Page 4 Advertisements Column 2

Oamaru Mail, Volume I, Issue 367, 27 June 1877, Page 4

PROSPECTUS I these works, Msssrs. Guthrie and Larnach j have been compelled to run the machinery | overtime, on an average of tv.'o nights per ■week, since the opening of the new tories.The whole of the extensive Factories and Stores (specially designed by David Ross, Fsq., architect, of this city) are substantially built of brick and cement, on solid bluestone | and concrete foundations (all timbers being I of the best and most durable descriptionsi, | covering an area, including the ti:nbe>- yards, I of several acres of valuable land in the chief j streets of the city. j The whole of the splendid modern mai chinery was designed and. planned by an I 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 (irmly placed on a solid lied 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 stair' of oiliccrs and men and a large mercantile connection without having to wait for the erection of buildings, importation of plant, stock, etc., or being subjected to any of the ridis and delays incidental to the starting of anew business, and with ail preliminary expenses paid, should be at once apparent to investors. The following special advantages are 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 tube--, and deposited in a large brick safe, ready for consumption alongside (lie boilers. By this means all rul.ibi.-h is utilised and made a souivc 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 in 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 largo return may therefore be looked for to the credit of this branch of the business. -Jrth. The whole of the Factories, especially the Furniture Factory, being worked in connection with the general timber business, is carried on most profitably, not only from the fact of the tirst cost of the timber being procured at The cheapest possible rate, but also that large quantities of short cuttings of timber, which would otherwise either be sold as job lots at a low price, or sent to the furnace to be consumed as fuel, are utilised. The Union Sash and Door Company in Auckland is of a similar character to flic Xew Zealand "Woodware Factories, only being much less extensive. It is, however, a .fair criterion to base upon, as to v. hit may be expected from the Xew Zealand Woodware Factories. The Company reiV-' • \ to has only been in active ojjeration for ; little over four years, and has paid annual dividends of 20 per cent., besides carrying Li> - ge amounts to reserve fund; so that, in addition to the very handsome yearly dividends, the original 1,5 shares of the Company are now quoted at L 7 10s., and a new issue allotted to shareholders, on which L'2 10s. has been paid up solely out of reserve fund, arc quoted at J. 3 10s., making the present total market value of the original shares 1,11, or a premium of 120 per cent. In connection with thi=, it is a fact that the profits shown to have been nia.de in Messrs. Guthrie and Larnach's business for the same period considerably exceed that made by the Union Company in proportion to tlie capital invested ; so that the promoters have good reasons for believing that rot only will large dividends bo paid regularly by the Company, hut that its stock wilt at once become a much-sought-after and favor- [ Mr. Guthrie lias consented to be fully ideiitilied with the business for a number of ycartas Managing Director. Mr. Guthrie's practical skill and long experience in the trade are well known ; the high position to which the linn has attained under his management indicates the measure of prosperity which may reasonably be expected in the future; ;.nd 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-tifth each, or equal to two-fifths of the entire capital on their own private account, purchased, 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 ('■■• pany's net profits for the first three yoara shall not be less than ten per cent, per annum on the actual capital for the time being employed in the. business, or equal to a sum of about L.V,U";> 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 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 scii:> of the Company during the tirst year of the value of LaO.OOO, during the second year of 1.40,000, and during the third year of L' 23 01,0, 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 oli'ercd in New Zealand. The reasons which h,.vc induced Messrs. Guthrie and Larnach to take this step are—--Ist. That their term of. partnership ex- j pires by effluxion of time in the course of a j icw months, when it is the intention of one j of the partners to retire from active busi-