WELLINGTON-MANAWATU RAILWAY.

Otago Witness, Issue 2849, 21 October 1908, Page 12

WELLINGTON-MANAWATU RAILWAY.

SALE CONFIRMED BY SHARE- \ HOLDERS. j WELLINGTON, October 12. At a general meeting of shareholders ( m the Wellington-Manawatu Railway Company, held to-day, the Chairman drew 'attention to the fact that the gross ' revenue for the six month ended on , j August 31 amounted to £83,272, as -com- ; partd -tfith £78,272 for the corresponding ' ) period of last year, and the net profits j i >for the six months showed the substantial j j increase of £3148, compared with the ' net results of the operations during the first half of last year. | After referring in detail to the cor- ; respondence between the Goyernment and I the Manawjkiu Railway Company coneernj ing the acquisition of the line by the , State, the Chairman- (Mr John Kirkcaldie) ! remarked : — ' ' Personally speaking —in j fact, speaking for all my fellow-direc- ! j tors, — we are of opinion that we could not ' reasonably expect to have done better, ; j and our thanks are ' due to the Prime ' ! Minister and the Cabinet for the fair- ! , minded and satisfactory settlement of ai matter which hae resulted in the deter- I ! mination of a contract under circum- I 1 stances mutually satisfactory to both i parties. I would invite shareholders also i to consider that the result has been j brought about by a united and harmoni- ; ! ous 'directorate, which has discharged its duty to the best of its ability. You ' will naturally look to your directors for some expression of opinion as to the amount your shares should realise upon \ the completion of the purchase and the * realisation of the remaining assets of the company. Provided that we are immune ' 'from serious accident or other unforeseen I expenditure, we consider that the sum of ' 55s per share is assured, although I hope that estimate may be slightly exceeded." j Giving a retrospect, the Chairman re- j ferred to the proposal made in 1902 for Ihe sale of the whole of the company's ! assets for 30s per share. Since that pro- | poaal was made the following dividends ' had been declared: — 1902, 6 per cent. ; i 1903, 6 per cent, and a bomi6 of 10 per ! cent. ; 1904, 7 per cent ; 1905, 7 per cent. ; ' 1906, 7 per cent. ; 1907, 7 p«r cent. ; 1908, " 7 per cent, with a further interim divi- ! dend of 5 per cent, paid in the beginning of September last for the half-year. For the 6ake of comparison, assuming 100 shares in 1902 realised £150, and that this sum was invested at 6 per cent. I compound interest, shareholders would ! have netted £225 10s by March 31, 1909. ! On the other hand, taking the dividends i paid during the same period, allowing interest thereon at the rate of 6 per cent, compound, and adding the value of the shares at 55s each, a sum of £348 2s was netted on every 100 shares. During the next few months the attention of the directors would be actively devoted to the realisation of the company's remaining assets, and they anticipated that upon receipt of the Government payment on February 28, 1909, matters would have so far matured as to permit of the company going into liquidation early in March. It was exceedingly gratifying to the directors to know that at an extraordinary meeting of shareholders on the London register, held last Tuesday, when the terms of agreement concluded between the company and the Government were submitted far their consideration and approval, a favourable rftsolution was adopted unanimously, and a vote of thanks to the directors and general manager was heartily accorded. The Chairman moved— "That the sale of the company.- railway and the laud and other property described in the schedule to * X{ie Wellington and iianawatu Railway Purchase Act, 1908,'' npon the tt-rms and conditions expressed in the act, be and the same is appioved, ratified, ami confirmed." The motion was seconded by Mr D. Aruier-on, vlio impressed \ipon. ?hareh'jMors th-j impoitinco of retaining their iiitrretU in the company for a few months ' longer. It would be "vary much better'

for themselves to hold their shares -until' the final realisation of the assets of the company. That 6pinion was shared by the speaker's fellow-directors. The Chairman, having invited questions and received none, eaid he took the^silence . of shareholders to mean their complete consent. He expressed his pleasure at tha unanimous carrying of the motion.