THE PORT REVIEW.

Dominion, Volume 7, Issue 2009, 17 March 1914, Page 6

THE PORT REVIEW.

FOR THE YEAR

STEADY INCREASE IN TONNAGE,

IMPORTS A RECORD,

FAIR MARGIN ON PROFIT & LOSS.

The annual statutory meeting of the Wellington Harbour Board was held at noon yesterday.. Members present were: Messrs. R. Fletcher (chairman), R. A. "Wright, A. H. Hiridmarsh, A. M'Farlane, J. Trevor, W. T. Hildreth, A. D. Kennedy, and' Captain Watson.

In moving that the statements of receipts and expenditure should be signed, tho chairman said that he desired to avail himself of tho opportunity to" review the progress and work of the port during tho year, and to sugr gest, in a ;measure-, .-/tho policy that should be pursued during'tho current year. - "As in former years," ho said "the executive officers havo compiled very full and' complete . reports up to tho end of the financial year, viz., September 30, 1913—those you havo had presented to you, .and on perusal'plenty of material will'bo,',found..',".The facts and figures should, furnish 1 ;, pleasant reading both to members' of the board ami to all interested'in,'the port. In addition, I have, as .usual, had prepared a supplementary report covering the five months ended February 28, 1914, so that, members should be iii possession of the latest information in connection -with the board's business. .Shipments, and Transhipments. - Goods passing inwards totalled 535,040 tons, as against 489,416 tons in the preceding year, an increase of 45,624 tons, 0r'9.31 per cent.—a record for the port. For the period to September 30, 1913, wo again find a very satisfactory increase in transhipments. ,-, The general cargo handled-amounted to 168,832 tons as compared with 151,236 tons in tho previous year, an' increase of 17,596, equal to 11.63 per cent., or 5115 tens on tho former year. This is a pleasingfeature. It shows the recognition which the port is receiving from merchants . and shipping companies, 1 who aro eager te take advantage of the'accommodation mid facilities, that are availaWo' if! thio Port as a transhipping centre. Tho eoa,stal andjutercoloiiialimports, which Jast, year showed ,v slight • decrease, nave this.year mweasetf. bv 4063 tons viz.. 1/6,618, as against 172,555, equal to i.30 per-cent.' ' ~;.."' Wool, Hemp; and Skins. The total shipments of .wool, skins, fiemp, and tow over tho wharves, excluding transhipments overside, amountoi 30^? 50 , bales ' as compared with tolfibL- bales for the previous year a very substantial increase of 49,189 bales of. 19.5 per cent. The number of bales of wool and skins was 165,955, against 153,257 bales, an increase of 12,698 bales,, or 8.2 per cent. Tho liemp shipments were 135,095 .bales, against 98 - 604, an increase of 36,491 bales, or 37 per cent. As compared with the preceding year wool and liemp, ex store and rail, increased as from 160,612 bales to 186,685 hales, being an increase of 26073 bales, equal te'l6.2 per cent. Wool and hemp watorhorno increase by 24,936 bales, or 27.3 per cent., the figures being 91,249 bales for 1912, and 114185 bales ,'for, 1913. Wool Dumping. Twelve months ago I pointed out that tho dumping branch of tho board's service would require serious' attention. Tho board has expended a large sum of money in providing machinery to carry on this work, and-now finds competitors in the field. Certain ' proposals .were submitted by me for the consideration of members,, which would, in my I opinion, have enaoled ttio board to successfully compete ana protect its, interests in'<his but unfortunately they were negatived. Out of a total 0f'301,050 hales of wool, skins, and hemp passing over the wharves for shipment, 168,743 bales w-ei-e dumped by the hoard, or 56 per cent., as compared with 56.1 percent., 59.29 per cent., and 60 per cent, in three previyears, and I'arii . satisfied that during the current year the results will show a greater falling off. This branch of tho board's work should again be •considered at an early date. Tha Coal Returns.

. The coal handled at the nort amount■ed to 548,862 tons, as against 502,499 tons, an increase of 46,3(53 tons, equal to 9.22 per cent. Coal passing over the wharf paying wharfatre "totalled 168,759 tons, as against 160,652 tons, an increase, of 8,106 tons, equal to 5.04 per cent. Coal for Government use. paying no,-wharf age, was 66,335 tons, as agaiusfc- : -40.060 tons, last year, an increase 'of.' 26,275 tons, being 65.58 per cent. ITho coal transhipped at the wharf,:overside,' was 292,710 tons, or 21,041 tons in excess of last year, equal to 7.74 per cent.

