Persisted Too Long With Tauranga Run

Sun (Auckland), Volume III, Issue 665, 17 May 1929, Page 11

Persisted Too Long With Tauranga Run

NORTHERN COMPANY’S REPORT GOOD COASTAL PROSPECTS “No company can afford to ignore the requests and desires of its clients, but we persisted too long in our response to their wishes, and in our efforts to revive a languishing passenger trade to Tauranga.” Thus Mr. Charles Rhodes, chairman of directors of the Northern Steamship Company, Ltd., in moving the adoption of the report and balance sheet at the company’s annual meeting held this afternoon. He stated that the company was short by about £4,000 of the amount required for the full depreciation of 6 per cent., due to the altered conditions of the Tauranga service. “The result of these altered conditions 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 limit our service to carrying cargo only. “I remarked last year,” said Mr. Rhodes, “that motor-car passenger services generally were attracting travellers both from our boats and from railway trains, and that we anticipated the time when freight carrying in oil scows would be our chief objective.

LOSS TO PROFIT “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 result of some profit, the Tauranga freight being carried in the motor-vessel Ronaki, which we recently added to our coastal fleet. “We cannot refrain from again alluding to the unfair competition of the ; railroad wherever it runs to sea ports. | “The standard tariffs for New Zealand are no doubt based upon econo- | mica! lines to give the cheapest pos- | sible payable service, and all rail users on lines not approachable by steamers still have to pay full tariff rates. “Where, however, competition with steamers makes it necessary to reduce rates, sometimes by even 75 per cent, of minimum economic rates, the policy of the late Government, not yet altered by the present Government, has made its Railway Department cut rates and place the burden upon the whole New Zealand community by taxation to cover the inevitable loss. “Such tactics are not only distinctly unfair to shipping companies, which have as much right as others to Government consideration, but they do not even benefit the district concerned, for while the trains run at aloss, taking some freight, the motor-vessels themselves, with less than full loads, i are not able to make the freight concession which would otherwise be possible.” It must also be within your knowledge, as citizens, that trade conditions generally in New Zealand have been far from buoyant, and that there is a considerable amount of unemployed laboi| on the market. Imagine, then, our feelings on receiving demands from Labour unions for increased wages and conditions, which simply could not be economically conceded. LAI D-U P STEAMERS One would expect the Arbitration Court to require definite evidence of increased cost of living, and of diffi.-. culty to get seafaring men, before allowing any increase in wages; but though evidence to the entire contrary is available apparently awards cannot be renewed without some amendments prejudicial to employers, and which are often even more so to employees, when they find themselves looking for another job because the produce of their labour has become less valuable than the wages that must be paid if they are employed. “The directors are quite optimistic about the company’s future as a coastal cargo carrier. They see every reason to believe that a sound and payable business lies before us as shareholders—one 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 a public service. “To those who wonder what we will do with passenger steamers laid up, and their effect upon our assets, I 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 be impossible to replace the equipment we have at tlie cost in our balance sheet.” The chairman concluded with appreciative reference to the valuable services given by the staff. The retiring directors, Messrs. E. H. Davis, N. A. Nathan, and J. H. Upton, were re-elected, and Messrs. W. W. Bruce and G. O’Halloran were reap-; pointed auditors.