Page 4 Advertisements Column 2

Oamaru Mail, Volume II, Issue 391, 30 July 1877, Page 4

PROSPECTUS these works, Messrs. Guthrie and Larnacli 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 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 timber 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 imm.-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 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 hill operation on a fixed date, 'with a thoroughly trained 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 a new 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 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 factoiies as soon as made, by means of pneumatic tube - --, and deposited in a large brick safe, readv for consumption alongside the boilers. By this means all rubbish is utilised and made a souive 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. 'ihe 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 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 worked in connection with the general timber business, is 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 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 in Auckland is of a similar character to the New Zealand Woodware Factories, only being much less extensive. It is, however, a failcriterion to base 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 cam in y large amounts to reserve fund; so that, in addition to the very handsome vearly 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 and Larnach's business for the same period considerably exceed that made by the Union Company in proportion to the capital invested ; so that the promoters have good reasons for believing that rot only wi!l large dividends be paid regularly by the Company, but that its stock wili at once become a much-sought-after and favorable investment Mr. Guthrie has consented to be fully.identified with the business for a number of years as Managing Director. Mr. Guthrie's practical skill and long experience in the 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 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-fiftlis 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 Company's net profits for the first three years shall not be less than ten per cent, per annum on the actunl capital for the time being employed in the business, or equal to a sum of about Ln-,000 to be paid to the shareholders within three years. They expect and believe that the profits will considerably exceed this rate, but iuvestors 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 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 ottered in iNew Zealaud. The reasons which induced Messrs. Guthrie and Larnacli to take this step are—--Ist. That their term of partnership expires by efiluxion of time in the course of a lew months, when it is the intention of fine of the partners to retire from active business.