Page 4 Advertisements Column 2

Oamaru Mail, Volume II, Issue 382, 14 July 1877, Page 4

PROSPECTUS these works, Msssrs. Guthrie and Lainacltf have- been compelled to run the machinery, overtime, on an average of 'nights per--week since the opening of the. new Factories. The whole of the extensive Factories and Stores (specially designed by David Ross, Ksq , architect, of this city) are substantially built of brick and cement, on solid bluestone and concrete foundations (all timbers being of the best and most durable descriptions covering an area, including the timbe- yards, of several acres of valuable land in the chief streets of the city. , Thn. whole <>f the splendid modern machinery was design d and planned by an eminent engineering firm in (Jlasgow, under .Mr. Guthrie's imm> diate supervision while in' Britain, and after a ve:y careful inspection of the princi|>al woodwate factories in America. Britain, and on the Continent. Each machine has been firmly placed on a solid bed of concrete, where necessary, to prevent the possibility of vibration, and to avoid wear and tear. The contract for the purchase of machinery was entered into when materials and labour in Scotland were at their lowest. The important advantages to shareholders in a Joint Stock Company of entering into possession of a large manufacturing and importing business in full operation on a fixed date, with a thoroughly tiained staff of otiicers and men and a large mercantile connection without having to wait for the erection of buildings, importation of plant, stock, etc., or being subjected to any of the ri ks and delays incidental to the starting of anew business, and 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 in the Factories is driven by one pair of powerful engines, worked by two men—an engineer and fireman—whose wages may fairly be said to constitute the whole expense in connection with the motive power, as the only fuel required to keep up steam is the sawdust and shavings drawn 'from the different factories as soon as made, by means of pneumatic tube*, and deposited in a large brick safe, ready for consumption alongside the boilers By this means all rubbi.-li is utilised and made a sour< e of profit, and the cost of labour reduced to a minimum. 2nd. The four Factories being worked under one roof, a great saving, is const (jueiitly effected, not only in the motiv power, but also in the management, as th whole can be superintended and controlled by one manager. "3rd. '1 he Tub and Bucket Factory, now in full operation, has a monopoly of the supply of these indispensable articles, there being no other tub and bucket factory in the .A us tra!asian Colonies. A large return ma}' therefore be looked for to the credit of thi. branch of the business. 4th. The whole of the Factories, especially the Furniture Factory, being worked in con nection with the general timber business, is carried on most profitably, not only from the fact of the first cost of the timber being pro cured at the cheapest possible rate, but also that- large quaiuilies of short cuttings of timber, which would otherwise either be sold as job lots at a low price, or sent to the fur nace to be consumed as fuel, are utilised. The Union Sash and Door Company in Auckland is of a similar character to the New Zealand Woodwave Factories, ouly bein much less extensive. It is, however, a fair cricerion to base ea'enlaiions upon, as to what may be expected from the New Zealand Woodware Factories. The Company referred to has only been in active operation for a little over four years, and has paid annual dividends of 20 per cent., besides carrying large amounts to reserve fund ; so that, in addition to the very handsome yearly dividends, the original L;> shares of the Company are now quoted at L 7 10s., and a new issue allotted to shareholders, on which L2 10s. has been paid up solely out of reserve fund, are quoted at L 3 lUs., inakin_ the present total market value of the original shares Lll, or a premium of I*2o per cent. In connection with this, it is a fact that the profits shown to have been made in Messis. Guthrie ;iiid Larnach's business for tlie same period considerably exceed that made by the Union Company in proportion to the capital invested ; so that the promoters have good reasons for believing that rot only will large dividends be paid regul-irlv by tlie 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 year< as Managing Director. Mr. Guthrie's practical skill and long txperience in 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 in the future; and as a proof of Mr. Guthrie's and his partner's faith in the future prospects of the concern, they, are willing to hold one-fifth each, or equal to two-fifths of the entire capital on their own private account, purchased in fully paid-up shares. And as a further proof of their confidence in the future prospects of the Company, tliey have decided to guarantee that the Company's net 2>roiits for the first three years shall not be less than ten per cent, per annum on the actual capital for the time being employed in the. business, or equal to a sum of about L-t ,000 to be paid to the shareholders within three years. They expect atul believe that the profits will considerably excee-i this rate, but investors will by this means know the rate of their minimum" profits. By way of further securing the observance of the guarantee, tlie linn have agreed to deposit with tin Directors of the Company scrip of the Company during the first year of the value of LSO 000, during the second year of L 40,000, and during the third year of L2o 000, and to- execute a legal charge upon the same in favor of the Company. intending shareholders may therefore rest assured that no more legitimate or remunerative outlet lor capital, or one presenting better or more extensive future prospects', has ever been offered in New Zealand. The reasons which h-ve induced Messrs. Guthrie and Larnacli to take this step are—--Ist. That their term of partnership ex- ' pires by effluxion of time in the couise of a lew months, when it is the intention "of one of the partners to retire from active business.