Page 4 Advertisements Column 2

Oamaru Mail, Volume II, Issue 380, 12 July 1877, Page 4

PROSPECTUS these works, Msssrs. Guthrie and Larnach have been compelled to run the machinery overtime, 011 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, Ksrj , architect, of this city) are substantially builc of brick and cement, on solid bluestone ami 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. Thf; whole of the splendid modern machinery was designed and planned by an eminent engineering firm in (Glasgow, under Mi-. Guthrie's iinnn diate 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 011 a solid bed of concrete, where necessary, to prevent the possibility of vibration, and to avoid wear and tear.

The contract for tlie purchase of machinery was entered into when materials and labour in Scotland were a; tlieir 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 ollieers 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 iireman—whose wages ma}' 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 the boilers. By this means all rubbi-li is utilised and made a source of profit, and the cost of lain >ur reduced to a minimum.

2nd. The four Factories being worked miller one roof, a great saving is consequently effected, not only in the motive jmwer, but also ill the management, as the whole can be superintended and controlled by one manager. oiil. Ihe Tub and Bucket Factory, now in full operation, has a monopoly of the supply of these indispensable articles, there being 110 other tub ami bucket factory in the _Australasian Colonies. A large return may therefore be looked for to the credit of thi» branch of the business.

4th. Tiie whole of the Factories, especially the Furniture Factory, being 'worked in concairied on most profitably, not only from the fact of the first cost of the timber being procured at 1 lie cheapest possible rate, but also that- large quantities of short cuttings of timber, which would otherwise either lie 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 Company in Auckland is of a similar character to the New Zealand Y\~oodware Factories, only being much less extensive. It is, however, a fail criterion to ba-;e ca'culatious upon, as to what may be expected from the Xew Zealand Wood ware Factories. The Company rel'ern.'i to has only been in active operation for :i 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 1.5 shares oi the Company are now quoted at L 7 10s., and a new issue allotted to shareholders, on which L- IDs. lias been paid lip solely out ol reserve fund, are quoted at 1.3 IDs., making the present total market value of the original shares Lll, or a premium of 11:0 per cent.

ill connection -vvitli this, it is a fact that the profits shown to have been made in Messrs. Guthrie and Larnaclrs business for the same period considerably exceed that made by the Union Company in promotion to the capital invested : so that the promoters have good reasons for believing that rot only will large dividends be paid regulirlv by the Comjnmy, but that its stock wilt at once become a much-sought-after and favorable investment

Mr. Guthrie has consented to be fully identified with the business for ;i number of year- as Managing Director. Mr. Guthrie's practical skill and long experience in the trade are well known ; the high position to which the lirm 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-iifth each, or equal to two-fifths of the entire capital oil 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 Company'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 L">",UOU to be paid to the shareholders within three years. They expect and believe that the profits wiil considerably exceed this rate, but investors will by this means know the rate of their minimum profits. By way of further seeuiing the observance of the guarantee, the firm have

agreed to deposit with tli-i Directors of the Company scrip of Ihe Company during the tirst year of the value of .Lull OljO, during the second year of L4U,UOO, ami during the third year of UUU, 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 lor capital, or one presenting betti-r or more extensive future prospects, has ever been oli'ered in New Zealand. The reasons •\vliich induced Messrs. Guthrie and Laiuach to take this step are—--Ist. That their term of partnership expires by etliuxi.iii of time in the couise of a lew months, when it is the intention of one of the parmeivs to retire fivai active business.