NEW ZEALAND STEAM NAVIGATION COMPANY.

Hawke's Bay Weekly Times, Volume 1, Issue 49, 9 December 1867, Page 304

NEW ZEALAND STEAM NAVIGATION COMPANY.

~<From the Independent, November 28.) . Tub state; of affairs disclosed at the meeting of the New Zealand Steam Navigation Company, is on the whole more satisfactory than could have -been anticipated. When the present Board of Directors took office, a heavy loss had been incurred, and the choice lay between amalgamating with the Panama , Company, winding up altogether, or continuing business for another six months,./in the hope that, by rigid economy and energetic management thp position of the business might be altered for the better. We ban all remember how keenly those different proposals were discussed, and how lengthened was the struggle before the party who were in favour of carrying on, gained the victory The length of time in which the affairs of the Company thus' remained in suspense, and the feelings of antagonism which the contest evoked were calculated to have a prejudicial effect, so that the present Directory took office under very adverse circumstances. These things have all to be allowed for by shareholders in estimating the value of what their Directors have accomplished. They pledged themselves to do all that was possible to reduce the expenditure and increase the returns—and to. a certain extent those promises have been fu filled. W r e think they have done what was possible, and that if there be any falling short it could not have been avoided.

The balance-sheet for the six months ending in February last’showed a loss of £6,625 Os 4d. The present one, for the six months ending in August, also shows a loss of £2,063 9s, but deducting from this £BB7 2s lid, lost by the Queen, and £IBB 11s 7d on the Lady Bird laid up, the actual loss on working account is £989 14s 6d. Over the period embraced by this balance-sheet, the present Directory, who went into office in July, had little practical control. Plans of retrenchraent in the management and conduct of a public company cannot be carried out at once, nor can reductions be made in a day A new system .requires time for its initiation, and employes cannot be discharged without the proper notice being given. It will therefore be seen that many savings effected could not appear in the present balance-sheet, but will figure in the next for the six months commencing in September. This much, however, is clear, that up to the end of August, the amount of loss was very much less than had been sustained during tbe previous half year, while the system of economy decided upon only came into complete operation in the beginning of September. A period of nearly three months has elapsed since, during which we have reason to believe that the returns have materially increased while the expenditure has diminished. This gives some reason to hope that the next balance-sheet may show a further improvement—indeed, it is not impossible, apart from accidents, that the returns may equal the expenditure for the six months. With depressed trade and diminished subsidies, it would be much even to carry on the company without loss. If this could be done for the present, there is no reason to doubt that the time would soon come when the patience and fortitude of the shareholders would be rewarded by the complete financial success of this important colonial undertaking. Meanwhile, it is well that the worst of the existing position should be realised, and we therefore cordially approve the system adopted by tbe Directors of taking credit in the assets only for the approximate market value of the steamers, and not r or their full cost.’ The amount thus struck off the assets is considerable, and when there is added to it the loss on working account,- the report estimates the total as equivalent to a loss of £3 a share. We are not exactly aware how far the value 7 placed upou the steamers is to be looked upon as representing their market vaule—what they would fetch if placed in the market for sale—but we have no doubt the figures given are the result of careful calculation. Considering the large number of steamers in Australian waters, we, however, think it likely that Mr Bishop’s estimate is rather high. Two steamers sold at Dunedin the other day fetched a very low price, and if any attempt were, made to realise the vessels belonging to the company, the price obtained might be much less than that 7 at which they are now estimated. {Fortunately, however, the shareholders see : their way to carrying on the business, and there is, therefore, no danger of the assets being hastily realised. Under those circumstances, the market value of the steamers may be estimated, not at wbat they would fetch under a hasty winding-up, but at the price whioh might be obtained when; owners can wait for a fitting’opporrithity to sell. There are few other parts of the' report or of the -proceedings at the'meeting on which we need comment. The assurance that by means '"of the most rigid' economy which is consistent witli efficiency, a reduction at the rate of-; between £s*ooo and £6,000 a year ! hias -beieh %ffe'cthd ; in; the expenditure ' will • r be - very ' gratifying 'to'! the shareholders; ''While. 1 'the 1 Directors - may fairly.;take the credit of 'having,»in -this respect,, acooin.phsh.ed ''the--, purpose for which they took’office. 'The 1 shareholders expressed- their {sense' of* this by V cordial vote 1 of thanks, and 7 themariner inwhich thik "was;given,{lndicated that- thpught every effort -had' been * made -by; the Direc 1 tors ,-jto {overcome diffidulties- ahd retrieve emblrassments.’ .’{The j siuccessorfairure the Uoinpamy - depends to{£*! ‘cdiitiun m extent bn 1 circumbtahcesVbyerl wtiichf txonf^tli’erabsqrpribu ofalarge'lshMfofitlie

revenue in the payment of interest on loans, and the maintenance of ah enormoua and costlv civil service—these things are telling severely upon the colony, and we see "their effects in retarded progress, deDressed trade, and a partial stagnation of enterprise. When this is the case it naturally enough follows that the steam communication interest will, like others, also, suffer. Perhaps that interest suffers even more than others,because not only freights and'traffic are lessened during a. period of depression,-but that, in the very time when subsidies are partially or wholly withdrawn. ' The shareholders cannot help this, and, like the colonists in general, must patiently await the advent of better rimes. Meantime they can make the best of the present, by each in his own sphere urging the public of New Zealand to give the Company a generous support. If they do this, we see no reason to despair, that with careful management, the Company may be carried on without loss till; tbe temporary depression of the time having passed away, an opportunity will arrive of once more making it a remunerative undertaking.