Page 3 Advertisements Column 2

Dominion, Volume 6, Issue 1593, 9 November 1912, Page 3

COMPANY'S ROSSIBILTIES. ' ''" . The following statement shows at.a glance the possibilities of Tikorangis— ' .'?■■ •'.::. -.■" '■-/ :■•'.• ■ &■ £ ~.: By.'Sate of 60,000 tons of cemeniat 60s. ■: net (present minimum N.Z. :price is 655.) ... ... .... .... ... 180,000 To Cost of production (including management, depreciation, on . plant; build- '■'■ > ":ings and machinery .and contingencies) 265. on 60,000. tons. ....... - 78,000 . To Freight (average) Bs.' 6d. per''ton on ' 60,000 tons, .... ..." \... ... 25,500 To Balance of profit ', .„ '... ... 76,500 -"'. -'- : •-.■•.' : : -- V '.;-■:.• £180,000. £76,500 equals 45 per cent, on £170,000 capital. COMPARISON OF PROFITS. Wilson's Portland Cement Co.,' Ltd.', the largest and most prosperous Company in New Zealand, is working a class, of stone, similar to the Tikorangi deposit. In its published. accounts' for the year 1911 this/CompanyVshows, after providing, fully for, all expenses.-'including' bad debts and debiting-for repairs, renewals and maintenance, ho less a sum than £11,598.' ' 16s. 7d. (compare.l with £5,670 2£. : ',6d." in 1910), a net profit of £20,102 10s. 9d., representing'a net return, of-over 20 per cent, on a capital of, £100,000','\ ' ..,,•. . ■■.- With the additional:profit'which would acorue from'the advantage of hydroelectric '.power 'this: Company, would make a total net profit of from'3s' per cent; to 40 per cent In the above Company 15,000 fully paid shares were distributed gratis to the rata, raising the capital from .85,000. te 100,000. shares: ■'Sales of these shares, during .; .October - (ult) were 'reported'-, at-; 365: -3d.. : . '''■'V:manag;emenT;-'' The Directors, realising; that tfie.success of the Company is largely dependent upon its management, : have been fortunate in obtaining the services of probably: the. most experienced and successful cement manufacturer in the Dominion in the person of Mr, ;W. J. Wilson.\.Mr. Wilson has sinpe its inception been connected, with;the Wilson's-Portland Cement .Company,, the largest-and most successful cement, works in ■ New Zealand—founded and-carried on by his- father, Mr. Nathaniel' Wilson (who has accepted a seat on the Board of tho proposed Company) '■■ and other ■ meml>ers "of • the. Wilson family. '■''■". '■' •''■'■ ,''■:. Mr. W. J. Wilson has, since.,l9o4,'held' the. position of works' nianager in t,^| f 'jVilson'j^Pipi,tl^|jd o on "'four;occasions has wsited.Great Bfitaih,' Uhitiid" S.tates and Canada'for the purpose of acquainting;himself, on behalf of 'fiis Company, with all the latest developments:in cement manufacture and improvements in. machinery., :. I Neither of these gentlemen is "receiving any consideration whatever for identifying their interests with those of,; the Company. ■ : ... "" ';■" - .- <' THE MARKETS'. It is well known, that' the existing" cement mills cannot supply the local demand, and large shipments of 'European i cement are ,Btill imported into the Dominion. Owing to the ;gradual depletion of the timber.reserves and the greater attention being given to' the, erection of buildings arid' other works in'reinforced concrete, .the demand for cement is rapidly increasing. The minimum price in New Zealand is 655. per ten. In Australia . the cement. mills, producing approximately .the same-quantity of ceriient'as is produced in New Zealand,, are quite inadequate to' satisfy the Commonwealth demand, and although the importsof cement are heavy, considerable iinconvenience is experienced :by,a constant shortage of cement supplies.. A Sydney cable, dated 20th of September, reported .salcSjOf cement: up to.£6 6s, per .ton on the spot and £5 lis. -for,:consignments: to arrive;, : . During, the month of.-October large contracts were let in Melbourne for the'supply of cement ,at;76s,>6,d...per ton. '■'. ,; .:.,-' . -<, '.:■•. ,--. ■ •:'■■.