SYDNEY GAS BILL.

Dominion, Volume 6, Issue 1614, 4 December 1912, Page 8

SYDNEY GAS BILL.

CONFERENCE BETWEEN THE HOUSES. By Telenraph—Press Association—Copyright Sydney, December 3. A conference between the two Houses on the Gas Bill resulted in a compromise, the Assembly giving way on several of the Council's material amendments, including 3s. 6d. as the standard price. The Council adopted the report of tho conference, but in the Assembly. Mr. Carmichacl, who is in charge of the Bill, intimated that the agreement was. unaccountable to him. The report was allow,ed to stand over.

HOW THE COMPANY IS HIT. The New South Wales : Government (states the "Economist"). has created general alarm by' the introduction of a ii.ill to. reduce the rates of dividends payable, ■by tho Austr-ilan. Gas Liglit Company and two other companies which were incorporated under royal chai-ter in the early days of the colony. If the Bill becomeslaw, the rate.is to be brought down to i per cent., all-profit in excess ,of. the amount required lor dividend to''.be'applied to 1 tho reduction of the price of gas. Yet the Government itself cannot at present borrow at 1 per cent, unless it allows brokerage, and even, at that 'the sales of fresh stock aro very small and 'inadequate to meet the requirements of tho Treasury. The honest course (continues our contemporary) would bo to buy, out the Australian Gas Light Company on a reasonable basis, but the Labour Government, impelled by the more violent section of its supporters, is animated by the vindictive desire to make capital "sit up." It refuses to entertain a proposal that the company should bo allowed to capitalise

.itf premium capital and reserve fund, together amounting to .£392,675 (the paid-up capital being ,£5'19,996), 'and to make tlio rate of dividend-5 per. cent; It wants, in fact, to confiscate the ■ amount • named. The Bill is popular with the consumers, who are keenly impressed with the prospect of cheaper gas, but forget the seri-' otisly prejudicial effect the confiscation of the large amount of shareholders' capital will have' 011 the credit of the country. The Government, knowing that the Bill is popular, is, apparently, going to disregard .entirely the claims of the shareholders to possession of their own assets and to the profits which their enterprise and capital in the past has made possible. The position is deemed to be very serious in the minds of investors, for it is felt that unless the Bill bo amended out of recognition in regard to the dividend clauses, the credit of the State must bo seriously affected.'