NEW ZEALAND SHIPPING COMPANY.

Globe, Volume XX, Issue 1394, 3 August 1878, Page 3

NEW ZEALAND SHIPPING COMPANY.

The fifth annual meeting of the shareholders of the New Zealand Shipping Company was held yesterday at noon. Present - Messrs J. L. Coster (chairman), J. Anderson, W. .Reeves. S. S. Kevins, J. G. W. Turner, A. C. "VVihon. H. S. Smith, P. Hannier, H. J. Tancred, J. W. Oram, T. Mollet, C. Perring, J. V. Ross, J. W. Kcmpthorno, K. Allan, J. S. Jameson, W. Jameson, B. Halp, G. Booth, G. G. Stead, T. M. Hassall, E. Green, R S. Coster, H. Thomson, D. Craig, A. W. Money, R. Oliver, J. Paiton, J. M. Hoywood, W. H. Reynolds, Joseph Gould, W. Pratt, W. J. Willcocks. George Eart, and Sir J. C. Wilson. 1 he Chairman called upon the general manager Mr H. Selwyn Smith, toroadtheadverti-c----ment convening the meeting, which was done, a=t also the minutes of the last annual general meeting, which were confirmed.

Tho General Manager stated that there wero thirty-five shareholders present in person, and proxies representing 7721 shares. The Chairman —I will now ask the O meral Manager to read the annual report of the directors, and tho accounts as submitted. If, however, shareholders wish it, as each one present has a copy of the report before him, we will take it as road. [Hear, hear.] The report, which was taken as read, was as follows : Your directors have now to submit the balancesheet for the year terminating' on the 30th Juno last, embracing returns from all the colonial branches and agencies to that date, and the London account to the 30th April. The company has during the year had a fair share of the trade to and from the colony. The ninety-five years' unexpired lease of the premises in Hereford street has been purchased on favorable terms. The company's fleet is in excellent order, and has been so maintained throughout the year. Of tho balance to the credit of Profit and loss at the 30th June ... £27,633 14 6 Tho following appropriation is made : Ist. —An addition to tho reserve fund, which will then stand at £40,000, of tho sum. of £13,750 0 • And your directors propose to pay 2nd.—A dividend of 10 per cent, for the year, of which an interim dividend of 4 per cent., £SOOO, was paid i» Feb. last 12,500 0 0 3rd.—Amd to carry forwar I to profit and loss—new account ... 1,383 14 6 Tho following directors retire, and offer themselves for re-election :—John Anderson, John Studholmo, and A. Cracroft Wilson. The dividend will be payable at the head office and all the colouiul branches, on and after the 9th August, 1878. For the Board of Directors, J. L. Coster, Chairman. Christchurch, 22nd July, 1878. The ba'anee-sheet, as audited by Messrs D.

Crai£ and Alexander Carrick, was as follows : Balance-Sheet of the New Zealand Shipping Company, Limited, on 30th Junk, 1878 (London Accounts to 30th April, 1878). Dr. £ s. d. £ s. d. To capital subscribed 250,000 0 0 Leas amount uncalled 120.000 0 0 „ Bills payable ... 37,034 2 3 ~ New hl»ij>s Balance due Builders, payable by periodical instalments extending to February, 1880—(8 Bliips) 49,283 16 5 „ Debentures and "Deposits— Debentures ... 50,000 0 0 Fixed deposits 55,138 17 6 Accrned interest 2,017 t 7 — 107,156 6 1 ~ Dividends unclaimed 172 13 0 „ Sundry debts d*« 45,079 11 6 „ Reserve fnnd ... 26,250 0 0 „ Insurance acconnt 2,845 4 2 „ Balance at credit of profit and loss 27,633 14 6 £420,455 7 11 Cr. £ a. d. £ s. d. By Calls unpaid ... 670 0 0 „ Company's fleet of ships, costing ... 336,767 19 7 „ Sundry property and stores on hand and afloat 10.847 16 11 „ Leaseholds and office furniture —Loudon and Colony 11,113 2 3 „ Sundry debts due, including' freights collectable (insured)... 37,289 0 7 „ Cash balance at credit with, bankers 15,811 6 0 „ Petty cash, at Agencies ... 53 14 0 „ Bills receivable ... 2,902 0 7 „ Dividend acconnt —interim dividend paid in February ... 5,000 0 0 £420,455 7 11 PROFIT AND LOSS ACCOUNT. £ 8. d. £ s. d. To Reserve Fund—fnr-

