ANNUAL REPORT

Hokitika Guardian, 8 April 1929, Page 7

ANNUAL REPORT

OF THE SOUTH WESTLAND SHIPPING COMPANY, LTD.

The operations for the year just closed have -been most unfortunate, showing a loss of £519 Is 7d, and this without providing for any interest on loans from shareholders. The VickcrsI’tiicr engine installed in the “Elsie” was a continual source of trouble, and when the boat arrived last October from Okarito after ten weeks’ detention there, with the engines requiriing attention, for which no expert connsuited could indicate the time required, it was felt that urgent action was called for, seeing that Okuru had then been without service for three months. Your directors, therefore, arranged temporary finance, and purchased the steamer “Gael”, this boat has been doing the service since 22nd November last. What to do with the “Elsie” is causing your directors much concern, ana many enquiries. If she can he made efficient, and the purchase price of the “Gael” found without having to sell her, it will he very much better in tlie interest of the service for her t.o be retained to run exclusively to Okarito. Tlie engine trouble is claimed by makers to bo entirely due to the angle at which the engine is installed. As yet no means have been discovered to remedy this. Your directors originally wished twin screws for the “Elsie” and only gave way on this point on the positive representation of Vickers’ expert that it was a single screw job, confirming a similar statement made made previously by Fairbanks Morse Engineer. At present it looks as if tlie only way out will be to sell the present single engine and replace it with twin engines. During the year £3l 5s has been paid for shares, and £905 18s loan money advanced by shareholders. 01 this £BSO has been advanced by your directors and secretary towards purchase of the “Gael” and provision for the balance will be discussed at the Annual Meeting. Careful study of the prospects indicate that there will he very little balance over expenditure in the coining year, and it will be necessary to restore the freight charge to Bruce Bay to 70s, and from Bruce Bay to Okuru to 50s per ton. There is no money available for payment of interest to shareholders for the present year, and it is necessaij that shareholders consent to a reduction of interest on their loans to 5 per cent., for the next and subsequent vears.