NEW ZEALAND SHIPPING COMPANY.

Globe, Volume XXIV, Issue 2596, 2 August 1882, Page 3

NEW ZEALAND SHIPPING COMPANY.

The annual meeting of the above was held at the office, Hereford street, to-day at noon. The chair was occupied by Mr J. L. Coster, tha chairman of the Board of Directors, and there was a fair attendance of shareholders, Mr Gibb, the secretary, read the advertisement convening the meeting and the minutes of the last annual general meeting. The report and balance-sheet, which have already been published, were taken as read, The Chairman said the report was rather more lengthy than nsnal, because the year had been rather of a more eventful character. It was gratifying to the directors to be able to report to the shareholders that their extensive business bad again been conducted during tha year without serious casualty. The only accidents which had occurred were to the Parerora, which, in a severe gale during which many ships were lost, had been obliged to run for the North Sea, but had been brought back, and the detention of the Rakaia for a month at Plymouth by disease on board. Except in the case of some of their chartered ships, which had been lost in ono instance, he regretted to say, with loss of life, the company had been very fortunate during the year in the conduct of their business. Daring the year the directors, owing to the very exceptional condition of the grain market here, found themselves in the position of having provided more ships than there wes grain for them to load home, Though this was so, arising as it did from exceedingly exceptional circumstances, it might be interesting to the shareholders to know, and it was only fair to the management to state, that the directors had provided lees tonnage for home during this than last year. Taking into consideration tha diverted tonnage, to which he would refer presently, the tonnage provided was not so large as last year, and they would remember that the directors were twitted with not having provided enough to meet the requirements of their shareholders and shippers. They had, however, with regard to the matter of diverted tonnage, made arrangements with the owners ofvtasa’s at home under charter to obtain what was called option, and were thus enabled to divert the tonnage unable to be utilised to foreign porta. The directors had provided in the profit and loss account for any loss arising from such ships diverted, and also, he might say that any loss on grain ships sent direct bad been written off direct. Since the balance-sheet had been made up end circulated, he might tell shareholders that the directors bed received advices of the charter of the diverted ships at such rates as would make the provision deemed necessary by the directors for this item ample ; indeed, he might say that they had over-provided. Daring the past year they bad fitted up the Mataura with refrigerating machinery, and this had been tried on a small scale during the voyage out. Some game, fiih, &0., had been landed in excellent condition giving an earnest of tho success of the machinery when in full work. The ship was now on her way home, having loaded at Port Chalmers with a cargo of frez m sheep and a little beef, all of which had been frozen on board, and it was anticipated that she would make a successful trip. It was only fair that shareholders should bo made acquainted with the fact that the loading of the Mantaura with meat at 2-J-d per lb had not proved a financial success to the o-.'mpany. But while this was so he desired to call their attention to the fact tbat they were not singular in this respect. From an article appearing in the “Olago Daily Times” of July 23rd, ho fonnd that the Albion Com* pany had had a similar experience, as they had lost by tho ship they fitted np j and the article wont on to state that it was considered very doubtful whether any company would bo able to carry frozen meat at a freight less than 33 per lb. It yet remained to be seen how the difficulty of the largo space occupied by the frozen meat oonld be got over, ibis was the point which required solution. Since tho Mataura had been fitted up, the directors had received applications for ships similarly fitted from Otogo, Bluff, Wellington, Napier, &c. Shareholders would see that to deal with ell these applications from various ports involved not only very great difficulty but large expense, the fitting np of tho Mataura alone costing some £SOOO Besides, be would desire to point out that they would not have sufficient ships in London at oca time to enable them to be fitted up so as to cope with the requirements of the whole colony. Roughly estimated, the 'total number required would be ten ships. Still the directors felt it was incumbent on them to do their best to afford facilities to all parts of the colony to enable them to develop what, in their opaioj, was a most important trade, so far as the interests of New Zealand were concerned. But the questions as to how tho expense was to be borne and the risk to bo run by the various shipping companies trading to the colony would have to develope themselves. As a matter of fact there were very few vessels fitted up with refrigerating apparatus at all involving therefore considerable costj in chartering vessels for carrying this description of freight. He fully believed the shareholders would agree with the directors in recognising the great importance to the colony of the company assisting so far as they could by providing the oanyiag capacity for the fiozea meat in the develop ment of a trade which must materially add to tho wealth and progress of New Zealand. So far as they could, in the interests of the company, he assured them that the directors desired to assist the darelopmant of the trade ho had referred to. During tha year, for reasons given at tho meeting held on the 23.-d May, the directors requested the share holders to acquiesce in an increase of the capital of the company from a quarter of a million to one million sterling. This was cheerfully assented to by the shareholders, and since the meeting aud the ono confirmatory of the resolution, the directors had received from influential quarters an expression of entire approval as to the course pursued As to when the directors would be prepared to issue tho now shares ho was unable at present to state. In a groat measure it must depend on the action taking place in another quarter whether 12,500 now shares only would be issued or the 25,000 at once. Whatever issue was made, however, the directors could assure shareholders that the calls would bo t'mad in a manner to make thsm acceptable to shareholders. A question in which tha shareholders wore also very much interested was tbat of direct steam communication. On thi* subject the directors’ report said “ Considerable agitation existing for direct steam communication with the Mother country, and necessity existing for additions to the fleet of tho company, your directors are taking the necessary stops to place this company in a position to supply such portion of direct steam as may be deemed needful to protect the valuable business of the company, and meet the reasonable requirements of its trade.” Sines that report had been issued the Government had laid on the table of the House a very exhaustive, lengthy, and valuable report, forwarded to them by Sir E. Dillon Bell, Agent General of the colony, a digest of which had been published in the local papers. The gist of that report was that the colony could not afford to poy the subsidy for a swift steam service, but that b mercantile service, paying shareholders •ay 7i par cent, per annum, should not oo»t more than £IO,OOO as subsidy. Sir F. D. Bell had been good enough to give figures to ehow how the financing of the company is to be done, and after all he makei out that the 7ir per cent, to the shareholder! there wonld be a deficiency of £IO,OOO. Thi Press newspaper of that morning, dealing i I with those figures, assumed that the swifi i I service is not required, but thinks that, with : 'out subsidy from the Government, privat

