Page 22 Advertisements Column 2

Otago Witness, Issue 1324, 14 April 1877, Page 22

PROSPECTUS. ascertained from the books and vouchers of the retiring firm by a Committee of the Provisional Directors, assisted by competent accountants and experts/ "our thousand of the Company's shares fully paid up have been agreed to he allotted to Messrs Guthrie and Larnach, as consideration for the Goodwill of their very remunerative business, they undertaking themselves to pay all preliminary expenses (including brokerage, advertising, &c, &c), in connection with the floating of the Company. Stock will be taken as on the day the Company enters into possession, and the debts due to the firm will be taken over as from the same date. The timber business ia most extensive, and may fairly be said to be the largest in the Australasian Colonies. In connection with this branch of the business, there are several Bush Mills, and a large fleet of coasting vessels, employed regularly in carrying sup- I plies for the requirements of the Factories as well as open markets. The Import, Iron, and Hardware business of the firm is also very extensive. These several branches at present represent a most valuable and important part of the firm's trade, and the promoters feel confident that they can be most safely and profitably extended. In the New Zealand Woodware Factories there are feur distinct departments, viz. : — Ist. Sawing, Planing, and Moulding Factory. 2nd. Door and bash Factory. 3rd. Tub and Bucket Factory. 4th. Furniture and Turnery Factory. The trade of each of these is capable, of great a> d orofltable extension, and as an evidence of the great outlet for the products of these works, Messrs Guthrie and Larnach have been compelled to run the machinery overtime, on an average 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 mostiiurable 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 hi Glasgow, under Mr Guthrie's immediate 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 purcbase 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 full 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, &c, or being subjected to any of the risks and delays incidental to the starting of a new business, and with, ali preliminary expenses paid, should be at once apparent to investors. , The following special advantages are worthy of no^ tice :— Ist. The whole of the machinery ia 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 expenie in connection with the motive power, as the only fuel required to keep up steam is the sawdust and shavings drawn from the different factories as soon as made, by means of pneumatic tubes, fnd deposited hi a large brick safe, ready for consumption, alongside the boilers. By this means all rubbish is utilised and made a source 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. The 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 crenit of this branch of the business. 4th. .The whole of the Factories, especially the Furniture Factory, being worked in connection with the general timber businsss, 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 it al ow. price, or scat to the furnace to be consumed as fuel, : are utilised. The Union Sash and Door Company in Auckland is of a similar character to the Mew Zealand Woodware Factories, -only being- much less extensive. It is, however, a fan- criterion to base calculations 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 yearg, and has paid annual dividends of 20 per cent., besides carrying large amounts to reserve fund; so that, in addition to the very handsome yearly dividends, the original £5 shares of the Company are now quoted at £7 10s. and -a new issue allotted to shareholders, on which £2 10s has been paid up aolely out of reserve fund, are quoted ,at £3 10s, making the present total market value of the original 'shares £11, 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 Guth-ie ana Lunacy'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 not only will large dividends be paid regularly by the Company, but that its stock will at once become a much-sought-after and favourable 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 proo of Mr Guthrie and his partner's fa'th in the future prospects of the concern, they are willing to hold onefifth each, or equal to two-fifths of the entire capital on their own private account, purchased in fully paidup shares. And as a f nrther proof of their confidence in he 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 10 per cent, per annum on the actual capital for the time being employed in the business, or equal to a sum of about £57,000 to be paid to the shareholders within three years. They expect and believe that the profits will considerably exceed this rate, but investors 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 £50,000, during the second year of £40,000, and during the third year of £25,000, and to execute a legal charge upon the same in favour 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 offered in New Zealand. The reasons which have induced Messrs Guthrie and Larnach to take this step are — Ist. That their term of partnership expires by effluxion of time in the course of a few months, when it is the intention of one of the partners to retire from active business. 2nd, That the plant, machinery, and general appliances of the firm are now of a character which opens up a largely extended and extremely profitable trade, which, however, calls for the employment of an extended capital. The valuation of the freehold and leasehold lands, with full paiticulars as to amount of capital employed I and net profits realised during the last four and a half years, taken from the firm's books, and certified by Messrs A. W. Morris, C. H. Street, and Edmund Smith, valuators and auditors, together with a copy of [ the_ agreement entered into with the firm by the Pro- | visional Directors, may be obtained by bonafide intending investors from the Brokers. The Share List will close on MONDAY, the 16th APRIL, at 4 p.m., and, in making the allotment the Provisional Directors will consider the order in which applications have been made. Forms cf applications for Shares can be obtained at the offices of Messrs Guthrie and Larnach, or of Messrs Connell and Moodie or J. B. Bradshaw, Brokers. It having been found that the various valuations and audits require more time than was anticipated, the Provisional Directors, with Messrs Guthrie and Larnach's consent, have decided in the meantime to suspend the furtherissue of the Prospectus unt'l these are completed, of which due notice will oe given. By order of the Provisional Directors, J. AITKEN CONNELL, Interim Secretary.