NORTHERN STEAM.

Auckland Star, Volume LXVI, Issue 127, 31 May 1935, Page 3

NORTHERN STEAM.

CHAIRMAN'S REVIEW.

GOOD YEAR EXPERIENCED

DIVIDEND RECOMMENDED. "It is, perhaps, a sign of the times that your directors should this yeai recommend the payment of a dividend Normal times are apparently slowly but surely returning. Confidence is being regained, and psychological fear is being lost. In the immediate outlook there is a note of cheerfulness and expectancy which for some years has been silent The effect of Great Britain's remarkable recovery should ultimately reach New Zealand." In these words the chairman of directors. Mr. Ernest Davis addressed shareholders at the annua; meeting of the Northern Steamshij Company. Limited, at n~.on to-day. Mr. Davis said that in spite of the keenest competition from the railwaye and other forms of transport, the company's trade had been maintained, inas much as the company during the period under review handled 17-".(>04 tons ol cargo, representing an increase on lnsl year of 4057 tons, and in addition 90.">7passengers and excursionists, an increase of 10.300. These figures were materially reflected in (be company's'returns, but not to the full extent they should have been, because of the prevalent drastic rate-cutting. Competition by Railways. The speaker drew attention to the most unfair competition the companj was still meeting from the rate-cutting tactics of-the Railway Department and to the protection from such destructive competition which coastal shipping ii: Great Britain had received. Not onlj were railway freight charges, when the railways were in competition with shipping, reduced to a non-paying standard but dairy companies were being faced with a threat that unless their product was carried by the railways they would be responsible for closing the line. This was notwithstanding the thousand's oi pounds in freight which dairy companies must sacrifice if they abandoned shipping services. "Surely the problems of the dairying industry to-elay are severe enough without the imposition of this embarrassment," continued Mr. Davis. "The coastal services of New Zealand arc entitled, as in England, to protection from complete annihilation and destruction. Since these services are not only an economic requirement, but a. national necessity, it is the duty of the Government by legislation, to provide this protection." Owing to an abnormal season of very dry weather in the southern districts and excessively wet weather in the northern, the output of dairy produce for the season had been less, and the quantity carried by the company had been reduced by 42 per cent. On the other hand, there had been a revival in the gum industry. To supplement anel improve the fleet, the directors during the year purchased the new motor ship Atua. As this vessel was of particularly shallow draught, she had been_ engaged successfully in the Opotiki traelc and had been re-named the Waiotahi, after the steamer of the name which for many years ran to Opotiki. Fleet Well Maintained. "I am pleased to say we have been free from any serious accident to either our employees or our vessels," continued the chairman. "Our fleet has been well maintained, a sum of £10,000 having been spent on re-conditioning and keeping our vessels up to an A 1 standard. The company is a large employer of labour. During the year we have paid out £78,230 in wages to our employees. Following the action of the Government in restoring portion of the wages reduction to public servants, shipowners made similar concessions to their employees, with the result that additional expense in carrying on our business is incurred. Tt is to be hoped that the trading during the coming year will increase sufficiently to enable us to carry this extra burden. We have a very efficient staff, both in the manning of our ships and ashore, anel it is due in no small measure to their efforts that we have succeeded in meeting the many problems of modern transport. In addition, the exercise of every economy in carrying out the work has assisted materially in producing the improved position of the ;ompauy. "You have already received copies of the balance-sheet, which discloses a net balance, after'providing for all repairs, maintenance, bad debts and depreciation, of £7045 0/0, out of which your directors recommend a payment of a dividend of 5 per cent, with the balance of £1994 15/11 carried forward. If approved, the dividend will be payable to-morrow." Mr. Davis then formally moved the adoption of the report and balance-sheet, which was carried. Directors Re-elected. The retiring directors, Messrs. Ernest" Davis, E. W. Evans anel A. J. Hutchinson, were re-elected. Mr. G. o"Halloran was reappointed auditor. ,A vote of thanks to the management anel staff was passed.