WELLINGTON GAS COMPANY.

New Zealand Times, Volume XXXI, Issue 4910, 16 December 1876, Page 2

WELLINGTON GAS COMPANY.

Pursuant to announcement an extraordinary general meeting of shareholders in the Wellington Gas Company was held yesterday afternoon in the sideroom of the Odd Fellows’ Hall, Mr. Pharazyn, M.L.C., in the chair, to confirm the following resolutions, passed on the 18th September last: —“ That the capital of the company he increased to £50,000.” “That the price of gas be reduced to 10s. per 1000 ft. so soon as the directors can see their way to do so.” The Chairman referred to the proposals regarding the increase of the company’s capital, and stated that Mr. Travers (the company’s solicitor) had given it as his opinion that the price of shares could not be reduced from £lO to £l. The question then simply was the increase of the capital, and the mode to be adopted in arriving at that. He was of opinion that it would be more to the advantage of the company to borrow the money in the London market than to issue new shares, as the latter course would not strengthen the company unless the shares were taken up by the outside public instead of old shareholders. He believed the stability of the institution was beyond a doubt, and saw no reason why the company should not he able to issue debentures in the London market to the extent of £IO,OOO, bearing interest at 6 per cent. He submitted that the latter course would result in the most material benefit to the company. This, of course, was his individual opinion, and his object simply was to place his views on the subject before the meeting. As to the other resolution, with regard to the reduction of the price of gas, it amounted simply to this, that the directors would reduce it so soon as they could see their way to do so. One other point he might touch upon arose out of an observation made by Mr. Hunter at the last meetings, that the company should take, advantage of the increase of the capital to lay down, mains in every direction. This would be an expensive process, and would, not result in commensurate benefit to the shareholders, inasmuch as, supposing they were to lay down two or three miles of piping, they could not expect a sufficient amount of custom to recompense them for the outlay. His own idea was that they should always be provided with the necessary plant to carry oat extensiouswhen such were found necessary. He then re- • sumed his seat. , Mr. Hunter said, in order to bring a definite issue before the meeting, he would move—- “ That the shareholders confirm the resolution passed at last meeting, to the effect ‘ that the capital of the company be ; increased to £50,000.’ ” He remarked that when the reso- ■ lution wasoriginallyproposedhe foresawno such contingency as that it would be necessary to call up the whole of the increased capital. It by. no means followed because the company increased their capital that they were pledged to call it up; but it was undoubtedly a fact that they could borrow money more easily with a large capital in reserve than without it. The business of that meeting was simply to confihg'-pr reject the resolution passed at the last meeting, when it met with no opposition whatever. Everyone then agreed that the capital should be increased ; the mode of effecting v-that object was [of course a separate matter entirely.;

Practically the position of the company at present was that they had only a margin of £3OOO, and he understood (with great satisfaction) that , a considerable amount of plant had been ordered, which would more than absorb that amount, and therefore it was absolutely necessary that the capital should be increased., Such being the case, he would move that the resolution be confirmed. . A Seconded by Mr. David . AndeesoN, and carried unanimously.' ' Mr. HONTEK, in referring to the next resolution before the meeting, namely,— that the price of gas be reduced to 10s. per 1000 ft. as soon as the directors could see their way to do so,”—remarked that it was clear enough, but he should have been glad, if the directors could have seen their way to make a reduction of 6d. or Bd. annually, perhaps for the next four years, because he wished the public t» know that the company were really in earnest in this matter ; while, at the same time, they naturally wished t 6 maintain their position and disarm opposition. He would therefore move that the resolution last read be confirmed Mr. Pkabce seconded the motion, which was carried without opposition. , , A vote of thanks to the Chairman concluded the proceedings.