TRAMWAY COMPANY.

Auckland Star, Volume XX, Issue 100, 29 April 1889, Page 8

TRAMWAY COMPANY.

ANNUAL MEETING.

A meeting of shareholders in the Auckland Tramways and Suburban Land Companywas held at 11 o'clock to-day in the office of the Company, Falmerston Building, Queenstreet. Mr J. M. Clark presided, and twelve shareholders were present. Balance-sheet.—The balance-sheet was submitted as follows :—Working account for year ending 28th February, 1889 : Receipts.—From faros, £15,280 lis 5d ; advertising, revenue from Potter's Paddock, manure, etc., £1,247 12s lOd : total, £16,528 4s 3d. Expenditure.—Horse feed, grooms' and drivers' wages, shoeing, maintenance of rolling stock, etc., £10,109 2s Ohd ; traffic, maintenance of wav, management, etc., £4,089 9s 7d ; balance, £2,329 12s 7hd : total, £16,528 4s 3d. Profit and loss account to 28th February, 1889.—T0 balance at Dr. 29th February, 1888, £9,943 10s 6d ; gesieral expenses, interest, etc., £4,723 5s 3d : total, £14,666 15s 9d. Rents', etc., £191 0s 4d ; balance Irom working account, £2,329 12s 7Ad ; balance, £12,146 2s 9__ : total, £14,666 15s 9d. Balance-sheet for year ending February 28th, 1889 :—To capital : 125,000 shares at £1 each, £11.5,000 ; less unallotted shares, £50,746-£74,254; mortgages,£l4,4273s6d; mortgages re-mortga^ed, £402 13s 3d ; debentures, including interest, £40,991 6s3d ; sundry creditors, £68 ; total, £130,143 3s Id. Tramways, including plant, horses, rolling stock, harness, machinery, etc., £59,599 1 J6s 6d ; tramway land and buildings (Ponsonby), £6,650 12s lid; Epsom land, buildings, and extension of line, £10,709 0s &d ; 'bus services—Onehunga, Ponsonby, and specials, £1,479 10s 7d ; stable utensils, stock, house and office furniture, etc., £1,150 7s ; St. Helier's implement account, £108 18s ; mortgages re-mortgaged, £490 ,- trust account, £1,650; cash in bank, £1,489 4s 7d; cash with conductors, cash takers, and in hand, £47 lis 9^d; profit and loss account, £12,146 2s 9^(1; loss on surrender of land, £54,621 18s 7d: total, £130,143 3s Id. Suspense Account: Loss through surrendered mortgages, £34,356 lift 2d ; balance, £34,621 18_. 7d: Total, £68,978 9s 9d. Land to mortgagors, £59,666 19s 5d ; loss through surrender, £6,370 7s 6d ; building surrendered, £905 6s 4d ; calls not recoverable, £2,035 16s 6d : total, £68,978 9s 9d. —Mr J. M. Clark, Chairman of Direct.!., said he would move the adoption of the balance sheet, as he had no directors' report to present. He would, therefore, make an explanation in place of the usual report. They would, no doubt, remember that at the last meeting the directors stated that they would endeavour to got rid of the land held by the Company. It was apparent that while the land might ultimately recover its value, still the Company were not strong enough to hold it until that time; that in fact tho land was in reality crushing the Company's. The directors had taken steps to get clear of the land, and he was glad to state that mortgagors had taken over the St. Helier's Bay estate, the land at Northcote, and the piece purchased Irom the late Mr Stichbury. The Company was now free of that, and nothiug further was paid upon it. Of course, the account of the land was heavy, £59,666 19s sd. Mr Clark then read through the items in the suspense account. He said that showed altogether a loss of £34,621 18s 7d on the land.. It was not down in the profit and lo3s account, as it was kept separate for book-keeping reasons, although in reality it was a loss upon the year's transactions. The profit and loss account showed that the company started the year with a debtor balance of £9,943 10s 6d and it closed with a debit balance of £12,146 2s 9^. As regards the future policy of the Company,the directors had to admit that they did not see their way. The net profits of the tramway itself now they were clear of the mortgages would pay about .