New Zealand Times. (PUBLISHED DAILY.) WEDNESDAY, FEBRUARY 7, 1877.

New Zealand Times, Volume XXXII, Issue 4954, 7 February 1877, Page 2

New Zealand Times. (PUBLISHED DAILY.) WEDNESDAY, FEBRUARY 7, 1877.

Want of time and space prevented our doing more than noticing very briefly what took place at the meeting of shareholders in the Wellington Gas Company on Monday, and we think a few additional remarks on the subject may not be out of place and interest our readers. We did not touch on the question of, profits, or quote figures ; but we have looked into this matter since, and find that the profit for the year is stated to have been £4966 12s. Id.; but of -this £l3O 4s. Bd. was carried forward from the previous year. On a paid-up capital of £27,000, this gives £lB 7s. lid. per cent. ; or, deducting the £l3O 4s. Bd., £l7 18s. 3d. per cent. The reserve fund seems to merge into' the general account, as we see no mention made of interest realised upon the £2OOO as an investment. We presume the amount has been used as additional capital,' and thus saved interest on money which would otherwise require to have been borrowed to carry on the company's business. The Board of Directors recommended the payment of a dividend at the rate of 15 per cent., which absorbed £3BIB 155.; to carry £SOO to the reserve fund, and £647 18s. Id. to the next year's account, in this way exhausting the profit of £4966 12s. Id. The gross earnings are set down at £12,261 Bs. 9d. ; of this, £11,321 17s. lid. is credited :to gas and rent of meters. The last-mentioned item we shall estimate at £3OO, which reduces the receipts for gas alone to £11,021 17s. lid., and added to that of other products, increases that sum to £1239 10s. lOd. Supposing gas had been supplied at a lower figure during the past year, the reduction would only have been upon the sum of £11,027 17s. lid., not upon the whole' earnings, as assumed by some of the speakers ; Mr. Htjnibr, for instance, made some mistakes, which he frankly admitted when they were pointed out to him. The total earnings amount to £12,261 Bs. 9d., the expenses to £7425 Is. "4d., and we know we express the sentiments of the public when we state that it is generally believed some savings might be effected; and we entertain no doubt this is a point which will engage the attention of the newlyelected directors. It appears to us that the directors have never realised the position to which Wellington is certain to attain, or made adequate preparations for supplying the demand which must arise as the town extends, and additional and a better class of buildings are erected. In the course of his remarks the Chairman instanced the rates of dividends paid by a number of banks which he named, but he seemed to forget what was stated by a chairman who presided at a meeting Of shareholders in a gas company in Victoria, that the; capital of such an undertaking is not like, that of a bank, which can be moved from place to place according to the question" of supply and demand. If a return cannot be obtained in one locality, money can always be turned to account and made to produce something elsewhere.. Shareholders in the present company, or in any other proposed to be established now or hereafter, ought never to lose sight of the fact that once the outlay of putting up buildings and laying mains has been incurred, they must be content with whatever dividends can be obtained; and as we have shown in recent articles, owing to unwise and injudicious competition these are frequently, very small. We hear it constantly asserted that the public must benefit by competition; but if the matter is looked; into properly this must always depend upon circumstances. The shareholders in any company form a part of the public; ; if they invest ' their money properly the community • benefit; if instead~of"doing "this~the~scheme "turns" out unprofitable, then that portion of the public who subscribed the capital which fails to yield an adequate return, virtually injures the public interest. We i all know what would happen if every person engaged in business was constantly losing instead of making money. The 'result is the same with public institutions; unless they can pay their shareholders reasonable rates of dividends, their career is invariably short. It; will,' no doubt,' b'e said that the tenor of our remarks is in the direction of discouraging the formation of a second gas company in this cityy and we have no desire to disguise our opinion that it would not be profitable to embark capital in such an iundertakiiig.! We think it is now-pretty \ certain" that the; Wellington- Gas Company ; will before long supply gas "at the rate, of, 10s'.', and this is as much as consumers can expect ;until 'the consumption is very largely increased. In this, connection there is one point to -which we should like to direct the attention of the newlyarranged directorate of the Gas Company, and that is ; the' desirableness of greatly extendingthe service pipes. Perhaps it is not necessary-to cover a"" larger' area than has already'been laid with mains, 1 buTwhat: is'reqiiifed is more"p'ush in the ' way of inducing householders'within thai area to take supplies. "There are hundred's of houses in the city, wellappointed ; and bearing every, appearance of comfort (within, which are not supplied with the j luxury of gas. The mains run past the i yet' no attempt at' connection * is" !made: Whose business is'it'to see to '■ this? Scarcely that of the 'would-be con-. Burners.' If the company desires to popularise itself, and to"niake its.venture.a commercial success, it must push business; just as every commercial. firm endea\ T ors to do. But no one in Wellington ever heard of the Gas Company canvasser. The easygoing management, Micawber-like, has 'patiently—we will not say indifferently—waited' 'f6Fcoh'sdmer¥. , tb^-'-*-iQf&''- v <ipl' ? "'arid' as these have turned up'very slowly, fat dividendsf'EayeVbeen wrang"ouTof .those whom business, necessitated being customers. The new directorate has virtually announced that its policy is a reduction of price. To make that policy successful, there must be an accompanying determi- ; nation' to carry gas into every lioiise in the city.' There need be no fear' the public will not respond if the terms be ; liberal. Gas is more convenient; more cleanly, and, at 10s'. per thousand, cheaper than kerosene oil Or tallow and the people would hail with gladness the opportunity of lighting their dwellings with it. The company, although a private corporation, is to a certain extent a Dublic institution, and has its responsi-

bilities. We do not for a moment deny, that the shareholders are entitled to handsome profits. They came forward' and risked their money in the enterprise when there was small hope that Wellington would become so large and populous as it is to-day; but they • must not rest satisfied with what has been done. If the Gas Company will rise to a sense of its position in respect to the citizens, it will take a yet firmer root than it has at present, and while reaping present reward, will assure a permanent prosperity in the future.