Page 7 Advertisements Column 2

Poverty Bay Herald, Volume XXXV, Issue 11370, 1 September 1908, Page 7

PROSPECTUS OF THE GISBORNE CO-OPERATIVE BAKERY COMPANV LIMITED. A COMPANY INTENDED TO BE INCORPORATED UNDER "THE COMPANIES' ACT. 1903." PROPOSED DIRECTORS : A. P. HAILEY, Baker, Gisborne. HERBERT' W. WILLIAMS, Clerk in Holy Orders, Gisborne. H; E. HILL, Land Agent, Gisborne. J. HAROLD KANE, Chemist, Gisborne. G. PALATRET, Settler, Gisborne. L. RED WARD, Clerk, Gisborne. J. C. AICKIN, Accountant, Gisborne. ; BANKERS: THE BANK OF AUSTRALASIA, at Gisborne. SOLICITORS : REES BROTHERS & BRIGHT, of Gisborne. AUDITOR: ANDREW GRAHAM, of Gisborne, Accountant. SECRETARY AND BROKER: CHRISTOPHER GISBORNE PIESSE, of Gisborne,' Accountant.

OBJECTS. The objects and powers of the Company are set out in the Memorandum of Association, a copy of which is printed, at the end hereof and forms part of the Prospectus. The Company adopts Table A of the "Companies Act, 1903," except as added to and modified by /the General; Articles of Association, a copy of which is also printed at the end hereof and forms part of this prospectus. .V- , CAPITAL. . The capital of the Company is £5000, divided into 5000 Shares of £1 each. Of the above-mentioned Shares 250 are to, be issued and credited as paid up in full on part consideration of the sale to the Company, particulars of which are hereinafter more particularly set Out, 2000 Shares are reserved for subsequent issue for extensions of business, and the remainder, 2750 Shares, . are offered to. the public for subscription payable as' follows '• — . # Two shillings per share on application. Three shillings per share on allotment. And the remaining fifteen shillings, per share shall be payable in calls of not more than five, shillings per share at intervals of not less than one month. PURPOSES, The Company is being formed : for ' the primary purpose of acquiring as a going concern the Bakery Business now carried on by the vendor, Arthur Percy Hadley, in ' Gladstone Road, Gisborne, and of carrying on, consolidating, and extending the trade or business t and of carrying out the. objects mentioned in the Memorandum of Association. The' Trustee for and on behalf of the Company has contracted with the said Arthur Percy Hailey (hereinafter sometimes called; "the Vendor") . to purchase the business as a; going concern, but not including book "and other debts. The' prices fixed for such purchase aTe.as follows : — j ;■ (a) The sum of £350 for the goodwill of the said business and lease of the premises. (b) The value determinable by valuation', in the ordinary way of the buildings, stock-in-trade, plant, fittings, machinery, furniture, goods, chattels, and. effects of the said business in, upon, or about the premises; or; used by the^Ven- - dor in the said trade or business. The Vendor will accept payment of the purchase money aforesaid as follows: (a) £250 by 250 fully paid-up shares in the capital , of the Company; ' (b) £750 by debentures repayable in . . ithree years, and carrying interest ' at the rate of £5 per cent per annum. (c) The balance may at the option of of the Company be paid in cash, „ or the Company may take over the liabilities of the Vendor, and the balance after allowing for liabili- . ties as aforesaid, shall be paid to the Vendor in cash. \| .'• .BUSINESS... It will no doubt interest intending Shareholders to ascertain as nearly as possible, the present position of the busi--ness proposed to be acquired. Four and a half; years ago. Mr Hailey, with little or no capital of his own commenced business in this town. He commenced in a small way, and for the first year had no shop in. connection with his bakehouse. Three and a half years 'ago he acquired from Mrs Byrne a lease of a quarter-acre section in Gladstone Road at a rental of £52 per annum. He has sublet; for the remainder of the term a portdon of the section with buildings on such portion at a' rental of £58 10s per annum. It will therefore bee seen that the lease of the balance has a yery real value, and the price fixed for the goodwill cannot , be , considered excessive. Since entering, into possession Mr Hailey has erected on the portion of the land retained by him a : substantial brick burildrinc of the approximate value of £500. ■ He has installed up-to-date bread and cake making machinery, and generally has acquired, a thoroughly efficient plant. The Directors would call special attention to the machinery : which haa been installed by Mr Hailey. This is of the latest pattern, and gives the business proposed to be acquired advantages not enjoyed by other businesses in Gisborne. A balance recently taken out by a competent accountant shows that after drawing a good income the Vendor's assets exceed Ms liabilities by approximately £1700.' This balance sheet the Directors believe to be correct, and .will submit same to Shareholders with fullest confidence, but owing to the fact that Mr Hailey has not kept his books on approved lines they can give no guarantee to the Shareholders as to accuracy of the Statement. When •it is remembered that the greater part of the time the Vendor was Tunning his busines on a credit basis! and that £300, or thereabouts, has been allowed or written off for bad and doubtful debts, the position must be considered a highly satisfactory one. Mr Hailev's cash takings average from £200 to £300 a month, so that some idea can be formed of the excellent connection which he has worked up. Tlie Lease of the Vendor's premises runs out in September, 1911, but this fact should cause no concern, as the Vendor has by a subsidiary agreement obtained from the Lessor an undertaking to pay the value less the sum of £10 of the brick building erected by the Vendor, and also has obtained; by such agreement a first refusal should the Lessor be desirous of reletting the premises, and the Vendor undertakes that these benefits shall be extended to the Company. PROSPECTS. The time seems opportune for the formation of this Company. The coupon and cash system has been instituted by the bakers of Gisborne, and this method will be adhered to by the Directors so

M. F. BOUEKE T\ /T ATA WHERO TjIiELLMON GERY AND "WOOL QCOURING "WORKS. QASH JJUYEii OF WOOL CKINS, JJIDES, rp ALLOW & TUT. BRANCHES: WAIROA, NAPIER & WELLINGTON. ■Q ARNOLD, ]y£ANAGER.