NEW ZEALAND STEAM NAVIGATION COMPANY.

Hawke's Bay Times, Volume 13, Issue 682, 17 May 1869, Page 4

NEW ZEALAND STEAM NAVIGATION COMPANY.

(From the Evening Post, 29th April.) The affairs of the New Zealand Steam Navigation Company seem to be in anything but a flourishing condition. Notwithstanding the efforts of the directors, who we are bound to say have exerted themselves to the utmost for the benefit of the shareholders, the falling off in traffic, consequent on the universal commercial depression which prevails, and the repeated disastrous losses sustained by the company have not only swallowed up its profits, but also trenched deeply on its capital. Although the balance sheet for the last halfyear shows a profit on the working account of considerably over £3,' 00, yet the unfortunate loss of the Taranaki absorbs this and £13,000 of the capital besides. The assets of the company, according to the published statement of the directors, amount to £51,730 13/5. The liabilities, according to the same account, arc £91,5 ( J5 10/3, leaving a balance of amount at debit of depreciation account, and profit and loss account £35,804 10/10. It will be Been by this statement that the company have in the bank cash to the amount of over £2OOO, and the directors were naturally anxious to pay a dividend to the shareholders, but the rules of the Company distinctly enjoin that no dividends shall be paid except out of profits, and it would be absurl to eay that the profits on the working account for the half-year were such profits as could be paid away as a dividend, while £16,000 of the capital had been absorbed by the loss of the Taranaki. The directors then proposed a reduction of £l' per share, which they said would enable them to declare a dividend, but the manner in which this was to be legally done they failed to make clear to the shareholders. The Attorney-General was consulted on various points connected with the affair, but the elaborate opinion which he delivered did not stem to elucidate matters much, as the directors said they did not see their way clearly to act upon it. The fact seems to bo that the money invested in the company is worked up in puch a manner that it cannot be touched unless ihe company is wound up. No returns in the shape of dividends are obtainable until the serious losses incurred ore retrieved by enormous profits, which, in the present state of affairs, will likely occupy more time than people are inclined to wait for their money. A large number of shareholders are in favor of winding up, convinced that the longer the company goes on the less ihey will eventually have to receive, and wo consider it an act of great folly on their part not to with the Offer of tlie Circular Saw Steam Company to buy them out at £3 per share. The money was offered to be paid at or.ee, arid although to a great extent it would be a Bacrifiee to sell at the price, yet in such a case as this the first loss is often the best. Nothing at present is being derived from the company except convenience to the public; and there is every prospect that from depreciation in value of vessels, and possible future losses, the capital will be to a further extent absorbed, and eventually leave much less to apportion to the shareholders. By accepting the offer of the Circular Saw Company the advantages accruing to the public from the existence of a local line of steamers would be maintained, and the shareholders would be able to pocket a considerable sum of money, which is extremely unlikely ever to reach them while the company continues to carry on its present losing operations. Since the foregoing was written, a communication has been received by the C.S.S.N. Co. from the ditvclors of tho N.Z.S.N. Co. intimating that, although their offer must be declined, yet were one more favorable made it would be submitted to a meeting of shareholders. We cannot say positively, but we have some reason to believe, that the offer will be amended, and from tho feeling manifested by many of the shareholders, we judge that an arrangement will made agreeable to all parties. The following is tho letter alluded to: New Zealand Steam Navigation Company, (Limited.) ■Wellington, 28th April, iB6O. Gentlemen—l have the honor to acknowledge receipt of your letter of yesterday's addressed to the directors of tins company, and offjring, on hehalf of the Circular Saw Steam Navigation Co., the sum of £25,290 for all the steamers, hulks, assets, &c. &c., belonging to the New Zealand Steam Navigation Company (Liiiiiled.) At a general meeiing of the company, which was held yesterday, your letter was submitted to the shareholders, and the directors were instructed to deeline your offer, but at the same time to intimate that, if a more favorable offer were made, the directors would submit it to a general meeting of the shareholders. 1 have the honor to be, Gentlemen, Tour most obedient servant, Yt'iLLiAii Jnsuop, Managing Director. John Martin, Esq.., Messrs Henderson & Macfarlane, Circular Saw Steam Navigation Company.