REPORT.

West Coast Times, Issue 571, 24 July 1867, Page 2

REPORT.

To the Shareholder of the Hokitika and Groymouth Tramway Company Limited. Gentlesle>*, — In presenting you witii a detailed statement of the position of the affairs of the Company, as at 30th Juno, your Directors cannot but congratulate you on the success that lias attended the working of the Company's affairs since the 20th of last January, up to which Bate they last rendered you an account. At that time the Company had no horseß of its Own, no stations, few carriages, and were indebted to the bank L 230. Since tlier< horses have been purchased, and the expense of working tbe line materially decreased in consequence. Stations of a handsome, useful and remunerative description have been erected at either end of the line ; carriages for any emergency have | been constructed ; whilst all our debts have been wiped off, and the line is now free from all encumbrances. You trill todtice from the balance sheet just read that the net earnings of the Company from the 20th January to the 30th June, amounted to L 1565 7s 4d, which sum has been altogether, invested in the purchase of horses, the construction of carriages, and the erection of stations, whilst the money accruing since 20th January on calls not then 'due has j been employed im wiping off the debts which ; existed at that time. As there is, therefore, no available balance' left out of which to declare a cash dividend, your directors have judged it prudent in the present state of affairs, and with a care to tho future to recommend an issue of shares proportionate to the amount of earnings so invested. Last half-year a dividend was declared to be attachable in shares to the Bhares then taken up. That amount was L431 18s Bd. For thjs half-year, after carrying LlB9 8s 4d to tlie credit of profit and loss, new account, L 1377 7s would be the amount proportionally "due to the shareholders on this half-year's workings at the rate of 43 per cent, per annum on the amount invested. It is therefore proposed to add the two sums together, and issue ,362 shares to be divided rateably and proportionately amongst the shareholders — each shareholder paying on receiving, the small difference which may occur between the amount of one share,, and the one-half of one shave. Those who have more than half a share coming to them to pay the difference between this amount and the amount of orle share ; those having less than hainT^lS^-e {to recciTC theirf I It may be reuilHraßrßcTOiat at last meeting it was proposed to give Mr Klein some slight j token from the Company by way of acknowledging the obligations under which it lay to I that gentlemen, and although the motion was withdrawn at tho time, your Directors have since reconsidered the Baine, and agreed to present that gentleman with a silver cup. Your Directors therefore beg to request your acquiescence in their resolution. The Chairman explained that the whole of the earnings of the Company, although .a large amount had been spent in wiping off debt, and in extending the works of the Company. Mr Klein stated that the property of the Company had been greatly benefitted by laying out the earnings as had been done. , MVM V Shaw pointed out that the position of this Company was precisely similar to that of the Scandinavian Gold-Mining Company. By spending the profits the debts had been paid off, and the Company had been put into good working order. If this*had not been done, additional calls must have been made on the shareholders.

The Company being now out of debt, the shareholders would begin to receive profits.

Mr Fbeidlien stated that the. issue of additional shares was necessary, in order that the Company might be abJe to claim 8 per cent, from the Government on a larger amount of capital. He begged to move the adoption of the report. Mr Williams seconded the motion, which was put and passed. The meeting terminated with a vote of thanks to the chairman.