BAY OF ISLANDS COAL COMPANY.

Daily Southern Cross, Volume XXXII, Issue 5726, 29 January 1876, Page 3

BAY OF ISLANDS COAL COMPANY.

The ei'hth meeting of the shareholdeis of the Bay of Islands Coal Company was held m the large room of the Exchange Buildings at 3.30 p.m. yesterday. About twenty shareholders were present ; Dr. L. Campbell in the chair. The Secretary lead the advertisement convening the meeting, and also tho minutes of the last general meeting, which were confirmed. He then read tho following, being tho eighth, report of the directois of the Bay of Iblands Coal Company, Limited, for the year ending December 31st, 1875 : — "In accordance with a resolution passed at the annual meeting, held in May last, the annual accounts have been made up to December, embincing a period of eight months. During this period the sales of coal hav o been 17,654 torn, against 22,833 tons foi last year (12 months), showing an increase of a little over 300 tons per month. The great depression at the Tahmes goldfield has materially diminished the consumption of Bay coal. Owing to the gieat floods in June last, when the mine was under water for six days, and the Waiomio Bridge considerably damaged it has been found necessaiy, at a considerable cost, to make good the damage, and pi ovule against a lecurrence of loss from this source. Under these circumstances, your duectom are unable to present a more favourable report. Apart from the 10duced demand fiom the Thames, the general consumption is iteadily increasing. The railway about to be constructed will j- -ovide much greater facilities for transport. Two director letire — Mesm. Whitaker and "Wilson— and, being eligible, offer themselves for re-election. —For the Directors, J. Logan Campbfll, Chahman. Liabilities: 1. Capital — 1,300 shaies paidup, at £10 per share, £15,000 ; 500 shares allotted to Mi. John McLeod, in part payment of purchase of lease of mine, £5,000. Total, £20,000. 2. Debts and liabilities— Overdraft at Bank of New Zealand, £2,624 10s. 6d. ; Money Orders issued, but not yet pi esented for payment, £1,119 17s. lid. ; debt due by the company, £3,809 (is. Total, £7,013 14s. Dd. Grand total, £26,613 14s. 5d. AssBTS. — 1. Propoi ty held by tbe company — Lease of coal mine purchased fiom Mr. John McLeod (reduced value), £ 3,714 16s. ; less depieciation fiom May 1, to December 31, 1875. 8 months, at 10 per cent, per annum, £247 12s.; total, £3,467 4s. Land purchased, £156 9s. ; buildings : Managois' house, engine house, cottages, &c, at mines, £1,352 16s. 7d. ; less depieciation fiom May 1, to December 31, 1875,' 8 months, at per cent per annum, £90 2s. 8d., total, £1,202 13s. lid. Plant : Steamer, baiges, crane, railway, locomotive engine*, waggons, horses, pumping and windinc engines tools, machinery, &c, £13,323 4s. 9d. ; less depreciation from May 1 to December 31, 1875, 8 months at 10 per cent, per annum on, £13,323 4s. 9>l. ; less lecent pin chases, £726 5s. 7d. ; (on) £12,595 10*. 2d— £839 14s. 8d. ; total, £12,483 10s. Id. 2Permanent works, £4,106 2a. Id. ; less depie ciation fiom May 1, to December 31, 1875, 8 months, at 10 per cent per annum on, £4,106 2s. Id. ; less recent constructions, £652 18s. 9d. ; (on), £3,513 3s. 4d— £234 4s.— £3,931 18s. Id. ; total, £21,301 15s. Id. 3. Piomissory note and cash in hand, £74 14s. ; 4, debts due to the company, £2,0S0 6s. 2d ; 5, olhce fuinituie, £S9 6s. ; 6, goods m stoieat mine, £413 4s. 4d.; 7, piofit and loss— balance, £3,654 8s. lOd. ; giandtotil, £27,613 14s. 5d. Profit and Lo^s Account.— Dr. : Balance of pioht and loss old account, to April 30, 1S7.">, £1,998 9s. 8d ; wmmug coal, and other expenses for labour at mines, £5,805 19s. 4d. ; carriage of coal by railway to barges, £1,166 6i. 2d. ; conveyanco of coal by baiges to vessels at loading giound. £819 0s. 2d. ; fi eight on goods to mines £130 12s. ; foiage for hoises, £80 14c 6d. ; geneial charges and expenses, £578 19s. 7d. ; interest and discount, £06 18s. 3d. ; lepaiiato tramway, mine, muchineiy, kc , £395 Is. Od. ; salaiies,£630 13s. 4d. ; royalty fee, i.29t0s. 8d.; thiee debentuies purchased of those issued to Mr. John McLeod, £_'l)0 ; depi eolation foi ci 6 ht months, at 10 pel cent, pci annum, £1,411 13s. 4d. ; loss on sale of cargo of coal at Napiei, £192; bad debts, £761 2s. Gd. : total, fcU.fwl Us. Balance, £3,G.*>4 8s. 10d.Ci. : Sales of 17,G">4 tons of coal, fu-m May 1 to December 31, 1875, £10,396 10s ; scup fee, 1». ; cairiage of goods fiom vessels at loading ground to stores, &c, at Kawakawa, £300 5s. 2<1. j balance, £3,654 8s. lOd. : total, £14,551 11s. The accounts Were Signed by fchc Ohairniuu, and certified by Messis. J. Batger and T. L. White auditors. The Chairman : Gentlemen, you will observe that the accounts are for eight months, not for the year. You will notice also that debts due to the company amount to £2,080 2a., which may be pronounced good debts, the bad debts being taken oli 1 the profit and loss account. The debts due by the company amount to £3,SG0 (>^. Of that amount there is a bum of £3,829 due as royalty, and that we hope to pay by instalments of 25 per cent, out of piolita. Tne bank overdraft, which is enteied 111 tho balance-sheet as £2, G24 10i. Gd., will be leduccd by the sale of the plant, which v.c aio about to make to the Government. Engineeis have been appointed and will shortly pioeml to the Bay of Islands to Uku over the plant, which is to be transferred to the: Government, and for which we aie to be pud 111 cash. That will enable us to wipe out altogether the overdraft at the bank. The railway which is about to be cous>tiiictcd, I may mention, will not reduce the cost of ' the delivery of the coal, as that will be equalised by the interest winch wo shall have to pay the Government in constructing the railway, but it will enable us to deliver the coal in any quantity that may be required, and in an unbroken condition, so that it may come more largely into consumption for household purposes. You will be gratified at seeing the mcrease in the consumption which is. going on under this head, 111 the face of the marked reduction that has occurred at the Thames. We thciefoic hope to be in a position to bring down a more favourable balance-sheet jat the next meeting. New works have been completed which will enable us to look forwaul to an increased supply of coal than dunng the last four years, and at the same time other woiks will be prosecuted which we hopo will enable us to open up a supply sufficient for 10 or 15 years benco. I do not think it necessary to refer to any other matters, except to refer to the successful negotiations of Mr. Whitaker in inducing the General Government to construct this railway to deep water horn the mine. That, Mr. Whitaker will doubtless explain to you. I beg to move the adoption of tbe report. 1 may mention that the General Traffic Manager's report will be found m the Company's office, for those who wish to inspect it. Mr. Whi taker : 1 beg to second the adoption of tho report. I have very little to say regarding the negotiations with the Government. The agreement made between the Company and the Government duung the time Mr. Gillies was Superintendent, has been frequently noticed here before, but the Government were prevonted from carrying it out in consequence of some hitch in tho Act of Parliament authorising the railway to be made. When I was m Wellington last session, I was armed with authority from the directors to get the matter remedied, and I succeeded in doing so. The anangement now is, that the Government take over the railway, paying us whatever may bo the value of the portion constructed, and continuing the line down to deep water so as to load ships, afterwards leasing the line to us at six per cent. I think that was a very favourable arrangement. The grounds which induced the Government to take over the railway were, that as the matter formerly stood, one-half of the line would be theud and one half ours, which would lead to c m fusion, and also it was see.i that it tho Go vernment took over the whole of this line, having all the railways of tho colony in their hands, the rolling stock and plant of other railways would be available for this, and there would not be any difficulty m connection with the maiutenanco and it-pair of the line ; whereas, if sep irate plant and a separate guage were adopted difficulties would constantly arise It was thought desirable that one gunqe should be adopted, and this has been effected by the Act w1ul.1i was passed, and which I hold in my hand A certain clause was introduced in the hill, which declares that the whole of the line shall belong to the Government, and that th« Government ah»U cause to be paid to the company, out of the turn appropnatcd fur the construction of the railway, foi that poi - tion of the railway already constiucted, and then, that the Government shall construct the line down to the point agreed upon, and