ther appropriation, bringing it up to £40,000 13,750 0 0 „ Dividend Account — to provide for interim dividend paid in February ... 5000 0 0 „ Dividend Account — further proposed dividend to equal 10 per cent., for the year ending 30th June, 1878 ... 7500 0 0 „ Balance carried forward to profit and loss new account.,. 1,383 14 6 £27,633 14 6 June 30th, 1877. £ 8. d. By balance brought forward 2856 0 11 „ Net profit of the operations from the 30th June, 1877, to 30th June, 1878 24,777 13 7 £27,633 14 6 CAPITAL ACCOUNT. £ S. d, To amount subscribed —25,000 shares of jEIO each 250,000 0 0 £250,000 0 0 £ s. d. £ 8. d. By amount called up on 25,000 shares at £5 each 125,000 0 0 Less calls unpaid ... 670 0 0 ~ Balance of capital uncalled and unpaid 125,670 0 0 £250,000 0 0 The Chairman—Gentlemen, the report which we have to present to you to-day is so satisfactory as to call for very little comment from me. There are, however, <>nc or two points upon which I wiil remark, and first I will allude to the trade done during the ye*r. I will tell shareholders that it has been most satisfactory. Satisfactory, that b, not only to the company and the constituents whoso carrying trade to and from the colony we have done, but also to the General Government whose contract we hold During the year we have despatched from England aixty-tilree vessels, aggregating 55,06b' tons, as against fifty-three last year, aggregating 50,031 tons. From the colony we have loaded this year thirty-seven ships, aggregating 33,868 tons.' as aorainst thirty-one ships, aggregating 26,911 tons last year. We have carried this year 92,652 bales of wool as against 82,697 last year, and 10,700 tons wheat as against 5500 tons last year. These figures, gen-,

tleinen, show a large increase in the carrying trade of the company, both between the colony and London and London and the colony, and also that we have done a very fair share of the whole of the carrying trade between the United Kingdom and the colony. With regard to our fleet with which wc have carried on the trade of the company, I have great pleasure in stating th>t all our vessels aro in splendid order, and I believe, as regards the hulls and equipments, they are not to be excelled by any fleet afloat, and are well kept up and preserved. They ara also very ably com-ma-tied, which, I think, is evidenced by the rapidty of the passages made and the almost total absence of casualties. The only misfortune which hns occurred during the round trips which have been accomplished in the course of the year has been, I am very sorry to eay, the loss of an apprentice from the Waikato during hor homeward voyage, wlrch wjs purely an accident. The fact that this has been the only accident is, I think, considering the large number of vessels we have afloat, very much to the credit of the officers commanding them. I may tell shareholders also tint we have secured tho lease of the large premises we are now in, which has 99 years to run, so that practically we have secured a freehold for our head-quarters. I feel sure it is a good investment, as I can fay that if we wished to realise now, we could get a very good profit on our outlay, so that this will prove a valuable asset. I will now turn to the balance-sheet and make a few remarks. I will take the opportunity of referring to the only item in the balance-sheet which, so far as wo are aware, has excited any question. It is the cost of the company's ships, put down at <£336,76719s 7d. On the occasion

