The Nelson Evening Mail THURSDAY, SEPTEMBER 29, 1870.

Nelson Evening Mail, Volume V, Issue 230, 29 September 1870, Page 2

The Nelson Evening Mail THURSDAY, SEPTEMBER 29, 1870.

The subject of gasworks for the town of Nelson has frequently been mooted, but as frequently, like many other schemes, has been allowed to fall to the ground without any practical steps being taken for carrying it into execution. The time, however, seems to have now arrived when it might be brought before the public with some chance of success, and with considerable advantage, not only to the few who might be directly interested as shareholders, but to the inhabitants of the town generally. Gas Companies have been formed iv most of the principal towns of New Zealand, and in every instance have proved excellent investments, while the immense convenience of burning gas in preference to kerosine is too apparent to need enlarging upon. We have before us the annual report of the Christcburch Gas, Coal, and Coke Company, from which we learn that the results of the workings for the year 1869 have proved eminently satisfactory, the sale of gas for that period showing an increase of £322 over that of the previous year, and the balance iv hand at the end of the twelve months being £1860, in additiou to which an interim dividend of £600 had been paid during the currency of the year. The capital of the Company was £13,000, and the following are the expenses in round numbers for the year ending 31st December, 1869: — Coals, £1780; wages, £445; lamp-lighting, £104; salaries and fees, £570; other expenses, £250. On the credit side there appears — sale of gas, £4423; sale of coke and tar, £682. In order to show how flourishing has been the condition of the Company from its very commencement we may state that in 1868, with gas at 20s. per 1000-feet, a dividend was paid of 18 per cent, upon the capital (£13,000), whilst 4 per cent, was placed to the reserve and depreciation fund; in i 869 it was found advisable to allow a discount, averaging from 4 to 10 per cent, according I

to the amount,. on all accounts (which are delivered monthly) paid within 7 days of delivery, and the dividend for this year was 16^ per cent,, and 4 per cent, as before; in 1870 the price was reduced to 18s. 4d. per 1000 feet with discounts as before aud the half year's dividend was 7£ per cent. In taking these figures into calculation it must be remembered that in Christchurch all the coal has to be imported from Newcastle, while in Nelson we have it almost lying at our door, as' it is believed that the Collingwood coal will prove remarkably well adapted for gas purposes, and, if this be correct, the expenses to be incurred by a Company here would be very far short of what they are in Christchurch, while there would be this additional advantage, that the whole of the money expended upon fuel would be immediately put into re-circulation within the province. The capital required for such works as are wanted iv Nelson is, so far as we have been able to learn, about £10,000, and this, we imagine, there will be little difficulty in raising." In Wellington a meeting was lately called for the purpose of establishing a similar Company, and, before the prospectus was even issued, the whole of the shares were allotted. If we are not much mistaken the result would prove the same here, an>l we hope that the shareholders will be composed principally of our own townspeople, and not of foreign capitalists.