Page 4 Advertisements Column 1

Oamaru Mail, Volume III, Issue 792, 25 October 1878, Page 4

PROSPECTUS PROSPECTUS OF THE EW ZEALAND RAILWAY WAGGON COMPANY, LIMITED. Capital £IOO,OOO. _ . In 10,000 shares of £lO each, of which it is proposed to call up £5, viz. : —ss o: plication ; . r >s 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. Cutton, M.H.R. John Davie (M'Landresß, Hepburn, and Co.) James Mills (Union Steam Ship Company of New Zealand) William Evans (Timaru) John M'Gregor, C.E. James J'. Maitland (Commissioner of Crown Lands) Walter Guthrie (Guthrie and Lamach s New Zealand Timber and Woodware Factories Company, Limited) P. C. Neill(NeillandCo.) T. S. Graham (Bing, Harris, and Co.) Allan Holmes (Solicitor) Bankers: National Bank of New Zealand, Limited. Solicitor : A. Holmes. Bkoker : J. A. Mackenzie. Thia 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 sutlered 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 cf the main li" e between Christchurch and Invei'cWgill, and the branch lines now in courso 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 roll-

fug 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 tracks, but with no result, as the matter is one which can only be satisfactorily dealt with as a Bpeeial line of business. Exactly the same state of affairs has been developed in England, the capital of the original companies has proved insufficient to maintain a proper supply of rolling stock in their lines, and individuals have been unable to supplement the defeei! Consequently, a large number of Waggon Companies have been started, which are now tending to engross this class of business into their o-vyn 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 by, 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 .bo 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 very largo. 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 Diablo the Company to let out their waggons n such terms as would yield a handsome profit to the shareholders, and tho 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. . Tho 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 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 ... *.!<*, uuu Less maintenance at £2 10s. per waggon yearly ... £1,250 Depreciation at £5 per waggon yearly ... ... 2,500 Management, &c 1,500 b £5,250 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 Bum 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 Directors have obtained from Messrs. James Davidson and Co. an offer to build such snggons as they may require on exceedingly favorable terms, and. in addition, they havfi agreed to give tho Company the • option of purchasing those valuable premises known as the Otngo Foundry, containing about one acre, and having frontages to both Castle-street and Cumbcrlai d-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 ■.pnrchasc-money ,in fully paid-up shares in . the Company. . '■'. The Company will therefore be m a position to determine during the first twelve months whether it will be better to accept the above offer, ov to secure fresh premises, or continue the system of building by • contract. Thus, it will be necessary to call np only a comparatively email amount per ehai-e of the subscribed capital until the re'Biunerative nature of'the business, and the \faoEt means of carrying it on, have been fully tasted. The shave list will close on the Ist day ot November, IS7S. '(Forms cf application for shares can be at the National Bank of New Zea-