of the criticism of the balance Fhcotof a previous year, exception was taken to tho (company ho diug ships at cost price. As regards this, tho bulk of our ships wero built when iron w a very high, yet they are worth to us what wo hold them' at. As to the propriety of holding them at cost price, I will sho v you why we should hold to that proposition. We are not traffickers in iron, hut a company established to carry out a trade between the colony and England. I would point out that it would, if the position were abandoned and the vessch' value each year depend on the price of iron as to the dividond which could bo declared. If it went up we should have money to divide, not we skould not. As to the p'actico of taking ships at cost price, I will quote to yon from the report of the leading shipowners' company in England, to chow that it is done by them. They show ships' tost account; as an asset at .£510,000, against which on tho other side they have depreciation reserve fund, J! 125,000. I may say that their ships arc shown as costing within £2 a-ton of ours—a difference fully accounted for by their Bize. Their reserve amounts to 25 per cent, on cost of their ships after fifteon years of establishment, whilst our company with only five years' establishment, has JJ<M),OOO reserve as against a cost of or 12 per cent in five years. The other item in the report to which I will refer is the proposal of tho directors to increase the dividend from 8 per cent to 10 per cent. The directors I may say did not arrive at the conclusion to make this increas3 without careful consideration. We do so because we feel that the reserve depreciation fund is being so largely added to as to represent a fair amount for tho purpose, and because wo feel that the reserve fund is sufficiently large to meet any depreciation which may occur in business during; the year, should such an event take place. The business done during tho past year, as you see from tho report, has been very good. I may also say that tho directors believe that the dividend of 10 per cent which they propose to pay to shareholders this time will not be an exceptional one, but a continuing one. [Cheers.] Wa do not fear that we shall have to come to the shareholders unless some emorgency arises, and if so then the particular year must become responsible for it. Tho shareholders have always taken great interest in the question of the apprentices on board the company's fleet. I may say that at present there are forty-fivo apprentices on board tho vessels of the company, twenty-three of whom are colonial lads. We have a large number of applications on onr books for appointments as apprentices, and this season we shall largely supplement our number of colonial apprentices. [Hear, hear. J I take this opportunity of saying that in dealing with the question of these appointments, the directors have been very careful. We do not want to take neer-do-wells, who are sent to sea because nothing: can bo done with them but to send them to sea. What wc want to get is go&d stendy l»ds, who will work their way up to be the ultimate officers and commanders of our vessels. [Cheers.] I have very great pleasure in saying that our commanders and officers afloat have received on all sides encomiums from passengers, and I have satisfaction in bearing my testimony to the efficiency of tho staff afloat and ashore. The latter have in all matters affecting the welfare of the company co-ope-rated with the directors mott efficiently. I may say also that a mutual confidence has been now established betweon the lines trading between England and New Zealand, a confidence which I hope will not again be disturbed. The Government immigration contract has been taken between the linos now trading from England to New Zealand. I have now much pleasure in moving the adopt.iou of the report and balancesheet as presented. Mr R. Oliver, M.H.R. (Dunedin)—l rise to second the motion for tho adoption of the report, and tocongratulate the shareholders on the very satisfactory position attained by the company. I may say also that I entirely agree with you, sir, in the remarks you have made as to the cost of the ships, because, as you put it, the fluctuation of the cost of iron would make the declaration of dividends upon a basia which would be somewhat problematical. I think, therefore, that the view taken by the directors is the right one. I have much pleasure in seconding the resolution.

The Chairoaan —It is now open for the shareholders to discuss the report and balance-sheet, and I may say that I shall be happy to answer any questions in connection with it. If no shareholder desires to address the meeting or to ask anj question, thon I snail put the motion. The motion for the adoption of the report and balanco-pheet was then put and carried unanimously. The Chairman —The next business before the meeting is the election of three directors in the places of Messrs A. C. "VVils -n. John Anderson, and J. Studholme. These gentlemen have given tho requisite notice of their intention to offer themselves for reelection.

