GAS COMPANY.

Globe, Volume XX, Issue 1423, 6 September 1878, Page 3

GAS COMPANY.

An extraordinary general meeting of the shareholders of the Christchurch Gas, Coal, and Coke Company was held at 3 p.m. yesterday. Mr B. G. Wright, chairman of the Board of jjiroctora, occupied the chair. The business before the meeting was the authorising of the directors to declare an a<l interim dividend of 7 per cent, on the called-up capital. The Chairman said he desired to read a letter from the City Council as to the quality of the eras supplied by the company, as follows : City Council Office, August :27th, 1878. Sir,—l have the honor, by direction of the Council, to draw yonr attention to the quality of tho pas in tho city. Complaints have been made of the want of lighting power of tho gas Supplied to tho city lamps, and the Conncil would respectfully ask that such steps may bo taken as will increase the same, and give the degree of illumination that the conaumors are fairly entitled to. I have, kc, P. T. H ask ins, Town Clerk. C. "W. Bishop, Esq., Gas Company. He might say that the quality of the gas ■was tested twice a week by the manager, by means of a photometer specially imported by the company. The illuminating power of the gas .from July to August was shown to be 18.192 candles. A letter had been dratted in reply, •which would be sent, forwarding the tests taken by the photometer. The directors bad had complaints from some of their consumers, and on investigation it invariably turned out to be the fault of the fittings. .Small service pipes had been laid into houses to supply, say, live burners, and these had becu increased to say twenty without tho service pipe being increased. The pressure, therefore, had been so decreased 4iß to cause the complaints. He thought that it was mainly duo to tho burners supplied, which had been found to bo of inferior quality. He might say that in ono case where a gentleman complained that he conld not road with three burners, tho company had furnished him with one which gave a better light than the three. If the fitters did not give tho public a better class of fittings, then the company would be compelled to furnish tho public with improv6d fittings in eclf defence. Mr C. W. Turner said that his gas bill had Jiecu larger this month than before, and the. gas

worse. This arose, he thought, from the smallness of the mains on the Papanui road. Mr W. H. Lane said he thought that the mains on the Papanui road were not sufficiently large to supply the increased number of burners which had been placed in the various houses. Since the mains had been laid up the Papanui road, the increase had been very marked in the number of houses using the pas. The business of the meeting was then proceeded with.

The Secretary read the advertisement convening the meeting. The Chairman said that the first part of the business would not occupy them long, and no doubt the shareholders would be glad to find that they could declare so largo an ad interim dividend as 7 per cent. Mr C. W. Turner moved—" That the directors are hereby authorised to declare an ad interim dividend of 7 per cent on the paid-up capital, such dividend to be payable on Ist October next." Mr Tipping seconded the motion, which wa3 carried. The meeting then proceeded to consider a special resolution, that the amended articles of association be adopted by the company. Tbc Chairman said that the operations of the company had extended so much during the period of its existence that an alteration in their articles of association was rendered necessary.

It might be perhaps necessary to borrow money on debentures, but they did not propose to do so at present. The directors proposed to call up ■£lo,ooo of the capital, and if necessary after that they could borrow money on the security of the uncalled up capital, and the property of the company. Mr W. H. Lane would always bo opposed to borrowing money on debentures so long as the company could pay dividends over the ordinary rate of interest obtained for laud, at the same time that they were enabled to reduce the price of gas periodically. While they could do this there was no need for them to go outside to obtain money to carry on the operations of the company. Had it been known that the directors intended to borrow money on debentures when the capital was last doubled, he did not think the shares would be taken up. [Hear, hear.] It must be remembered that the smaller shareholders in the company made it their investment for the whole of their capital, and he did not see why they should go in to borrow money to benefit the larger shareholder. There was another point to which he desired to refer, and that was the remuneration of the directors. They were now very poorly paid, and he would now move—- " That the sum payable to the directors be increased from ,£2OO to £3OO per annum. Mr Tipping had much pleasure in seconding this resolution. He did not see that there was any necessity to go outside the company to get capital to carry on the operations of the company. He was a small shareholder, but he would do what he could to help the company. He quite agreed with Mr Lane as to the necesof increasing the honorarium to the directors. The Chairman said it was only right to lay before the shareholders this fact that at present they had been borrowing money from the public by receiving deposits at call, and at one month's notice. By this means the dividends had been increased by some 3 per cent. Had they not have had this money invested they would have had a lesser dividond. He might say that he should like a definite resolution to the effect that the directors should be requested to call up capital rather than borrow money. Mr E. C. J. Stevens said he thought this was a very inconvenient time to ask for a definite resolution like this, because they were now asked to assent to a certain power being given to the directors, at the same time passing a resolution requesting them not to exercise it. The Chairman said he thought that the expression of opinion on the part of shareholders would be quite sufficient to instruct the directors to take the steps indicated. Mr Lane was perfectly satisfied at this course. Mr Turner would like to see that the figures for the honorarium of the directors should be filled in at £ 100 per annum, which would only be a fair remuneration for the time and trouble taken by the directors. He would very much rather sec this matter settled at once, instead of having it brought up year after year. The very large amount of responsibility which devolved upon tho chairman of such a company could not nearly he compensated by the honorarium of ,£IOO a vear. If Mr Lane would move that the remuneration of the Board of Directors should be .£IOO ho would second it.

Mr Lane amended his proposition accordingly, and the motion was put and agreed to. Mr Tipping moved—" That the special resolution, adopting the amended articles of association with the amendment already carried, be now passed." Mr Lane seconded tho motion, which was carried.

The Chairman stated that tho resolution would require to be confirmed thirty days from that date.

The meeting then adjourned.