■• It is estimated that this Company could deliver cement on; the ,iSydney: wharf .at ■ 3is. per ton,. and with duty. (205.) '.paid, at 54s;' This "shows a' profit of over 20s; : per ten. In 'connection with the above.it should be borne in. mind that the' Company's joutput could be doubled by an' additional expenditure of approximately £35,000. ■ ■■"••■,. . U.S. CEMENTOUTP.UT. As an Indication of the increasing, demand for Portland - Cement,.the following.fignres 'are given,.• showing the;increased output'in the United States:—; Tear. ' Number of Barrels. '■.1880 „ w. . ... ,m .», ,m 42,000 ' 1885 »,."-.. -''w, '',' «,'"" „. i. ', 150,000 '". 1890 *. w; ~ ~'». -„. . 335,000 ... 1895. „. :». ."'„,- ■„ '„.-•__ .''890,324.' ' . ,'; . 1900 *;.-'*, . ■ w '_ „. .„ '„; . 8,482,020; : : , ,1905 L* ~. -. ... •-.-'„. '. „. •'35,246,812 ' ; 1910 '_.. _■;', _ ...•'».. 76,549,951 HYDRAULIC LIME. \ The cement rock at Tikorangi, just as' quarried, burnt,. and ground, will produce a: high-grade- natural cement (hydraulio .lime),;for which.'therekis a';profitable market ;::;-.;;; EXTRACTS FROM REPORTS/ ..'Ah eminent: Wellington: engineer, whose original report may .bß':6een:at the office of-the:Secretary, and copies at the offices ';,before mentioned or at any branch of the Bank of New' South Wales, ; 'says:—"l ain satisfied that practically the; whole of ; what; is; kno\vn as 'Limestone ■ Hill' consists of cement rock (argillaceous limestone) suitable for the manufacture of highgrade Portland Cement.-The magnitude of the limestone de T . posit considerably impressed me, consisting as it does of some, hundreds of millions of tons of suitable material easily mined, and with, but little overburthen. The-property is in. every ' way eminently suitable for the establishanerit of cement manufacture, and the natural material jb capable of being manufactured into a cement of a quality quite equal to that which is manufactured on 'Limestone-Island.' Nearly all modern plants for the manufacture of Portland ; Cemont provide for all mechanical work required in crushing, grinding, etc.,: being done by electrical power.' In this.respect a Company operating would be extremely fortunatejn obtaining the necessary power from the hydro-electric station proposed to be constructed in the harnessing of the river at Wairua Falls. The necessary authority to utilise the. power has, I/uhderstand, been granted to the Whangarei Borough Council -bjr the Government, an'd' the Borough has agreed to supply the' Company to be formed with power sufficient, for .its•requirements at a cost which is not likely to exceed £9 perh.p. per annum. This will mean a considerable saving in capital cost, of machinery and buildings, and in reduction of about 60 per cent, (about 10s. per ton of cement) for power as compared with, the cost of generating; ■electricity, by steam. I am of. opinion that the total cost of production of a first-quality Portland Cement manufactured under the latest and most approved methods with power supplied from the Wairua Falls: hydro-eleotrio scheme will not exceed 265. per ton, inclusive of oost (of bagging and allowing a fair sum for depreoiation of all buildings .and machinery, and contingencies. In determining, the magnitude of the pro-, posed works, or their total output, it is necessary to consider the markete which oan be supplied, i am of opinion that with the low,cost of production all countries south of the Line could be supplied, In New Zealand I anticipate that in the near: future the use of cement conorefo for building purposes will bo generally adopted owing to the gradual depletion of the timber reserves, and greater attention being given to the erection of buildings in reinforced conoretc. In - Australia the quantity of cement imported is considerable, and there are but few manufactories. The cement which can be manufactured at Tikorangi may be considered'quite equal to any English ; cement. I am of opinion that the proposal to erect .works capable of producing 60,000 tons of cement per annum is sound. The -present price of New Zealand cement in Wellington •ia '£3.55. per tori. - Assuming the cost of production nt 265.: per ton as estimated, it will be. seen that a considerable margin exists capable of yielding .largo profits'."