WELLINGTON GAS COY

Dominion, Volume 8, Issue 2386, 16 February 1915, Page 8

WELLINGTON GAS COY

ANNUAL MEETING

A COMPREHENSIVE REPORT

Tho forty-fifth annual meeting of shareholders of the Wellington Gas Company, Ltd., was held yesterday afternoon. Tho chairman of directors (Mr. D. J. Nathan) presided, and thero was a numerous attendance of members. In moving the adoption of the ■ report and balance-sheet, the chairman said: "When wo met in this room two years ago I was able to report to you that tho first instalment of the new works at Miramor had been placed in. commission. I now have pleasure in. informing you that gas was first made, in tho Second instalment of tho retort 'settings at the end of Deoember, • and that since the beginning of this year the wholo of the gas has been manufactured at Miramar, -thus enabling us to closo down the old works at whioh gas had been made sinco April 22, 1871—a period of forty-two years and eight months. During the next few weeks alterations in mains will bo made, and the gSvernors" will be. shifted to the Tory Street property. After this has' been done the old plant can be dismantled and removed. Such of the .plant as is suitable win be removed to-Miramax and recreated there,- and the balance will be sold, if possible, to smaller gas companies or otherwise as old material. During the year one of the retort houses was gutted and part of the material sold. Tour directors therefore have reduced the item i of -'property' by £10,000 and have made a, corresponding rodnction in 'works ortension reserve' of £10,000. This reserve was formed, as you all know, in years past to provide for the < obsolescence. of the City works. Next year, when the balance .of the plant and applianoes has been removed from the "old 1 City , works, .this reserve fund will be further reduced. "To assist in. the provision of this obsolescence the directors have carried this year a, mini of £2000 to a special "Old Works Dismantling- Suspense Aocount,' making that amount £4219 ss. 6d., which will be expended during the current year. "Tho directors propose to retain the office building in which we are now meeting, and a spaco at the back of it, on which extensions can be made in the future, and the balance of the Oonrtenay PleceWakefiold Street land in such blocks as may suit purchasers: Whilst the board doos not propose to push the sale of the laud unduly,-it will be willing to ecII at prices that will produce the Government valuation, as the taxation on idle lends is such that it will not pay to retain •the land too 1 long. The monoy to be obtained from tho sale of the land is, as '•yon- ore. aware," a return -of capital, and cannot be. treated as profit.. "The shareholders will be pleased to learn that so far the extensions at Miramar have been carried out at a cost well below the estimates on which .they were imdortoken, and that luckily the materials were practically all landed before the war commenced, so that the'cost ofrthe work has not been: increased through the war. - Duplicate Main From Miramar, "The, only large work which the board hoe in prospect as being' required during the next three years Is the laying 4own of a duplicate main from Miramar to the City. - As the maximum storage capacity of the Tory Street gasholder is about only a fifth of the consumption of the busiest day, it is desirable that before long the main should be duplicated so as to avoid risks arising from any accidental damage to the present main. It is hoped that this suggested duplication can be carried out, when decided upon, without caJli-ng on the shareholders to subscribe fresh capital. "The practical output of the two units of the present plant- will- be at the rate of two million cubic feet per diem, whilst tho maximum dally demand last year was 1,500,000 cubic feet; so that, if the increase In the use of gas continues at anything approaching the 111 per cent, increase of last year, it will not be many years before the company will have to erect further instalments, of carbonising and other plant at Miramar,. in which cose additional canital may be needed. "Tho laree increase in tho gas sold is most gratifying, and is a practical testimony to the wisdom of the, course adopted by the directors In reducing tho price of' gas as soon as the company had the plant available to enable it to do so. It will be-unwise during the war, and until things have settled down thereafter, to - make a further reduction in the price of gas; but the directors trust ; that they will eventually be able to do so, thus enabling the consumers to further benefit from the saving effected by tbe new method of gasmaking, and still further satisfy the public by supplying light, and, heat in the cheapest possible manner. Of course, Hie cost of gas depends principally on the price of coal, which, as you. know, is ' a commodity that is continually, rising in nrioe; in fact, dnring.the time I have been one of your directors tho cost of coal has been increased some 25 per oeut.

