Page 4 Advertisements Column 2

Southland Times, Issue 4186, 29 November 1881, Page 4

Prospectus PROSPECTUS OF THE WESTPORT COAL COMPANY (LIMITED), NEW ZEALAND. (To be Registered under the "Joint Stock Companies' Act, 1880.") CAPITAL £400,000, In 80,000 Shares of £5 each: Of which 30,000 Shares will be taken by the present owners as part payment for the properties. 15,000 Shares are vow offered in New Zealand, and 35,000 in Australia, which will be payable as follows, viz.: 5s on application; 5s on allotment ; balance at intervals of not loss than thjee months, and in amounts not exceeding 10s per Share. It is not anticipated that more than £2 10s per Share will require to be called up. The present owners take their Shaies paid up to £2 10s each, and will be liable with other Shareholders for the remaining £2 10s per Share. PEO VISIONAL DIBECTORS: DUNEDIN. A. J. BURNS, Esp., 'Manufacturer JOHN DATIE; Esq., (McXandress, Hepburn, and Co) ...-.,. ROBERT t3lt-LIES," i Esq';, i (Gillies and Street) ALLAN HOLMES, Eeq., Solicitor GEOKGE JOACHIM, Esq., (Cargill, Gibbs and Co.) W. J. M. LARNACH, Esq., CM.*., President Ohamber of Commerce JOHN M'GREGOR. Esp.. Civil Engineer ROBKRT PATERSON, Esq., (Paterson and McLeod) EVAN PROSE R, Esq., (Kempthorne, Proser, and Co.) MELBOURNE. The Hon. JAMES BALFOUR, M.L.C. C J. HAM, Esq., Mayor-elect JOHN McILWRAITH, Esq., City Councillor JAMES ORMOND, Esq, (James Service and Co.) ROBERT HARPER, Esq. (R. Harper and Co.) The Hon. E. LANGTON, Temple Court THOMAS LOADER, Esq., Chairman Melbourne Harbor Trust GEORGE ROBERTSON, Esq., Publisherand Importer R. MURRAY SMITH, Esq., M.L A. J. H. WHITE, E.-q., Shipping Ageat. Bankees : THE BANK OF NEW ZEALAND, Dunedin and Melbourne. SOLICITORS : ALLAN HOLMES, Esq., Dunedin Messrs MALLESON, ENGLAND AND STEWART, Melbourne. General Manages and Secbetaey : W. HAY DICKSON. Brokers : Messrs LYELL AND COWAN, Melbourne MESSRS CLARKE AND CO., Melbourne GILLIES, STREET AND HISLOp, Dunedin. This Company has been formed for the purpose of acquiring and working on an extended basis the well-known coal-mining property at Westport, New Zealand, now owned by the Westport Colliery Company (Limited.) That property consists of leases covering areas of over 4000 acres, all coalbearing, held direct from Government for a term of 99 years, with mines, railways, and other works thereon in active operation, and is one of the most magnificent properties in any of the Australasian Colonies, whether as regards the quality of the coal, the extent and thickness of the seams, the economy of working, or the facilities for output and shipment. The development of the Westport Colliery Company's business, since starting work about 12 months ago, has been so rapid, and the demand for the coal has become so great, as to call for the expenditure of more capital than is at that Company's command, and an agreement has therefore been entered into to -transfer the property, as a going concern, to this company. It is proposed to expend additional capital as follows, viz : — On purchase of Steam Colliers ... £80,000 In opening up other portions of the Coalfields 2\ooo Total £100,000 This expenditure is expected to produce an annual output of 250,000 tons. The present annual consumption in New Zealand is about 500,000 tons, and published statistics show the consumption to be rapidly increasing. With extended works in full operation, the cost of coal put into trucks at the mines will be 3s 9d per ton, including royalty and all other expenses, to which must be added railway and shipping charge?. These have been fixed at a maximum of 2s 9d per ton, making the cost 6s ud per ton f.o.b. at Westport. The Government of New Zealand has intimated its willingness to reconsider the railway rates as the trade increases, and there is •every reason to believe that concessions in this item to the extent of at least Is. per ton will be obtained, which would make the cost 5s 6d per ton f.o.b. at Westport. An annual trade of 150,000 tons can now be secured in New Zealand alone, at prices leaving lls 6d per ton f.o.b. at Westport. The Company have now contracts with the Government for railways, &c, with Harbor Boards and Steamship Companies, which absorb a large quantity ; and it is estimated that — without entering into active competition with New South Wales coal — an additional trade of 100,000 tons can be done with Australia and Tasmania for gas and other purposes, for which the coal is specially suitable, at prices which will leave a substantial profit. Taking the figures above stated, and estimating the steamers to be worked at an oidinary profit, the trade will yield profits equal to 30 per cent, per annum on the called capital ; but a net profit of only 2s per ton will enable handsome dividends to be paid, and leave a large surplus to be carried into reserve. The whole of the above estimates are based upon a continuance of the present exceptionally low price of Newcastle coal. If, as is generally anticipated, the prices at Newcastle are advanced at the close of this year, the profits will be correspondingly increased . The Company will also be able to compete successfully and profitably in the Victorian, South Australian, and Tasmanian markets with Newcastle coal as soon as it is deemed necessary to extend the trade beyond the limits above mentioned, as the superior quality and lower cost of out-put will more than compensate for the extra freight. The property is one of a most valuable character, and offers the following undeniable advantages as a profitable investment for capital : — Ist. The concern is a going one, only . requiring extension. 2nd. The Vendors take payment in Shares in the new Company for their outlay upon the properties, and will be liable for the balance of £2 10s the same as other Shareholders. 3rd. The coal is of such quality as to create almost unlimited demand, and is in New Zealand rapidly displacing Newcastle and other coals, r -if .;.. wherever brought into competition with" them. It is a'highly bitumin ous coal of the best quality for gas, steam, smithy, foundry, and household purposes.' Samples can be seen at the offices of the Brokers. 4th. The Government of New Zealand have spent over a quarter of a million of money in Railway, Harbor improvements, and Shipping appliances solely to open up the Westport Coal trade ; and by special Act of Parliament all royalties derived from the properties, and profits from the railway, are set apart for Harbor improvements. sth. The enterprise is free from the usual risks of coal- mining, as the coal ••' can be worked level free, with natural drainage and ventilation. _6thi The estimated yield from the field ""• is over 100,000,000 tons from the seams now visible-^— running up to 53ft. 3in. in thickness, tb,e average v . -„ being over 20ft. This is no£ a matter of . guess, but the ceal faces, which are exposed on cliffs, have ■ ■ been actually measured and recorded by the Government geologist^, i