Page 19 Advertisements Column 2

New Zealand Tablet, Volume VI, Issue 284, 11 October 1878, Page 19

diture necessary to complete the lines at present being constructed, the proper equipment of the various lines with rolling stock -will be even more neglected in the future than in the past. There has been an inclination on the part of individuals to attempt to supply their special wants by providing their own trucks, but with no result, as the matter is one which can only be satisfactorily dealt with as :i. special line of business. Exactly the same state of affairs has been developed in England, the capital of the original companies has proved insufficient to maintain a proper supply of rolling stock on their line 3, and individuals have been unable to supplement the defect. Consequently, a large number of Waggon Companies have been started, which are now tending to engross this class of business into thair own hands, with, in nearly all case 3, very satisfactory results. The present Company is intended by the Provisional Directors to occupy exactly the same position as the English Waggon Companies. The project has been submitted to, and affcer careful investigation, approved of by the Government, and in order to off iv private enterprise enterprise sufficient inducement to undertake this necessary work, it has b3en agreed to alter the rates of freight, so that goods carried in the Company's waggon will be allowed a rebate equal to one penny per waggon par mile. The above rebate has baen fixed for a period of five years, but should the Government not bs willing to extend it, they are to purchase the waggons of th 3 Company at their then value. Taj business of the Company will be the building of railway and tramway rolling stock oE every description, and selling or leasing the same to the Government, private railway companies, grain merchants, and others. The profits made by companies engaged in this class of business in Eaglanl are very large. A statement extracted from Financial Opinion oE May 1878, is appandel, sho.vtng the value oE shares in a number of thes3 companies, an.l the dividends paid by them have range! f com 9 to 20 per cent. In the presint case the above rebate would enable tthe Company to let out their wagons on such terms as would yield a handsome profit to the shareholders, aril the hire- could in all cise3 depend oa a regular supply, and would hive the right to union, I whan convenient to himself, without liability for demurrage. Th 3 following circulation will s!io.v the profits to b 3 derived from th 3 operations of the Company :—: — Allowing sixty miles as t!i3 averag3 weekly mileage of a wagon (a very low estimate), the Government, rebate on a five ton wagon would amount to five shillings per weak, anlafurthersumoffive shillings par we3k would be charged to the hirer, thus giving a return of ten shillings per week for each wagon. ..^ 500 wagons it is estimated would cost, say, £43,000. Ee3timated earnings at 10s per week for one year £13,000 Less maintenance at £2 10s per wagon yearly... £1,250 Depreciation at £o per wagon yearly... ... 2,500 Management, &c, ... ... ••■ ... 1,500 £5,250 Net profit of over 17 per cent. £7,750 The average life of a wagon, as taken from English practice, is about 14 years, so the sum allowed for depreciation may be considered ample, and the cost of maintenance has been fixed at a higher rate than the Government estimate. With a view of at once commencing operations, so that a supply of wagons may be made available as soon as possible, the Provisional Directors have obtained from Messrs. James Davidson and Co. an offer to build such wagons as they may require on exceedingly favourable terms, and, in addition, they have agreed to give the Company the option of purchasing those valuable premises known as the Otago Foundry, containing about one acre, and having frontages to both Castle-street and Cumberland-street, together with such plant as the Company may require, at any time within twelve months from the formation of the Company, at a valuation. Should the Company ultimately agree to purchase the above premises, the vendors have agreed to take at least one-third of the purchase money in fully paid-up shares in the Company. The Company will therefore be in a position to determine during the first twelve months whether it will be better to accept the above offer, or to secure fresh premises, or continue the system of building by contract. Thus it will be necessary to call up only a comparatively small amount per shore of the subscribed capital until the remunerative nature of the business, and the best means of carrying it on, hare been fully tested. The share list will close on the Ist day of November, 1878. Forms of application for shares can be obtained at the National Bank of New Zealand, and branches, or from Mr. J. A. Mackenzie, the Company's broker.