NEW ZEALAND SHIPPING COMPANY, LIMITED.

Press, Volume XXXVII, Issue 5216, 24 May 1882, Page 3

NEW ZEALAND SHIPPING COMPANY, LIMITED.

I Yesterday, shortly after noon, an extraordi■nary general meeting of the shareholders was |held at the offioet, Hereford street, with a anew to the proposal of a special resolution »n inoreaee of capital. Present— [Mr J. L. Coster (chairman), the Hon. E. piohardeoD, and Messrs Bobert Wilkin, John |Lndereon, and A- 0. Wilson (direotore) ; end the Hon. J.T. Peacock, Messrs James Henderson, F. Banks (aleo representing Messrs H. P. Murray - Aynsley and John Studholone), Joseph Gould, George Lewie, John O»ok f , William Pratt, E. Willoox, Edward Green,] J. McQuade, F. MeOlatchie, H. 8. Browni A. Sproul, O. Wyatt (by Mr J. Lewis), J. Miln, Wm. Anderson (by Mr S. Anderson), Thoe. Mollett and W. Souter (by Mr T. A. Mollet), W. fl. Lane, and Mr Geo. Harper (legal adviser). The Chairman having declared the meeting formed, the secretary read the advertisement •convening the meeting. . ,' The Chairman stated that the object of the ; 'meeting was to disease the propriety of , -making the nominal capital £1,000,000, injstead of, as at present, £250,000. He did {not propose troubling them with a long •speech or referring to the past history of the Icompary further than to remind the shareholders how a start had been made with a of £100,000. It speedily became I necessary to augment the amount to £250,000, jand, for a number of years, the company .had I |dhered to this comparatively slender capital. I The directors were, however, assured that the |ime had now arrived when the company should assume the powers essential to its ■being a grand institution, capable of keeping pace with the growth of trade, the requirements of business, and the general advance of the colony. To begin with, it seemed necessary that more ships should be procured. It would be interesting to the shareholders to know that while the company owned only seventeen ships it was obliged to charter on an average double that number of other people's ships. This the direotore did not deem to be satisfactory, as had been experienced this season, and it was hoped the inconvenience of present arrangements in this direction would not reour. Farther, it might be mentioned that the refrigerating business promised to become a great accomplished faot. He observed at that meeting directors of the local refrigerating company, from which a letter had been received, stating that; eight op nine ships would be required for the ensning season, and asking what number the Shipping Company would be willing to supply. From the Wellington and (Hsgo companies letters had been received, couohed in a similar strain. The fact was also patent that the march of events which had already reached Australia was on the ere of touohing Hew Zealand. A telegram had been sent to the " Bay of Plenty Times" by that paper's Wellington corrospondent, that " Minister! would propose a service for careo. passengers, and immigration purposes, to be performed in about fiftj days. The great difficulty previously experienced was in inducing a suitable class of immigrants to «mc to New Zealand in sailing ship*, and it was believed that a steam service would be more successful in this respect, and woma help to bring farmers and men of small capital to the colony. It would tend to develop the exportation of froisn meat to Europe, and would be the means of oreating a rery useful cargo and passenger trade with the colony." The directors of the Shipping Company considered that having attained the position of chief carrier between New Zea-

land and the mother oountry, th&t position flhonld not be lort through lack of means and enterprise. Tee directors, whfle not liking steam, were eosidoos that they fhoold be on their guard, le»t the company'• businew should fall away whilatsteam aerrica were promoted outside, and one perhaps tottered coder the

wing of the Gowneeni.. -■■■■Vale* i -****' a £* exercised, the company might forfeit vu prestige h a national fiaatitntion, ««. "» oo»w for promoting the colony* gped nugtit dwindle away. Such « result weald natoraHy Dβ baneful to the prospects of the shareholders, for if the cream of the trade were taken away, where would their dividends be ? The direotors wen of opinion that, if steam is to come, and when it ie to come, the company's position would warrant their cautiously, and bj decree?, supplementing their tailing trade by tuitable steamers, sot by enoh boats as Mr Macandrew deiired—mail-boats, rushing at headlong speed, and which hardly any amount of subsidy would make remuneratiTe —but by an addition t* their fleet in the ■bape of auoh vessels as the Aberdeen, which had recently reached Melbourne, a vessel averaging ten or eleven knots an honr, and one which would make the trip to New Zealand in about fifty days. One, two, three, or more steamers might be obtained ac required, and the dividends could be kept up to the usual standard, as the directors were ojufident that the introduction of inoh steamers would prove remunerative.: If the shareholders wished for fuller information, he would be happy ta answer questions, lathe interests of the company, he might be permitted to add that the support given to the directorate bath in the form of proxies and speoial letters afforded a most gratifying assurance that the direotors had the oordial rapport of shareholders in all parts of the c.ilony. The ohairman concluded by reading the following resolution, which he begged to move might be embodied in the compjny'a artioles of association: — " The capital of the company shall be inereassd to £1,000.000, by the usue of 75,000 new shares of £10 eaoh, and such new shares shall be considered at part of the original capital, and shall be snbjoot to the earns provisions in all respects, with referenoe to the payment of calls, the forfeiture of shares, or non-payment of calls, and in all other respaots as if they had formed part of t'ae original issue; and such new shares may, notwithstanding the provisions contained in artiole 13 hereof, be allotted and issued by the Board of the Direotors at suoh times and : on such terms and conditions as the Board shall think fit, and the provisions of artiole 9 hereof may be applied by the Beard upon the allotment and issue of suoh new shares."

