SUCCESSFUL YEAR.

Auckland Star, Volume LX, Issue 138, 13 June 1929, Page 6

SUCCESSFUL YEAR.

DEVONPORT FERRY .COMPANY.

DIVIDEND OF 7 h PER CENT.

QUALITY OF BUS SERVICE,

Congratulating shareholders on tho success of the year's operations, aiid announcing a net profit of £11,257 8/1 the Hon. E. W. Alison moved the adoption of the annual report and balancesheet at the annual meeting of the Devouport Steam Ferry Company this afternoon. Mr. Alison presided as chairman of directors.

"To the amount referred to," said the chairman, "has to be added the sum brought forward from last year's account, viz., £540 8/11, making a total of £11,803 17/ to be dealt with, which your directors recommend, be disposed of by the payment of the usual 7| per* cent dividend which, including" the interim dividend paid, absorbs £11,250, leaving £553 17 to be carried forward to next year's accounts."

The balance-sheet showed that the total issued capital of the company was £150,000, and that the total assets stood at £217,284 7/4, of which amount steamers, freehold properties and plant were shown at £199,969 4/4. Included in this latter amount was the company's investment in the North Shore Transport Co., Ltd., the capital invested in that company amounting to £50,000, representing the actual cash paid for the purchase of the company's fleet of buses, and the cost of equipment and plant acquired from the Takapuna Tram and Ferry Co. -

The operations of the North Shore Transport Co. showed a surplus of receipts over expenditure for the twelve'months ended April 30, 1920, which-, wan-anted the directors declaring a" dividend of I x k per cent for that term,;; after making an allowance of 11 per cent for depreciation. * ' -

Returns Inadequate. "Whilst admitting that a dividend of" 2§ per cent is far too low, and", an allowance of 11 per cent for depreciation insufficient, and that the ■ surplus returns from the bus com- '■'. pany's operations are quite inadequate, shareholders must realise that the com- * pany has provided a splendid fleet of ■ ouses. which are well maintained, and that it is running exceptionally conve-» nient services at very moderate fares.. Some shareholders contend that the fares are too low. and should be raised to an amount which would enable a dividend of at least G per cent to be l paid after making full allowance for ; depreciation. They point out, and - rightly so, that the depreciation on ' buses is heavy, and that G per cent is ' only a very moderate return on the ] capital invested.

"I am not prepared :to dispute the reasonableness of the contention raised, but the directors', are not disposed to approve of the suggestion that-. v the fares should be raised, as they consider that under the existing'.economic conditions it would be inexpedient to give effect to the proposal, and they hold the opinion that an increase of the present fares -would tend seriously to retard the progression of Takapuna Borough, and impose hardship on a large number of people who are permanently settled there; so that, unless r some extraordinary or unforeseen conditions.arise, the present rate-of fares-will • not he disturbed. The policy of the directors is to keep both the ferry. and bus charges as low as possible, and thus encourage settlement and traffic generally."

In a reference to the taxation: imposed on motor buses under the provisions of the Motor Vehicles Act, the regulations thereunder, and the petrol tax, the chairman stated that the company had paid taxation during the year to the total amount of £4157 10/4. In addition, the company paid £1000 insurance cover against fire and third-party damage. Relief is being sought from the present Government in fulfilment of platform 1 pledges. It was hoped—and it could he *

fairly expected—that the existing excessive and unjust penalties imposed upon commercial vehicle owners would be removed, one of the many of which was that such owners were penalised under the flat tax system, even though they did not make use of the roads, for full taxation on each heavy vehicle, so that in the operation of bus services full taxation on each one was exacted.

Facilities At Devonport. Referring to the new covered passenger wharf and cargo wharf at Devonport, Mr. Alison said it was gratifying to know that each work had provedto be highly satisfactory, both in design and operation. The improved facilities provided convenient and rapid means, for embarking and disembarking passengers, and afforded protection from the weather. The cost of these wharves and vehicular staging amounted to £65,000, to which had to be added £15,000 to cover the cost of the new vehicular landing at Mechanics' Bay. This heavy outlay by the board demanded a readjustment of the ferry and vehicular. wharfage charges. The additional annual wharfage charge was eventually fixed at £1320. It was further understood that upon the expenditure incurred by the board in connection with the construction of the new vehicular landing at Freeman's Bay, any additional wharfage charges would be small, and would not exceed £100 per annum. The directors were most unwilling to increase any of the company's fares, jlr. Alison said, and so far the company had borne the full payment of the additional wharfage charges of £1320. Whether the company could continue to hear this additional annual liability without raising the fares would depend upon the financial results of its operations.

Harbour Board Thanked. The vehicular stage at Mechanics' Bay was a marked improvement, and the time occupied in making the trip had been reduced by about one-half and had enabled the company to run a ten-minute service each way during the busy season. When the "new vehicular stage at Freeman's Bay was completed the distance between Auckland and Northcote would also be considerably shortened, and increased loading and unloading facilities secured. Jn providing such improved facilities, the members of the Auckland Harbour Board, and its capable chief engineer, Mr. llolderness, were deserving of hearty congratulation and of the thanks of the whole ferry travelling community. "I am pleased to be able to inform you," added Mr. Alison, "that the company's long and unbroken VCOOV'i 01 freedom from accident of \\ serious nature has continued. The whole of the steamers and plant are in first-class order, a.nd are well maintained. The. good feeling which has all along existed between the company's line body of officials and employees still obtains, and will, I trust, ever "continue. I feel, too; that I can justifiably say that shave* holders can safely view the future of th§ company optimistically"