PROPOSED LION FOUNDRY AND ENGINEERING COMPANY.

New Zealand Times, Volume XXXII, Issue 5147, 21 September 1877, Page 7

PROPOSED LION FOUNDRY AND ENGINEERING COMPANY.

A meeting of persona interested in the formation of ,a limited liability company Jor the purchase and carrying on of Mr. Is. W* .Mills Lion Foundry business was held at Mr.-Hun-ter’s rooms on Sept.Srd., Mr. Krull to the chairpandlhavifig read the circojar, convening the meeting,' stated that the objects of the company were as follows \ ; “The company is projected for the purpose of buying the iron foundry and, engineering business of Mr., B. W.' Mills, he having decided, for' various reasons which he himself will explain to you, to dispose of this highly lucrative business. The sum required for the. purchase of the freehold, and leasehold property, building, plant, and goodwill is £25,000. On receipt of half this amount (£12,500), Mr. Mills will hand Over, the, business, together with all work in progress, contract or otherwise • such to be taken at a valuation. The balance (£12,500) will be allowed to remain for a term of ten years at 7 per cent.; but payment can be made at any time during this term either of the whole amount or of any portion thereof, provided such payments are made in sums of; not less than £IOOO, and that three months’ notice be given. ' “It is.proposed to form the company with a nominal capital of £40,000, in 4000,shares of £lO each, of which £4 per share be called U p by payment of 10s. per, share on application, 10s.. on allotment, and. three calls of 20s. each at intervals of three months. With the sum thus realised (£16,000), the .payment of the moiety of the purchase-money (£12,500) oould be made, and the balance of £3500, retained as a working capital. - , « jt is confidently anticipated, that m a year or two’s time the land on which the foundry now stands would become so valuable as to justify the removal of the buildings aud plant to some suitable site on the Te Aro reclamation,, or elsewhere, and the sale .of .the present site. The .sum realised; by such sale would probably equal the whole amount now required for the purchase of the entire property. “ Apart .from the yalue; of the property as a speculation, the business being of a. highly profitable character, will .yield a large return on the capital employed, :aud, would therefore secure to shareholders an ,immediate return in the shape of handsome dividends. “ With a large and influential body,of shareholders, the business is capable of extension to a degree practically unlimited. . Mr. Zohrab stated that . 180 persons had signified to him. their intention of taking an interest in the company, . . ■ !

Mr. Mills said "his reason; for parting with the fpunctry . business: was that; he i had other business to look after, and, that• the' work at the foundry, had reached such dimensions that he was,quite-unable, to,.attend, to it properly; and noue.of,his, family havingbeen brought up to the business there was r no .one to step onto, his shoes. ,ife, had been .advised to takejthis course some time-ago, but thOj foundry, business was really such agpod thing that he. did not then like to give it up. He was himself prepared to take 250 shares in tbe proposed company. The net profit for twelve months had been upwards of £SOOO, . and , henshouM not, part ...with the concern if it were not .for the reason stated. The foundry had. been-established; for tweijty, veara. It began in a, small. way—a shop ivith some half dQzen;men—and, now, was one of the leading establishments of the cplpny, and cpuld turn out as good work as could be produced in 5 any part,of- the world. ;-A.r tbe concern progressed ho -had kept, on adding -to; the; plant, and had always kept in; advance pf ; the, tijnes. Mr.- Travebs said he had had,, a conversation with;Mr.. Brabazon Smith, who, had expe-. rience , inf- these matters. That .gentleman considered L tthat; a foundry on a; large.; scale at Wellington would be. a good investment; bnt he did. mot think the site of Mr. Mills’ present'foundry: the. best. Ho, would ..prefer Kaiwarra.;! When the railway was- .opened f tp, the Wairatapar.there wQffid.,np, doubt.; be a large increase in the demand , for, ironwork. He was also of opinion that; the capital should belarger.than, £40,000. • His (Mr.. Travers’) own opinion,.; was j that the poncern, might be made a success by; the expenditure of sufficient capital, and. bypthe workubeinghparried on under the supervision of a thoroughly competent manager, who should be paid .a salary common■urate with the undertaking. On the motion of Mr.: Thomson, seconded by Mr. A. Young, it was resolved; —That it is desirable, to form a; company on the basis proposed. , r : ; : , The, following gentlemen were .dominated provisional directors; with power toTadd to their number :h —Messrs. J. Plimmer,; A. Younor, E. W. Mills, Dr. Buller, W. Hickson, B. J. Huncan, J. K. George, -J. S/ M, Thompson, J. F. B. Wright, and F. Krull.; : ■ ! d Mr. Zohrab was- appointed secretary ; pro tem., and instructed -to issue a prospectus ;and, take the other steps necessary for the formation of the company. .