NORTHERN S.S. CO.

Auckland Star, Volume LVIII, Issue 114, 17 May 1927, Page 8

NORTHERN S.S. CO.

Effects of Gum Slump.

ANNUAL MEETING TO-DAY.

SOUND AND SATISFACTORY.

DESPITE TRADE DEPRESSION.

The Northern Steamship Co., after 40 years in operation, is in a sound and satisfactory financial condition.

This was the assurance given to shareholders at to-day's annual meeting by Mr. Chas. Rhodes, chairman of directors. At the same time, declared Mr. Rhodes, the year had not passed without considerable anxiety and worry, due principally to a general depression in trade. In spite of these adverse conditions the company had to meet i ncreased expenses in the way of

advanced wages, shorter liours, and easier working conditions granted to its employees in the Arbitration Court's new awards.

On September 24, last, the Whangarei passenger service to Onerahi was abandoned due to an insufficiency of passengers travelling, and to raised local charges put by the Railway Department, particularly on steamer cargo and coal crossing their wharf. Had it been possible to have carried the Whangarei cargo in the same vessel as the passengers there would have been no need to withdraw the steamer. When the new wharf at Kioreroa is constructed and motor communication with Whangarei ia established, their service may be revived.

In some of its runs, the company, like the Railway Department, had to meet the ever increasing competition of service and private motor cars carrying passengers. There was no doubt that with the advent of better roads in the country districts, this competition would increasingly effect the number of passengers carried either by rail or steamer. So far as the company was concerned the absence of passengers would enable the company to make considerable reduction in working expenses, so that the gradual change of trade to cargo carrying was no great disadvantage.

Owing to the severity of the slump in the gum industry the northern trades had been seriously affected. The annual Gura Report placed before Parliament at the end of last year stated that the present slump through which the trade is passing was considered to be the worst ejcperien<3ed. Most of the men who were able to do so left the fields to soek other employment, and those remaining (chiefly married men who could not leave on account of their families), were finding a poor market for their product, and were suffering accordingly. It was, however, hoped that when the present trade depression had passed this industry would again revive, finding employment for the men accustom d to that business, which would incidentally provide gum freight for coastal vessels.

Weather Affects Excursions. The unsettled weather, with continual strong easterly winds, during the summer months resulted in a considerable decrease in the number of excursionists who patronise the company's excursions to the various' ppae'Ho , — easterly weather almost spoiled the daep sea fishing season a» . On many days it was not possible for the launches to put to sea, and as the I swordfish is only caught in open waters many tourists ana visitors to the fishing grounds were disappointed. The Fleet. The company's lieet of vessels during the year had l*?en well maintained kept in good repair, the large sum of £38,357 having been spent on renewals and upkeep during the past year, but some economy had been effected by the company now owning'its own boiler and engineering repair shops. He was sorry to have to record the wreck of one of their largest steamers, the s.s. Manaia. This vessel was wrecked on Slipper Island on the night of June 10, 192*5, whilst on a voyage from Tauranga to Auckland with passengers and mails, and had to be abandoned as a total wreck. Outside insurances to the amount of £10,000 were held over the hull, the balance of the vessel's value being covered by the company's insurance reserve, which, of course, accounted for some reduction in the balance of No. 1 insurance account. In addition to the loss of the Manaia, the company also experienced two other misadventures. The small steamer Omana, whilst on a trip from Matakana to Auckland during a thick, dirty night, ran ashore on the nor'-west side of Tiri' Island, but fortunately was salvaged at high water the following day and brought to Auckland for repairs.. The oil vessel, Pono, whilst' loading wool on the Coromandel ceast, in Kirita Bay, was driven ashore on the during a violent squall, her anchors failing to hold. The steamer line., * .<,ii salvage gear, was dispatched to her assistance and was successful in refloating the vessel and towing her to Auckland. It was gratifying to know that in all three cases there was no loss of life. New Vessels. With a view to meeting further developments in the e&rgo trades, and to prepare for replacement of purely up-to-date cargo freighters in place of combined passenger and cargo steamers, the company had had built in Scotland a shallow draught steel oil vessel fitted with fully-powered twin internal combustion engines of the latest type. The boat was launched on April 7 last and was now ready to leave for Auckland. The Hauturu, as#she has been named, was constructed to Lloyd's highest class, and was the first of her type to be built. In addition to this vessel they now had building locally a wooden oil* vessel of the Otimai cl.*»ss, but larger in dimensions. This ship would bo engined with full powered twin Semi-Diesel engines of the latest type, and would carry a large cargo on a minimum draught and have a good turn of speed. The Directorate. He regretted having to report the retirement of Mr. M. A. Clark from the board of directors, but in doing so the directors unanimously desired to place on record the great and valuable service Mr. Clark had given during his twentyseven years as a director of the company.

The Articles of Association provided that the board shall consist of any number from five to. seven, and in view of the fact that for many years the company's affairs were successfully controlled by five directors the board did not at present see any necessity to appoint • iiriother director. No Serious Accidents. He was pleased to report that the year had passed without any serious accident to any of the company's employees, although an increasingly large suiu had been. paid out as compensation for accident and sick pay to seamen from the No. 2 insurance fund. This, however, had been fully provided for in the year's operations, as evidenced by the No. 2 insurance account. During the year three of the company's senior officers, Captains Norbury and Wilson and Chief Steward Prangley had retired from the service, and the directors wished to place on record the long and faithful service of these officers in the interests of the .company. The Dividend. After making provision for depreciation on ships and stock, boiler and repairs, and insurance accounts, the directors recommended the payment of a dividend for the year ending March 31 at the rate of 8 per cent per annum to £18,913, half of which had already been paid in an Interim dividend. The carry forward balance now amounted to £8087. It was £3342 seven years agoThe report and balance-sheet already published in these columns were adopted. The retiring directors, Messrs E. H. Davis, Cbas. Rhodes and J. H. Upton, Were re-elected, as were also the auditors, Messrs. W. Wallace Bruce and G. O'Hal-l loran.