DEVONPORT FERRY CO.

Auckland Star, Volume LVIII, Issue 143, 20 June 1927, Page 4

DEVONPORT FERRY CO.

THE TAKAPUNA PURCHASE.

NECESSITATES NEW CAPITAL

At the annual meeting of shareholders in the Devonport Ferry Co. held to-day, the chairman of directors. Hon. K. W. Alison, moved the adoption of the report and balance-sheet, which have already been published in these columns. The usual ~\i- per cent dividend was recommended. The chairman also outlined the changed position which had arisen through the liquidation of the Takapuna Tramways and Ferries Co., and the purchase of a portion of that couij«uiy's assets. Mr. Alisou saUl that director* were unanimously of the opinion that the pirrI chase had considerably strengthened the position of the company. To enable the first payment due on this purchase to be made, it was nrccssary to issue the unallotted shares of the company's capital. which amounted to £24,011. With the exception of a nominal amount to be paid on shares reserved for application by shareholders residing out of the Dominion of New Zealand, the whole of this amount was readily subscribed. With this issue the whole of the capital of the company, viz.: £150,000, has been subscribed and allotted. The control of the Ba.vsw.iter service and the cessation of the steam tram ser•vice rendered it necessary for the company to provide an adequate laud transport system between Milford-Bayswater and MUford-Devonport. With this end in view, the board of directors decided to acquire such of the yellow buses as were suitable for the service, and with the four buses included in the Takapuna Tram Company's purchase the eompany commenced its land transport service with a fleet of fourteen buses. As it was found that the whole of this bus fleet was required on the Bayswater service, it had been necessary to purchase further buses to replace the limousine service now operating between Milford and Devonport. A satisfactory purchase of new bases had been made, and as soon as possible a sufficient number would be run on the Milford-Devonport service. North Shore Transport Co. In the event of the trolley bus system of transport being decided upon, a considerable capital outlay would be involved. The_ directors_ have, therefore, deemed it advisable to incorporate a separate company which had been named "The North Shore Transport Gompany, Limited," to undertake and carry out the land transport. The nominal capital of the company was £100,000, but until the adoption of trolley buses or other system had been determined, this subsidiary company would continue to operate with a petrol bus fleet to provide the necossarv trans-1 port requirements between Milford-Bays-water and Milford-Devonport. To make provision for the capital required for the acquisition of the Bayswuter ferry sex- , vice with its attendant land transport services, and other possible extensions of the company's operations, it was necessary to increase the capital of the company from £150,000 to £250,000. At the termination of this meeting the shareholders would be asked to approve of such increase. This increase of capital did not indicate that the whole increased capital of £100,000, would be issued at once, and it is unlikely that even the major portion of the increased capital would be issued for some time to come. In the ieeue of any further capital the directors would pursue the policy hitherto adopted, i.e, that first consideration would be given to existing shareholders.

The proposed increase of capital would be the third occasion on which it had been deemed advisable to add to the capital of the company. The original capital of the company in 1881 was £10,000. Thie capital remained until 1895, when it was increased to £50,000. It again became necessary to increase the capital in 1913, to the sum of £150,000. Under the present proposed increase the shareholders would be asked to sanction a capital of £250,000.