Page 1 Advertisements Column 2

Oamaru Mail, Volume III, Issue 790, 23 October 1878, Page 1 (Supplement)

PROSPECTUS PROSPECTUS O? THE -c- t* -rsT r;ti at 4MT) T? A 7 i, WA Y WAGGON COMPANY, LIMITED, Capital £IOO,OOO. In 10,000 shares of £lO each, of "which it za proposed to call up £5, viz. : —ss on application ; 5s on allotment ; and the balance in calls of 10s each, at intervals of not less than three months. Provisional Directors. G. G. Russell (National Mortgage and Agency Company of N.Z.) Henry Driver, M.H.R, (New Zealand Loan and Mercantile Agency Company) W. H. Cutten, M.H.R. John Davie (M'Landress, Hepburn, and Co.) James Mills (Union Steam Ship Company of New Zealand) I William Evans (Timaru) John M'Gregor, C.E. James P. Maitland (Commissioner of Crown Lands) Walter Guthrie (Guthrie and Lamach 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 is 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. All classes using the railways for the transmission 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 wreatly 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 lines at present being constructed, the proper equipment of the various lines with rolling stock will be even more neglected ;u iw future than in the past. There has been an inclination on the rwirt of individuals to attempt to supply u.uir 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 eapital_ of the original companies has proved insufficient to maintain a proper supply of rolling stock m 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 o-wii 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 I by, the Government, and in order to offer [private enterprise sufficient inducement to j 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 beerf 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 very large. 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 them have ranged from 9 to 20 per cent. In the present case the above rebate would enable the Company to let out their waggons n 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 profi-..-: to be derived from the operations of the ( ompany : Allowing sixty miles as the average weekly mileage of a waggon (a very low estimate), the Government 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 ten 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 ... £13,000 Less maintenance at £2 10s.

per waggon yearly ... £1,200 Depreciation at £5 per waggon yearly ... ... 2,500 Management, &c. ... ... 1,500 Net profit of over 17 per cent. £7,750 The average life of a waggon, as taken from English practice, is about 14 years, so the sum allowed for depreciation may be considered ample, and the cost of maintenance has been fixed at a higher rate than the Government estimate. With a view of at once commencing operations, so that a supply of waggons may be made available as soon as possible, the Provisional Dii-ectors have obtained from Messrs. James Davidson and Co. an offer to build such suggons as they may require on exceedingly favorable terms, and, in addition, they have agreed to give the Company the option of purchasing those valuable premises known as the Otago Foundry, containing about one acre, and having frontages to both Castle-street and Cumberland-street, together with such plant as the Company may require, at any time within twelve months from the formation of the Company, at a valuation. Should the Company ultimately agree to purchase the above premises, the vendors have agreed to take at least one-third of the purchase-money in fully paid-up shares in the Company. The Company will therefore be in a position to determine during the first twelve months whether it will be better to accept the above offer, or to secure fresh premises, or continue the system of building by contract. Thus it will be necessary to call up only a comparatively small amount per share of the subscribed capital until the remunerative nature of the business, and the best means of carrying it on, have been fully tested. The share list will close on the Ist day of November, 1878. Forms of application for shares can be obtained at the National Bank of New Zea-