The Wellington Independent. "NOTHING EXTENUATE; NOR SET DOWN AUGUT IN NALICE." THURSDAY, 28th NOVEMBER, 1867.

Wellington Independent, Volume XXII, Issue 2603, 28 November 1867, Page 3

The Wellington Independent. "NOTHING EXTENUATE; NOR SET DOWN AUGUT IN NALICE." THURSDAY, 28th NOVEMBER, 1867.

The state of affairs disclosed at the meeting of the New Zealand Steam Navigation Company, is on the whole more satisfactory than could have been anticipated. When the present Board of Directors took office, a heavy loss had been incurred, and the choice lay between amalgamating with the Panama Company, winding up altogether, or continuing business for another six months, in the hope that by rigid economy and energetic management the position of the business might be altered for the better. "We can all remember how If eerily those different proposals were discussed, and how lengthened was the struggle before the party who were in favor of carrying on, gained the victory. The length of time in which the affairs of the Company thus remained in suspense, and the feelings of antagonism which the contest evoked were calculated to have a prejudicial effect, so that the present Directory took office under very adverse circumstances. These things have all to be allowed for by shareholders in estimating the value of what their Directors have accomplished. They pledged themselves to do all that was possible to reduce the expenditure and increase the returns — and to a certain extent those promises have been fulfilled. "We think they have done what was possible, and that if there be any falling short, it could not have been avoided.

The balance-sheet for the six months , ending in February last showed a loss of £6,625 0s 4d. The present one, for the I six months ending in August, also shows a loss of £2,063 9s, but deducting from this £887 2s lid, lost by the Queen, and £188 lla 7d on the Lady Bird laid up, the actigtl loss on working account is £989 14s 6d. Over the period embraced by this balance-sheet, the present Directory, who went into office in July, had little practical control. Plans of retrenchment in the management and conduct of a public company cannot be carried out at once, nor can reductions be made in a day. A new system requires time for its initiation, and employes cannot be discharged without the proper notice beinggiven. It will therefore be seen that many savings effected could not appear in the present balance-sheet, but will figure in the next for the six months commencing in September. This much however, ia clear, that up to the end of August, the amount of loss was very much less than had been sustained during the previous half year, while the system of economy decided upon only came into complete operation in the beginning of September^ A. period of nearly three months has elapsed since, during which we have reason to believe that the returns have materially increased while the expenditure has diminished. This gives some reason to hope that the next balance sheet may show a further improvement — indeed, it is not impossible, apart from accidents, that the l-eturns may equal the expenditure for the six months. With depressed trade and diminished subsidies, it would be much even to carry on the Company without loss. If this could be done for the present,there isnoreason to doubt that the time would soon come when the patience and fortitude of the shareholders would be rewarded by the complete financial success of this important colonial undertalcing. Meantime, it is well that the worst of the existing position should be realised, and we therefore cordially approve the system adopted by the Directors of taking credit in the assets only for the approximate market value of the steamers, and not for their full cosfc.^ The amount thus struck off the assets is considerable, and when there is added to it the loss on working account, the report estimates the total as equivalent to a loss of £3 a share. We are not exactly aware how far the value placed upon the steamers is to be looked upon as representing their market value — what they would fetch if placed in the market for sale — but we have no doubt the figures given are the result of careful calculation. Considering the large number of steamers in Australian waters, we, however, think it likely that Mr Bishop's estimate is rather high. Two steamers sold at Dunedin the other day fetched a very low price, and if any attempt were made to realise the vessels belonging to the Company, the price obtained might be much less than that at which they are now estimated. Fortunately, however, the shareholders see their way to carrying on the business, and there is, therefore, no danger of the assets boing hastily realised. Under those circumstances, the marketvalue of the steamers may be estimated, not at what they would fetch under a hasty winding-up, but at the price which might ue obtained when owners can wait for a fitting opportunity to soil. There are few other parts of the report | or of the proceedings at the meeting on < which we need comment. The assurance that by means of the most rigid economy which'is consistentwith efficiency, a reduction at the rate of between £5000 and £6000 a year has been effected in the expenditure, will be very gratifying to the shareholders, while the Directors may fairly take the credit of having, in this respect, accomplished the purpose for which they took office. The shareholders expressed their sense of this by a cordial vote of thanks, and the manner in which this was given, indicated that they thought every effort had been made by the Directors to overcome difficulties and retrieve enibarassmenta. The success or failure of the .Company depends to a certain extent on circumstances over which the shareholders have little control. Heavy taxation, the absorption of a large share of the revenue in the payment of interest on loans, and the maintenance of an. enormous and costly civil service —

[those things are telling severely upon the colony, and we see their effects in retarded progress, depressed trade, find a partial stagnation of enterprise. When this is the case, it naturally enough follows that the steam communication interest will, like others, also suffer. Perhaps that interest suffers even more than others, because not only freights and traffic, are lessened during a period of depression ; but that in the very time when subsidies fire partially or wholly withdrawn. The shareholders cannot help this, and like the colonists in general, must patiently await the advent of better times. Meantime they can make the best of the present, by each in his own sphere urging tho public of Now Zealand to give the Company a generous support. If they do this, we see no reason to despair, that with careful management, the Company may be carried on without loss till the temporary depression of the time having passed away, an opportunity will arrive of once more making it a remunerative undertaking.