6
remunerative. This was attributed by the Directors to the employment of steamers in place of sailing vessels, of iron in lieu of wood, which, as they said, "must render docking all over the East less profitable than in former years."
years.
The returns from the machine shops showed a marked improvement on former
The general prosperity of the Company continued during the last half-year of 1871, and the Directors were enabled to declare the highest dividends permitted under the then existing arrangements, viz., 5 per cent. per annum on the original and 9 per cent, per annum on the preference shares.
Out of the amount available for dividend 4$29,143.45) a considerable sum (viz., Contribut $2,232.69) was paid to "contributing shareholders," for arrears due to them under ing Share Clause 72 of the articles of association, and a further sum of $1,500, under the same
holders or clause, for the last half of the year.
aiding
PUBLIC RECORD OFFICE
Reference :-
C.O. 882
8 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
This clause provided that:-" shareholders who have influenced business to the Company shall be entitled to have divided between them in proportion to the amount of business they have contributed such proportion of one-tenth of the nett profits of the Company as the aggregate income from the amount of business contributed by them bears to the total business of the Company." Article No. 107 (15) of the present Company is in somewhat similar terms, and under these clauses payments. have been made annually to contributory shareholders, or aiding members the nett profits, the amount so paid amounting in 1904 to $85,000, and the question as to whether or not these return commissions are to rank as "profits" of the under- taking at this juncture is a very important question.
H
out of
During 1871 the wharf was further extended westwards a distance of 475 feet, and further improvements to the offices, godowns, &c., were recommended.
The number of vessels using the wharves increased from 352 (in 1870) to 403 (in 1971) of which 308 were steamers (of 256,667 tons register) and 95 sailing ships (of 55,804 tons register).
The cargo landed at and shipped from the wharves amounted to 101,537 tons, and the coal handled during the year amounted to 106,307 tons.
members.
The prosperity of the Company continued during 1872, and at the end of each 1872, half-year a dividend on the original shares at the rate of 12 per cent. per annum was declared.
In their half-yearly report for the half-year ending on the 31st December, 1871, Issue of the Directors had expressed doubts as to the legality of the issue of the Preference preference shares, and, in the meantime, the question was referred to England for Shares an opinion. Sir Roundell Palmer confirmed the doubts of the Directors as to the declared illegality of the issue.
illegal.
An amicable arrangement was therefore arrived at with the preference share- holders, which resulted in the further issue to them of original shares, whereby the paid-up share capital of the Company was increased from $300,000 to $378,970.
Further additions were made during the year to the godowns and wharves, and to meet the increase of business a considerable addition was made to the Company's stock and machinery.
In 1873 a dividend of 10 per cent. per annum was declared at the end of each 1873. half-year.
The nett profits (not including a balance of $7,637.44 brought forward from the previous half-year's account) amounted to $19,179.49 for the first half-year and $30,914.18 for the second half-year. Payment of the dividend absorbed the sum of $22,971.08 for the first half-year, and $28,960 for the second half-year.
A balance of about $3,000 was carried forward to the next half-year's accounts. The remaining original shares were all issued during the year, thus raising the paid-up share capital to $600,000. The debenture liability at the end of the year stood at $272,500. Further additions were made to the wharves and godowns, and a reading-room was erected for the use of officers and seamen of ships frequent
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