N.Z. SHIPPING CO.

Dominion, Volume 7, Issue 1883, 17 October 1913, Page 8

N.Z. SHIPPING CO.

.. . -0 ANNUAL MEETING." (By ■ Telesrraph.—Press Assoniation.) Christchurch, October 16. The following is a copy of a cable mossa(jo received by tho New Zealand Shipping Company, Ltd., Christchurch, from their London office, and _ dated October 14: — / Tho annual general meeting of shareholders of the New Zealand Shipping Company, Limited, was held at the London office, 188 Leadenhall Street, E.C., on October 14, when a dividend of -16s. per share (of which Bs. per share was paid in April last) was declared, free of income tax. The retiring directors were re-elected, and the auditors reappointed. In the course of his address, the chair-man-.(Mr., William C. Dawes), mado the following remarks: "Regarding tho proposed schemo for the rearrangement of tho company's capital it will be remembered by the old shareholders that some 23 years ago the position of the company was very different from what it is to-day. My father,' Sir Edwin Dawes, had then recently become chairman of tho company, and ho decided on tho rather drastio step of writing off a sunt of £2 from each ordinary share of £10, a course of action which, I think you will agree, has ■ been fully justified. Since then tho directors havo always looked forward to the time when that £2 could be replaced without weakening tho financial position of tho company, and in their opinion the timo has now come. In tho Balance-sheet for the year ended June 30, 1912, there appeared for the first time a new item of capital, reservo of £209,116; Sinco that dato> the capital reserves havo been increased, -and after this capitalisation has been effected, sufficient reserves will bo left to' maintain tho company's strong financial position, and the reserve and insurance accounts, shown in tho balance-sheet now' before .you, will not need to bo trenched upon. Shareholders will notice that power is taken to creato £2,000,000 six per cent, cumulative preferenco" shares, of wTficli, under tho present schoijjo, only £226,000 issued, and tho'balance will'bo available to provide for futuro capital requirements. It is not tho intention of the directors to make any further issuo of shares at present, but, in view of the natural expansion of the company's business, they consider it wise to put themselves in a position to raise further capital when it is required. Not so very many years ago steamers in every way suitablo for tho company's trade could bo built for about £7/5,000. To-day a steamer which will satisfy requirements, of our shippers costs morn than £200,000, and shareholders will understand that, as tho older steamers have to bo replaced and tho fleet increased by tho addition of theso cxpensivo vessels, the capital outlay reqtrirecl is very largo compared with what it onco was. It is perhaps hnrdlv necessary to say so, but J think I should point out to shareholders that such capitalisation of assets as wc propose docs nob necessarily increase the earning capacity of tho company; it simply enlarges tho area over which available promts .will liaio tp ba i