Page 4 Advertisements Column 2

Oamaru Mail, Volume II, Issue 372, 3 July 1877, Page 4

PROSPECTU3 these works, Messrs. Guthrie and Larnach have been compelled to run the machinery overtime, 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 B,oss, Esq , architect, of this city) are substantially built of brick and cement, on solid Milestone and concrete foundations (all timbers being of the best and most durable descriptions , covering an area, including the timhe yards, of several acres of valuable land in the chief streets of the city. Thn whole of the splendid modern machinery was design.d and planned by an eminent engineering firm in (Jlasgow, under Mr. Guthrie's imm- diate supervision while in Britain, and after a ve»y 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 stuck Company of entering into possession of a large manufacturing ami importing business in mil operation on a fixed date, with a thoroughly tiained staff of officers 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 ri ks and delays incidental to the starting of anew business, and with all preliminary expenses 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 ami fireman—whose wages may f.-iirly be saul to constitute the whole expense in connection witli the motive power, as the o:dy 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 tor consumption alongside the boilers. By this means all rulbi h is utilised and made a soui\ e 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. 'i he Tub and Bucket factory, now in full operation. ha» a monopoly of the .-upply of these indispensable articles, there being no other tub and bucket factory in the Australasian Colonies. A large return may therefore be looked for to the credit of this branch of the business. 4th. The whole of the Factories, especially the Furniture Factory, being worktd in connection with the general timber business, is carried on most profitably, not only from the fact of the tin-t 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 the New Zealand Woodware Factories, only being much less extensive. It is, however, a fair criterion to base ea'eulatious upon, as to what may be expected from the New Zealand Woodware Factories. The Company referred to has only been in active operation for a little over four years, and has paid annual dividends of 20 per cent., besides carrying large amounts to reserve fund ; so that, in addition to the very handsome yearly dividends, the original L 5 shares of the Company are now quoted at L 7 10s., and a new issue allotted to shareholders, on which L2 10s. has been paid up solely out of reserve fund, are quoted at 1.3 10s., making the present total market value of the original shares Lll, or a premium of 120 per cent.

In connection -with this, it is a fact that the profits shown to have been made in Messrs. Guthrie ami Larnach's busuiess j for the same period considerably exceed that made by the Union Company in proportion to the c;i2>ital invested ; so that the promoters have good reasons for believing that rot only will large dividends be paid regul irlv by the < "ompauy, but that its stock will at once become a much-sought-after and fa voidable investment Mr. Guthrie has consented to be fully identified "with the business for a number of year- as Managing Director. Mr. Guthrie's practical skill and long ixperienee in the trade are well known ; the high jjosition to which the firm has attained under his management indicates the measure of prosperity which may reasonably be expected in the 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 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 C•-/..;-pauy's net profits for the first three years 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 La",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 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 thn Directors of the Company serin of the Company during the first year of the value of L:SO 000, during the second year of L 40,000, and during the third year of L'2a OUU, 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 lemunerative outlet for capita i, or one presenting better or more extensive future prospects, has ever been offered in New Zealand. The reasons which h*.ve 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 tew months, when it is the intention of one of Ilia partners to retire from active buoi-