UNION SASH AND DOOR COMPANY. —THE INCREASE OF CAPITAL.

New Zealand Herald, Volume XVI, Issue 5356, 16 January 1879, Page 3

UNION SASH AND DOOR COMPANY. —THE INCREASE OF CAPITAL.

The circular letter issued by the Union Sash i and Door Company states the conditions on which shareholders cau take lip the new shares, and gives some information regarding the company. The pi ice of the shares is fixed at a.'B ca^ii—application to be made on or before March Ist ; £1 per share to be paid 011 application, £1 o»i or before the lirst of each of the mouths of April, May, June, a-:d July, and oUs per hluve on Ist; August aud Ist Sep.ember. The whole £S, or auy larger iubtalmenca than the above, may be paid at any before the date* speciliod as may suit the convenience of shareholders. The now shares will participate iu dividends upon one-halt the justnliuouts paid until the full amount of £S per share ie paid, when the dividmd will be on £o, as on the present £5 sh.iros. There is, therefore, au advantage to the shareholder in paying up thefuJJ amount a? soon aa convenient. These shares are issued t-j pay for pioperty btatcd in the circular, to be: ' lulies and logs, three mills (two of them new), timber.carrying vessels, and miscellaneous, making a of £101,3-19. Shares have be«-n isMiid producing £53,505, leaving a balance on account of this property of £47,784. 'lhe preeeut issue of 4054 shares, at £3 each, should produce £37.-32, of which £13,902 wiil be premium. Jt i* anticipated that the balance of, bay £10,000, will be paid within a limited period from the p'O-luce of the very quantity of I-gs ready for the five mills. There is one point of impor r auce that should be noted in connection with the sale of shares and purchase of property. The premium on the shares s-»'d realising a total of £53,5G5, as named above, \va* £2G,535 ; the amount added to capital account was £20,730. 'l he premium on the present ii»sue will be £13.9G2, winch, added to £2G,530, proiit on previous shares sold, makes £40,797 ; while the total addit.i u to the dividend-bearing capital is £50,000. In other words, the dividend-paying capital will be increased only by £50,000, for the purchase of property casting £101,349, the balance being obtained from premiums on * ale of shares, save some £10,000, which it is calculated can be paid from the lage accumulated stock of the company. It is hut seldom that a traling company is held in such high estimation by iuvesiors as to enable those conducting it.to realise for it such a handsome bonus on its shares. As the money now required has been some time paid, aud has borne interest, the paying of it now by shareholders, and giving tht-m a d»vidend on the money they so subscribe, will add very little to the interest payable by the compuny. The present issue is intended to make the paid-up capital about £100,000, which, it will be perceived, will then be only equal to the recently purchased property. The following is the circular issued by the directors : — Auckland, January 14, 1579. Pear Sir,—The direct ts, in pursuance of authority givru to th*m by the shareholders to i*sue new shares t » providu fund* for payment of additional i ropcrty acquire! for the c unpany, have decided to issue 4*j54 new sb-ire* (£5 paid-up), and io ofT<?r h-ra to the sh ircheHeri at £S rer Hhare— betni? £3 p"r share pr*. ml lira—in the proportion of two new shuns for f.vtry seven sharm bel-l by tlietn. Applications for the new char's 'o be made on or before the first diy of March next. Terms of payment to he £1 per share "ii application ; £1 per '•bar* on orb- for.* the iirrft day of April, 1879 ;£1 per share on or b-fore the tirat day of , 1879 :£1 per shar« nor before the first day Juno, 1879 ; £1 per -hare; o ■ or before th« Irat day of July, 1879 ; £1 !orf per share on or beforo the firjt day of August, 1579 ; £1 10s per thar-* on or before the first day of September, 1879 All sh»rcs not applied f- r on or before the first of MArch next will n* offwred to other shareholders At the above prrm.uoi, or in such other way as th»t directors may determine '1 ho shareholders talcintr up tin new is-ueof t.htre>wtH participate in dividend* upon one-liatf tfae instalment* paid until the full amount of £8 per share in piid, and upon £5 p-tr share from the d»te when the full amount is paid Any larger sura thiu the 'nstalments abov»'-named may be paid in advance "f the dates herein, or the full amount of £3 per -hare may be so p iid. The dividend in reap ct io all payments an account of these bhares will be c*lcul'ited only from the firs'. d*y of each m->nth : any gum*paid on a-y other day will pirtic pito in thcdiTid«nda • niy from th* flr.it nay of the suet* edlng mont h. Since July, lfe77, th«» cost of th« additional property aerjuir'd for th • compmy i.-j as follow*: —Hushes a<»d lrg< £74,793; 3 mills -2 new). £20,92*; Tassel", £3750; iiihcellano'ius. £1.«578 : t»U\. £101.349. I his expenditure has been par«ly met by the Issue of 540 new >hares, producing-Capi al account, £2(5,730; prrmiucn profit, £20,835 : to al, £i 3,505 — tr-aviuij a baUnc-i of £17.784. i'he pre«cir i<suo of 40. r >4 share-, at £3 per >lmre, will produce £i 7,232, of which £13,982 w.ll b« premium, making the^ total premium on ab'ive-namod and oo pr-sent is-ue< £40.797, and th« total addition to capital £f>o 00i», the v*lti« of additional property purch.is «l beiny £.01319. It wi.l l>e s.-en that the tiiieetnrs have specialty dovoted their attention to tb»r acquis tfon of additi »nai bnsh properties witli the view of providing a constant bupply of timber for th« mills • f thr COtiipaoy for riut-y yrnr.s to cm". i-lca-ly deinind for this d «as of property will, neo ss.rily, enhanco its va'no iu th»! future, and, especially, wnh tho larp« and constantly-increa-ioK of k»uri timber, both from th»* tn reused population of tins colocy anti ita u>e in Auntrali*. The company Ims now live millH, two of them just eowplet d. in addition to the manuf-tutory iind mil! at Mechanics' Kay. The directors aru of opinion that the present issit • of shams will pr>»vidK Miflich-nt Cipiiul to eflici«ntty work th - present large and v-iiuibl»- propwittas of thu company.—l am, &u, E. WAYMOf ra, ttccieUity.