Page 3 Advertisements Column 6

Oamaru Mail, Volume III, Issue 778, 9 October 1878, Page 3

.. ... PROSPECTUS PROSPECTUS. OP THE 7En ZEALAND RAILWAY i -WAGGON COMPANY, LIMITED. In 10,000 shares of £lO each, of which it is proposed to call up £5, viz. :—ss on application ; 5s on allotment : and the haiiince in calls of 10s each, at intervals of not less than three mouths. Provisional Directors. G. G. Russell (National Mortgage and Agency Company of N.Z.) Henry Driver, M.H.R. (New Zealand Loan and Mercantile Atrency Company) W. H. Cuttuii, M.H.K. John Davie (M'Landrcss, Hepburn, and Co.) James Mills (Union Steam Ship Company of New Zealand) William Evans (Timaru) John M'Gregor, C.E. James P. Maitland (Commissioner of Crown Lands) Walter Guthrie (Guthrie and Larnach's New Zealand Timber and Woodware Factories Company, Limited) P. C. Neill (Neill and Co.) T. S. Graham (Bing, Harris, and Co.) Allan Holmes (Solicitor) Bankers : National Bank of New Zealand, Limited. Solicitor : A. Holmes. Broker : J. A. Mackenzie. This Company is promoted with the view of supplying the great and increasing want of rolling stock on the Government railways. It i 3 a well-known fact that, ever since the railways in this island have been opened, the supply of trucks has been quite insufficient for the needs of the system ; and as the lines are extended, and the traffic increases, the evil is becoming more and more seriously felt. A ll classes using the railways for the .amission of goods, grain, minerals, &c, have already suffered more or less inconvenience and loss from this cause, and will continue to do so even more severely, unlesss steps are taken at once to remedy this state of matters. Already the Government rolling stock is greatly overtasked, and with the completion of the main line between Christchurch and Invercargill, and the branch lines now in course of construction, will be still more so ; and it is quite certain that, owing to the heavy expenditure necessary to complete the lines at present being constructed, the proper equipment of the various lines with rolling stock will be even more neglected in the future than in the past. There has been an inclination on the part of individuals to attempt to supply their special wants by providing their own trucks, but with no result, as the matter is one which can only be satisfactorily dealt with as a special line of business. Exactly the same state of affairs has been developed in England, the capital of throriginal companies has proved insufficient to maintain a proper supply of rolling stock in their lines, and individuals have been unable to supplement the defeci. Consequently, a large number of Waggon Companies have been started, which are now tending to engross this class of business into their own hands, with, in nearly all cases, very satisfactory results. The present Company is intended by the Provisional Directors to occupy exactly the same position as the English Waggon Companies. The project has been submitted to, and after careful investigation, approved of bv, the Government, and in order to offer private enterprise sufficient inducement to undertake this necessary work, it has been agreed to alter the rates of freight, so that goods carried in the Company's waggons will be allowed a rebate equal to one penny per waggon per mile. The above rebate has been fixed for a period of five years, but should the Government not be willing to extend it, they are to purchase the waggons of the Company at their then value. The business of the Company will be the building of railway and tramway rolling stock of every description, and selling or leasing the same to the Government, private railway companies, mineral companies, grain merchants, and others. The profits made by companies engaged in this class of business in England are verylarge. A statement extracted from Financial Opinion, of May, IS7O, is appended, showing the value of shares in a number of these companies, and the dividends paid by thern have ranged from 9 to 20 per cent. In the present case the above rebate would enable the Company to let out their waggons on such terms as would yield a handsome profit to the shareholders, and the hirer could in all cases depend on a regular supply, and would have the right to unload when convenient to himself, without liability for demurrage. The following calculation will show the profits to be derived from the operations of the Company : Allowing sixty miles as the average weekly mileage of a waggon (a very low estimate), the Gavennnent rebate on a fiveton waggon would amount to five shillings per week, and a further sum of five shillings per week would be charged to the hirer, thus giving a return of tea shillings per week for each waggon, 500 waggons it is estimated would cost, say, £45,000. Estimated earnings at 10s, per week for one year ... £13,00 C Less maintenance at £2 103. per waggon yearly ... £1,250 Pepreciation at £5 per waggon yearly ... ... 2,500 Management, &c. ... ... 1,500 Net profit of over 17 per cent. £7,75( The average life of a waggon, as taker from English practice, is about 14 years, s( the sum allowed for depreciation may \x considered ample, and the cost of mainten ance has been fixed at a higher rate than th< Government estimate. With a view of at once commencing opera tions, so that a supply of waggons may b< made available as soon as possible, the Pro visional Directors have obtained from Messrs James Davidson and Co. an offer to buik such suggons as they may require on ex ceedingly favorable terms, and, in addition they have agreed to give the Company tin option of purchasing those valuaole pre miaes known as the Otago Foundry, contain ing about one acre, and having frontages to both Castle-street and Cumberland-street together with such plant as the Compan; may require, at any time within twelv months from the formation of the Company at a valuation. Should the Company ultimately agree t purchase the above premises, the vendor have agreed to take afa least one-third of th purchase-money ia fully paid-up shares i the Company. The Company will therefore be in a pos : fcioii to determine during the first twelv months whether it will be better to aceer the above offei", or to secure fresh pjensises or continue the system of bidding b contract. Thus it will be necessary to ca up only a comparatively small amount p< share of the subscribed capital until the r< munerative nature of the business, and tr best means of carrying it on, have been full i tested.