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New Zealand Times, Volume XXXII, Issue 4932, 12 January 1877, Page 2

IN, yesterday’s issue 'we published a letter reflecting ,on . the last balance-sheet of the New Zealand Shipping Company! The matter is one of great: interest as affecting the position of one of the principal enterprises of the colony, and we have much pleasure in inserting, at the request of Captain Bose, the local agent for the, company, the following, which appeared in the Financier in reply to the letter of “ An-Old Colonist:’.’—Sir, —As one deeply interested in .the suceoas of the ‘above company, not as a shareholder, but as a trader having a large stake in the colony, I may perhaps be allowed to make a few remarks in reply to the reflections contained in the letter signed “ An Old Colonist,” which appeared in your impression, of the Ist instant. In regard to the inaccuracy of the statement that the report of the: company has been circulated ir this country with the view of inviting investment in its shares, everyone conversant with the colony kiiows well that directors of companies originating there are, as a rule, jealouf of the transfer of shares from colonial proprietbwi yifpb are interested in the colony, and have the means of assisting the company ir its business, to proprietors vyhb reside in England and elsewh.ere, who may have no power t( render such" assistance, t I i therefore retrain proof of geuuously implies, that the report in questioj was placed ia his hands by any duly autho rised agent or representative of the company withjthe view of attracting his money to thi shares as an investment. And now as to thi question of the “ palpable overvaluation of thi ships;’! According - ’ to ■ “ Old Colonist,” the; are worth for sale In the market £lO to £l- - or might be,replaced at the-latte figure; but, inasmuch as these are not for sale nor are seeking charters, blit are required ti conduct a large and prosperous business, the; cannot fairly'be subjected to the method o valuation advocated by “ Old Colonist.” Hii argument iqeans that ships should be value: at liquidation prices—a practice unknown, ai far as I am aware, in any similar undertaking and if,a like rate of , depreciation for the nex five,. or six years • were applied to the origina cost of the ships, the "value of the fleet wouh be represented as nil in the balance-sheet o the company. The truth of the matter is tha the colony for years suffered from the, effect of a grinding monopoly of the shipping trade and this company represents a national an: successful -effort to uproot that monopoly The share capital was subscribed with enthu siasm, and with one or two exceptions, b; colonibtis interested in upsetting the monopoly who were prepared to lose their money in th enterprise if necessary, and there has beei neither desire!nor occasion to invite invest ments in, the shares in this 'country. Th ’company met, during the first year of ,it existence, with the intense opposition of th old monopolists, which resulted, as the balance sheet shows, in a loss of £14,300. Th strength and influence of -the company bavin] been proved, its opponents are now dispose! to work on morei amicable terms, and the gaii to the colony is a better class of ships, reducei freights, and more civility from everybody In the balance-sheet, the directors do ho value their ships at £256,687 Is., but they sa; that they cost that sum. They admit the, ships are subject to depreciation, but, inals much as the actual percentage of depreciatioi is more apparent than ’real in the case of nev iron ships, of which the majority of the flee consists, '.they pass ,to reserve the amoun which, in their judgment, is ample to jneet thi contingency.’ “Old-Colonist’” judges’ tin , company on a very narrow basis. Its founda tions arc deteper and stronger than he wouh lead year: readers to suppose. Originating ii a great ‘ colbnial necessity, it was taken l up apd is supported, North and South; ; It hai been a great success, falsifying the prediction and hopes of its opponents, and, I believe, lik all colonial findeftakings which -spring jfrori great colonial wants, will keep its place by thi aide of ;the u»any [institutions which ai:e th pride anij. power.of oftr - The.share holders wep.e ,‘WeIT pleaded, will! the position q -tjie company, - as set,, forth in the .-directors a copy,qf .their proceeding for your rinformationi and for insertion in'you columns if'.you think proper.—l am, &oi, Ev London, Nov. 4. . < ”, The Polynesia Company has met with man; difficulties since its inception, and it has nov to face what will probably prove a crushiuo disaster. The Fijian Government has iutimatei that it does not acknowledge the validity o • the charter granted to the company by th chief Cakobau, and consequently refuses to re cognise any claims founded upon it by th company. In 1868 the United States Govern ment brought' great pressure to bear upoi Cakobau, then the most prominent of thi Fijian chiefs, to obtain a settlement of som , debts alleged to be owing to American citizeni i for depredations and acta of incendiarism sail to have been,comjnitted by.the natives to thf extent of 42,248d015. Some residents of Mel bourne undertook t 6 satisfy these claims, am Cakobau in return gave the company they re presented a charter in.which he; professed .tc cede to them 200,000 acres of land in Yit Levu, Vanua Levu, and other parts of Fiji The'company, however, have never been abh to obtain the land. About 90,000 have beer nominally surrendered to them, but only a fyv acres have been actually occupied and cultivated by ' tenants ..of the company, while thi greater portion of the remainder continues ii the occupation of the natives, whom the. Government have refused to 1 eject: by force, or the .grounds that such a course would iuevitablj lead to. aw unjust'and expensive war. The instrument of cession executed by King Cakobau and his chiefs to the British Government in 1874 recognises the right of Europeans to lands lona fide acquired, and if the new Company can show that ' they are hona fide claimants, and that they have acquired .the lands fairly and at a fair price, they will -doubtless receive every consideration. :,The Melbourne- Argus of the 27th, ]to which we are also indebted for the above facts as to the history of the company, contains a report of a meeting of the company at Melbourne. ’ ;: The position taken up by the Government is made..clear by the following extract of. a letter of Mr. Woods, the Colonial |Secretary :—“ I am directed to inform! you that her Majesty’s .Government does not aciknowledge the validity, of, the charter, purporting to have been granted to the company by Cakobau, and refuses to recognise any rights professing to be derived from that document, the provisions -of which, besides ibeing in. some reppeots contrary to those principles df’lpdlfoy" which' must prevail in a British colony, have been necessarily rendered void by the effacement of the authority which purported .to , grant' it. His , Excellency, therefore, is unable to admit the existence of any claim founded thereon as against, the Government of this colony.- At the same time, bearing in mind the fact that a large sum of money was undoubtedly paid on Cakobau’s behalf by the promoters of the company, in consideration of the ; grant to them of advantages which they have in a great degree failed to obtain,, the Colonial -Government ;is not unwilling to refund to those who furnished It the sum of- £9OOO so advanced.” The Company replied to this, standing on their rights, and an answer was speedily received :o the effect that until the company came off ihe “ pedestal ” of right no negotiations could se commenced. ’ ■;■, - ■