in the Sohano area, has gone to a Rabaul Chinese buyer for £8,000.

Other smaller plantations appear to be in the market, with Chinese buyers interested.

Deos Plantation—the only post war-planted property in Bougain ville—appears to have been sold by Mr. A. T. Best to a Rabaul syndicate for something over £50,000.

Mrs. Good’s Kessa Plantation and Mr. Fred Archer’s Jame and Bei Plantations are believed to be in the market, with prospective buyers looking them over.

The tendency in quite clear— transfer of plantations from the small European individualist to the big company or to the Chinese. How ever good it may be economically, it is not good for the future of the Territory.

The only settlement policy which really would help the native peoples to become producers and go on to better standards of life would be one of establishing carefully-selected Europeans as independent planters in selected places among the natives, and encouraging them to make their permanent homes there. But the Hasluck policy has had the reverse effect.

The BP Furphy

Ridiculed

SYDNEY Sun-Herald of July 5 re ported a “rumour” that “some very interested parties, local and overseas, have been prospective bidders for the undertaking”—the “undertaking” being Burns Philp & Co. Ltd.

Well-informed circles ridicule the report.

There lately has been phenomenal buying of first-class Australian

shares by overseas investors, especi ally London. The Burns Philp shares, being regarded as Number One security, have had a lot of attention and prices have risen steeply; and there have been substantial sales.

But no one suggests that there has been sufficient transfer of shares to alter the structure or character of the great South Seas company.

Bali Float—Demand

Exceeds Supply

Issue of shares in Bali Plantations, Ltd., officially opened on July 1—but requests

before that date exceeded 1,000,000 shares.

Issue however, is 397,448 shares of 10/each of which 150,000 have been taken up in New Guinea.

Underwriters are Wolff Dunlop and Co., of Sydney. (For details of company see lead article, this section).

Oil Search Issue:

Modest Left-over

Oil Search, Ltd.’s, four-for-five issue, which opened in mid-April, closed in June undersubscribed by 525,000 shares. This represents about 5 per cent, of the total issue of 11.340,000 5/- shares and is regarded as highly satisfactory.

The underwriters, lan Potter and Co. and Hordern, Utz and Bode will provide subscriptions for the shortfall.

According to Oil Search’s April an nouncement, £1,700,000 of its new funds will be used to increase Oil Search hold ing in APC from 10 per cent, to 15 per cent.; the remaining £1.100,000 being used for development.

In spite of lack of information from Australasian' Petroleum Co. in recent weeks. Oil Search shares are regarded as having maintained reasonable levels. Latest quote for old issue is 6/6 with the new issue about a Id below that.

Plantation Holdings Ltd.

Offers 5/- Shares

Prospectus .for the issue of 256,942 5/shares in Plantation Holdings, Ltd., was filed, on July 8, by Roland Walton and Co., of the Sydney Stock Exchange, who have underwritten the issue.

Paid up capital will be £150,000 divided into 600,000 shares of 5/- each. Of these 256,942 are offered for public subscription at par to proyide cash for the part payment of four plantations and the business of Mr. G. B. Black at Rabaul.

The balance, 343,058 shares, will be allotted to the vendors to complete these pur chases.

The new holding company will take over Matala, Tobera and Kurrajong plan tations on New Britain, Mageh plantation, on New Ireland, and the trading business carried on by Mr. Black at Rabaul.

During the first year of the new com pany’s operations, copra production is estimated at over 500 tons and cocoa production at 110 tons. Ultimate annual cocoa production is estimated at 300 tons. The company proposes planting a further 50,000 cocoa trees during its first two years of operations and considerable areas of land are already prepared for this purpose.

The total purchase price of the planta tions and Mr. G. B. Black’s store, subject to any variation in stock, current assets and liabilities at the time of takeover is £160,570.

The prospectus forecasts a 10 per cent, dividend after making provision for the proposed company income tax and adequate reserves.

There is an impressive line-up of direc tors, all residents of or known in the Territory: F. N. Warner Shand (chair man), J. C. Koefod, D. N. Gow, Bernard Chan, Dudley F. Jones, H. V. Quinton.

Whaling Co. Will

Fill Quota

The Norfolk Island and Byron Bay Whaling Co., Ltd., announced in early July that it anticipated no trouble in fill ing its quota of whales by the end of the month.

Norfolk Island quota was raised this year from 120 to 150.

Oil Rights in

Gulf of Papua

Oil rights of 9,500 sq. miles of the Gulf of Papua have been granted Camelot Nominees Pty., Ltd., in which company, Murphy Corporation of Arkansas, USA, is mostly concerned.

Seeking a US

Partner

Associated Australian Oilfields (with which is associated Papuan Apinaipi and Freney) is hoping to affiliate with US in terests. This was announced at the annual general meeting in mid-June, when it w’as also announced that a call of 6d per share would be made July 8.

Big Profit

For CSR Co.

The Colonial Sugar Refining Co. an nounced in June that a profit of £2,539,284 was made on all activities in Australia and Fiji in the year ending March 31.

A dividend of BV2 per cent, takes £1,591,200 and £1,000,000 was added to general reserves.

Anticipating P-NG

Income Tax

The introduction of income tax in Papua-New Guinea on July 1, brought a few minor rearrangements in Territory company accounting.

Steamships Trading Co., Ltd., has changed its accounting date to June 30 which will mean that the balance sheet for the current period ending June 30 will be for 11 months only.

Choiseul Plantations, Ltd., anticipated by 11 months the dividend (30 per cent.) for 1958-59. paying this on June 30 “in the interests of shareholders in view of impending taxation in New Guinea”. The company paid a 30 per cent dividend for 1957-58 only on June 10.

Choiseul is a Burns Philp subsidiary.

NGG Production

Production from New Guinea Goldfields, Ltd., for May and June was as follows; Golden Ridges mill, 1,063 oz fine gold, 1,580 oz silver (May); 893 oz fine gold. 1,332 oz silver (June); Golden Ridges alluvials, 50 oz bullion: 63 oz bullion; Koranga alluvials, 445 oz bullion; 320 oz bullion: tributes, 75 oz bullion, 73 oz bullion; timber, 185.384 su. ft., 197,063 su. ft.