NORTHERN STEAMSHIP COY

Hokitika Guardian, 22 May 1929, Page 2

NORTHERN STEAMSHIP COY

RAIL AND MOTOR COMPETITION

AUCKLAND, May 17

The serious effect that rail and motor traffic has had on the coastal passenger traffic was referred to in the annual report of the Northern -Steamship Company, presented to the meeting of shareholders by the chairman (Mr Charles Rhodes). ' After commenting on the financial position of the company, which Mr Rhodes said, was unfortunately not quite so good as usual, he added: “ We have to confess that for the first time for some years past we find ourselves unable to make the full depreciation of 6 per cent., which is the amount common on shipping companies’ fleets. We are short by about £4OOO, which is due entirely to the altered conditions of our Tauranga. service. No company can afford to ignore the requests and desires of its clients, hut the truth is that we persisted too long in our response to their wishes, and in our efforts to revive a languishing passenger trade to Tauranga. The result was not 'only an absence of any profit but a substantial actual loss on our sailings to that port, which forced us to abandon that passenger trade after Easter of this year and limited our service to carrying cargo.”

“ 1 remarked last year that motor car passenger services generally were attracting travellers, both from our boats and from the railway trains, and that we anticipated the time when freight-carrying in oil scows would be our chief objective. I can certainly add now that the change we have effected, freed from the costly service of catering for passengers, has already changed a steady loss into a profit. Wo cannot refrain from again alluding to the unfair competition of the railroad wherever it runs to seaports.

“ Before closing my rather critical remarks, I ought to say that your directors are quite optimistic about tuc company’s future as a a cargo carrier. ’1 hey see every reason to believe that sound and payable business lies before the company—a business in which they can continue to serve the Auckland province and aid in its advancement, whilst earning a dividend on capital most usefully employed in the public service. To those who wonder what we will .do with the passenger steamers laid up and their effect upon our assets, 1 say that the present asset of £324,878, representing our fleet, wharves, and buildings, is thoroughly sound and need not call for anxiety on any shareholder’s part, It would he impossible to replace the equipment we have at the cost in our balance sheet.