The Bruce Herald. TOKOMAIRIRO, MAY 31, 1898.

Bruce Herald, Volume XXIX, Issue 2964, 31 May 1898, Page 2

The Bruce Herald. TOKOMAIRIRO, MAY 31, 1898.

The meeting of the shareholders of the Bruce Woollen Company on Thursday evening is one of much moment in the history of the Company, and calls for moie than passing notice at our hands. Since the Company started to manufacture even those who were so bitterly opposed to it at its inception have had to allow what a splendid industry the Bruce Woollen Company's business is. Under its new and capable management, to which too much praise cannot be giveu, the Company has proved that it must in the near future, not only be a very large employer of our lads and lassies, but be most profitable for those who have invested money in the undertaking. At the p esent time the mills, working their utmost, day Bnd night, are unable to overtake the orders which are pouring in upon the i Company from all parts of the colony. The goods so far turned out have been stamped with the hall mack of success by experts in the trade, who have pasted the highest encomiums on the blankets, yarns, &c, placed upon the market. Considering the pressure of orders and the BmallneßS of the capital subscribed some £17,000, is it to be wondered that the directors now fiud it necessary to submit proposals for placing the balance of the shares . amongst the shareholders, not only 1 is this found essential for the reasons we have given, but the Company finds it necessary, owing to the pressure of business thrust upon it, to increase thf size of its buildings and add still farther to the machinery and plant. We havo no idea what scheme the directors intend to submit on Thursday night, and we therefore make no apology for propounding the following proposal as an easy and inexpensive method of obtaining the necessary funds called for by extension of business, &c : — That the management should at its meeting on Thursday night submit; an estimate of the amount of further capital likely to be required to carry on for the future. Then ask shareholders to take up the balance of shares, some 8000, we believe, allot these shares to present shareholders with a guarantee that only one shilling per Bhare shall be called up in the first two years ; the uncalled capital to be used by the Company as security on which to borrow money. Assuming for the sake of argument that an extra capital of £10,000 was required, then the Company could form debenture 3tock to this amount, bearing interest at say 4 to 4£ per cent, of five years' currency. The Company would then be in a position to offer tbe investing public a first-class security not only including these debentures, in the shape of 8000 allotted £1 shares, butalsotbelmd, buildings, machinery, &c. If instead o 1 only calling up one shilling per sbare r which is virtually £8000, the Company was to call up a larger sum per share, it would decrease by a greater amouDt the total value of the security to be offered, wnd make it a far less attractive one to debenture-holders. If this was done the shareholders would benefit by obtainiug at a cheap rate a large sum of money to carry on with> and also have the further advantage of receiving all the profits on the £10,000 borrowed, over and above the low rate of interest it would be paying to deben-ture-holders. If the scheme we have briefly sketched was carried out it would relieve local shareholders who have so loyally and so generously supported the Company in the past, and, as we have aaid, enable the Company to obtain ample funds to carry on with, (i.e---£10,000) without being hampered in any way for want of money to extend or carry on its business.