PROSPECTUS these works, Messrs. Guthrie andLarnach have been compelled to run the machineryovertime, on an average of two nights per ■week, since the opening of the new Factories. The whole of the extensive Factories and Stores (specially designed by David Ross, Esq., architect, of this city) are substantially built of brick and cement, on solid bluestone and concrete foundations (all timbers being of the best and most durable descriptions <■, covering an area, including the timbe- yards, of several acres of valuable land in the chief streets of the city. The whole of the splendid modern machinery was designed and planned by an eminent engineering firm in Glasgow, under Mr. Guthrie's immediate supervision while in Britain, and after a very careful inspection of the principal woodware factories in America, Britain, and on the Continent. Each machine has been firmly placed on a solid bed of concrete, where necessary, to prevent the possibility of vibration, and to avoid wear and tear. The contract for the purchase of machinery was entered into when materials and labour ] in Scotland were at their lowest. The important advantages to shareholders in a Joint .Stock Company of entering into possession of a large manufacturing and importing business in full operation on a fixed date, with a thoroughly trained stall of officers and men and a large mercantile connection without having to waib for the erection of buildings, importation of plant, stock, etc., or being subjected to any of the n ks and delays incidental to the starting of a new business, and with all preliminary expense; paid, should be at once apparent to investors. The following special advantages are worthy of notice : Ist. The whole of the machinery in the Factories is driven by one pair of powerful engines, worked by two men—an engineer and fireman—whose wages may fairly be said to constitute the whole expense in connection with the motive power, as the only fuel required to keep up steam is the sawdust and shavings drawn from the different factories as soon as made, by means of pneumatic tubes, and deposited in a large brick safe, ready for consumption alongside the boilers. By thi3 means all rubbish is utilised and made a source of profit, and the cost of labour reduced to a minimum. 2nd. The four Factories being worked under one roof, a great saving is consequently effected, not only in the motive power, but also in the management, as the whole can be superintended and controlled by one manager. 3rd. The Tub and Bucket Factory, now m full operation, has a monopoly of the supply of these indispensable articles, there being no other tub and bucket factory in the Australasian Colonies. A large return may therefore be looked for tothe credit of tin-. branch of the business. 4th. The whole of the Factories, especially the Furniture Factory, being worked in connection with the general timber business, ib carried on most profitably, not only from the fact of the first cost of the timber being procured at the cheapest possible rate, but also that large quantities of short cuttings oi timber, which would otherwise either be sold as job lots at a low price, or sent to the fur nace to be consumed as fuel, are utilised. The Union Sash and Door in Auckland is of a similar character to the New Zealand Woodware Factories, only be nig much less extensive. It is, however, a criterion to base ca'culations upon, as i\hit may be expected from the New '. land "Woodware Factories. The L'omi: referred to has only been in active opera for a little over four years, and has ] annual dividends of 20 per cent., bes carrying large amounts t«> reserve fund that, hi addition to the very hands. yearly dividends, ths original L 5 share. the Company are now quoted at L 7 10s., a new issue allotted to shareholders, which L2 10s. has been paid up solely ou reserve fund, are quoted at 1.3 10s., mak the present total market value of the gi'nal shares Lll, or a premium of 120 cent. In connection with this, it is a fact t the profits shown to have been made Messrs. Guthrie and Larnach's business the same period considerably exceed tl made by the Union Company in proport to the capital invested ; so that the proi ters have good reasons for believing that ouly will large dividends be paid reguLi by the Company, but that its stock will once become a much-sought after and fa\ able investment. Mr. Guthrie has consented to be fully identified with the business for a number oi years as Managing Director. Mr. Guthrie's: practical skill anil long experience in tin trade are well known ; the high position to which the firm has attained under his management indicates the measure of prosperity which may reasonably be expected in cue future; and as a proof of Mr. Guthrie's and his partner's faith in the future prospects of the concern, they are willing to hold one-fifth each, or equal to two-fifths of the entire capital ou their own private account, p urc nased in fully paid-up shares. And as a further proof of their confidence in the future prospects of the Company, they have decided to guarantee that the Company's net profits for the first three y_•..;■ o shall not be less than ten per cent, per aunum on the actual capital for the time being employed in the business, or equal to a sum of about L5~,000 to be paid to the shareholders within three years. They expect and believe that the profits will considerably exceed this rate, but investors will by r this means know the rate of their minimum profits. By way of further securing the observance of the guarantee, the firm have agreed to deposit with the Directors of the Company scrip of the Company during the first year of the value of L 50.000, during the second year of L 40.000, and during the third year of L 25 000, and to execute a legal charge upon the same in favor of the Company. Intending shareholders may therefore rest assured that no more legitimate or remunerative outlet for capital, or one presenting better or more extensive future prospects, has ever been offered in New Zealand. The reasons which have induced Messrs. Guthrie and Larnach to take this step are—--Ist. That their term of partnership expires by effluxion of time in the course of a few months, when it is the intention of one of the partners to retire from active busi-
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Bibliographic details
Oamaru Mail, Volume I, Issue 365, 25 June 1877, Page 4
Word Count
1,093Page 4 Advertisements Column 2 Oamaru Mail, Volume I, Issue 365, 25 June 1877, Page 4
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