THE NEW ZEALAND TIMBER AND WOODWARE FACTORIES.

Oamaru Mail, Volume II, Issue 387, 20 July 1877, Page 2

THE NEW ZEALAND TIMBER AND WOODWARE FACTORIES.

The prospectus which appears in another column of a Company for the purpose of taking over Messrs. Guthrie and Larnach's Timber Business and Woodware Factories, demands some notice at our hands. It is now under live years since ; . the establishment of the Factory. At that time the launching of the business even on a small scale compared with what it is now, was viewed as somewhat hazardous, and success to any appreciable extent was only problematical. The business tact of the manager, and the sound practical acquaintance of Mr. Guthrie, have, notwithstanding the difficulties invariably attendant upon the launching of such great schemes, proved so successful as to leave nothing to be desired. The experiment, however, has brought one fact to light—and that is the almost unlimited field for this at first doubtful industry in this Colony. It would lie impossible to imagine what might not be the increase of . the present business, large as it now is, were additional capital introduced. The factories are four in number, as follows : • —lst, sawing, planing, and moulding factory ; 2nd, door and sash factory ; 3rd, tub and bucket factory ; 4th, furniture and turnery factory. It is not long since the majority of the wares that are now turned out as if by magic in the above-mentioned factories were imported principally from America, and at the time of the commencement of operations by the Union Sash and Door Company, of Auckland, and Messrs. Guthrie and Larnach's Factory in Dunedin, the promoters of those two businesses could not have even dreamed of the success that has attended their enterprise. The result now is that these two establishments have almost entirely barred out of the New Zealand markets all foreign productions of the kinds mentioned ; and not only so, I but they have substituted others of a superior description, and as the result would show, at lower prices. This has been done without the aid of any protective duty, and merely in the course of ordinary competition. We have mentioned the Union Sash and Door Company of Auckland in order to show the eminent success that has attended I their operations, proving that the un- I heard-of prosperity of Messrs. Guthrie ; and Larnach's business was not attribut- ] able alone to good management, but to the fact that it supplied a want. Now i

that the experiment has been tried, what must strike everybody is that it had not been tried long before, for, with immense pine forests at our very doors, and other advantages of which we may now very properly boast, wc are in a position to help ourselves. The Union Sash, and Door Company of Auckland has, not long since, increased its capital by the creation of 30,000 shares, of the nominal value of L 5, with the object of extending operations, its trade having grown beyond all anticipation. This Company lias paid the handsome dividend of 10 per cent, per annum since its institution, and this amount Messrs. Guthrie and Larnach have guaranteed for three years as a minimum of profit to the Company which is being established to take over their business. If anything were wanting to prove the confidence that Messrs. Guthrie and Larnach have in tiie business, this would suffice the most dubious, whilst it will insure to investors a handsome return for their capital. We have dwelt at length upon our local factories the largest in the Australasian Colonies — because we recognise in such industries the only means of rendering us an eminently wealthy Colony. But there are other branches of Messrs. Guthrie and Larnaeh's business which are not less lucrative than those which we have previously mentioned. In fact, the import iron and hardware department is absolutely necessary to the efficient working of the general business, into which it dovetails in very many respects. 2sor is the firm dependent upon those for the conveyance of their timber whose charges might seriously aii'ect their profits. They have a fleet of their own, peculiarly adapted for their work, which enables them to bring their timber to the manufactory at a cost considerably smaller than would otherwise bo the case. It would be supererogation to dwell at greater length on the plucky enterprise of Messrs. Guthrie and Larnach, and the advantages likely to accrue to the new company. We will, therefore, content ourselves by making two important quotations from a circular emanating from Messrs. Council and Moodie, tiie brokers for the company. The following will explain why the shares were withdrawn from sale after having been put into the market, by which it will he seen that, after correcting some inaccuracies in the books, the profits proved to be even larger than were at lirst computed :

' ; Tlio result has shown an excess of Pvoiit over that originally shown by the .Books of Li):), ill a sum total of L59,!>45 10s. lOd. Wo may explain that as soon as it became evident that a considerable time would be required to complete ihe Valuation and Audit, the Provisional Directors, with Guthrie and Larnach's consent, decided to suspend the issue of the Prospectus until these were completed, which boing now done, the suspension is at an. end, and by order of the Directors the Prospectus is re-issued." In order to account for the decrease of 2)ro;its which accrued in the year 1870, as compared with the handsome result of previous years, tlie brokers state :—" You are also probably aware that 1870' was an altogether exceptional year in the Pudding trade. Every kind of timber and material fell in price below what we have seen it for the last 14 years ; and we think that the fact that Messrs. Guthrie and Larnach could go through .s/h7i a, year, and yet show a profit of LO,BOO lis. (this including L2OOO paid to 'the Partners) is perhaps the best proof of the stability of the business.'' if anything were wanted to testify to the genuineness of the company winch is mnv almost filiated, wc would point to the namesof the gentlemen connected with the undertaking, whose business capacity and acumen are such that they have seldom been connected with any scheme which has not proved a financial success. The number of shares already taken up in Australia and this Colony warrant us in looking upon " Guthrie and Larnach's ]N T cw Zealand Timber and "Wood ware Factories, Limited," as an established fact. Messrs. Council and Clowes are agents for the company in Oamaru, and will be happy to afford any information that may be desired by intending investors.