GAS COMPANY

Dominion, Volume 9, Issue 2702, 23 February 1916, Page 9

GAS COMPANY

REPORT STILL HELD UP

REDUCED DIVIDEND DECLARED Tho adjourned annual meeting of the ■Wellington Gas Company was held yesterday alternoon at the office of the company, Mr. William Ferguson presiding. The meeting, it may be remembered, was adjourned as the result of tho carrying of the following amendment (moved' by Mr. Gerald Fitzgerald) to the motion to adopt the annual report and balanceblioct;— "That the writing doivn of the company's assets in so far as it would diminish the profits for the past year be postponed until • after the conclusion of the war; and that such dividend as tho directors are able to recommend be paid free of incoinetu." Following tho carrying of the amendment Mr. H. J3eauchamp moved that a poll be taken of the shareholders of the company. The chairman announced yesterday that as the result of tho poll, tho amendment had been-lost, and moved the adoption of the report and balauccsheet. A Severe Critic. Mr. Fitzgerald said that no ono was more sorry than ho to see tho directors in battle array against the shareholders, and regretted that the amendment had not been accepted, as it had been held out as au olive branch to the directors. Now they had 110 other course but to oppose the adoption of the report and balancesheet. If tho amendment had been adopted all would have been well, but now they were forced to voting ajkmst'. tho ndoption of the report and balance-sheet because of the proposals that were not acceptable to tho shareholders, and it was the only mejjhod discoverable by which the shareholders at the meeting could make their disapproval manifest. For some time past there had not been a feeling of complete easiness in the minds of the shareholders. That, disagreeable word "accident" bad been more than once repeated in the course of last year. To those shareholders aware of the facts, the result 'of the year had not come as a surprise, and had the expected climax been any less disagreeable tue surprise would have been of another kind. Tho war had been blamed, and that ho was prepared to believe was true as far as it went, but it was impossible to resist the feeling that tho company was not being developed as it should be, and the positiorf" was not at all relieved by tiis directors' proposals. The amendment definitely did so by means of providing, a little less dividend. He asked the shareholders present to vote against the adoption of the report and balance-sheet. Mr. Balcombe Brown said that he totally disagreed with Mr. Fitzgeraldd. He for one thoroughly approved of the action of the directors in reducing the dividend. He was strongly againft . paying out any more money than was necessary at such, a time. •*

Other Critics, Mr. A. Warburton wished to know it Mr, Brown was legally connected with tiio company. Mr. Brown: No, I am not! Continuing, Mr. Warburton said that it was quite likely thai there would be a war tax next year in addition to what they had to provide tliis year, but he did not see why they could not charge it according to tho tax. He could sec by the figures .that there was sufficient profit to pay the additional tax, and itMvas unfair to ask the individual shareholders to pay it. He agreed with Mr. Fitzgerald, and suggested that a committee of investigntSun be set up to ascertain tho truo positron of the company's affairs and adjourn for a month to do so. Mr. A. de B. Brandon said that lie did not think, as one of the "unrcasonables." that it was necessary to reduce the amount of the dividend by obtaining the income tax from the shareholders. If it was necessary to do that t'liey required rather more information than had been given them—a better reason than the inequities of iho income tnx. Mr. Ferguson: That was only ono reason, The Honest Course.Mr. J. A, Plimmer thought it would have been more honest to reduce the divk dend straight out. He knew what tho directors had proposed had been done by tho W.F.C.A., but if they had held their meeting in Wellington instead ol at Masterton they would have heard more about it. , It was pointed out by Mr. Davy that it would press harder on the small shareholder than the large one. As a small shareholder, and speaking for isuch, ho felt it very much, and held that it put the company in a 1 also position. The chairman said that the payment of 10s. per share without being responsible for tli© tax and the declaration of a dividend of. 83.'8 d. (income tax paid) u;as practically the same, thing. Voices 1 No, No.

Tiioy \t!io directors) would take it then that the shareholders did not desire it done that way, and that the dividend be declared at a certain rate, less income tax. The directors were only carrying out the policy of provious boards, which provided that when the time came for the , old works to be set' aside, the resorve was to be written off. It only meant the getting rid of book entries, as the ir.oncy was represented in the works. Tho company was in a thoroughly sound financial position. Ee thought it would have been most unpleasant to ask the shareholders to tako a less dividend, anil they had not felt justified in the performance of their duty to do so. He left the adoption of the report in their hancs. They had stuck to the directors in fine weather, and in fairly foul weather they should show their faith in them. The motion to adopt the report and bal-ance-sheet was then put, and lost by 19 to 15 votes. Reduced Dividend Declarea.' Mr. Beauchamp, after demanding a poll, said that ho had no desire to keep the dividends back, and proposed: "That a dividend of Bs. Bd. per share, frea of income tax, be declared for the six months ended December 81, 1913, on ordinary shares." Mr. Brora believed that such' an action would depreciate the value of shares. Mr. Ct. Ifebbell seconded motion. The chairman, in speaking to the mo. tion, said that people here did not seem to be alive to the position. He was satisfied that within a period of twelve months they would have to fac« as strin.gent economy as in Great Britain, which remark was made to apply equally to New Zealand and to those in the room. It was just a little unfortunate that thTs was one of the first companies to Let, but ho believed it would come home to thein very thoroughly sooner or later. Mr. Wright said that he viewed with alarm tho drop of 2s. in preferential On the motion, being put, it was caitied unanimously, and th e meeting concluded. EXTRAORDINARY MEETING At tlio extraordinary meeting, held at the conclusion of the annual meeting, tho chairman reported that • both Messrs. Brandon and Fitzgerald's motions (of Tuesday of last week) had been defeated at tho poll, Hie former's by 47G5 to 3173 votes, and the latter by 4852 to 3191 votes. The proposed amendments to tho' neiv articles of association wero presented, road and briefly discussed. The tout; of tlio discussion was such that the directors withdrew them in toto, without venturing a vote.