Hematite Paint Company.

In handing you Prospectus of the proposed Hematite Paint Company, we desire to explain that, as the amount of capital required is small, and the bulk of the Shares may be taken up by a few, it may be a question whether it might not be better to keep it as a Private Partnership instead of a Public Company; but this will be left to the decision of those to whom the Shares are allotted.

The paint is now selling at about £25 at the works, but it is believed that if the price was made about £20 the demand would be very much increased, and keep the present machinery, which can produce about six tons paint per week, fully employed. The prime cost, including expenses of sale and everything, will not, with the use of the Patent, exceed £12 to £15 per ton, and when the works are transferred to Para Para, about £10. This, considering the small capital, will yield a very handsome return. It is proposed to call up only £1 per share. The £1,500 is the amount the undertaking is costing the Promoters in cash, and the 1,500 Shares also include those accepted by Messrs. Louisson, Johnston, and Travers in part payment of their interests. Mr. Louisson has agreed to manage the works for the new Company. Samples of the paint and ore have been sent to the Home Country, with the view of ascertaining values, and it will most likely be found that the paint will pay to ship, in which case the demand will be unlimited, and it may become desirable to increase the machinery. A very small outlay under this head would increase the productive powers of the Company very much.

Further information can be obtained from either of us, and Mr. Turnbull will act for the present as interim Secretary.