Page 4 Advertisements Column 2

Oamaru Mail, Volume II, Issue 375, 6 July 1877, Page 4

PROSPECTUS these works, Msssrs. Guthrie and La-nach liave been compelled to run the machinery ov.-rtune. on an average of two nights per w.-ek silica the opening of the new Factories. The whole of the extensive Factories and Stores (specially designed by David lioss, Ksrj , architect, "of this city) ate substantially built of brick and cement, on solid bluestone and concrete foundations (all timbers being of the best and mo-t durable descriptions , i-overiiig an area, including the tiinbe yards, of several acres of valuable land in the chief .-tre-'ts of the citv.

The whole the splendid modern machinery was design <1 and planned by an eminent engineering firm in Glasgow, under Mr. Guthrie's imm-diate supervision while in Britain, and after a vc y careful inspection of the principal woodwarc 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 tiained staff of ollicers 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 a new business," ami 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 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 cube--, and deposited in a large brick safe, ready for consumption alongside the boilers. By this means all rubbi-li is utilised and made a sour, 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 fiower," but also in the management, as the whole can be superintended and controlled i)V one manager. "3rd. 'ihe Tub and Bucket factory, now in ."all operation, has a monopoly of the supph of these indispensable articles, there being no other tub and bucket factory in the Aus■ra'asian Colonies. A large return may hen-fore be looked for to the credit of thL branch of the business. 4th. The whole of the Factories, especially the Furnituie Factory, being worked in connection with the general timber business, is carried on most profitably, not only from the fact of the lir.-t cost of the timber being procured at ihe cheapest possible rate, but also "hat. large quantities of short cuttings of hnher, which wou'd otherwise either be sold ■is job lots at a h>w price, or tent to ihe fur uace to !.e consumed a- fuel, are utilised. Tl e Union Sa-h and Door Company in Auckland is of a similar character to the New Zealand YVooduare Factories, only being much less extensive, it is, however, a fab cri erion to ca'cnla: ions upon, as to -.-> hit may be expected from the New Zealand Wood ware Factories. '1 he Couipam refer:\d to has only been in active iteration for :•, bttle over tour years, and has paid annual dividends of 2>) per cent., beside :-aiT\ing hi'-ge amounts to reserve fund; so that", in addition to the very handsome yearly dividends, the original 1.5 shares ol the C-'inpany are now quoted at L 7 10 i., and -i new issue allotted to sha: eholders, on which L'2 10s. has been paid up solely out ot reserve fund, are quoted at J 3 10s., making the present total market value of the original shares Lll, or a premium of 120 per cent. In connection with thi=, it is a fact that the 'profits shown to have been made in Mess is. Guthrie and LarnaeiYs business foi tiie same period considerably exceed thai made by the Union Company in proportion to the capital invested ; so that the promoters have good reasons for believing that rot only ui 1 largo dividends be paid regulirlv by the Company, but that its stock will at once become a much-sought after and favorable investment M-. Guthrie has consented robe fully identified with the business for a number o: year-: ; >.s Managing Director. Mr. Guthrie's practical skill and long <. xperience 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 die future ; and as a proof of Mr. Guthrie's and his jiartner's faith in the future pirospects of the concern, they are willing to Hold one-fifth each, or equal to two-fifths of the entire capital on their own private accoui.t, purchased in fully paid-up shares. And as a further proof of their confidence in die future prospects of the Company, the}' have decided to guarantee that the Company's nee profits for the first three .-hail 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-'i'.OOO to be paid to the shareholders within three years. I hey 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 tin Directors of the Company scri,> of" the Company during the rirst year of the value of LSU (100, during the .-second year of L4U,000, and during the third year of L-i> OUU, and to execute a legal charge upon the tame in favor of the Company. .unending shareholders may therefore rest assured that no 11102 e legitimate or lemiuierative outlet for capital, or one presenting bettor or more extensive future prospects, has ever been offered in New Zealand. The reasons which induced Messrs. Guthrie and Larnach to take this step are—--Ist. That their term of partnership expiree by eilliixioii of time in the eouite of a lew months, when it i;> tlie intention of one of the partners to retire from, active business.