English and Foreign; Exports. , The and foreign ports during'the year exceeds by 23,96-sjtohs that of 'the preceding year, 'the figures.:'being 189;590,H0n5 : ,' as against 165;625 tons, equal 'to 14.46 per cent., and constituted a record.

•- Goods, passing oyer .the wharves;.out-, wards to col6'niaL'' : a'nid i^c.oastal' : shows an increaseof over-1000 tons; and totalled 125,229 tons, and is steadily growing year by year. Tho shipments to' British'and foreign' ports, consisting of frozen meat, butter, cheese, etc. are ; very satisfactory, particularly so in the. caso of cheese, the figures' being:—Cheese, 35,851 tons, as ngainst 22,638 'ton's. Butter, ' 16,488 tons, aJ' against 13:152 tons. -Meat, 32,078 [tons, as.against 31,720 tons.. ; Increase in Tonnage. Tho> 'not tonnage of trading vessels oiitevinc'tho "port for the year was 3,146,687; tons, as against 3,087,382 tons, an 1 increase of ■ 50,305 tons over the previous year, and gives ample evidence and bears testimony to the growing importance of the port, and in this :onnection I desire, on behalf of tho toard, -to nlnce on record, its ajmrocia;ion of . tho careful and- valuable lervices •' rendered by tho Harbourjiaster, Caotain Johnson, and 'his Itnff in the efficient manner in which ihis important branch of the board's service', has been carried on-during the (•car. ; ■ ' Year's Revenua. Coming to the balance-sheet and accounts.—The assets of.the board on September 30, 1913, are estimated at £1,3-36,872 195.. as against £1,326,352, an increase of £58,520. The total ■liabilities at that date amounted to £851,570 2s. 3d., tho balance of assets over liabilities being £535,303, an in-r-Jnaso over tho preceding year of £29.322. Inward wharfage ,amountcd to £53.232 3s. lid., as against £51,530 3s. lid. for the previous year, an increase of £1702. Outward wharfage totalled £13,557 6s. lid., as compared with £12,889 ss. 5d.. an increase of £668 Is. Od. Transhipping wharfage £32.081 19s. Id., as against £29,080 Ifis. 5d., an increase of £3601 2s. Bd. The principal incroasos on last year's figures,are as follow: —'.

£ Inward wharfage increased Ky ... 1,702 Outward wharfage increased by... 668 Transhipments increased by ~...y 3,602 Storage increased by 4.i.....ii..<'./ 1,387

