Important Consolidation.

Taranaki Daily News, Volume XLVI, Issue 153, 2 July 1904, Page 2

Important Consolidation.

A WELLINGTON PROPOSAL. One of the most important enterprises yet undertaken in this colony ia announced in this morning's issue. This is the Empire, llollevue, and Mansions Consolidated, Limited, the nj-iridgvd prospcetusi of which is published in an advertisement appearing on page four. This company isibping formed for the purpose of acquiring as going concerns, the palatial Empire Hotel, in Willis and Victoria streets—one of the largest and most modern hotels in the colonies —the picturey.pie liojlevue Gardens and Hotel at the Lower Mutt and the handsome private hotel known us "The Mansions," which ranks prominently amongst tho best establishments of its kind south of the Line. The company has contracted with the vendor, Mr Herrman Lewis, to purchase these three properties for thu Hum of £130,000, of which the vendor receives £55,000 cash and 'IOOO fully-pa'id-up shares, the sum of £55,000 remaining on fixed mortgage. Th» fact that local companies have sum of #35,000 on fixed mortgage ifl an undoubted proof of the soundness of the securities offered. The assets to be acfjjiired have been fully reported upon by well-known, experienced and reliable experts, wiio state the total valne to be £144,229 ; and these figures, which arc based on thoroughly reliable estimates, show a surplus of X 14.229, over and above the purchase price to he paid by the company. The reports of Messrs Badham and lliss, professional accountants and provo that the receipts of the Eiupiro Hotel show a marked increase year after year, rising from £l-1,-040 for the year 1900 to £28,071 for the year 1903—an increase of over 100 per cent., or more than double. Compared with the returns for 1901—only two years' ago, when the new 'building was completed—the receipts for 1903 actually show an increase of over GO per cent. 'The present rate of prfcfit on the Empire Hotel alono represents in itself over 8 per cent, on the entire capital of the consolidation, without taking into uccount at all "Tho Mansions" and the Bellevue Hotel and Gardens. The receipts from these other two properties also allow favourable results. Tho whole of tho three properties hiavo been carefully valued by the loading valuers of Wellington citymen who are well-known for their allxiolutely unbiassed judgment, skirl and experience in this, class of business for a long period of years, and tfonerally for their "bedrock" valuations. Thu properties are well-known throughout New Zealand, they possess unlimited possibilities from a ►Vsinesa point of view, and considering the large concentration of business now taking place in Wellington tho values mentioned must, within tho next few years, enormously expand, the situation of the properties making for an extraordinary vearlv increaso of what is known as "unearned increment." The names of the directors are published in the advertisement, and it will be seen that they comprise some of the most, prominent and most influential business men of New Zealand. This bea sound and safe investment the public are advised to apply early for shares, as thero is not tho slightest douWt that the capital will be oversubscribed.