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The Pamphlet Collection of Sir Robert Stout: Volume 14

Prospectus

Prospectus.

The great demand which has arisen for land in New Zealand for Agricultural purposes since the opening of the Government Railways, the rapidly increasing prices obtained either on sale or letting, the large profits which are being realized by landowners (especially by those having capital at page 4 command for improvements), and the desire which exists in many families in England to obtain facilities for settling in New Zealand, have induced the formation of this Company, the objects of which are fully stated in the Memorandum of Association, a copy of which is annexed hereto.

As a first investment the Company has purchased from the several owners, as a going concern, properties which, as a whole, may be considered to form one of the finest and most desirable agricultural estates in the Colony.

The estate is situated in the province of Otago and Southland, and nearly due west of Dunedin, the Capital of Otago, and lies between latitudes 45° 20′ and 46°. The climate is all that can be desired for stock breeding, wool growing, and agricultural pursuits. The district is not liable to droughts.

The estate is in direct communication, by two lines of rail-way, with the town and port of Invercargill, distant fifty miles on the south, and by one of these lines with the city and port of Dunedin, distant about seventy miles.

There is also a line of railway under construction through the heart of the property, which will be opened in 1879, and will give all parts of the estate connection with Dunedin. A plan of the estate and also a key plan, showing its situation in the province of Otago and Southland, is issued herewith.

The different properties forming the estate adjoin, and consist together of 167,769 acres of freehold land, in one block, of which 16,823 acres are under cultivation, in grain crops, English grasses, and clovers, the whole fenced in and a great portion sub-divided into convenient sized fields and meadows. There are besides 141,675 acres of leasehold lands held partly under the Crown and partly under Trustees for Educational Reserves who are restricted from selling.

With the estate has been purchased the stock thereon, page 5 consisting of 167,500 sheep, 82 draught and saddle horses, and 112 head of cattle, together with the agricultural implements, plant, steam engines, &c., as also the suitable and substantial residences, buildings, wool sheds, sheep yards, shepherds' houses and saw mills.

The clips of wool from Waimea, Want wood, and the Dome have realised prices not much short of those paid for the Longridge clip, which, on reference to the London Wool sales during a few years past, will be found to have fetched as high as from 2s. 6d. to 2s. 10d. for washed wool. This station's greasy wool has this year sold for 13d. and 13½d. per lb.

The annual per-centage of lambs by way of increase from these flocks may be reckoned, one year with another, at from 65 to 75 per cent. As the freehold, becomes cultivated and improved this per-centage may be increased.

Hitherto, with the lands in their natural pasture, the sheep have been yielding annually an average of 5s. each net to their proprietors, while their increase and fat stock have served to pay all expenses, besides providing for considerable permanent improvements.

The purchase takes effect as from the 1st November, 1878, so that the Company will have the benefit of the present year's dropping of lambs, and of the clip of wool and grain crops soon to be realised. The shareholders will thus be secure of regular dividends from the date of the allotment of shares.

The price agreed upon is £1,070,000, of which the vendors take £350,000 in fully paid-up shares of the Company, forming no part of the present issue, and the balance payable thus: £40,000 at once, £100,000 on 31st March, 1879, £110,000 on 1st August, 1879, £200,000 on 1st February, 1880, and £270,000 on the 9th December, 1883.

The first three instalments will carry interest at the rate of 5 per cent, per annum and the last at the rate of 6 per page 6 cent, per annum, as to the latter however the interest will only he payable out of the surplus profits of the Company in each year after setting aside sufficient to pay a dividend for that year at the rate of 7 per cent, per annum on the paid-up capital, and without any claim in case of deficiency on future profits. The Company have the option of postponing the payment of any instalment or any part thereof (except the last), for not exceeding two years. Any deferred instalments, however, are to carry interest at the rate of 6 per cent.

The Vendors' shares, until after the 9th December, 1883, will only be transferable in the colony.

It is confidently anticipated that the property will rise rapidly in value, and that beyond the enhanced profits which will be realised from the improvement of the lands, and the increased number of sheep, the Company will derive large returns from the sale and letting of, portions of the estate to settlers in suitable sized farms, at prices considerably in excess of the rate per acre paid by the Company. For such farms there is a arge and increasing demand.

The Shareholders will therefore acquire, at a moderate cost, an estate rapidly rising in value, with a reasonable prospect of a minimum dividend of 7 per cent., and with the probability of largely increased dividends, and of a considerable enhancement in the capital value of their property.