THE NEW ZEALAND TIMBER AND WOODWARE FACTORIES.

Otago Witness, Issue 1320, 17 March 1877, Page 22

THE NEW ZEALAND TIMBER AND WOODWARE FACTORIES.

When a business which has been formerly carried on by private persons is thrown open to the public in the form of a company, tne first question which everyone instinctively asks is this : Why do the firm that have hitherto conducted the affair want to get rid of it if it is so good ? The question is a natural one ; and in the case of Messrs Guthrie and Larnach, it admits of an obvious reply. To that reply we wish to draw the attention of our readers, because we believe that they only require to be satisfied on this point to avail themselves of the opportunity of becoming shareholders. The reply that we should make from the prospectus is this — that the partners, who now offer their concern to the public, are by no means withdrawing from the whole business. They are proposing to retain almost half of the whole. The very large share which Mr Larnach proposes to retain, with his partner, in the New Zealand Timber and Woodware Factories is a guarantee sufficient to convince the most cautious of investors that there is no desire on the part of the proprietors to throw off the burden of a poor concern on to the shoulders of the public. When the two partners still retain an interest to the amount of £100,000 in the company, the public is well answered. As regards Mr Guthrie, he is willing to remain in the company and be identified with it as managing director. . We imagine the enquiring public may rest assured that, they have got here the best possible proof, of the.iona fides of 'the whole affair. The reasons given towards the. end of the, Prospectus which have caused the partners to "offer half their business to investors are amply' sufficient^ in our opinion, to account for their action. ' Mr Larnach retires from business, and the' affair requires additional capital to wort it to the best -advantage. • 'We suppose that there are not many who understand •nything about Buch matters but will recognise the validity of this .last, reason, .. while the./ first stands on, Us. own merits. - We have all come acrosg a variety of businesses that only required increased capital to produce satisfactory returns. The capital invested in the New Zbaland' Woodware Factory must be very large 'indeed,' since the business itself is undeniably the largest in the 1 Colony. It very often happens that investors are ready to spend their money on entirely novel projects which must of course demand time, and with its -consequent loss of interest to bear their legitimate fruits. .The unwillingness .often found to undertake the responsibility, of a bnsiness which is already established is caused by a sort of feeling that if it were really a good thing, it would not be offered to the public. We have, therefore, drawn attention to the notable fact that Messrs Guthrie and Larnach are in reality only offering a share of their business to the investing public, and that we may fairly suppose that since they are so unwilling to give up all their interest, theirs is a good thing.