Cargo sheddcd in overtime 339 Harbour improvement rate 1,07b Harbourmaster's fees 699 Berthage rato 73G Profit and Loss. The profit and loss statement shows a credit balance of £13,571 7s. 3d., as against £10,814 lis. 7d., an increase of £2756 15s. Bd. _ The financial position is eminently satisfactory. An increase of earning from £216,025 to £237,293 is shown, being an advanco of '£21,268, whilst working expenditure, repairs, and maintenance, etc.,. has gono up from £205,210 to £223,722, or by £18,512. This is mainly accounted for by increases to casual labour, salaries, cartage, superannuation contributions, and the upkeep of Somes Island light, etc. Special Reserve and Sinking Fund. Special Reserve Fund. — This fund now amounts to £16,367 19s. 4d., and, in terms of the board's resolution, the sum of £6785 13s. Bd., being half of the surplus of tho year, will be added. The total of tho fund will then bo £23,153 13s. The sinking fund on Sept-ember 30, 1913. amounted to £149,870 19s. 4d., of which £148,794 2s. 4d. was investments, and £1076 17s. interest accrued to, but not duo, on that date. Tho fund shows an increase for tho year of £11,394 18si sd. The average 'rate of interest was £4 12s. 2d., asagainst £4 lis. 9d. on tho previous year. The efforts of. ,the ■ Commissioners, Messrs. Nicholls ' and Watkins, in securing prompt and careful investments deserves the best thanks of tho board. Loan Authorities and Credit. Members are awaro that the board has ' legislative authority to raise £1,000,000 by, way of loan, for the carrying,'out of further' works. As pointed out by me twelve months ago, no necessity, wfiuld arise during the year to float any part of this loan, but somo time, say, during the next six months, steps should bo taken to raise a portion of tho £1,000,000, as the money will be required for tho Pipitea Wharf, now about to be commenced, and I believe that at the time mentioned tho money-market will bo favourable for the successful negotiation of a loan. As the financial position of the boardis sound, there should be no difficulty in securing the best terms. Credit.—On March 14, 1914, the credit account was as follows:—On fixed deposit, £80,000; current account, £14,517: total, £94,547. Claims on the Board. The amount paid in claims during the year amounted to £208 Is. 6d., as against £190 and £156 for the two preceding years. Of the amount named £113 15s; 4d. was duo to accidents, £38 9s. lid. to pillaging, £35 2s. 9d. to loss of goods, £20 13s. 6d.- due to errors by the board's employees. The small amount in claims, taking into consideration _ the volume of the goods handled, testifies to tho care and good services rendered by the employees in the discharge of their duties. Harbour Works. The dredge Whakarire has been usefully employed throughout the yearill dredging tho Falcon Shoal, and the whole of the 404,950 tons lifted has been pumped 'ashore at the Te Aro and Waterloo Quay 'reclamations. For additional particulars I would refer you to the engineer's report. Tho various works outlined twelve months ago have been mostly carried out. Some have been delayed owing to various causes. A large amount of good work has been done by the engineer's staff. The Z store, especially built for cheese and dairy produce, was finished and taken over by the board in May last, and is "very largely for the purposes for which it was erected, and is considered by those best able to judge a well-equipped and up-to-date building for the handling of. this class of produce. Superannuation. The board's superannuation scheme came into operation/as from April 1, 1913. Out-of 328 employees 262 joined ' tho fund. Up to the present none of • the contributors has yet been placed on ; tho fund. - Tho board was the first local : body. to take the opportunity afforded by • tho Local Authorities Superannua- ; tion Act and establish a fund. I am ' sure it will be productive of much good. 1 It is hoped the result will be mutually ■ advantageous and tend to a better uri- ' derstanding between the employer and ' employee. Quite a number <of local ' bodies have followed tho example of 1 the Wellington Harbour Board, and set ' up superannuation funds for their cm- 1 ployees. > i New Zealand Harbours Association. 1

The sixth conference of the Harbours Association of New. Zealand was held in July last when a largo number of matters affecting li arbour boards were fully discussed, The principal questions were.—Cost of elections, mail steamer exemption of dues, Government cargo passing over the wharves free, land taken from boards by the Government.

It was pointed out that the present method of elections involved the boards m an enormous cost. Take Wellington as an example. In 1911 tho cost to this board was £1013 65.; in 1913, tho amount was £591 9s. 2d. The rcductioii' was.vduo mainly to the fact that there;was no. contest in tbe.Wairarapa district. Under tho old Act, when the boards conducted' their own elections, it cost.the Wellington Harbour Board in 1906, '£85 55.; 1908, £142 15s 4d • 1910, £157 4s. 3d.

Exemption of dues en steamers carrying, mails under contract-to the Gov- • eminent,-as well as Government cargo passing over the wharves free of wharfage (increasing year by year), was duly discussed, ind resolutions passed, asking the .Government to do justico to those boards.who rendered valuable services and provided accommodation and facilities without receiving anything in return. •

Another very, important matter was the taking of-lands from boards by the Government. It was unanimously decided that for any such land taken the compensation payable in every case •should bo the full value of the land . at the time of takin.' ilie various resolutions carried at tlTo conference wore duly conveyed to tho Government, as well as representations being made, but nothing has yet eventuated. In view- of tho great importance to Harbour Boards of tho matters named there is sufficient justification that'strenuous efforts should bo made to obtain redress in tho direction indicated by an amendment of the. Harbours Act during tho present session. East Coast Railway. The matter of the co-operation of tho board with the Wairarapa local bodies was heartily taken up in tho advocacy of tho policy of opening up communication by rail of the East Coast lands with Wellington, and representatives were appointed to join a deputation to tho Government in regard to tho matter, and-a good case was made out. I much regret nothing lias .been done up to. the present to forward tho movement, which means a great deal both to tho Wellington and tho Wairarapa districts. Wreck of S,s. Devon. In August last the Federal Steamship Company's steamer Devon, while attempting to enter the harbour on a very wild night, went ashore close to tho Pencarroiv low level light, and became a .total .wreck. Tho Harbourmaster, Captain Johnson, and his staff were highly commended by the Hon. the Minister of Marino for the prompt steps taken to render assistance under very difficult circumstances. All the crew and aiders .•»wß',"{ek, 'a«d«l. Two,

