The Sun.
London, England, 1865-11-25 00:00:00

PROSPECTUS.

An arrangement has been effected to amalgamate the
very extensive iron, steel, shipbuilding, and engineering
works and estates of the Hogbo Steel and Iron Works
Company, in Sweden, with the Northfield Steel and Iron
Company, near Rotherham, in England, both of which
works are in full operation, and to form the same into a
Company, with limited liability, under the Joint Stock
Companies Act, under the name of the Anglo-Swedish
Steel and Iron Company (Limited).
The Hogbo Company, in Sweden, possesses very superior
facilities for the manufacture of steel and iron by the Bes-
semer method, and at these works, under the management
of Mr. G. F. Goransson, the Bessemer process for producing
steel first became a practical success. It has, however, been
found absolutely necessary, for the full development of the'
resources of the Hogbo Company, to secure a depot for
their steel ingots, together with forging and rolling power
in England ; and the Northfield Steel and Iron Company
having already in existence extensive plant specially
adapted for the forging and rolling of steel ingots, it has
been agreed to work the two concerns under one manage-
ment and in one interest.

The whole of the estates and properties of the vendors,
including blast furnaces, rolling mills, foundries, engine
and shipbuilding works, together with stationary engines,
railways, ships, tools, &c., used in carrying on the same,
will be taken at a valuation by two valuers, one to be ap-
pointed by the vendors, and the other by the Directors of
this Company, and will be conducted on the principle as
between an outgoing and incoming partner.
Tho vendors accept as part payment of the purchase
money the sum of £200,000 in shares of the Company, with
£l2 10s. only credited as paid up on each share, thus be-
coming proprietors of £400,000 of the capital of the Com-
pany, the whole of which the vendors agree to hold for five
years ; and that nodividend shall be payable on such shares
so held by them during such period, until the other share-
holders shall have been paid fifteen per cent. per annum on
the paid up capital.
The vendors further accept, as part payment of the pur-
chase money, the Company's debentures for £200,000, re-
deemable in three, five, and seven years.

A mortgage of £200,000, already'secured on part of the
property proposed to be purchased, will also be transferred
to the new Company.
No payment whatever, either in shares or cash, is to be
made for goodwill.
The result of these arrangements will be that nearly
the whole:additional capital subscribed will be available for
extending and developing the business of the Company ;
and the acceptance of these terms by the vendors is satis-
factory evidence of their faith in the undertaking—in fact,
this Company is not formed to pay out the vendors, but
purely to enlarge the partnership under the more conve-
nient form of limited liability.
Possession of the estates and works will be given about
the Ist January next (1866), and this Company will enter
at once upon lucrative business in full operation, free from
the risks which are inseparable from newly-established
undertakings.
The Hogbo and Edsken, Sandwiken, Garpenberg, Horn-
dal, and Walla Estates, with the furnaces, forges, and
mines, are all situate in one district, but at some distance
from each other, and it is advantageous that they should
be so, as if they were concentrated in one locality it would
be impossible to obtain the necessary quantities of char-
coal. Sandwiken is situate 12 English miles from Gefle,
and immediately adjoins the Gefle-Dala Railway, from
which two sidings at different levels traverse the works,
the lower for removing steel ingots and forgings, and the
upper for ironstone, wood, lime, and charcoal, to supply
the furnaces. These works possess also direct telegraphic
communication with England, the telegraph and postal
depot for the district being situate within the Company's
works. _

TV ../.1.Z1.4/•
Hogbo and Edsken are only four English miles from the
same railway, and a Government railway is in contempla-
tion, which will give Garpenberg, Horndal, and Walla
works direct communication with Sandwiken, Gefle, and
Stockholm, The whole of the works possess facilities for
water transit, by means of lakes and rivers.
The works of the Hogbo Company, at Sandwiken,
Edsken, Hogbo, Garpenberg, and Horndal, with very
little additional outlay, are capable of producing 15,000
to 20,000 tons of Bessemer steel per annum, for the
purpose of shipping and boiler plates, ordnance,
tyres, rails, axles, &c. The rate of profit per ton now
realised more than justifies the expectation of a return of
not less than fifteen to twenty per cent. upon the capital
required.
The manufactures at Nykoping comprise steel and iron
plates, cannons, railway axles and wheels, steel and iron
forgings. At the Engineering Works at Nykoping the
Company manufacture locomotives and marine engines,
&c. Several of the locomotives built at these works are
now running on the Swedish railways.
The Shipbuilding works are capable of great extension,
and with additional capital there is no reason why the
Company should not command the greater portion of the
shipbuilding business of the Governments of the north of
Europe. Iron steam and sailing vessels, up to 1,400 tons,
have been built at these works.
The Northfield Works are capable of rolling one hun-
dred and fifty tons of steel ingots into railway tyres, &c.,
per week. These works have also the exclusive manufac-
ture of Captain Rodger's patent anchor, for which large
orders from the Admiralty and many of the Feat steam-
boat companies are now in course of execution, and tho
demand for which is much greater than the present ma-
chinery of the Northfield Company enable them to meet.
The use of charcoal in Sweden, instead of coke, enables
steel to be made direct from the blast furnaces, thereby
avoiding the expense of re-melting the pig iron (which is
necessary in England), and thus effects a groat saving in
the cost of production ,• while, owing to the freedom of the
ores on the estates of the Company from sulphur and phos-
phor, and to its being worked with charcoal instead of coke
and coal, the quality is superior to any produced in this
country, being fully equal to the best qualityofcastbystteheel.
made under the old process.
The magnificent supply of water power possessed
Company at their various works, and the cheapness of
labour in Sweden, also contribute materially to lesson the
cost of production.
Taking into consideration these facts, together with the
immense and daily increasing demand for steel, there can
be no doubt but that with the introduction of additional
capital this Company must realise large profits.
The services of M. Goransson, who has hitherto had the
management of the works and estates of the Hogbo Com-
pany, in Sweden, and who holds a large pecuniary interest
in this Company, have been secured as managing director
for Sweden.
The Memorandum and Articles of Association may be
inspected at the Offices of the Solicitors of the Company.
Prospectuses and Forms of Application for Shares may
be obtained from the Bankers, Brokers, Auditors, and Soli-
citors ; and at the Offices of the Company.

--STARCH MANUFACTURERS
TO H. R. H. THE PRINCESS OF WALES.
GLENFIELD PATENT STARCH,
Used in the Royal Laundry,
AND AWARDED THE PRIZE MEDAL, 1662.
Sold by all Grocers, Chandlers, &c. &c.
IVOTIIERSPOON and CO., Glasgow and London.