, (enterprise may safely be loft to provide »tean , I communication when the necessities of the . colony required it. He would desire to pmnl i out that, if Sir F. D. Bell’s figures were , correct, it would be semo time before tpa was done, as, on his own showing, to give 7J per cent, there was a deficiency of £IO,OOO. His (the chairman’s) opinion, as a colonist, and not as the chairman of the New Zealand Shipping Company was, that until the outcome of the Panama Canal became known, what New Zealand wanted was a continuance of the San Francisco mail route. That was a service which had been conducted with great regularity, and had delivered their letters in London in thirty-eight days. They could not beat that very easily. A line of sea going steamers doing the voyage say in fifty days to New Zealand would be well worthy of subsidy from the Government in the interests of the colony to bridge the time over till the Panama Canal was opened. What result that event would have it was impossible now to say, but it was certain that it would have a most important bearing on the passenger and other trade of New Zealand. Baron Lesseps, as many of the shareholders wore probably aware, exoooled to have the Panama Canal opened w thin the time, some six years from date, and he thought that the man who had conquered the apparently insurmountable difficulties connected with the formation of the Suez Canal would be able to complete the Panama work. The distance from Auck-

land, which, when the Panama Canal was complete, would be the nearest port in New Zealand, to Liverpool by the Cape of Good Hope, the Suez Canal, Cape Horn, and the Panama Canal, to Liverpool, would be interesting, He would read them from a recent number of the “British Trade Journal.” They were as follows Auckland to Liverpool by Cape of Good Hops, 14,073 miles ; Suez Canal, 12,706 miles ; Capa Horn, 12,057; and Panama Canal, 11,549. In connection with this subject of steam communication, it was only right that he should tell shareholders how far the company had gone with the Government, because he saw that the special correspondent of the “ Telegraph ” newspaper had wired from Wellington that he (the chairman) had entered into a contract with the Government for a service. It was due to the shareholders to give that statement a most unqualified denial. What had been done was that he had written a letter to the Government whilst in Wellington on the subject, to which as yet he had not received any reply. If steam came into force as a means of direct communication the New Zealand Shipping Company ware the ones to provide it, and if the Government were going to give a subsidy and let a contract they ought to know something about it. The directors had not received any communication from the Government on the subject, and ell they knew was what the shareholders also knew, vis,, that the special correspondent of the “ Press ” had wired from Wellington that he thought nothing would be done in the matter of direct steam communication this session. What ha might say on this subject was simply that the directors intended if anything were done to protect the interests of the New Zealand Shipping Company to the best of their power. If it was decided by the Ho ie that m eleven knot steam service was required they would bo prepared to make an offer for it, and would receive, no doubt, the co-operation of the other lines trading to the colony. The New Zealand Shipping Company was the company to undertake this matter when the time anived, and the colony was prepared and willing to pay such a sum as would not land the shareholders in a loss. They would be prepared to carry out the service in the way mentioned by Sir F. D. Ball in bis letter to the Government, and he might say that the directors entirely concurred with Sir F. D, Bell’s remarks as to the character and stability of the company undertaking the service. If the Now Zealand Shipping Company took it np be felt sure that it was long enough established, and quite strong erough to conduct it successfully. He was sure that the House and the Government would at once recognise this fact. They had been in existence for many years, and could safely challenge criticising as to the manner in which their large business was conducted. The Union Steamship Company also conducted their large and increasing business most satisfactorily, but it must be remembered that their business was of an interprovincial and intercolonial character, whilst that of the New Zealand Shipping Company was direct to England. These two companies stood out as examples of careful and efficient management, and to financial strength there oonld be no question. That was exactly the position of the steam question. The directors had intimated to the Government what they were prepared to do, and he had endeavored to show the shareholders the exact position of affairs. They would be prepared to carry out their proposal, but whether the Government of the