Page 2 Advertisements Column 3

Gisborne Times, Volume XXVI, Issue 2301, 21 September 1908, Page 2

PROSPECTUS OF THE GISBORNE CO-OPERATIVE BAKERY COMPANY, LIMITED

A COAIPANY INTENDED TO BE INCORPORATED UNDER “THE COMPANIES ACT, 1903.” PROPOSED DIRECTORS: A. ,P. HAILEY, Balter, Gisborne. HERBERT AV. WILLIAMS. Clonk in Holy Orders Gisborne. H. E. HILL, Land Agent, Gisborne. J. HAROLD KANE, Chemist, Gisborne. G. PALAIItET, Settler, Gisborno. L. REDAVARD, Clerk. Gisborne. J. A. AICKIN, Accountant, Gisborne. BANKERS: THE BANK OF AUSTRALASIA, at Gisborne. SOLICITORS: REES BROTHERS & BRIGHT, of Gisborne. AUDITOR: ANDREW GRAHAM, of Gisborne, Accountant. SECRETARY AND BROKER: CHRISTOPHER GISBORNE PIESSK. of Gisborne, Accountant.

OBJECTS. Tho objocts and powers of tlio Company aro sot out in tho Memorandum of Association, a copy of which is printed at tho end lioreof aiad forms part of tlio Prospectus. Tho Company adopts Table A of tho “Companies Act, 1903,” except as added to and modified by the Gonornl Articles of Association, a copy of which is also printed at the end hereof and forms part of this prospectus. CAPITAL. The capital of the Company is £SOOO, divided into 5000 Shai'es of £1 each. Of the above-mentioned shares 250 are to be issued and credited as paid u„ in full in part consideration of tlie sale to tlio Company, particulars of which are hereinafter more particularly sot out, 2000 shares aro reserved for subsequent issuo for extension of business, and the remaiiador, 2750 shares, nr© offered to the public for subscription payable as follows: Two shillings nor share on application. Three shillings per share on allotment And the remaining fifteen shillings per share shall do payable in calls of not more than five shillings per share at intervals of not less than one month. PURPOSES. The Company is being formed for the primary purpose of. acquiring the Bakery Business now carried on by the vendor, Arthur Percy Hailey, in Gladstone Road, Gisborne, and of carrying on, consolidating, and extending til© trade or business, and of carrying out the objects mentioned in the Memorandum of Association. The Trustee for and on behalf of the Company lias contracted with the said Arthur Percy Hailey (hereinafter sometimes called “The Vendor”) to purchase tlie business as a going concern. but not including book or other debts. The prices fixed for such purchase are as follows: (a) The sum of £350 for the goodwill of the said business and lease of the premises. (b) The value determinable by valuation in the ordinary wav of the buildings, stock-in-trade, plant-, fittings, machinery, furniture, goods, chattels, and effects of tlie said business in, upon, or about the premises or used by the Vendor in the said trade or business. The Vendor will accept payment of the purchase money aforesaid as follows : (a) £250 or 250 fully paid-up shares in- the capital of the Company. (b) £750 by debentures repayable in three years, and carrying interest at the rate of £o per cent per annum. (c) The balance may at the option of tho Company be paid in cash, or the Company may take over the liabilities of tho Vendor, and the balance after allowing for liabilities os aforesaid, shall be paid to the Vendor -in cash. BUSINESS. It will no doubt interest intending Shareholders to ascertain as nearly as possible the present position of the business proposed to be acquired. Four and a half years ago Mr. Hailey, with little or no capital of his own, commenced business in this town. He commenced in a small way, and for tlio first year had no shop in connection with liis bakehouse. Three -and a half years ago he acquired from Mrs. Byrne a lease of a quarter-acre section in Gladstone Road at a rental of £52 per annum. He has sublet for the remainder of the term a portion of the section with buildings on such portion at a rental of £SB 10s per annum. It will therefore be seen that the lease of the balance has a very roal value, and the price fixed for the goodwill cannot be considered excessive. Since entering into possession, Mr. Hailey has erected on a portion of the land retained by him a substantial brick building of the approximate value of £SOO. Ho has installed up-to-date bread and cake-ma'king machinery, and generally has acquired a thoroughly efficient plant. The Directors would call special attention to. the machinery which has been installed by Mr. Hailey. This is of the latest pattern, and gives the business proposed ito be acquired advantages not enjoyed by any other businesses in Gisborne. A balance recently taken out by a competent accountant shows that after drawing a good income the Vendor’s assets exceed his liabilities by approximately £I7OO. This balancesheet tho Directors believe to be correct, -and will submit same to shareholders with fullest confidence, but owinu to the fact that Mr. Hailey has not kept his books on approved lines they can give no guarantee to the shareholders as to the accuracy of the statement. AVhen it is remembered that the greater part of the time the - Vendor was running his business on a credit basis, and that £3OO or thereabouts has been allowed or written off for bad and 'doubtful debts, tho position must bo considered a highly sat- . isfactory one. Mr. Hailey’s cash takings average from £2OO to £3OO a month, so that some idea can be formed of the excellent connectioia which he has worked up. The lease of the Vendor’s premises runs out in September, 1911, but this fact should cause no_ concern, as the Vendor has by a subsidiary agreement obtained from the Lessor an undertaking to pay tho valuo less the sum of £lO of the brick building erected by the Vendor, and also has obtained bv such agreement a first refusal should the Lessor be desirous of reletting the premises, and the Vendor undertakes that these benofits shall be extended to the Company. PROSPECTS. The time seems opportune for the formation of this Company The coupon and cash system has been in-

BRITISH FRUIT DEPOT. v (Three doors’ past Royal Hotel.) M RS - E. M ANN ' PROPRIETRESS. REGULAR Supplies of Fre&h FRUIT AND VEGETABLES Always on hand. Large Stock of WELL-ASSORTED CONFECTIONERY. Beet House in Gisborne for TEMPERANCE DRINKS of all ■ rT iada.