The Hou. W. H. Reynolds, M.H.R.—I have very much pleasure in moving that Messrs A.. C. Wilson, Jo'n Anderson, and J. Stud holme be re-elected directors of the company. I think that when in onr private capacity we find that we have got good servants wo are loth to part with them; and I tako it that as a company we should be very loth to part with any of our present directors. (Hear ) They have had very arduous duties to perform, and I think the shareholders will »gr c with mo that they have been discharged with efficiency and zeal. I never expected that we should get a dividend in less than two years, and I think it waß three before I got one. However, I do not complain, as I think the company will be a great success; and I think also that the directors are to be congratulated on the way in which they have conducted the operations of the Company. Mr Stead —I have much pleasure in seconding the motion. The business done during the past year will, I think, give to the shareholders the best evidence they can have of the ability and energy di played by the directors of the company, and 1 think that in retaining the gentlemen proposed we shall be serving our own interests. The motion was agreed to unanimously. The Chairman —1 have now to ask the meeting to elect two auditors in the places of Messrs D. Craig and Alexander Carrick. They may be re-elected, and it is now for the shareholders to move in the matter. Mr H. J. Tancred—l have much pleasure in Moving that Messrs D. Craig and A. Carrick be re-elected auditors of the company for the ensuing year. Mr Joseph Gould seconded the motion, which was carried unanimously. The Chairman —That is all the formal business before the meeting. If any shareholder has any resolution to move on any subject, now is the proper time to do so. Mr J. V. Ross—l should like to make a few remarks, and intended to do so at the end of the election of the directors. It was, however, to a great extent taken out of my hands by what has fallen from Mr Reynolds. I have simply, therefore, now to congratulate our indefatigable c'aainnan [for the way in which _ with the directors ho has carried on the operations of the company, and also to cougratulato them on the success which has attended their efforts. [Hear, hear.] I beg to move—" That a cordial vote of thanks be accorded to the directors for their services during the past year." [Hear, hear.] Mr Perring seconded the motiou, which was carried by acclamation. The Chairman—l have to thank you on behalf of the directors and myself for the kindly vote of thanks which you have passed to us, and to assure you that onr efforts will not relax in the future. I think that we can say that we b lieve the company has got round the corner. [Hear, hear.] Mr J. W. Oram —I havo much pleasure, sir, in moving that the thanks of the shareholders bo given to the general manager and officers of the company for the very admirable manner in which they have discharged the duties entrusted to them.

The Chairman—l would suggest to Mr Oram that ho should include tho officers afloat of the company, to whom our best thanks are due. [Bear, hear.J Mr Oram—l have much pleasure m acceding to the suggestion of the chairman, and will move —" That tho thanks of the shareholders be given to the general manager and the officers of the company afloat and ashore for the very admirable manner in which they hare discharged the duties entrusted to them." [Hear, hear.] Mr George Booth—Though only a small shareholder, Mr Chairman. I second t»>o motion with a. great deal of pleasure. The motion was then put aud agreed to unanimously. Mr H. S. Smith, General Manager of the Company—Mr Chairman, I rise with great pleasure to acknowledge for the staff under my supervision and for myself the very gratifying appreciation on the part of the sha-oholder3 of our efforts to advance the interests of the company. I am glad that the recommendation of the chairman to Mr Oram as to the inclusion of. those who have really charge of tho greatest interests of the company has be<m acceded to—l mean the officers of the company afloat. [Cheers.] It is something to remember that, with property to the extent of nearly one-third of a million of money in their charge, not a single accident has occurred. It must be recollected that we are a carrying company, and that therefore our main interests are centred to our fleet. The officers afloat hare always

evinced the very deepest interest in tho welfare of tho com any. So alt o I may say do tbo members of the staff ashore, i nd I will pay this that thero has slway* been evinced by the staff a hearty interest in the prosperity of the Company, an interest which 1 feel sure will be intensified by the ackn wlcdgemont of our services by the shareholders who have taken this opportunity of expressing their appreciation of them. I feel certain that one and all connected with the staff will in the future, as thoy have done in the pr.st, do all in thoir power to further the prosperity of the Company. [Hear, hear.J A vote of thanks to the chairman, moved by Sir C. Wilsoa, concluded the proceedings.

A mcctinsr of tho directors was afterwards held, at which Mr J. L. Co>tcr was elected chairman, and Mr H. P. Murray-Aynsley, deputy chairman of the directors for the ensuing year.