NORTHERN S.S. CO.

Auckland Star, Volume LXI, Issue 120, 23 May 1930, Page 5

NORTHERN S.S. CO.

TO-DAY'S. ANNUAL MEETING. CHAIRMAN'S ADDRESS. SOLVING TRANSPORT PROBLEMS. "The company is in a sound'financial position, but the year has not passed without anxiety." This was the keynote of the-address delivered to-day to shareholders of the Northern Steamship Company at the 49th annual meeting by the chairman of directors, Mr. A. B\ Roberton. Amplifying these remarks, Mr. Roberton said the difficulties referred to had been due to general depression in trade in the Dominion and to the exceptionally bad and wet weather experienced during Christmas and New Year, and extending over the month' of January, resulting ( in a large reduction in their excursion j

business. The company carried some 13,442 excursionists less this year, as compared with the previous year. No doubt the unemployment among the working class, who mostly patronise these excursions, was also partly responsible for the reduction. . Another important factor which had affected the company's operations was the extraordinary change which they were experiencing in the business, namely, the change-over from a combined cargo and passenger trade to practically cargo .service only. The linking up of the Northern and East Coast railways to the main Auckland line, and the general improvement in highways, which had allowed better motor service car connections, had created competitive routes to the coastal townships and settlements. This had reduced the number of passengers travelling by boat to such an extent that it no longer paid to run- the company's larger passenger steamers.

Qnehunga-New Plymouth. Mr. Koberton spoke of the Onehunga' New Plymouth service which had been operated by the company in conjunction with the Union Steamship Co., Ltd., for many years paet, Owing to improved road and motor transportation the overland route had been made easier and more comfortable, and had attracted from the company passengers who had a fear of sea sickness and the sea, -.especially the Manukau Bar. When the Karawa last year made a lOss in this trade, the Ngapuhi, a smaller and less costly vessel to run, was put in her place, but after a year's operating it was found that even the smaller vessel could not make a profit in the service. They had, therefore, no option but to withdraw the passenger steamer and replace it with a regular bi-weekly cargo service, run by the steel motor vessel Hauturu, a change which they felt sure would be a benefit to the company's operations. /

Idle Steamers. The loss of passenger trades had left the company with a number of idle steamers on its hands, and every endeavour was being made to dispose of them as profitably as possible. This was a difficult problem at the present time, as there was a great deal of secondhand tonnage for sale in all parts of the world. Their company's steamers were of too small a type to .be useful in the East, where a number of large ocean-going, steamers had, in recent years, been placed. During the past year the Matangi ( was sold to the. Anchor Shipping Company, and the Waimarie for dismantling purposes. The. directors would not lose any opportunity of selling the surplus vessels.

Value of Assets. Shareholders might feel -some doubt about the effect of these umusable. veasels on the value of the, company's assets, and the directors had satisfied themselves by an up-to-date valuation of all the company's plant and property, with the result that they could assure the proprietary that the sum. of. £270,662, at which they stood in the balance* sheet, was well and fully represented, with a substantial eqiiity to spare, ■ Fleet of Motor Vessels, The policy to provide an up4o-date and efficient fleet of motor vessels to develop and maintain cargo services had been advanced by the building this year of their latest ship, the Waka. This vessel had a carrying capacity of 350 tons on a 7ft draught; was fitted with twin 304 b.h.p. BngJisVmade Gardiner engines, and had a seagoing average speed of 9J knots, It was anticipated that another similar vessel might be required before next annual meeting. The company have now' ten motor vessels actively engaged* The Worst Over. The directors were satisfied that the most) difficult period of transition in the business had passed, and except'for the general depression in trade, which they hoped Avas only temporary, everything indicated moYe buoyancy in the future operations of the company. Marine Accidents. The year had not been free from marine accidents, but none of them had in any way been caused by carelessness or inefficiency on the part of the officers of the various vessels. The Paroto, during a sudden storm, whilst lying at White Island, carried away her mooring and was driven on the rocks and badly holed It was only by prompt and energetic action on the part of the company's staff that the vessel was saved, refloated, and towed to Auckland, where repairs were effected. One of the newer motor vessels, the Toa, whilst entering Whakatane Harbour, met with a combination of a heavy sea running m and a strong fresh or flood running.out, and was carried on to the rocks at the Heads. Fortunately, she was immediately "ot off and put to sea, receiving only minor damage to her propellers

and bottom. In addition to these two accidents the Apanui, whilst on her way to the Barrier, broke her tail shaft, losing her propeller, and had to be towed back to port. These accidents had affected the No. 1 insurance account to the amount of £2452. Iti spite of the general depression in trade, it was interesting to note that the amount of cargo handled during the year had exceeded that of last year by some 7408 tons. Personal. > It was with deep regret that he had to refer to the death of one of their oldest directors, Mr. J. H. Upton, which took place on May 28. Mr. Upton was a member of the board for 25 years, and his counsel and advice were at all times highly valued. Mr. A. J. Hutchineon was invited to fill the vacancy caused by Mr. Upton's death. On account of his long absence in England, Mr. Ernest Davis resigned from the board, and his brother, Mr. Eliot

Davis, was appointed in his place. Plant in Good Order. The company's plant had been well maintained, a sum of £20,480 having been spent in repairs during the year. The company was served with an efficient staff of officers both ashore and afloat, who did their utmost to promote the best interests of the company. Usual Dividend. The directors recommended the payment of a dividend for the year which ended on March 31 last at the rate of 8 per cent, amounting to £12,912, half of which had already been paid in an interim dividend, and the carrying forward of a balance of £9848.