HOKITIKA SHIPPING COY., LTD

Hokitika Guardian, 12 October 1920, Page 4

HOKITIKA SHIPPING COY., LTD

-—— ANNUAL MEETING. MONUAV, OCTOBER 11th. The auuinl, meeting of-the above company was held at the Harbour Hoard office at 3.3') o’clock. Present: Messrs G. A. .Perry, (chair) ; W;, I'nli;ick, T. Condon, W. J. Jeffries, P. 11. Renton, J. J. mi cln tosh, R. Adamson, .A. Brookes, J. Ritchie, 1). J: Evans, G. A. Wood and R. Wild .'(secretary). The minutes of the previous annual meeting were read and confirmed. The report and balance s’’cet (circulated amongst member) was accepted as read. / The followiov. wa- the report on behalf of the directors from the Chairman to the shareholders. In submitting the Seventh Annual Report your Directors have to report, as in fact you are all aware, that the Company’s steamer “Pacroa” when leaving Hokitika on the 23rd of July, struck on the bar and sustained so much damage as to become ultimately a total wreck. This was particularly unfortunate, because during last year, including cost of crew while under repair, no less than £2,000 had hen spent in repairs and improvements, and the steamer was in condition for several years’ profitable service. It will be noted from the Balance Sheet that the Company had practically only. £2OO loft in excess assets. The past seven years’ experience of the Company goes to show that it sufficient capital had at the. first been provided to get the steel boat built that was submitted by Air Mcßae the architect, it would have been profitable. Enquiries have been sent out as to the present cost of a steel hull, and it is hoped that replies will he received in time to lay before the meeting. A very successful salvage was effected of the lnaehinery and gear of the Pacroa, which the Company gets if it requires it at actual cost. This will represent a saving of over £I,OOO in a new steamer. If it is decided t-o get a vessel built, the question of will have, to be settled. It can lie seen in the balance sheet that the earnings amounted to £3588 from which has to be deducted wharfage, £204 and which, considering the size of the vessel and that the period was only nine months’ running', must he considered amazingly good. Oi\ that amount £1,166 was earned in the Southern service (Okarito freights were £451, Bruce Bay and Okmm £489, and Okarito passages £22, Bruce Bay and Okuru £204). It will be seen therefore that a great increase in trade south is necessary to assure dividends on a vessel restricted to that trade.

Every Shareholder is urged to make a- point of either attending the meeting in person or sending a clear expression of his wishes. The service in the meantime is being carried on by the AVakaiti at no cost to the Company.

In conclusion, your Directors feel strongly that every effort should be made by the shareholders to secure a suitable boat for the trade as otherwise the- development of South AVestlaml cannot proceed, and that additional shareholders comprising, all who participate in the advantage of the service, should also contribute to the additional capital required. If-the full co-operation of all interested can be secured, your Directors believe that the service can bo maintained with better prospects of success than at any time in the career of the Company.—Received. Mr Evans suggested before proeeedinga with the election of directors, that the position of the Company might be determined, and it was resolved to take a discussion under the heading of general business and defer other business till later.

Mr Jeffries said lie wished to discuss the balance sheet ,nnd on behalf of ail absent shareholder enquired what was tho amount of the overdraft at the bank at noon on the day of the wreck? Mr Wild replied tlie overdraft then stood at £660, for which- the directors had given a joint and several guarantee of £3OO. On the day after the wreck ,when it was decided to - abandon the ship to the and pay off the crew (wages £143), the directors resolved to assign the marine insurance policy 5 to enable the amount to he■paid.

Mr Jeffries questioned whether thn could be done.

Mr J. Mclntosh said lie gathered that the Wataroa shareholders were not prepared to support the company further, as the service was not considered of material value now that motor transport could be arranged. The Chairman said the far south people were in a different plight. It

would not only be inconvenient to them, it would be disastrous if they could not get a boat. He thought they should do what they could to get another steamer to replace the Paeroa. Answering. a further question as to the liability of shareholders who might not wish to contribute to the cost of another boat, the Chairman said there was no compulsion to so contribute. Their shares were paid up and they were not liable further on that account, It was a case of forming a new company or enlarging the capital to meet tho cost of a new steamer. Mr Adamson said the Wataroa people were not satisfied with the running of the boat. At the time the steamer was lost, she should have been sent to Okarito instead of leaving for Picton. The Okarito bar was workable and the request from the south should have been granted. Tlie Chairman referred to the increasing prosperity south, and the growth of the population. It was a critical time, and they should not abandon the south trade-. To give up now would be a great mistake. Whey should remember that owning their own boat they had kept down freights, and all had benefited equally. Perhaps in the future it would be advisable to make a preferential tariff for .shareholders. It would be as well to hear what had been done regarding the attempt to get a new boat. Mr Wild read correspondence on the subject. One New Zealand firm reported it had referred the specification to its naval architect, and would reply later. Another firm gave alternative prices for £12,000 and £15,000, according to the size of the hull, the engines etc. from the Paeroa to be utilised. The Sydney Government dockyards quoted £12,000 for a steel hull at Newcastle. Mr Wild referred to the negotiations which had gone on to secure temporar-

