Wairarapa Daily Times. [ESTABLISHED 1878.] TUESDAY APRIL 3, 1894. THE BLACKSMITH & WHEELWRIGHTS COMPANY.

Wairarapa Daily Times, Volume XV, Issue 468, 3 April 1894, Page 2

Wairarapa Daily Times. [ESTABLISHED 1878.] TUESDAY APRIL 3, 1894. THE BLACKSMITH & WHEELWRIGHTS COMPANY.

We have received a copy ;,6f the balance sheet of theMaeterton Black" smiths and Wheelwrights Company which is to be presented at the coming annual, meeting, and we are glad to notice that itßhows.au increasing and i progressive bußinesß.for the past year, I but at the same time this augmentation of trade carries with it a certain measure of risk whioh requires to be carefully safeguarded, It has for some time past been recognised that the paid up"-Oapital of this;Ooaipany is inadequate for the busine'ss which it transacts and sb each year records a larger output it ;is quite evident that it also ought to register a commensurate increase'of capital. The paid up capital of the Company amounts to about £1,400, a sum which does not provide for the items of plant and stock whioh represent as much as £1,600 and leaves therefore nomargin; at all for ordinary trade requirements. Virtually the company is dependent for its working-capital on Bank advances. This item last year, stood 'at' twelve handre'dipoundß, and this year it has run up to sixteen hundred.' jit is quite evident,that the oompany rests top much ofl Bank acCommpaatipn,.and that in order to strengthen its position it should place its unalloted shares' in the market, The large and profitable business whiohat has secured quite justifies .ithfcstep, and if the thousand pounds'of reserve shareswere issued under proper. ron> ditionsithereought to be no difficulty in disposing of khem.-A'.iCompeient broker should indeedbe able' to'plape them iu a few duys, on the etrenglh of the balance sheet whioh has' been published.- The company is really • a strong one,' but it has not displayed mu()hbi!Bine6s aptitude in makiqgihe moflti qf its ; ripqiirces,. or ''-■ i{ vvquid before now have taken the step which we suggest, and whichßooueror lajet it must .'inevitably adopt'; It is. evi : , dent'that' with a full allotment of shares the;company; could pay ia larger -dividend ; than on its present basis' as' the Bank now takes'more out of its profits" than -the shareholders However, what the Bank now takes ib somewhat a mutter of conjeoture, as in sheet item is.not.'given al|iougb it Waßßta ; te|'in the previous ojpS There oan/hbweveriilie no clbubt that if the company placed its unalloted shares its position as a trading firm would be strong'ef and its Ifcjfgio fdr'dividends woiiil be enlarged.'' v.