PATEA STEAM SHIPPING COMPANY.

Hawera & Normanby Star, Volume I, Issue 56, 23 October 1880, Page 3

PATEA STEAM SHIPPING COMPANY.

[WMOt t>VJt OWN COSBEaPOSfDEKT.) '

A general meeting of the shareholders of the Patea Steam Shipping Company (limited) was held at the office of the company on Tuesday evening last. Fourteen shareholders, representing the bulk of the capital of the. company, were present at the meeting. The report of the directors was as follows : — ** The directors have the pleasure to lay before you the statement of the receipts and expenditure and balance-sheet of the company for the half-year ending 80th September last. The operations of the company have been very successful during the last six months, and profit and loss account shows a credit balance of £1088 Os 2d, which the directors reccommend shall be appropriated as follows;— Dividend on 96 allotted shares of £50 each for half-year, at 15 per cent., £720 ; balance carried to profit and loss new account, £818 Os 2d. The dividend will be payable on Wednesday, 20th October. The directors think the time has ■now come to extend the business of the company, and recommend that the nominal capital be increased to £12,000, in 1200 shares oi £10 each, in lieu of the present £50 shares. They would issue as many new shares as may be deemed adVJsaWe. In consideration o£ the value of the original shares, owing to the prosperous state of the company, they further recommend that one fully paid-up share of £10 be given for every £50 capital held by the present shareholders. Both old and new shareholders would then be placed on an equitable footing. If these propositions are adopted by the meeting of shareholders to be held on Tuesday, 19th instant, the directors purpose taking Bteps to purchase or build a new steamer, as soon as they see the applications for new shares warrant the same. As in any case the new shares would not be paid up before the end of the year, it is proposed to balance the company's books on 31st December next, and declare an interim dividend to the present shareholders of whatever profit may then have accrued. — For and on behalf of the directors, Samuel Taplin, Chairman."

The report and balance-sheet were received.

Mr. Tennent moved a resolution, re the proposed increase of the company's capital:—"That the capital of the Patpa Steam Shipping Company should be increased to £12,000, in 1200 shares of i>lo each, on the terms recommended in the report, and that the directors be authorised to issue new shaves as they may deem advisable." Jc A lengthy discussion ensued.

Mr. Williamson asked if the trade of the district warranted an increase of outlay. Mr. Taplin stated that the success of the Wakatu was sufficient evidence of the fact that another steamer could find sufficient trade. There could be no doubt that the space available for cattle shipping was greatly insufficient for the wants.

_ Mr. Williamson argued that it would be necessary to work the Wakatu out of the trade before the proposed venture ecmld xoeet vnlh sqccbsb.

Mr. AcLams thought the balance-sheet alone should be passed, and the report left for another meeting, so that shareholders not then represented could have an opportunity of expressing their views.

Mr. Tennent stated that two-thirds of the shareholders were present, and any representations from those absent could be afterwards considered. The proposed plan of the company, in extending- their capital, was to secure the bulk of the cattle shipping trade; and he thought that if settlers, in their, own interests, would become shareholders, that end might be attained, and foreign competition abut out. His idea was to purchase a boat sufficient to carry 60 head of cattle and 800 sheep ; and'he was confident that another boat was wanted, .as their company had been forced to decline a considerable amount of cargo for want of room. In the new system of allotting shares, he thought it only fair to them-

selves (the present shareholders) that a new J6lO share should be given as a bonus with each -650 share at present held. In drawing up the report, he said the directors had endeavored to be fair to themselves, as well as to the outside public.

Mr. Coutts said he had spoken to a number of settlers in the district about taking up shares in the company, but had met with little sympathy. For the time the Patea had been in the trade — now nearly two years — the dividend was too small, when depreciation was considered. He thought a larger boat would be a failure. Cattle were now being shipped from the Waitara to Auckland at 15s per bead. Auckland trade would not be profitable. That with Nelson and West Coast ports would do, but the trade was insufficient.

Mr. Tennent thought that MO or so might be spent in advertising and circulars, to test the feeling of the district on the new scheme.

Mr. Adams said that, as one of the original shareholders, he had invested in a mercantile boat, and Mr. Tennent was now compelling him and others to become shareholders in a cattle boat also. He moved an amendment that the report be left till a future meeting, and the balancesheet'alone be passed. Mr. Christie seconded the amendment, t ating that, before incurring further outlay, it was only just that absent shareholders' opinions might be heard. On a division, the amendment "was negatived, and the report and balance-sheet were adopted accordingly. Mr. Tennent then moved his resolution re increase of capital, and Mr. Williamson seconded it.

Mr. Gibson spoke at length in support of it. Passenger trade made about onefourth or one-fifth of their boat's earnings, and the Wakatu, by calling at Wanganui, could not compete with them on equal terms in the passenger trade. The same thing applied, to some extent, to goods, consignees preferring to have them direct from Wellington, to getting them from thence via Wanganui. Looking forward, his opinion was that, as the rails were laid up country, this would be the shortest route from Wellington to Auckland. A redaction in freights being discussed, Mr. Adams thought that the value .of the Patea would fell in proportion to the reduction.

Mr. Gibson argued that the steamer's value was determined by the value of the shares, and that a £3000 steamer was worth j£sooo to their company, Mr. Coutts thought that the prospect of a 15 per cent, dividend had recently raised the value.

Mr. Christie understood Mr. Tennenfc to say that if the directors purchased a vm steamer, and got a loan on it before the shares were rally taken up, individual shareholders would become liable for the capital thus unpaid, and if the vessel did not realise the amount of mortgage on the second steamer, the other assets of the company would be chargeable with the deficiency. Mr. Taplin explained that the debt would not be incurred until sufficient shares had been taken up.

Mr. Coutts moved an amendment, " That in the event of sufficient encouragement being offered by the outside public, the directors increase the capital to 1200 shares of JJIO each."

This was lost on a division, and the original motion was carried.