DEVONPORT FERRY CO.

New Zealand Herald, Volume LXIV, Issue 19668, 21 June 1927, Page 7

DEVONPORT FERRY CO.

YEAR'S EVENTS REVIEWED. i INCREASE IN THE CAPITAL. NEW SUBSIDIARY CONCERN. The annual meeting of the Devonport Steam Ferry Company was held yesterday, the chairman of directors, the Hon. E. W. Alison, presiding. In his address to the shareholders the chairman said: — "I have pleasure in moving the adoption of the report and balance-sheet, which show that, after making allowance for reasonable depreciation, there is a net profit for the year of £9288 10s Id, to which amount must be added the balance brought forward last year of £402 8s 2d, making a total of £9690 18s 3d. An interim dividend at the rate of 7£ per cent, per annum was paid during the previous half-year, which absorbed I £4612 19s 9d, leaving a balance of £5077 18s 6d, to bo dealt with. "Out of this sum the directors recommend tho payment of a dividend at the rato of 7£ per cent, per annum for the half-year ended April 30, 1927, which will absorb £4637 16s 2d, leaving a balance to be carried forward to next year's account of £440 2s .4(1. New Wharf at Devonport. "In my remarks of last year, I referred to the intention of the Auckland Harbour Board to construct a new concrete wharf at Devonport' for passengers, vehicular and goods traffic. The vehicular part of the work has been undertaken, the first pile having been driven on February 23, 1927. This work is being carried on most expeditiously, and it is anticipated the whole of the'work will be completed by the middle of December, 1927. The estimated cost of the whole structure is £65,000. ' "A feature in connection with the passenger portion of the new wharf which will be much appreciated by the travelling public is that it will be completely covered in from the roadway at Victoria Road, thus enabling passengers to be under shelter to and from the ferry steamers. Tho existing landing-stages will be superseded by electrically-con-trolled gangways 9ft. 6in. wide, by which much improved facilities for the embarkation and disembarkation of passengers will be given. The approach to the passenger wharf is well away from the vehicular and cargo wharf, thus obviating the danger and confusion which would exist if these services were in close proximity. Vehicular Ferry Landing. "The bridge for the vehicular ferry landing is designed to accommodate heavy traffic, tho existing system of supporting the outer end of the bridge upon a pontoon being dispensed with, and the outer end of the bridge being maintained at its proper height by an automatic elec-trically-controlled gear. This form of ionstruction is a marked improvement on tho existing bridges, which were evidently designed to carry lighter types of vehicles than those now in use. 1 The vehicular berth is located outside the passenger berths, so as to avoid the crossing of vehicular and passenger services. "A new vehicular ferry landing is to be constructed in Mechanics' Bay, and when this landing is completed the distance of the ferry trip for the vehicular ferries will be materially reduced. The whole structure at Devonport in design and workmanship reflects great credit on the Auckland Harbour Board, its engineer, Mr. Holderness, and his efficient staff.

"It is well that the replacement of the old wharf was not longer delayed, as the old structure, built 44 years ago, is in an advanced state of decay. During the construction of the new, wharf the company and the public will necessarily be put to considerable inconvenience, but every effort is- being i made by both the company and the Harbour Board to carry out the services with as little inconvenience to the publicyas possible. Motor-bus Transport.

"The past year has been an eventful one in the history of the company. Some three years ago a motor-bus service was established between Takapuna and Devonport, which became known as the 'Yellow Bus Service.' In its initial stages only one bus was used, but the patronage became so extensive that by tho end of last year ten busos were employed. This service added considerably to "the passenger traffic on the company's ferries between Devonport and Auckland. Tho passing of the Motor Omnibus Traffic Act placed the Takapuna-Devon-port bus service in such a position that it seemed impossible for the proprietor to continue.

"The restrictive and oppressive provisions of this legislation created a very strong public resentment, and after a series of legal actions were contested, tbe position eventually culminated in a protracted hearing before the Transport Appeal Board last April. As a result of this Hoard's decision the Yellow Bus Service was diverted to Bayswater. Tho intention of this decision was that the whole of tho Takapuna-Devonport passenger traffic, which had been steadily increasing for some years, was to be forced through Bayswater. Your directors, being faced with this position, and the consequent serious loss of business, decided to establish a fleet of limousines between Takapuna and Devonport to maintain tho previous service. The great majority of the Takapuna public were entirely sympathetic toward the company, and tho capacity of each of the limousines was taxed to the utmost. Takapuna Ferry Purchase. "Shortly after the inauguration of this service representatives of the debentureholders of the Takapuna Tram and Ferry Company, Limited, finding that th losses on the running of that company's business were ruinously heavy, made overtures to 'your directors to purchase their undertaking. The balance-sheet of the Takapuna Company subsequently published showed that the operations for the year ended March 31. 1927. resulted in a loss of £19,200 10s 6d. This loss was attributed to the competition by the Yellow Bus service to Devonport, combined with losses in connection with tho operation of the steam tramway system. "The debenture-holders of the Takapuna Ferry Company eventually felt compelled to p«t in receivers, who, after lengthy negotiations, made an offer to sell to the Devonport Ferry Company tho whole of the assets of the Takapuna Company, with tho exception of tho tramway track and rolling stock, for the sum of £40.000, which offer was accepted. The sum of £20,000 was paid on possession being given, and the balance is to be paid on the 30th inst. Possession was taken on April 27, 1927, and from that date this company has assumed control of the Bayswater ferry service, and also of the land transport ' between Takapuna-Bayswater and Devonport. "Your directors are of the unanimous opinion that tho purchase of the Takapuna Ferry Company's assets is of material benefit, to our company, and has strengthened the position of tho company considerably. It is also worthy of note that tho change-over has benefited the residents of Takapuna, as they now have more frequent and reliable services, and also have the choice of alternative routes to Auckland in the buses and ferries, either via Bayswater or Devonport. The samo ferry rates are charged, via BaysWater as those in force via Devonport, and ferry tickets are interchangeable; In addition," many concessions are now available to Takapuna residents which wore not granted by the Takapuna Company,,