Mr H. J. Tanored seoonded the motion.

The Hon. J. T. Peacook aiid he had not attended the meeting with a view to urge anything that might tend to a disturbance, but to simply itate that, from the inauguration of the company, he had had the honor of being on the directorate; that, two or three w«8>» ago, when the question of steam had oome up, a fellow-colleague and himself had been opposed to the soheme ; and that he had thought the proper mode of protesting against an enlargement of capital for the purpose in view was by resigning his seat as a member of the Board. It might be all very fine to say that the exigencies of the colony required steam, but young countries often sought to go beyond their resouroes in getting what they thought they needed. He failed to see why men starting in a business intended to furnish them with dividends should thus sink their capital. Looking at existing steam services generally, he did not think their balanoe sheets showed any large dividend attaching to the system. Two reports of steam oompanies had quite recently presented themselves to his notice, and he found that the dividend was but 2£ per cent, for six months. This contrasted bat ill with the Shipping Company's 10 per cent, for twelve months. He thought the dividend conld not be kept up if reaort were had to steam. It had been said that there was no intention of rushing into steam. He hoped there was no suoh intention, and that the plan under discussion would not be adopted. But he would tell the shareholders that the end in view was to rush into steam. The company could gain their objeot by chartering other poople's ships. The shareholders should be under no misapprehension. The plans were already prepared, showicg what class of steamers it was proposed to procure. He was indined to thick that, if the persons voting by proxy bad been aware that steam was to bo the permanent objeot of raising ■ the capital, they would not have been so ready in getting proxies. He could assure the shareholders that shores that morning were not worth so muoh in the market as they had been a fortnight back by £20,000. Hβ would simply enter his protest, but of course the shareholders were at liberty to aot on their individual judgments in the matte*. He would propose no amendment. - :

The Chairman asked if any other shareholder wished to address the meeting. No shareholder rising, he proceeded to put the resolution, and, replying to the previous speaker, the ohairman, primarily, on behalf of the directors, objected to Mr Peaoock's assuming to himself the power of knowing more dearly than did the direotors themselves what was passing through their minds. What he (the chairman) had stated to the meeting, and what had been intimated by circular, was positively coneot, and shareholders should aooept the statement of the directors rathet than that of their reoent colleague, who had retired through' a difference of opinion. It was not a faot that Mr Beeves had retired in in the same way as Mr Peacock had.

Mr Peaoook asked to be allowed to fUtly contradict that statement. If Mr Beeves' letter of resignation were produced, its tenor might prevail to induce the chairman to withdraw what he had just said. The Chairman read an extract from the minutes of a meeting of the Board, as approved by Mr Beeves, stating that—" A full disoussion ensued, in whioh every direotor took part, till. except Mr Peaoook agreeing thai the time had arrived for the company, if it desired to. retain a leading position in the direct carrying trade, to extend its resources and faoa the question of steam." It was true, the chairman continued, that Mr Beeves was adverse to steam, but his reasone, as given to bis fellow-directors, were that no other course than that proposed was open to the company, that in any event he was a retiring direotor in August, and that he took advantage of the opportunity presented of retiring just as the company was about to enter on a new epooh in its career. '

This view of Mr Beeves' motives was corroborated by Mr A. 0. Wilson and the other direotors.

The Ohairman, resuming, said that bo reference would have been made to the' matter had not 'the necessity for an explanation been forced by his late colleague, and the direotors were bound to plaoe themselves right as to what had passed. In regard to the alleged depreciation in value of shares, there never had been a new issue of shares in any company without a depreciation being experienced at the outset; but, in the cate of good companies, the effect was merely temporary. However, as one of the verj'largeat shareholders, he (the chairman) might state that he had made a point of ascertaining the position of the share market, yet he could not find that a single shareholder was prepared to sell below par; and on Monday last he had been assured that there were only fifty shares procurable at par. , Mr Henderson acquiesoed as to the accuracy Of this statement

She Chairman continued that it was even said the hon. gentleman who opposed the resolution would not sell at par. As this question had been mooted he (the chairman) thought it fair to the shareholders to say that he was in a position to assure them, that, notwithstanding losses which might accrue on grain charters through the farmers failing to ship and the merohants being therefore unable to supply the freight for whioh they had atkad, there need for all that be no fear but that the next balance sheet would show their customary dividend. The resolution was put and was oarried, 21 voting for it and 5 against. The Chairman said that it was open, under rule 172, for any fire ehareholders, on a written requisition, provided they jointly held 500 chares, to demand a poll, and he asked opposing shareholders to approach the table ana sign the forms provided for the purpose.

After a brief interval, the ohairman stated that it seemed there was not sufficient personal shareholding strength to entitle the dissenting shareholders present to demand a poIL On behalf of the directors he would propose, if the shareholders present were willing, to meet Mr Peacock's wish to have his yotee recorded by having a record placed on the minutes of the names of opposing shareholders present either personally or by proxy, who might so desire. • . .

The following names were accordingly placed on the minutes—That of the Hon. J. T.Peaooek, and (by Mr Peaeosk) those of Messrs W. H. Levin,?. H.B.BeU, and 0.8. hard, of Wellington. . The Chairman thanked the shareholders for their attendance, and the proceedings ended.