GAS COMPANY.

Dominion, Volume 4, Issue 1051, 14 February 1911, Page 2

GAS COMPANY.

ANNUAL MEETING. A SATISFACTORY YEAR. ! ' HOSPITAL LIGHTING DISPUTE. - The annunl meeting of the shareholders of the Wellington Gas Company, Ltd., was held at tho Chamber of Commerce yesterday, Mr. D. J. Nathan (chairman if directors) presiding over, a satirfadory attendance Tho managing director (Mr. ,W. Ferguson), Dr. C. P. Knight; Messrs. Harold Bcauekamn, A. E. Pearce, and D. Anderson' (directors) wers also present. .. . Chairman's Address. .'Tho'chairman, in moving tho adoption of_the report and balance-sheet (already* published), said the board had muck ploasuro in being ablo to lay beforo the meeting a favourablo account of the results for tho year. 1910. "A study of tho profit and loss account," .ho continued, as compared with that of 1000, shows that there has been a substantial and matted advance. There has been a steady Uicrcafo iu tho demand :for gas, tho growth in tho manufacture having been over 7 per cent. The . number of new connections made was 850, whilst 075 chains of new mains were laid, 163 chains being m tho main connecting the lliramar works to tho city, and tho balance principally in ths Lyall Bav and Jliramar districts. Tho board has oontinued P°TO' °* encouraging tho installation of cooking and heating appliances, with Satisfactory results. Improvement in Business; "Probably "the spending power of tho gas consumers, which suffered considerably in 1309, has been less hampered by tho depression in trade, and has therefore largely returned, or is gradually returning, to what might, in tho company's experience, bo termed tho normal condition of IDOB and previous years. This, coupled with tho fact of the increasing popularity that gas js gaining "for cooking purposes and other consumptions, has had no inconsiderable shard in tho recorded improvement; but, apa-t from this, the growth plainly indicates that;' notwithstanding,tho keen,' and, in somo respects, unfair, competition of electricity, tho company's jroduct, on account of ' its cheapness, is more than holding its own; The NeW.,Works at Mirartiar, . : "The million and a'half cnbic feet gasholder at Sliramar was connected to the' city, and first brought into use in May, 'ana'materially assisted in enabling the' company to copo with tho heavy demands" of the midwinter period. The amount of gas manufactured 'during the year was 308,812,800 cubic feet, of which the heaviest day's consumption was 1,130,000 cubic feet. ■" ,

, "Til# board has decided that the first instalment of the proposed new works at lliramar shall have a capacity o£ about tlirec-nuarters of a million cubic feet per day. It is proposed to instal this plant on tho modern system of vertical retorts which is now being so largely adopted on the Continent and in Great Britain. Tho Metropolitan Gas Company has recently decided to instal a plant at Melbonrno on this system mors than four, times, as large as that proposed for Miramar. It i? expected that tho cost of prodnction mil bo. materially-reduccd, and, if this anticipation is confirmed in practice, the. company will be able by a reduction in the price of gas to make its use still more .popular... ... ■ Further Possible Extensions, : "To enable theso works to be carried eut the board has giv£n notice to ; shareholders of the resumption of bi-monthly' efclls. It 'will be reniembere'd that, owing to the delay iricurr'cd-through the'involved and tedious negotiations with the City Council, it became-necessary to suspend 'tho calling up of the capital and .the' erection of works' at 'Miramar for twelve' ■months. v •'_■ - V..' "Tho : directors have,'dnring tho .year," l paid off,' on their maturity, wfi79o(/ uf 4V per cfiit debentures' owned locally,-leav-ing .050,000 debentures issued iij London bearing 5 per cent-' interest, whichvdeben--tlires will maturo in June, 19121 The tiaiu-d will, during tho current year, have 'to consider what recommendation "it will make to the shareholders, either as to 'th*. renewal of these'.debentures. and ; the ,issue :in future years' of-further - debentures; or-'the raising of the capital.re-; quired in other ways,.so as to< provide; funds for the future extensions which will be undoubtedly required at Miramar.

