SHAREHOLDERS' MEETING - 1911

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:

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??