ADELAIDE STEAMSHIP COMPANY. PART 2.

wikipedia:

'Adelaide Steamship Company was liquidated and reconstructed twice for more efficient and profitable operation, first in 1900, and subsequently in 1920.'

The Advertiser (Adelaide) Thursday 17 September, 1903.

THE ADELAIDE STEAMSHIP

COMPANY.

ANNUAL MEETING.

A PROSPEROUS CONCERN.

The sixth general meeting of shareholders

in the Adelaide Steamship Company was

held at the company offices in Currie

street on Wednesday morning, When Mr.

James Harvey (chairman of directors) 

presided over a large attendance.

In moving the adoption of the report and

balance-sheet, the Chairman said he hoped

the shareholders would think the balance

sheet was satisfactory in view of the 

depression which existed in shipping 

generally, the result of the termination 

of the South African War, and the effects 

of the prolonged drought in Australia. 

The gross amount of steam tonnage owned 

by the company was 53,283 tons, and they would

readily understand that a close and careful 

watch had to be kept in order to see

that with their larger fleet and extended

business their expenditure did not unduly

increase. 

Since the inauguration of the Commonwealth 

(1 January, 1901) they had had to pay duty 

upon all stores required for their steamers' use, 

which, of course, added considerably to the expenses, 

and they had not been able relatively to increase their 

rates to cover that expenditure. In Great Britain 

all vessels trading on the coastline were liable

to pay duty on stores, but the tax was

heavier on Australian shipowners, seeing

that, as most of their stores were imported,

paints, oils, ship and engine stores, now

cost them a great deal more than formerly.

The reports received from their superintendent 

engineer regarding the two new passenger 

steamers were eminently satisfactory, and he 

spoke highly of the workmanship. They might 

expect any day to hear the result of the trial trip 

of the Yongala, which steamer had been fixed 

outward with passengers, via the Cape, en route 

to Australia. 

The volume of traffic during last

year had been fairly well maintained, but

freights generally were lower. In connection 

with that, he might mention that some

of their friends were in such a hurry to

take advantage of the fall, that, without 

calling for tenders (a practice they had 

previously, assured them they

would not depart from) they fixed up a

contract some months before their existing 

contract fell in, and consequently lost

the advantage of competition, and a further

drop in freights at a later stage. 

They would observe that of late frequent 

reference had been made to their shipping by

the press, politicians, and others, and some

of the shareholders might have marvelled

that they made no reply; but it must be

borne in mind that the company was not a

political organisation, but merely a trading company, 

and the directors did not wish to get involved in a 

newspaper controversy. Many of the statements were

made by interested persons who had axes

to grind, and consequently their utterances

must be discounted. 

Among other things it had been said that the 

company opposed the construction of the railway 

between Western Australia and South Australia, 

but neither actively nor passively had that been done. 

They purposed entering into possession of the new

buildings on October 1, and the directors

hoped to have the pleasure of seeing the

shareholders on the afternoon of that day

to inspect the building, and partake of refreshments.

Mr. Gibb seconded, and the motion was

carried.

The report stated:

The directors herewith present their report and

balance-sheet, which, owing to the alteration in

the articles of association agreed to at the last

annual meeting, cover a period of 13 months

ended June 30 last. The balance at credit of profit 

and loss, after payment of interim dividend,

providing for depreciation, repairs, and renewals,

and adding to insurance account, is £34,604  11/11.

A dividend of 5/ per share was paid on February

25 last, and a similar dividend has been declared

payable after the general meeting, 

The fleet during  the year has been augmented by 

the purchase of the steamer Nardoo, of 2,007 tons 

gross register, just off the stocks, which vessel 

arrived in Australia in November last, the steamer 

White Heather, acquired for towing and tendering purposes, 

at Sydney, and the barque Copeland as a coal hulk at Albany. 

The two passengers' steamers Yongala and Grantala, 

referred to in the last report, are rapidly approaching 

completion at Newcastle-on-Tyne, and, according to 

latest advises, the first should leave England in September,

and the other about six weeks later. 

Your directors have to report the loss of the steamer 

Karawcera in July of last year, through stranding in 

the Fitzroy River, near Rockhampton. The Mintaro 

grounded in Moreton Bay in October last, and sustained 

considerable damage. 

Other minor accidents occurred, but in no case was there loss

of life or injury to passengers or crews. The contractors for 

the building in Currie-street hope to hand over the premises 

shortly, and, the business of the company will be carried on in the new

offices from October 1 next. A suitable berthing accommodation 

could not be secured at all times for the company's vessels 

at Port Pirie, an interest was acquired in the Federal Wharf

recently constructed, and has proved advantageous

in carrying on the company's operations there.

With a view to conserving the coal trade of the

company, your directors deemed it advisable to

secure an interest in a coal property in the Maitland 

district, near Newcastle, New South Wales.

