Page 4 Advertisements Column 3

Timaru Herald, Volume XXVII, Issue 1759, 20 June 1877, Page 4

Miscellaneous. ' tiade, and the promoters feel confident that they can be most safely aud profitably extended. In the New Zealand Woodware Factories there are lour distinct depirtments, viz. : — Ist. Sawitg, Planing, and Moulding Factory, j 2nd. Door and Sash Factory. 3rd. Tub and Bucket Factory. 4th. Furniture and Turnery Factory. The trade of each of these works is cspable of great and profitable extension, and as an evidence of the great outlet for the products of these works, Mentrs Guthrie and Ltrnacli have been compell-d to run the machinery overtime, on an uveragrt 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 tint city) are «üb»tantially built of brick and cement, on solid bluestone and concrete foundations (all timber being of the best and most durable descriptions), covering an area, including the timber yards, of several acres of valuable land m the chief streets of the city. The whole of the splendid modern machinery whs designed and planned by an eminent, engineering firm m Glasgow, under Mr Guthrie * immediate supervision while m Britain, and after a very careful inspection of the principal woodware factories m America, Britain, and on the Continent. Each machine has been firmly placed on a solid bed of concr«tc where necesiary, to prevent the pos sibility of vibration, and to avoid wear and tear. The contract for the purchase of machinery was entered into when materials and labor m Scotland were at their lowest. The important advantages to shareholders m a Joint Stock Company of entering into possession of a large minufacturing und importing business m full operation on a fixed date, with a Ihoroughly-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 delay* incidental to the s'arting of a new business, nnd with all preliminary expenses paid, should be at once apparent to investors. The following special advantages are worthy of notice : — Ist. The whole of the machinery m the Factory is driven by one psir of powerful engines, worked by two men — an engineer and flremnn — whose wages may fairly be said to constitute the whole expense m connection with the motive power, as tho only fuel required to keep up steam is the sawdust aud shavings drawn from the different factorias as soon ns made, by means of pneumatic tubes, and deposited m a large brick safe, ready forconsumption, alongside the boiler. By this means all rubbish is utilised and made a ■ource of profit, and the cost of labor reduced to a minimum. 2nd. The four Factories being worked under one roof, a greit saving is consequently effected, not only m the motive power, but also m the management, as the whole can be superintended and controlled by one manager. 3rd. The Tub and Bucket Factory, now m full operation, has a monopoly of the supply of these indispensable articles, there being no other tub and bucket factory m the Australian Colonies. A large return may therefore be looked for to the credit of this branch of the business. 4th. The whole of the Factories, especially the Furniture Factory, being worked m connection with the general timber business, is carried on m"Bt profitably, not only from the fact that the first cost of the timber being procured at tho cheapest possible rate, but also that large quantities of short cuttings of timber, which would otherwise either be sold as job lots at a low price, or sent to the furnace to be consumed as fuel, are utilised. The Union Saih and Door Company m Auckland is of a similar character to the New Zealand Woodwaro Factories, only being much lets extensive. It is, however, a fair criterion to base calculations upon, as to what may b<j expected from the New Zealand Woodware Factories. The Company referred to has only been m active operation a little over four years, and has paid annual dividends of 20 per cent., besides carrying large amounts to reserve funds ; so that, m 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 solely 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 m Messrs Guthrie and Larnach's business for the fame period considerably exceed that made by the Union Company m proportion to the capital invested ; so that the promoters have good reason for believing that not only will large dividends bo paid regularly by the Company, but that its stock will at once become a much sought-after and favorable 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 m 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 m the future ; and as a proof of Mr Guthrie and hi* partner's faith iv the future prospects of concern, they are willing to hold one-fifth each, or equal to two-fifths of the entire capital on their own private account, purchased m fully paid-up shares. And as a further proof of their confidence m the future prospects of the Company, they have decided to guarantee that the Company's net profits for the first three year* shall not bo less than 10 per cent, per annum on the actual capital for the lime being employed m the business, or equal to a sum of about £57,000 to be paid to the shareholders within three years. They expect and beli eve that the profits will considerable exceed this rate, but investors will by this means know the rate of their minimum profit*. By way of further securing the observance of the guarantee, the firm have agreed to deposit with the Director* of the Company scrip of tho Company during the first year of the value of £50,000, during the secoud year of £40,000, and duriog the third year of £25,000, and to execute a legal charge upon the same m favor of the Cooipany. Intending shareholders may therefore rest assured that no more legitimate or remunerative outlet for their capital, or one presenting better or more extensive future prospects, ha* ever been offered m New Zealand. The reasons which have induced Messrs Guthrie and Larnach to take this step are — Ist. That their term of partnership expires by eflluxion of time m 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 charaoter which opens up a largely extended and extremely proGtab'e trade, which, however, call* for the employment of an extended capital. The valuation of the freehold and leasehold lands, with full particulars as to amount of capital employed aod net profits realised daring the la»t four and a-half years, taken from the firm* book*, 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 Provisional Director*, may be obtained by bona fide intending investors from the Broker*. The Share List will close on TUESDAY, 31st July, at 4 p.p., and, m making the allotment tlo Provisional Directors will consider the order m which application* have been made. Form* of applications for Shares can be obtained at the office* of Meatrs Guthrie and Larnach ; or of Messrs Connell and Moodie, or J. B. Bradshaw, Brokers ; or «f Messrs Tats and Hiu, Timaru, who are authorised I to receire applications for Share*. lSjju