then that the agreement previously made shall be earned out. The result 13 this : The railway 13 to be leased by the company for G j>er cent, ou the amount of capital invested. Thus the whole of the railway will b( long to the Government, but we shall have a lease of it, which will place us in a position to cany on moie extended operations The money we get from the Government for that put already constructed by tho company, will be sufficient to enable us to pay off the debt, and I hope that another yeai will see us* in a position to pay a, dividend. Mr. White : Is the company to supply the engines ? Mr. Whitaker : No, the Government supply the eqguies. Mr. Peacock : Before you put the motion for the adoption of the report, there are one or two things which I should like to have explained. The first is tho valuation spoken of. Would it be asking too much to inquire what amount the Government agreed to give ? Mr. Whitak.fr : Mr. Norman is here now for the purpose of going to the Bay with an engineer appointed by the company, for the purpose of valuing the property. Mr. Peacock : There is an item in the profit and loss account which I would like explained. In addition to salaries, and other expenses, there is one item of "General charges and expenses, £578 19s 7d " It seems 1 ather a large amount. May I ask for an explanation of w hat it consists of ? The (Jjiumrvjf : The details of that item can be seen by application to the secretary. They are principally for goods sent up to the mines, and distributed here and there in small quantities in the various departments of the company, and the amounts could not very well be brought together to be specified under their exact heads in this balancesheet. Mr. Peacock : There is only one other matter which requires explanation, that is the rather largo sum of £7G1 2s. Gd. set down as "bad debts." That, with the amount at the last meeting, comes to nearly £1,000 in eight months. Mr. Whitaker : A promissory note was taken for the greater portion, and was dishonoured. The Churmin . Tho greater portion of that amount will be recovered. It is put down here as a bad debt, but we anticipate that we shall be able to recover it. Mr. Kr.EMXO : How long lias it taken for that ainont to accrue in connection with the Bright Smile Company ? i» Mr. Whi taker : It all came together. They consumed a large quantity of coal. Mr. Keesing : Would it be as long as three months ? Mr. WinrAKER : About four months ; but we have taken a bill which will run over a much longer time. The report and balance-sheet wore put, and adopted tiPin con. Tho Chairm vn : Two directors retire by rotation, Messrs. Whitaker and Wilson, and it is for the shareholders to fill their places. Mr. Pevcock moved, and Mr. H. Keeping seconded, " That the directors be reelected," which was agreed to. Messrs. J. Batger and T. L. White were re-elected auditors. Mr. White inquired whether or not it would be necessary to elect a director in the place of Mr James Williamson, who is on a visit to Europe. The Chairm vn : Mr. Williamson has not sent in his resignation, and I find no provision in the rules for a case of this kind. Mr. Pe\cock moved a vote of thanks to the chairman, which was canied; and the meeting s-paiatud.