•".The. directors felt it to bo their duty, •os tho holders of a public concession to. givp to' tho boroußhs of Onslow and Ka'rori tho opportunity of obtaining for'their residents ths groat advantages of, .I' supnly of rss, but so'far ths neirotiations. hftTO not resulted in the {ettlement .of terms that tho hoard ciin L accent, and it .appears nrobabl® that tho inhabitants ef. those suburbs ' must suffer throutrh tho failure of th 6 nesotiations. In Karen, out of some 257 householders, 204 signed a petititij t« the Boroiijh Csuneil te. giro teastnabls. faeilities te the e»«pany. , The Hospital Lißhtinjj Contract, . /'Shareholders will have, observed that .recently the managing director has,had tu carry.on newspaper correspondence oil the subject of. tho contract ior the' supply of «as to:the Hospital and Charitable Aid Board and the proposal by the City. Council to supply electrical energy to. Uhat board at very special and low rates. It appears to me to be one of the most serious objections to tho municipalisation of publio services that the membors of public bodic? will, in their collective ca-' pacity, approve of things that individually, as business. :aen, they would not .be likely to consent to. Tho, actual direct valuo of , tho hospital contract to ths company is very trifling, but the controversy nas done undoubted good in bringing before the public the comparative qneapness of coal gas as used for both light' and fuel, and may fulfil a great publio service by drawing attention to the methods adopted by the City Council ■in estimating tho cost of the supply of electric current. The company has paid this year in', local and .Government taxation, and- in, royalties to the City- Council, a sum amounting to one-eighth of. the. amount distributed to > shareholders ■ as dividends, whereas the municipality, as a trader; is largely,' if not entirely, exempt therefrom. Not only has tho municipality.! direct benefit in competitive trading by tho amount; of the. taxation unpiid, but the competitive ratepayer has in consequence tp pay somewha't higher taxation than he would otherwise have to do. . , . . ,v, , • ~

10 QO. . T . . V . J , Dividend of 10 Per Cent. "The value, of tho land, nlant,-mains,', meters, etc., appears this year -ps w£323,806, as compared with J2313.505 last year—an increase of ,510,301. Whilst tho amount of .£5314 has been charged to revenuo for repairs and renewals, there has also been ■written off .£3354 for depreciation of plant, and ample allowances made for depreciation of stocks; and, after providing the sum- of - J58205 . for the half-yearly moiety of; the,usual dividend of 10 per cent, per annum'that is'now recommended to tho shareholders for adoption, thero is carried forward tho, sum" of £15,573, as compared with -C14,77G last year. The directors deem it desirable, in view of the increase of capital required for' the new works and the possibility' that the extensions; for a time will not bo fully remunerative, thero should bo carried forward an amount approximating nearly to A year's dividend.' Shareholders should bear in mind that, whilst in 1907 tho alnount paid in dividends and as interest on debentures and on loan moneys, '£15,888, these items have grown in 1910 to JE20.C19, ■ and, .with tho inevitable growth 'of the company, will necessarily increase materially in'the following years. Thero should therefore be maintained a strong reserWin the form ef a sufficient amount carried forward each year. Profit-sharing Proposal. "The board realises that the prosperity of the company depends on the hearty ■to-operation of all its staff. Tlic principle that lias guided the directors is to pay liberal salaries and wages, and they are • satisfied that ■ they • havo • a • highly ,efficient and loyal, body of employees. Tho board -proposes continuing the policy of encouraging all grades of tho staff to fcecopio contributing shareholders, but so far has becn unablo to adapt the system of profit-sharing so largely in force in British gasw&rks to tho conditions, exist-' ing in tho Dominion. , < ; : !• "I now. have pleasure in moving ' tho adoption of the report and balance-sheet, which motion, if earned, confirms the ac-

' Hon of tho directors in paying an interim dividend of 5 per cent, in August last, and provides that a further dividend of 5 per ccnt. bo now mado on the naid-un capital." " ; ; Tho motion was seconded by }Ir.: H. Beauchamp and parried without discussion. Re-elected. ; _Tho retiring directors—Messrs. ,'D. J. Jsathan and A. E. re-elected unopposed. ... •; Messrs 0. 0. Wntkins and E. Wilberfcts were elected auditors at the usual remuneration. . .. ; The directors and staff were thanked by special voto of tho meeting for their serviccs durins the year. Mr. Kershaw replied on behalf of the staff. ■ • •