Share Capita) to be Recast; • "When th© City works • have been removed and the Burpluß land either sold or arrangements made for sole, the directors think that the time will be opportune. for. tie share capital to be ; recast by the issue of £1 shares in place of £10' shares. They. also, are of opinion ' that when'a change i*/made in the denomination • of the - shares it "would be wise to follow the ; British... precedent and give an opnortnnity to containers to became shareholders in any future issue. By reducing the amount of each share to £1, it is hoped that the 6haTes will be more widel> taken up by our oustomere, and that thereby a direct interest in tho company will be generated, which would be of mu.taal benefit to both the consumer and tho company. The encouragement siven to the employees to become shareholders in tho company, has been moat beneficial in its effects,, and your board is of opinion that in any scheme of reconstruction it may be wi6e to further give all employee* opportunities to be financially interested in the company by flome one of the methods that have been • so : successful - in British sa-s companies. I mention this now so that fihareholdeiip may. turn, the matter, over in their;; minds.

The board has jnst arranged to purchase three: acres of additional land at Miromar at the Government .valuation. This land is adjacent to the other holding of the company,- and will increase the total acreage there to a little more than sixteen acres. ■ Strong Financial Position. "About the financial l aspect : of. the. company's position there is little to be said to you from the directors' point of view, except to. congratulate you on the strong position in which the company is at the present. Whenever thei land in town Is sold ; any sums received therefor will reduce the item of.'money 6 borrowed, at oaL and. short-date," at present standing at £35,363. When thia sum is, repaid your company will be in. an exceptionally stron* position, which will enable the board, with little, or no. liability, to continue the progressive .policy on which it embarked years ago.

"In consequence of/the war, the board made a special donation on behalf of the company of £250 'to the Wellington Kayor's Patriotic Pnnd and of £50 to the' Poor of Belgium, Great Britain, and Ireland Holier Fund. The directors a,lso arranged to give half-pay to all employees accepted for military service during the war, and agreed to reinstate a.ny man. Tetnming at the end. of; the war in a fit condition for hie duties.:-either in his former position or to find some- other employment of a suitable character for him. At first the board limited the period of lialf-pay to. sir months, but recently determined, at any rate for the present, 'to continue the payment of half wages. Fifteen, men availed themselves of the offer and .left with the contingents, whilst two men locally employed, on military Eervico at the forts and 'elsewhere have recelvod hoJfnay daring thrtr absence from work. I feel certain that the shareholders unanimously will approve of the action of their board-of directors in this matter.

Ths Directors. It is nineteen years since there has boon a.contorted election tor tic office of director, although during that period there hare been,'several changes through death a,nd otherwise in the personnel of tie hoard. When the company was firet formed the number of directors -was fixed as five, and that number remained as the number provided by the Articles of Association until 1908. As it- was then felt desirable to provide fcr tho office of a managing director the articles were amended to read as follows:—'Clause No. 82: The number.of directors shall be not less than five or more than seven unless otherwise: determined by the company in rreneml meeting.' On tho appointment of Mr. Ferguson att managing director, the number of directors become six, and I understand it may be argued on behalf of the candidates that there may cad mtißt be three vacancies filled up to-day 'through tho nomination of four candidates. This question has been submitted to the company's solicitors, who adviso that either notice of the proposal to elect three in place of only two directors must be given or the directors must have .proposed in their report. >

Now Arrangement With Mr. Ferguson. "Tlic directors are pleased to report that they have been able to make fresh arrangements-, with Mr. Ferguson, to' retain his as_ managing director upon amended conditions, under which ho mil give a general supervision to' the affairs of the company without devoting as much n! his tlmo to the work as ho did under the previous arrangement, which has been in force for more than six years. "The directors, in a circular issued to , tho members of the company on Jnly 28 last, slated thai in thoir opinion the question of au increase in the number of directors was ono for tbo decieion of tho •shareholders, and, had notice of tho propose] been duly given, would have contented themselves with merely reiterating that tho 'honorarium should be increased to provide for the seventh director. As

eided that, in view of the freah arrangement with Mr. Forg-neon, it could not recommend the shareholders to create the additional director. You therefore will be called upon to decide which of tho four candidates (Messrs. Anderson, Pearoe, Fitzgerald, and Strang) are to fill the two vacancies."

Tho motion was seconded by Mr. Harold Beanchamp. Mr. G. M. Kebbell said the report stood ont head and, shoulders above any report that had been previously published, as it proved that gae could, as ho had urged years ago, bo sold at Ss. The report and bolauoveheet were adopted. Messrs. 0. S. Watkins and E. Wilberfoa were re-elected auditors.

rurtlior business included the election of directors, -which, after eomo discussion, it was decided to elect by ballot. Tho ballot w taken, and the meeting wh6 then adjourned to 130 p.m. to-day. At this afternoon's meeting the names of tie directora elected will be announced and the business of tho meeting concluded.