ily, th(| Nile for the south trade, but tho boat was too fully employed in the Westport-Karahiea run. Letters were read from Ritchie Bros, Bruce Bay, and W. T). Nolan, oil behnlf of a public meeting at Oku.ru, favouring a steamboat being secured for the south trade. The Chairman referred again to the prospects of the south, and favoured every offort being made to secure a bofit, His firm would be prepared to put £SOO into tho project. SALE OF PAEUOA PLANT: At this stage tho discussion turned on tho sale of the stranded Paeroa by auction. In reply to a question by a shareholder, the Chairman said the syndicate purchased the wreck with a view to salvaging the plant to be presented to the Company if it carried on. Mr Jeffries as auctioneer on the occasion, said be must state that in knocking the wreck down to Mr Perry the last named was buying for the Hokitika Shipping Cov., and that bei'ng so lie expected to see flic value of tlie plant in the assets column of the balance sheet. The Chairman said lie was not anthorised by the Company to buy, nor bad they power to do so. ’ Along with others he had personally risked his money in buying the plant, and if the Company could not use it, the syndicate which had paid for and salvaged •the wreck would use it. / 1 Mr Jeffries said if that position had been clear at tli c time of the sale, the property would have brought more than £lO5. Under the circumstances he stated the wreck would probably have fetched £3OO. If it were bought for tho Company, then the balance sheet should disclose it in the statement of assets. I Mr Adamson said proof cfould : be brought that bids were suppressed because it was thought the Chairman of Directors was buying for the Company. The Chairman said the, position was perfectly clear. Messrs Davidson and Speed offered to buy the wreck and salve tho property for the Company and leave it to the Directors to got a. hull into which the machinery could bo put. The salvage bad been well carried out, and was very successful. If it bad been otherwise the syndicate stood to make the loss. Now the Company stood to make the profit if they gat a steel hull. Mr Mclntosh asked the cost of the salvage. 1 s. Mr Wild said £350, including the sale and purchase, but all the accounts were not in. The Chairman thought the cost would run to between £4OO and £SOO when all the accounts were in. !

Mr Mclntosh enquired why the directors had not been consulted, and it was explained a meeting of directors was held the day following the wreck when it was decided to abandon the ship to the Underwriters. Mr Mclntosh said ho favored taking over the assets constituted by the salvaging from the wreck.

The Chairman said that could not be done without consulting the syndicated

Mr Jeffries said if that was the case it was a different position to that put forward earlier and he would retire, from the meeting. Mr Jeffries then left the room. Mr Wild said Mr Jeffries was very inconsistent. He. (Mr Jeffries), had objected earlier to the directors contracting an overdraft of £BOO in the interests of the "shareholders, and now he wanted £SOO to be arranged for to repay the syndicate who had arranged their finance to that amount.

Mr Mclntosh enquired what money was now in hand and was informed £l5O. At this stage, Mr Wild resented the tone of Mr Mclntosh’s remarks and there was an altercation as to certain circumstances surrounding the sole of the wreck. Eventually Mr Mclntosh moved that the Company take over the plant from the Syndicate. Mr Patrick seconded. Mr Evans enquired where the payment was to come from. The motion was put and declared lost. Tho Chairman 'then said the position for the shareholders was quite plain. Let the Company get a hull for the machinery and the plant will be handed over.

Mr Wood said as long as the syndicate held the plarft it would be a lever towards getting the hull, and the result would be a boat for the local trade. Mr Evans felt that' they could not get much further forward that day. He suggested an adjournment pending replies about boats which were yet to come. It might be advisable to communicate with Homo also. They should not abandon the south trade. The district was at its turning point and there was a great future before it. Tlie speaker referred to the reports regarding timber trade developments in the far south, and in any case they owed it to the pioneers who had gone into the back country to do what they could to help them. He was prepared to continue his former support to any company which might be formed to provide a steamer.

Tlie Chairman seconded. He said Hokitika bad fifty years’ trade with the south and it should not be given up now. The settlers there should be encouraged in every way. With wool and meat falling in price, dairying would flourish in the south, and there would be the need for a steam-boat connection.

Messrs Ritchie and Wood supported the proposal, the latter stating also he would continue liis financial support as before to tlie project. The motion for an adjournment of the annual meeting to a date to be fixed was carried. Mr Wild moved that a vote of thanks be accorded Messrs Speed, Davidson and Stuart for their assistance and co-op-eration in helping to salvage tho machinery. Mr Wood seconded.—Carried. The meeting concluded at 4.30 o’clock