continued.....
The Register, Adelaide, Tuesday 26 September, 1911.
ADELAIDE STEAMSHIP
COMPANY.
PROGRESSIVE POLICY.
The twenty-third meeting of shareholders
of the Adeldide Steamship Company was
held at Steamship Buildings, Currie street,
on Monday. The Chairman of Directors
(Mr. James Harvey), who presided, in
moving the adoption of the report and
balance sheet, which have already been
published, said:— 'The loss of the Yongala
with all hands was a matter of great regret
to us all, and the only consolation we
have is the fact that after an exhaustive
enquiry the vessel was found to have been
in a thoroughly efficient condition in every
respect. All that is known is that she
entered a cyclonic storm off the coast of
Queensland on March 23 last. Whether
she got into its vortex or struck some
obstacle is an unsolved mystery of the sea.
With regard to our building programme, I
may say that your directors gave this
matter long and careful consideration, and the
result of our deliberations was to place the
orders mentioned in the report, as we felt
that, so far as human foresight is possible,
the potential outlook fully justified
the policy. Moreover, some of your present
passenger vessels, while maintained in
first-class condition, are becoming, or
rather, have become, obsolete. This is
a contingency, however, which all prudent
shipowners must allow for. I may
add that our policy has already
been partially justified, inasmuch as
prices for building have advanced 15 per
cent, since our contracts were signed.
Good progress is being made with the
construction of the vessels, and our
inspectors' reports on the work done
are most satisfactory. Another matter I
may refer to is our insurance. The company
is now carrying approximately one-third
of the risk on the whole fleet. Until the
present time our policy has been to carry
one fourth, but with the large fleet you now
own, we think the alteration is justified.
The conduct of industrial matters does not
become easier. Embarrassing awards and
restrictions the result of legislation
while binding the employer on the one
hand, have not prevented strikes, which
are as frequent as ever, and lead to great
loss and inconvenience generally. All we
can hope and try for is that development
and progress will not be retarded, and that
the seasons will continue to be satisfactory.
Mr. G. Brunskid seconded.
Mr. P. Saunders said he was pleased to
say that the general opinion was that, the
whole of the shareholders were perfectly
satisfied with the directors. If certain
parties in certain places performed their
duties as thoroughly and honestly as did
the directors of the Adelaide Steamship
Company the State would be in a jolly
sight better position than it was to-day.
Hear, hear.
The motion was carried unanimously.
Messrs. A. Tennant and H. C. E. Muecke
A'ere re-elected directors. Messrs. W. E
Dalton and.J, B, Hushes were reappointed
auditors at a fee of 150 guineas each.
ADELAIDE STEAMSHIP
COMPANY.
NEW VESSELS ORDERED.
The 23rd ordinary general meeting of the
Adelaide Steamship Company was held at
the company's offices, Currie-street, on
Monday. The chairman of directors (Mr.
James Harvey) presided, and there was a
fair attendance of shareholders.
The directors in their annual report and
balance-sheet for the year ended June 30.
1911, stated that after making allowances
for insurance account and repairs and
renewals, also providing for depreciation,
the balance at credit of profit and loss
account was £38,402. An interim dividend
was paid in March last, and a further
dividend of 1/ per share was payable after
that meeting. The new steamer for the
Spencer Gulf trade - the Morialta -
mentioned in the last report should arrive
here in November. The directors, with
a view to coping with the increasing inter
State trade, had contracted for the building
of three new steamers of about 8,000
tons with Messrs. William Beardmore and
Co., of Glasgow, to be delivered during
next year. The sailing vessel Bankfields,
was purchased for use as a hulk, and the
schooner Wester fitted with an oil engine
for lightering purposes in Western Australia.
The Wakefield had been sold.
An interest was acquired in the Maria
Creek tramway (Queensland) to act as a
feeder to their steamers carrying bananas.
The directors had to record with deep regret
the loss of the Yongala, which has
not been heard of since passing Dent Island
on March 23 last while on passage
from Mackay to Townsville. The small steamer
Kepler was sunk at her moorings at Hopetown
during a gale in August last year, and the
Colac stranded near Derby in September.
Both vessels were total wrecks.
The Flinders caught fire at Port Adelaide in
January, and as extensive repairs would
have been required to fit her out again
she was being converted into a hulk.
Minor accidents had occurred to
various vessels of the fleet. The fleet and
plant had been thoroughly maintained
throughout and were in an efficient state.
With regard to their building programme,
the directors had given the matter long
and careful consideration, and the result
of their deliberations was to place the
orders mentioned in the report, as they felt
that as far as human foresight was possible
the potential outlook fully justified the policy.
Moreover, some of their present passenger
vessels, whilst maintained in first-class condition,
were becoming, or, rather, had become obsolete.
That was a contingency, however, which all prudent
shipowners must allow for. Their policy
had already been partially justified, inasmuch
as prices for building had advanced 15 per cent,
since their contracts were signed.
Good progress was being made with the
construction of the vessels, and their
inspectors' reports on the work done
were most satisfactory. Another matter
he might refer to was their insurance. The
company was now carrying approximately,
one-third of the risk on the whole fleet. Up
to the present time their policy had been to
carry one-fourth, but with the large fleet
they now owned the directors thought the
alteration was justified.
1903:
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,
1908:
1908:
After providing for depreciation
and adding the insurance and repairs and renewals
accounts, the balance at credit of profit and loss
account is £29,471 11/11. An interim dividend of
5/ per share was paid in March last and a similar
dividend has been declared, payable after the
general meeting
1911:
after making allowances
for insurance account and repairs and
renewals, also providing for depreciation,
the balance at credit of profit and loss
account was £38,402. An interim dividend
was paid in March last, and a further
dividend of 1/ per share was payable after
that meeting.
Profit had increased by £8931, comparing 1908 with 1911, but only marginally compared with 1903, £3798. However dividends dropped from 5/share to 1/share. Auditors' fee had dropped from 180 guineas to 150 guineas. What is to be made of the state of the Adelaide Steamship Company in 1911??
- Building of new steamers continued and was justified despite an increase in costs of 15%.
- A new acquisition (tramway) was justified.
- 'Obsolete' vessels destined for the chopping block was justified.
An increase in covering insurance costs of vessels - 25% to 30% , no doubt influenced to some extent by the loss of the Yongala, placed a further financial burden on the company. Strike action and related legislation was having an increasingly negative influence on business.
And yet the shareholders were 'perfectly satisfied with directors despite a significant drop in dividends??
Smooth talking had taken on a whole new dimension....
The loss of the Yongala must have hurt - well beyond the tragedy of the loss of life. The loss of the Kepler and Colac plus the Flinders' fire damage made 1911 a very bad year for the Adelaide Steamship Company. But business and 'growth' continued unabated at the expense of shareholders??
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