Pacific Commerce and Produce

tralia Is

'Missing Out'

In E. Samoa

im our Canberra Correspondent •tralia seems to be missing out ide with American Samoa, ac ig to the Australian Senior Commissioner in Wellington, H. C. Menzies, who recently ' the territory. has reported to the Federal rovernment that more Aus i goods could be sold there. 0 Pago importers were in d in Australian canned goods, hardware, automotive parts, foods, cheese, butter and meat :ts, he said. total imports of $2,029,000 in the US supplied $1,272,000, Zealand $327,000 and Australia >227,000. son Line passenger ships called ;o Pago northbound every three but did not call on the south journey from the US. tralia was thus well placed to refrigerated and general cargo month’s notice and was in a position than the United States.

Menzies said that plans for ping the airport at Tafuna, 10 miles from Pago Pago, could he future of Pacific aviation, airport could now be used only dium-sized aircraft, but within • three years it should be ex to take the largest jets.

elopment Corp.

ises Capital To

econstruct Hamac

confused situation following ttlement of differences and ned litigation between Hamac gs Ltd. (represented by Messrs. 1 Knibbs McEachern and d Francis McEachern, father i) and Harvey Trinder (NSW) d., well known representatives )yd’s Insurance, London, is being dealt with. ight companies of Hamac Group, r, were in financial difficulties in d were put into liquidation by aprerne Court order in April, 1960

Papua and New Guinea Development Corporation Ltd. was then formed by Sydney financial and brokerage interests, and registered with the object of "taking over the Hamac group of com panies”.

Although no formal announcement was made, it was reported unofficially that Messrs. McEachern disposed of their interests in Harvey Trinder Ltd., and took over other interests in Hamac Holdings.

Early this month, P-NG Development Corp. announced an issue at par of 1,200,000 5/- ordinary shares.

Previously, on March 22, 1961, one of the Hamac subsidiaries, Ela Services Ltd., was put up for public auction at Port Moresby by creditors; the highest bid, £34,000, by P-NG Development, was below the reserve price, but was later accepted. A 10 per cent, deposit (£3,400) was paid to the secured creditor (National Bank of A/sia. Ltd.), and the balance was to be paid by May 31—this date was later extended to June 30.

Meanwhile, Mr. L. F. McEachern in March unsuccessfully made representations to P-NG Supreme Court to have Hamac Group removed from the liquidation order. He then, on May 8, in Sydney, lodged application for leave to appeal to the High Court of Australia; but it is unlikely that this matter will be con sidered by the High Court before its Sydney sittings, commencing July 25.

In the interval, P-NG Development has gone ahead steadily with its plans and has acquired, by arrangement, a sub stantial share of the Hamac creditors’ interests (“at least 75 per cent”, accord ing to the company’s secretary, Mr. p.

Drake). It now holds 90 per cent, of the shares in Hamac Holdings Ltd.

Sydney newspaper financial writers in June were severely critical of the prospectus privately issued by P-NG Development for its new £300,000 issue; they pointed out that the issue was not underwritten nor had it a broker; and that the prospectus lacked certain items required by the Stock Exchange for list ing.

P ' NG Development told “PIM” that there was no intention of having the issue underwritten—the prospectus was privately issued and the share issue would be filled without asking the Australian general public to provide funds. In fact, the secretary added, much of it already has been taken up by residents in P-NG and other interested parties. The company will fumish the Stock Exchange all re quired details to obtain listing, as soon as Hamac Group has been reconstructed, it was stated.

P-NG Development may make applica tion itself to P-NG Supreme Court to remove Hamac and subsidiaries from liquidation, if the High Court appeal by Mr. L. F. McEachern is not granted, said Mr. Drake.

Authorised capital of P-NG Development

is £5,000,000 in 5/- ordinary shares, of which 404,187 have been issued.

Directors are Lord Lymington, Messrs.

G. A. C. Keirnan and H. Stitt, all of Sydney; and Messrs. Stephenson, Pox, of Papua. The chairman, Lord Lymington, is the eldest son of the Earl of Ports mouth: he had extensive Interests in Kenya before settling in Sydney a few years ago and nowadays is associated with the powerful financial group headed by Latec Investments Ltd.

Affairs of New Guinea

Coffee Estates Ltd.

Another company based on Australian "unit-selling”, and on optimistic plans for growing coffee in the New Guinea High lands (see article on page 61 this issue) was before the Equity Court in Sydney at the end of May. The Judge ordered that it be wound up, and placed its affairs in the hands of a receiver.

It was New Guinea Coffee Estates Ltd., whose affairs were reviewed (so far as documents filed in Sydney allowed) in "PIM” of last January, p. 45. The company was registered in November, 1959, and later announced it planned to acquire Capakumali and Cassandy plantations, in New Guinea, and to sell "units” in a coffee-growing enterprise. The person apparently responsible for the promotion was Frank Austin O’Sullivan.

In February, "PIM” published a letter from Mr. A. Andy Anderson, of Goroka, who said that he was not in any way connected with the company. He said Mr. O’Sullivan had obtained from him an option of purchase. Later, when he and his solicitor sought for Mr. O’Sullivan, to challenge certain published statements, Mr. O’Sullivan could not be found at any of his given addresses.

One of the company’s creditors was Mr. Oswald P. Sellers, an advertising service agent, of Sydney. The company owed him some £3,000 —presumably for advertising the “units” for sale. Being unable to obtain payment, Sellers went to the Equity Court, which declared the company insolvent.

The company, in its advertisements, promised initial dividends of 10 per cent., rising to 40 per cent, as the coffee-trees matured; but no dividends have been paid.

A Sydney newspaper reported in May that the company raised about £46,000 from the Australian public.

New directors now claim the company has assets worth £47,000 and that, if given time, they can pay the Sellers’ debt of £3,000, and get the company out of bankruptcy. The new board has paid £5OO into court, and another payment of £5OO was pending on May 31.

Manihlki Pearl Shell

Season Opens Soon

Manihiki Lagoon, in the Northern Cooks, will be re-opened on August 1 for the taking of 100 tons of blacklip pearl shell.

The lagoon will be closed on November 30, or sooner if the tonnage limit is reached before that date.

Up to six diving machine licences will be issued. Applications for these closed on April 28. (Over)

Sogeri Rubber Floats

As Public Company

Sogeri Rubber Plantations Ltd., one of the most prominent Papuan rubber concerns, whose board headed by Mr. Tom Nevitt includes well known Territorians, has become a public company.

In mid-May 20.000 5/- shares were offered to the public at 8/3 by existing shareholders to obtain sufficient spread for listing on Sydney and Brisbane Stock Exchanges. The float was fully sub scribed.