THE OCEANIC COMPANY.

Poverty Bay Herald, Volume XXXIV, Issue 10966, 8 May 1907, Page 2

THE OCEANIC COMPANY.

WITHDRAWAL- FROM COLONIAL f TRADE. SPRECkIeS FAMILY. THROW UP . THE SPUNGE. According to tlie information .which has just reached Dunedin from San Francisco the losses k>f the Spieckles family ±o date in the Otejbanic Steamship Company m« 6,721)500 itallars, and the losses of the outside public lit securities of the company ' amount to 5,721,500 dollars. Tlie asset* consist of the steamers .? Murtyosa, Alauicda> Sontama, Sierra, and Ventura (suid to be, worth something like 1,000,000 ]odlurs at auclion), «nd .50,000 dollars in the 1 company's treasury, realised froin a recent sale oi*a small vessel. ■ ' , „ lhe Oct'ilinic Steamship Company hav%% practically:! gone 'out of business. Tina is attributed to (1) the discontinuance of the service between. San 'Francisco, New Zeuland, and Australia ; (2) because the com- ' puny has been, refused a «hip subsidy by the United Slates Government. Titovessels taken jj off the Australian route are •tlie Sonomjlij Sierra, and Ventura. For ft while the Mariposa will be continued in tlie swviod to Tahiti, and the AUuneda ill the Honolulu service. The Sonoma, Sieiv *ra. and Vfciuura'need repairs, which will cost between 500,000 and 600,000 dollars. Before, taking these ships off -the run it is stated tlhat Spreckles people (who hold ! half the company's bonds) desired . the other bond; holders to Bhare pro rata with 1 them in raising: the required. funds for repairs. This was refused, and the Spreckleu people then threw up the sponge. At the lkt stockholders' meeting of the 1 company, President John P. Bpreokles 1 said in. liafe annual report : "Every effort j has been exlmunrted in tho attempt to place I the company's affairs on a profitable toolI ing. The {failure of Congress to recognise 1 the necessity- of maintaining the Austra- ' 1 lasian service under the American flag by grunting us a reasonable assistance as is I accorded other nations to their : vessels 1 which catty, their mails to the Important - I countries in the Southern Hemisphere is 1 the real cause which compels the. suspension of -thiitt branch of our business. Now that the Vessels' named ure to be withdrawn frojn service, before they are to be operated ilgain they should be given' the general overhauling which six years of 'continuous, hard usage demands, and be •' plbced' in condition to meet tlie requirements of (iny other service in which they may be utilised, Having been built to suiti , particularly the trade hi which they.have been operating, it will be "necessary to make some consideraole alterations to Adapt then), for any other." Another dir. ector stnteid that the company paid regular dividends until 1902, but since then had lost several hundred thousand dollure. Tiff' company had been operating Pacific steamers for -twjenty -four years. Tlie discontinuance of the '-Australian. - steamers, -Recording to the. company, wili^ mean a loss to San Francisco of 700,000 v dollans a i'eaf in wages and' cost of provisions obtained. In regard to the discontinuance of the line, Mr JVdolph B. SnivckUs, a iprominent' ofticiii!} of the company, said i "The company! are losing money. They lost heavilv fof years because of the droughts in Australia. Lately the New Zealand Government took away the company's mail contract. The Congress, just adjourned, refused a subudy. Tlie Spreckles Company had advanced the company 2,000,000 dollars, b^t refused to advance niorc, so a termination of the service was inevitable. Wliat will be done, with the company and the steamers t fcaiiriot say at this time. No -further policy has been outlined, s:ive for the present to continue the service to i: Tahiti ' and Honolulu."