FLAX AND PUBLIC COMPANIES.

Southland Times, Issue 1165, 15 November 1869, Page 2

FLAX AND PUBLIC COMPANIES.

(TO THB BDITOB 0* THB TIMES.) g I a j — it appears desirable that the question of forming a company on the "limited liability principle" for the preparation of flax should be brought under public consideration. Vague statements have been heard of its being exceedingly profitable, but few are really aware of its approximate value as an investment for capital. To undertake its preparation profitably requires a capital of from £500 to £1,000. Of course, it could be produced in small quantities with less. Suppose a company formed of 200 shares, £5 each, making the capital £1,000 0 0 The expenditure would be nearly as follows : —

This appears a sanguine estimate, but I believe it is nearly correct, at all events the weekly profit would afford a margin for contingencies, and leave a handsome sum at the end of the half year for a dividend — I am, Ac;, Flax Cuxttjbb.

Portable engine of 16 horsepower £450 0 0 8 machines at £25 each 200 0 0 Sheds and benches for machinery 120 0 0 Wash pret3, and sundries 80 0 0 £860 0 0 Cost per week of six days. 50 tons flax delivered at Mills, at 25 shillings per ton £62 10 0 Manager's wages 4 0 0 Engineer and two men 8 0 0 20 boys at 12s. per week 12 0 0 12 cords firewood, 16s 9 12 0 Repairing wear and tear 5 0 0 Sundries 6 Q 0 £107 2 0 Prooooclo. ....... 10 tons dressed flax, say sold in Invercargill at £25 per ton only £250 0 0 Brought forward weekly expenditure 107 2 0 Cost of carriage of 10 tons flax to InvercargOl, supposing mill • to be near Oreti River, to Jetty £3, to stores 50s. SlO 0 Profit for week... 137 8 0 £250 0 0