The fleet and plant have been well maintained, and

are in an efficient condition throughout. Your

directors regret to record the death of Mr. J. B.

Spence, who for many years occupied a seat on

the board. Mr. T. E. Barr Smith was appointed

to the Agency.

The retiring directors (Messrs. James

Harvey and H. C. E. Muecke) were 

re-elected. The retiring auditors 

(Messrs. Woodforde and Dalton) 

were also re-elected and their fees 

were fixed at 115 guineas each.

The Hon. H. W. Thompson moved a vote

of thanks to the directors, manager, secretary, 

and the staff for the manner in which

they had carried on the company's operations 

during the past year. The work, in

spite of all the difficulties and opposition

that had been encountered, showed careful

management on the part of the officers.

From his knowledge of shipping, and being

constantly on board the ships, he could say

that there had been nothing done in the

direction of starving the fleet in order to

secure a dividend. Everything had been

carefully kept in thorough efficiency and

everything was up to date. He was confident 

that the dividend which had been declared 

had been fairly earned. (Cheers.)

The Chairman briefly responded on behalf of the directors.

Mr. E. Northcote (general manager), in

responding on behalf of the executive officers, 

said he really thought the Australian

Commonwealth possessed a coastal 

mercantile marine second to none in 

the world both in regard to ships and crews. 

They had quite the most modern type

of boats trading on their coastline, and 

possessed a more frequent service than 

prevailed in any other part of the world. 

Their ships were well maintained. 

Although legislation was more

stringent, and they were put to a considerable 

amount of expense, they should not

complain, because they knew that it was

in the public interest that that was done.

Not that they required to be looked after,

but it showed the public that they were

safeguarded. Australians should be proud

of their mercantile marine, and do all in

their power to foster it. (Cheers)

Fix this text

My impression of the Adelaide Steamship Company is that of shipowners who had flirted with bankrupcy in 1901 and a mere 2 years later, despite a depression in the shipping industry and drought, were splashing out on extravagant offices and awaiting the opulently appointed steamers Yongala and Grantala. 

The smooth talking included 'careful watch had to be kept in order to see that with their larger fleet and extended business their expenditure did not unduly increase.' This suggests a response to murmurings among shareholders about extravagances. Plenty of excuses, many justifiable, were offered as explanation for the lean dividends. 

Clearly the planned rail link had potential to put a large dent in cargo transportation by coastal steamers. I am sure the Adelaide Steamship Company was opposed to such an enterprise, whether they admitted to it publicly or not. 

As for the shipowners' 'ring', those who had pulled out, including the Lunds of the Blue Anchor Line, one could hardly refer to as 'friends'. The following extract broadens the issue:  

The Argus (Melbourne) Friday 4 December, 1903.

The shipping ring in the Anglo-Australian trade

has lasted a long time, and on the whole, it has

worked smoothly, giving Australian importers

freights fixed for considerable periods - a steady

condition of affairs, which has served interests

better than frequently fluctuating and competitive

rates. Possibly, however, the ring rates have been

too lucrative for owners and brokers, to the dis-

advantage of the Australian import trade. But 

should the two threatened seccesions from the

ring take place, a cutting of rates may be expected

which will seriously effect the value of spot stocks

of heavy low priced articles. 

The lines desiring to withdraw are the Lund and 
Aberdeen, which together take, roughly speaking, 
one fourth of the Anglo-Australian shipping trade. 
The owner of the Lund line, Mr. William Lund, 
started with one steamer, and was taken into the ring. 
As opportunity offered he with assistance, added other 
vessels. His notice of withdrawal has given great umbrage, 
as he made his way under the ring to a leading position in it.

The owners of the Aberdeen Line, Messrs. George

Thomson and Co, have long held a front place in

the trade. They are now arranging to send their 

steamers to Brisbane, a measure which probably

 in some way will interfere with the plans of the

British India Company.

Should a war of rates take place, considerable losses

will be inflicted all round, and a settlement would

largely depend upon the staying powers of the 
competitors. The ability of the ring to fight has 
possibly been weakened of late by the gradual 
disappearance from the trade of sailing vessels, 
the great bulk of British exports now being carried 
by steamers. The issue of a struggle would greatly 
depend upon the degree of efficiency

of the respective lines, and it is to be noted that

both the Aberdeen and Lund lines give great 

satisfaction to shippers.

This extract is a fascinating insight into the changes taking place within the Australian shipping industry, including progress in the form of steamers. Free market forces were starting to interfere with the status quo monopoly. 

The Lunds had betrayed the advantages gained and, in the opinion of the press, were ungrateful. Breaking free of the 'ring' no doubt allowed owners such as the Lunds to negotiate independent tariffs for shippers, undercutting the 'ring' and sustainable through a large, efficient fleet.

  

The Lund's, SS Waratah, which also disappeared without trace.