Page 5 Advertisements Column 1

Oamaru Mail, Volume III, Issue 793, 26 October 1878, Page 5 (Supplement)

* PROSPECTUB PROSPECTUS OF THJE -»7 E W zr ALAND RAILWAY TV WAGGON COMPANY, LIMITED. Capital ... ... £IOO,OOO. hi 10,000 shares of £lO each, of which it is proposed to call up £5, viz. : —ss on application ; 5s on allotment; and the balance in calls of 10s each, at intervals of not les9 than three months. Provisional Directors. (1. G. Russell (National Mortgage and Agency Company of N.Z.) Henry Driver, M.H.R. (New Zealand Loan and Mercantile Agency Company) XV. H. Cutten, M.H.R. John Davie (M 'Laiulres.H, Hepburn, and Co.) James Mills (Union Steam Ship Company of New Zealand) William Evans (Timavu) John M'Gregor, C.E. James P. Maitland (Commissioner of Crown Lands) , _ T Walter Guthrie (Guthrie and Larnach a New Zealand Timber and Woodware Factories Company. Limited) I'. C. Neill (Neill and Co.) T. S. Graham (Bing, Harris, and Co.) Allan Holmes (Solicitor) Bankkrs: National Bank of Now Zealand, Limited. Solicitor : A. Holmes. Brokku : J. A. Mackenzie. Tli is Company is promoted with the view of supplying tho great and increasing want of rolling stock on the Government railways. It is a well-known fact that, ever since the railways in this island have been opened, the supply of trucks has been quite insufficient for the needs of the system ; and as the lines are extended, and the traffic increases, the evil is becoming more and more seriously felt. All classos using the railways for the transmission of goods, grain, minerals, &c., have already suffered more or less inconvenience and loss from this cause, and will continue to do so even more severely, unlesss steps are taken at once to remedy this state of matters. Already the Government rolling stock is greatly overtasked, and with tho completion of the main line between Christehureh and Invereurgill, and the branch lines now in course of construction, will be still more so ; and it is quito certain that, owing to the heavy expenditure necessary to complete the lines at present being constructed, the proper equipment of the various lines with rolling stock will bo even more neglected in the future than in the past. There has been an inclination on tho party of individuals to attempt to supply theii special wants by providing their own trucks, but with no result, as the matter is one which can only be satisfactorily dealt with as a 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 in their lines, and individuals have been unable 'o supplement the defeci. Consequently, a largo siumber of Waggon Companies have bceii shivl.'.'d, which are now tending to enfcliH .'lass of business into their own ii.iud.-,, with, in nearly all cases, very satis fai'ioiv vi-nnlts. Th< : invent Company is intended by the ; Yi.visional Directors to occupy exactly the , ;im c position as the English Waggon Com panics. The project has been submitted to, and after careful investigation, approved of by, the Government, and in order to offer private enterprise sufficient inducement to undertake this necessary work, it has been agreed to alter the rates of freight, so that goods carried in the Company's waggons will bo allowed a rebate equal to one penny per waggon per mile. The above rebate has been fixed for a period of five years, but should the Government not be willing to extend it, they are to purchase the waggons of the Company at their then value. The business of the Company will be the building of railway and tramway rolling etock of every description, and selling or leasing the same to the Government, private railway companies, mineral companies, grain merchants, and others. The profits made by companies engaged in this class of business in England are vciy large. A statement extracted from Financial Opinion, of May, IS7O, is appended, showing the value of shares in a number of these companies, and the dividends paid by them have ranged from !) to 20 per cent. In the present case the above rebate would suable the Company to let out their waggons n such terms as would yield a handsome profit to the shareholders, and the hirer could in all cases depend on a regular supply, and would have the right to unload when convenient to himself, without liability for demurrage. The following calculation will show the profits to be derived from the operations of the Company Allowing sixty miles as the average weekly mileage of a waggon (a very low estimate), the Government rebate on a fiveton waggon would amount to five shillings per week, and a further sum of five shillings per week would be charged to the hirer, thus giving a return of ten shillings per week for each waggon. 500 waggons it is estimated would cost, say, £45,000. Estimated earnings at 10s. per week for one year ... £13,000 Leas maintenance at £2 10s. per waggon yearly ... £1,250 Depreciation at £5 per waggon yoarly ... 2,500 Management, &e. ... ... 1,500 ————— £5j200 Net profit of over 17 per cent. £7,750 The average life of a waggon, as taken from English practice, is about 14 years, so tlie sum allowed for depreciation may be considered ample, and the cost of maintenance has been fixed at a higher rato than the Government estimate. With a view of at once commencing operations, bo that a supply of waggonß may be made available as soon as possible, the Provisional Directors have obtained from Messrs. James Davidson and Co. an offer to build such stiggons as they may require on exceedingly favorable 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 share of the subscribed capital until the remunerative nature of the business, and the best means of carrying it on, have been fully tested. Tho share list will close on the Ist day of November, IS7S. Forms of application for shares can be obtained at the National Bank of New Zea-