day were prepared to accept it or not, be did not know. He thought if it was put to the House of Representatives, however, that they would feel inclined to agree to it, He would now shortly refer to the balance-sheet. They would see that after making every provision for loss from diversion of ships chartered, &0., the balance at credit of profit and loss account on June 30th was £35,623 16s 3d. The directors proposed to appropriate to the reserve fund, £12,509, which will then stand at £112,500, and after paying the usual dividend of 10 per cent, carry forward to new account of profit and loss the sum of £10,623 16s 3d. This would absorb the sum at credit of profit and loss for the year, a sum which, considering the circumstances, was one on which the shareholders could fairly be congratulated. The directors, as he had said, proposed to carry forward £10,623 16s 3d, which it would be seen was nearly a year’s dividend. This; might be; objected to on the ground that with the profits they were making an Increase of dividend or division of bonus should be made. The directors, however, couiiditjd that it would be much better to pay the shareholders the steady and they thought excellent dividend they were in receipt of. [Hear, hear.] They had, daring the year, purchased the ship City of Perth, which, as the shareholders might remember, was stranded at Timsru, and afterwards got off successfully and towed to Dnnedin. The directors were assured by their old friend, Oapt. Bote, who had been sent to Dunedin to inspect the ship, that they had made a very good purchase. The colonial lads on board their fleet were making very satisfactory progress. Many of them bad worked up to third mates, and some to second mates. No doubt when theas lads passed their examinations they would pass on to first mates, end so on to the highest grades in their service. Their ships were now pretty well filled with lads from all parts of the colony. He now begged to move the adoption of the balance sheet and report.

Mr U. A. Pritchard seconded the motion, and said that, on the part of the shareholders and himself, ho desired to express the satis faction they felt at the admirable manner in which the business of the company was conducted.

After some questions had been asked by shareholders and answered by the chairman, the motion was put and agreed to. Mr Joseph Gould moved—“ That Hon. J. Johnston of Wellington, Hon. H. Richardson, and Mr B. Wilkin be re elected as directors of the company.” Professor Hutton seconded the motion, which was agreed to. Messrs David Craig and Alex. Garrick were re-elected as auditors to the company, on the motion of Mr Henderson.

Mr O. A. Pritchard proposed a vote of thanks to the chairman and directors for their services during the p-sat year. Ha felt sure that the shareholders were at ore with him on the matter that the directors had managed the affairs of the company most admirably throughout. Mr Cooke seconded the motion, which was carried.

The Chairman said the past year had been one of groat anxiety fo the directors. At the commencement of the season they had been threatened with a reduction of wool freights, but they had managed to secure the same rates as those current in Australia. The question of the loading of their grain ships had given them great anxiety, and so had the question of steam. However, they felt that they had their shareholders with them, and with this they bad so fear but that the success of the company would bo as great in the future as in the past, and shareholders need not fear any diminution in their dividends. He should now like to propose a vote of thanks to their staff in London and in the colonies and afloat. Their manager in London was one who had not spared himself in the service of the company. He had recently been in London, and had an opportunity of seeing how efficiently their business was oondnoted there. As to their colonial staff, 1 ho desired to take this opportunKv of ex-

pressing the high opinion he held of the services rendered by their secretary, Mr Qibbn, who, daring the absence of the chairman, had had a very large amount of business to do and very heavy responsibilities. He wished personally to thank Mr Gibbs for his zeal and assiduity durirg that period especially and -at all times. As to their staff afloat, they possessed the finest lot of masters that oonld be found in any service, and the condition of their ships was the theme of admiration, not alone in colonial ports, but in the port of London itself. He now begged to move a vote of thanks to the London and colonial staff and that afloat. Hon. E. Richardson seconded the motion, and boro testimony to the admirable manner in which the officers of the company in the colony discharged their duties. This concluded the proceedings.

At a meeting of the directors held after the general meeting of shareholders, Mr J, L. Ooster was re-eleoted chairman, and Mr H. P. Murray-Aynsley deputychairman of the company.