nautical inquiries followed. Tho first i the master's certificate was suspended i for three; months; the second he was I exonerated from all blame. The hoard has served notice on the owners of tho Devon to remove the wreck, as she is a danger to navigation. FUTURE POLICY. CARE AND PRUDENCE URGED. . In regard to the board's policy during tho coming year, I have again to urge care and prudence in reference to expenditure of monies. Those who clamour tor the prosecution of works often tail to consider the question of ways and means As I havo pointed out before, this board has to rely entirely on its revenue te meet charges. The J lpitea Wharf, which is about to be commenced, will mean an increase of standing charges of about £12,000 per annum, and-the volume of trade has te increase very materially to make this good. 1 submit that the accommodation provided is quite equal to requirements under normal conditions, and any forward movement other than a judicious one would be detrimental to the best interests of the port. Works During Coming Year. In the opinion of the executive and myself the following works should be carried out during the year :~^ £ Contract No. 165, staging from Jorvois Quay breastwork and additions to Taranaki Street Wharf ... 2,894 Contract No. 166, Ferry Wharf No. 2, and additions to Ferry Wharf No. 1 1,655 Contract No. 168, extension of Glasgow Wharf and "T" shed 0^339 Harbour beacons (say) 3;000 Supervision on contracts 500 Reinforced concrete breastwork, Waterloo Quay (say) 15,000 Iteclamation, Waterloo.- Quay and Te Aro : 12,000 Road formatio l, Waterloo Quay and To Aro (including drainage) •' ........;. 5,000 Pipitea Wharf (part) ...:.....-... 10,000 Brick wool store, Pipitea Wharf, No. 1 ; 11,139 Electric light and power installation, part (say) ....#.'.. , 3,000 . In conclusion, I think the members will agree with me that the operations of.the year showing substantial increase of trade is very gratifying indeed, and that the position of the board's' finances are sound and most satisfactory. I trust that tho careful administration that has characterised the conduct of. tho, board's business in the past may he maintained in the future. DISCUSSION. THE OPINIONS OF MEMBERS. Captain Watson - seconded the chairman's motion, and said the report was very' satisfactory, under tho circumstances. Mr. Hildreth said he thought that tho •chairn'an should bo complimented on the report. One or two matters needed somo comment. When the Pipitea Wharf was finished the board would have something Jiko £12,000 added to their standing charges. That addition would have-to. be made up,' and.to his, ; mind tho major portion of the-' extra' standing charge should bo made up from wool. It would , bo the. "wool kings," and not the small man, who would havo te pay, and wool had escaped extra imposts for a number of years. . There was another point; with regard to the election of members to tho board. . He thought it little short of scandalous that" tho' board should be mulcted in such large sums as it was, for election purposes, especially as regarded country, members. The old system was not bad. Regarding the outlook, it appeared to bo very satisfactory. The income of tho board was increasing year by year, and the'imports and exports were also increasing. It aJlowed that the port, and the board's efforts, were appreciated. Every year, since he had been a member, had been a record over tho previous year.

Mr. Fletcher said that the mattor of standing charges was a very serious question, Wellington was in a different

position from other ports, such as Auckland, in that the hoard had no endowments. They had, consequently, to meet all outstanding charges out of revenue. If revenue did not grow in proportion to the standing charges, they' had to increase these charges. This they-did not desire to do. They had done remarkably well in going along as they had. When the new' wharf was built tlicy would have accommodation which would last them for a long time, and he honed the increased business would enable them to meet most of the increased charges. Ho agreed that the next imposts would have to be on wool. Wool, in 1880, was paying fid. a bale, and the article was worth sd. or 6d. a lb. Now, wool was paving 6d. a bale and was worth 12d. or' 13d. a lb. ]fc was quite true, as Mr. Hildreth said, that it would not alTect the smaller growers at all, but would affect the arge '-'wool kings." Since 1880 the: ; e had been increased charges on ships and general goods,,but wooriiad never been touched. The next inmost had to be on wool, and it would be. $11 equitable tax. _ That was a matter for the board to decide later on.