£ p.c. upon the indebtedness to debenture holders. The indebtedness was £55,887 and the net profit £2,329 12s 7£d. If they deducted the £46,768 combined loss from the paid up capital of the Company, it left £27,486 net capital at the present timo. If the net profit of the tramway had shown a balance which would have paid current interest upon the present indebtedness of the Company, the directors would have endeavoured to have initiated some scheme to write off the loss and introduce fresh capital, but at present such could not be done. Unless something did turn up in the shape of new motive power the directors saw no immediate prospect of going on. Therefore the directors had no recommendation to make. Unless things improved, he thought it probable that the returns next year would be no better than the past, as forage was dearer. At present the Company was in reality living on sufferance, but if allowed to go on, the directors would endeavour to put it on a better footing. With regard to the item VVhitaker and Russell's trust amount, he might explain that it was the sum set aside to carry out the contract with the City Council for the running of trams up College Hill. He moved the adoption of the balance sheet. Mr Savage asked what was the present indebtedness of the Company. The Chairman said that at present the assets were £27,486 in excess of the liability. _3r. Purchas seconded the adoption of the report. Mr Hunter asked whether the Company's assets were kept at the original valuation. The Chairman replied that the horses were valued every year, and the rolling stock was kept well in repair. Mr Elkin said that it was a relief to the shareholders to have such a plain statement. It was quite clear that any day they might be closed upon and wound up, but it would not be to the interest of the debenture holders to do so as long as a moderate interest Was paid. , The Company was a great benefit to the public, and the suburban property had been improved in value. It was quite clear that if they could go on a little longer they had something to gain. If they were only able to wait and see what would turn up, they should just rest upon their oars for a little time, and if they were closed upon then they could be called together to see what could be done. It would bo greatly to be deplored if such a company were to cease operations. He was only sorry that they had not got rid of that dead weight of land sooner, for it had been hanging upon tha Company like an incubus. There must be some value in the 20 or 30 yei-rs' concession which the Company held from the City Council. The Company possessed a manager that was well fitted for the position. But if they were stopped then there was an end of it, and the Company must be consigned to the limbo where too many Auckland Companies were at present. He must express the opinion that the directors should be assisted by the good wishes of the shareholders in their endeavours to set the Company right again, and benefitboththe shareholders-arid themselves. —Mr Streeter pointed out that the interest required for the debentures was about double the amount of the net profit, .till he thought the concessions held by the Company were worth a good deal. —Mr Stewart said that the concession was growing shorter every year. What he feared was that, if they only paid 4 per cent, and the other 4 per cent, were added and compounded year after year they would never pull through. It had been shown that i' 3,000 per annum could be saved by the adoption of electricity as a motive power, and that after paying 10 per cent, that would at once place the Company in a good position. That was a thing which could be adopted by simply deciding to do so. For himself he was prepared to do everything he could to get it, _nd was* prepared tp stake his profea-

sional reputation that it would pay.— Dr. Purchas said it was simply a question of how they were to get it. There was no doubt thatit would payonce it was obtained. —The Chairman said the directors had been waiting to see which wa_ the best system. It appeared that the system for which Messrs Stewart and Hunter were agents, would do if they could only fiminc_ so as to get it. —Mr Elkin suggested that sooner or later some electrical company would be prepared to provide the apparatus, _ and run the cars at so much per mile. — The Chairman said that tho directors had attempted to make some such arrangement with an agent of an electrical company, but nothing definite had been accomplished.— The reports were then adopted. Additoks.—Mr John Milne was reelected auditor on the motion of Mr Elkin.

Thanks.—On the motion of Mr Savage a vote of thanks was accorded the chairman and directors for their gratuitous services in the past.