The Globe. THURSDAY, AUGUST 3, 1876.

Globe, Volume VI, Issue 662, 3 August 1876, Page 2

The Globe. THURSDAY, AUGUST 3, 1876.

Tse report submitted by the Directors of the New Zealand Shipping Company to the annual meeting of shareholders held yesterday deserves more than passing notice. It is a record oi the prosperity of a company which owes its existence to the enterprise and energy of residents amongst us, and which is essentially a local institution. We are therefore all, whether shareholders or not, deeply interested in its welfare, and the very satisfactory position in which it now stands is cutter for congratulation. It has had

its season of trial and difficulty, but this has now passed, and we can safely say that it is now firmly established. That this is so, is, we think, amply proved by the figures given in the Directors’ report. From this we learn that the profit during the year has been £48,177 10s lOd, which has enabled the company not only to declare a dividend of 8 per cent for the halfyear, but to do something more. They have wiped off the debit balance of £14,360 7s lid on last year’s transactions, created a reserve fund of £20,000, and carried forward £3817 6s lid. These figures show conclusively the large and increasing business being done by the Company, a result which must act beneficially on the province generally. A large portion of the shares are locally owned, hence the province reaps the benefit of the success of the undertaking. It is also to the credit of a local company that they have been enabled to compete successfully with other lines for the entire carrying operations necessitated by the Government scheme of immigration. And this too at a price which not only leaves them a fair margin of profit, but also enables the Government to effect a saving per head on the cost of each immigrant to the colony. Thus, it will be seen, that not only has the Company been beneficial to the immediate locality in which it was started, but also in a wider sphere, that of the colony at large. Its fleet of ships has been added to from time to time by the building of vessels not alone of large tonnage, but fitted with regard to comfort and safety o those travelling by them. The Company has at present thirteen large ships afloat, and three more building, which brings their fleet up to sixteen in all. This certainly, for a local undertaking, shows that its progress has been as rapid as it has been satisfactory. The extent of the trade done by the Company is also somewhat astonishing. From the figures quoted by the chairman in his speech we find that out of a total of 140 ships leaving England for New Zealand during 1875 the company despatched 54. That is, they during that year carried on a very large proportion of the whole trade to the colony. So also as regards the number of ships loaded from this side. The total number leaving here during the same period was 49, of which the company owned or chartered 25, being more than one-half the whole tonnage. The proposition of the directors to open up a new sphere of employment for our colonial youths is one which deserves hearty approval. It is the first step in however small a way towards the establishment of a Colonial Marine Service, which in a colony like this, with a large seaboard, is very essential. As the company evidently intend this to take the form of a training for the future officers of their ships, it affords an excellent opportunity for our colonial youth to acquire a profession. The great evil of colonial life has been that parents find that the various professions are too crowded to afford | any hope of their sons being able to | take up one which shall enable them I to start with a reasonable prospect of I achieving independence. Of course at [ first the opportunity thus offered will \ be limited, but the growth of the company during the short time it has been in existence has been such that this objection will not long remain. By the establishment of the system proposed the company will be conferring a very great benefit on the colony, and enlarging the sphere of its usefulness as an institution amongst us. Returning to the financial portion of the report we notice with pleasure the prudence displayed by the directors in creating a large reserve fund. As was aptly remarked by one of the speakers, directors are only too prone to try and declare a large dividend instead of taking measures such as these to place the undertaking on a thoroughly firm and wellgrounded basis. The dividend in this instance may perhaps by some be considered small when the large amount of profit is taken into consideration ; but we feel sure that the majority will acquiesce in the wisdom of the step, as the good result of it will be felt hereafter. Another proposition which shows that that the directors are careful of the interests of the company is that with regard to insurance. The fleet has now assumed such proportions as to render the payment of premiums a very heavy item. By the plan proposed the company will be enabled to form a fund for the retention of thesepremiums which will under ordinary circumstances proveagreatsaving They will be enabled to put by in this manner some £4OOO per annum, which, should they not have any losses during that period, represents the value of a ship saved in the matter of insurance premiums. It is also satisfactory to note that the operations of the company are now upon such a basis as to render further payments on the part of the shareholders unneceswry except very extraordinary circum-

stances should arise, which is a very remote contingency. Taken altogether, the present position of the company is a highly satisfactory one, and shows to what extent the local institutions of the colony can be developed with good management. We have referred somewhat at length to this subject, because, though the company is to a certain extent a private undertaking, is is also one in the prosperity of which all are deeply interested. It is by the growth of institutions of this character amongst us that our material progress and wealth is enhanced. Therefore it is that we consider the marked success attendant upon the operations of this company during the period covered by the report is a matter not alone for satisfaction on the part of its shareholders, but also of the public in general. We can only express a hope that its next annual meeting will disclose even still more signs of prosperity, and as a colonial undertaking it will take yet higher rank than it has done in the past.