GAS COMPANY

Evening Post, Volume LXXXV, Issue 38, 14 February 1913, Page 8

GAS COMPANY

THE NEW WORKS EMPLOYEES AS SHAREHOLDERS "*"" ANNUAL MEETING. In his opening remarks at the fortythird annual meeting of the Wellington Gas Company this afternoon, the chairman (Mr. D. J. Nathan) referred to the new works at Miramar. which "have been in use eince the 20th July, vith good results, both in the quality and quantity of gas obtained. Owing to the^ various labour difficulties' in Great Britain, the arrival of the plant was greatly delayed,' which postponed the completion' of the Miramar works for several months, and prevented their being brought into operation at the beginning of last winter. The management had consequently a very anxious time, arid for more than' a month before the make of gas at the new works gave relief the works in the city were pushed to their utmost capacity. The new works coneiat of a unit designed to supply three-quarters of a million feet of gas in twenty-four hours, as compared with the maximum 1 capacity of the old works of about 1,126,000 feet per day or, in other words, the new works are two-thirds the size of the' old ones. The directors would shortly have to decide, from the results obtained from the working of the vertical retorts, whether it would not be more economical to erect a second carbonising unit at Miramar than to replace the city horizontal retorts ac theyi wear out. If there were any immediate demand for the purchase of the Courtenay-place works, such as for city markets "(for which the buildings- and situation are suitable), or for warehouses, it undoubtedly would be the right ' policy to concentrate the manufacturing ' on the new premises, and to dismantle the old works .and dispose 'of the land. . As the value of the land thus set " free for disposal would _more than cover the coat ot the change. to Miramar, there would not be any call on the shareholders for fresh capital, as th,e expenditure could be easily met by temporary loans. SUBURBAN SUPPLY. During the past year additional trunk maiffa had been arranged iof through the city 'to give larger supplies > to > those districts where the continued increase in demand had outgrown r the * capacity • of the old mains. The reticulation of the Wadestown district was practically completed, and, as the Borough Councils of Onslow and Karori did not seem to be anxious to obtain the advantages of gas for their outlying districts, it would appear that there was not likely to be any large expenditure for main-laying for some years to come, except in respect to the duplication of the supply main fi'Om Miramar to Wellington, wliich it might be deemed -prudent and desirable to lay when the "works were entirely removed to Miramar. He congratulated th.c shareholders upon the fact that, when the shares were fully paid up next month, a considerable time ,would elapse before any <remands were Lmade on them for the raising of fresh ! capital. Though the new* works had led to considerable' economies in the amount of labour employed 1 , these economies were, to a large extent, counterbalanced by the increase in dividend that had to be paid as representing the expenditure on the plant requisite to enable them, to be made. The growth inthe gas sales was during the past year 5.8 p6r cent. — being slightly greater than the increase in the previous year. The nUmber of new connections made was 670. anoTOver«Boo gas cookers were fixed. THE PREFERENCE SHARES. The directors had issued 72.401 preference shares of £1 each, of which he was pleased to state employees took up 1588, and, on the expiration of the payment of- calls by those employees, the directors agreed to issue at par to employees 377 more preference shares, to be paid ih instalments up to or before April, 1914. The directors were satisfied that it was to the benefit of the company that its employees should have a personal financial interest in the concern, and they proposed to hold the unissued balance of the authorised 75,000 shares at the disposal of any employee desiring to take theni Up. The debentures 'issued in London in 1887 to the extent of £50,000 matured on 14th June last, and were duly repaid, thus relieving the properties of any liability, and rendering easier the disposal , of the property lying between Courtenayplace, Tory-street, and Wakefield-street. The value of the lands, buildings, mains, meters, etc., appeared this year as £421,408,- as compared with- £366,986 last year — the increase being £54,422, of ' which the sum of £42,512 was due to Miramar works and the balance to new mains, etc. A sufn of £6264 had been expended out of revenue on extensions and repairs, and the' usual allowances had been made for depreciation of stocks. The cost of the works and gasholder at Miramar, as existing at present, was about £116,000, inclusive of land. FUTURE FINANCIAL POLICY. The directors had placed a sum of £1250 as this year's contribution to a reserve for providing for the re-setting of carbonising plant, and for replacement of portions of the plant at Miramar that were known to have only a limited life ; and had carried tho sum of £5000 to the 'works extension reserve, which stood in the balance-sheet at £40 ? - 000. On the erection of the second unit of the plant at Miramar a large portion of the city works would become obsolete and valueless, and would have to be written off; but the existence of the works extension reserve would enable 'this obsolescence to b© provided for without disturbing the company's finance. The half-yearly dividend on the ordinary shares that was recommended to be paid Would absorb about £10,943, leaving a sum of £21,277 to bo carried forward, as compared with £21,266 last year. Though the amount carried forward was practically the same as last year, tho directors adhere to their previous policy, which had' been several times placed before shareholders at the annual meetings, that the amount carried forward should, if possible, be increased until it was* not less than one year's dividend. This was desirable, in tho directors' opinion, so as to provide funds to enable tho standard dividend of 10 per cent, per annum to be paid even if, through labour difficulties affecting the coal supplies, that dividend should •not be earned in any one year. The amount of the dividend on 'the 5 per cent, preference shares, and on the ordi' nary shares at 10 per cent, per annum would, when the ordinary shares were fully paid-up, absorb each year- nearly £27,250. The fact that a large sum had been carried'' forward towards meet--ing the annual dividend must have the effect of continuing the company's snares in future as a very safe and steady form of investment that ought not to bo liable to serious Stock Exchange fluctuations. SERVICES APPRECIATED. He desired to place on record, on behalf, of the directors, their appreciation of the manner in which the engineer (Mr. Dougall), with the foreman (Mr. Ingerton), had carried out the erection of the Miramar works. The board felt certain that the shaieholders would bo pleased to hear that tho directors had suitably recognised -their aetyicfijs. li

the report and balance-sheet were adopted that would confirm the action of the directors in paying an interim dividend of 5 per cent, and provide that a fuither dividend of s*per cent, be then made on the paid-up ordinary share capital. Tlio report and balance-eheet were adopted. Dr. C. P. Knight and Mr. A. E. Pearce were re-elected directors unopposed. The auditors, Messrs. Wilberfoas and 0. S. Watkins, were also re-elected. f