"To enable tho first payment due OS this purchase to be made it was necessary ' to issue the unallotted shares of the company's capital, which amounted to £24,911. With the exception of a nominal amount to be paid on shares reserved for application by shareholders residing out of the Dominion of New Zealand, the whole of this amount was readily subscribed. With this issue the whole of the capital of the company, namely, £150,000, has been subscribed and allotted. "The control of the Bayswater service and the cessation of the steam tram service rendered it necessary for the company to provide an adequate land transport system between Milford-Bayswater and Milford-Devonport. With this end in view the board of directors decided to acquire such of the yellow buses as were suitable for the service. With the four buses included in the Takapuna Tram Company's purchase, flie company commenced its land transport service with a fleet of 14 buses. As it was found the whole of this bus fleet was required on the Bayswater service, it has been necessary to purchase further buses to replace tho limousine service now operating between Milford and Devonport. A satisfactory purchase of new buses has been made, and as soon as possible a sufficient number will be run on the Milford-Devon-port service. Trackless Trolley Buses. "The question as to the most suitable system of land transport for Takapuna has given your directors much anxious thought. Expert advice has been and is being sought as to the most efficient system to adopt. Tho following systems have been carefully considered: Electric traction, Diesel electric traction, petrol electric buses, petrol buses and trackless trolley buses. "Up to tho present the conclusion arrived at favours the installation of an electric trackless trolley bus system. In tho opinion of experts tho advantages of this system due to local conditions are such that its adoption is confidently recommended subject to satisfactory terms for tho supply of power being arranged for with the Waitemata Power Board. The information obtainable regarding the running of trackless trolley bus systems in England, where undoubtedly rapid strides have been made in recent years, appears to strongly support the establishment of such a method of transport in Takapuna. It is worthy of note that 18 large cities in England have adopted this method of transport in recent years, replacing, in practically every instance, electric tram systems and petrol buses. "In order, however, that the information already obtained should be thoroughly substantiated, and the most advantageous system of land transport adopted, the directors took the opportunity of instructing a highly-qualified engineer, who is now visiting England, to investigate thoroughly the existing trolley bus system now being operated there. He has been instructed to report fully on this particular type of transport, and also on any other form of transport which he may consider more suitable. Until tfrfs report is to hand a final decision will remain in abeyance. ) Separate Company Formed. "In tho event of the trolley-bus system of transport being decided upon, a considerable capital outlay will be Involved. Your directors have, therefore, deemed it advisable to incorporate a separate company, which has been named the North Shore Transport Company, Limited, to undertake and carry out the land transport. • The nominal capital of the company is £IOO,OOO, but until the adoption of trolley buses or other system has been determined, this subsidiary company will continue to operate with a petrol bus fleet to provide the necessary transport requirements between Milford-Bayswater and Milford-Devonport. "To make provision for the capital required for the acquisition of the Bayswater ferry service with its attendant land transport services, and other possible extensions of the company's operations, it is necessary to increase the capital of our company from £150,000 to £250,000. At the termination of this meeting the shareholders will be asked to approve of such increase. Thia increase of capital does not indicate that the whole increased capital of £IOO,OOO will be issued at once, and it is unlikely that even the major portion of the increased capital will be issued for some time to come. In the issue of any further capital the directors will pursue the policy hitherto adopted, that is,' that first consideration will be given to existing shareholders. "The proposed increase of capital will be the third occasion on which it has been deemed advisable to add to the capital of * the company. The original capital of the company in 1881 was £IO.OOO. This capital remained until 1895, when it was increased to £50,000. It again became necessary to increase the capital in 1913, to the sum of £150,000. Under the present proposed increase the shareholders ■will be asked to sanction a capital of £250,000. Plant in First-class Order; "A further matter requiring the attention of our shareholders is the revision of the articles of association of the company. Your directors deemed Jt necessary to revise the existing articles of association in view of the variation and extension of the operations of the company. The proposed new articles of association have been circulated among shareholders, and yon will be asked to approve of the same at the conclusion of this meeting. "Shareholders will be glad to learn that the whole of the company's steamers and plant have been kenfc in first-class condition, and I am glad to again report that the company's fine record of freedom from serious accident has been maintained. In this connection the company's employees are worthy of a special word of commendation. "The company is to be congratulated on the efficient and capable body of officials and employees in its employ and upon the capable and loyal services rendered by them during the past year. "In conclusion, shareholders can rest assured that the important extensions of the company's sphere of operations to which I have referred will substantially advance and strengthen the company's position, and that the outlook for the future is decidedly encouraging." The report and balp.nee-sheet, a summary of which was published on June 11, were then adopted. *

A motion increasing the nominal capital of the company from £l-50,000 to £250,000 in accordance with the directors' recommendation, was carried.

The retiring director, Mr. E. M. Ooleman, was re-elected. Messrs. Thomson, Gray and Rodger were re-appointed auditors.

The dividend of per cent., recommended by the directors, was approved. In reply to a question, the chairman said the new company would be a separate one, hut it would have the Ferry Company behind it. Each would have its own management and books, but the directors of the Ferry Company would lie the controlling influence behind the new concern. A vote of thanks was passed to the directors, officials and staff. At a subsequent extraordinary meeting the new articles of association were adopted.