WELLINGTON GAS COMPANY.

New Zealand Times, Volume XXXIII, Issue 5263, 5 February 1878, Page 3

WELLINGTON GAS COMPANY.

The eighth annual meeting of the shareholders in’the Wellington Gas Company was held in the Chamber of Commerce yesterdav afternoon; the chairman (the Hon. 0. J. Pharazyn, M.L.C.) presiding. REPORT. The report, as follows, was take i as read : The directors, in presenting the annual statement of accounts have to report that the business of the coinpftuy lifts greatly increased during the year, aim still continues to do so. The available profit is £oool 19s 6d , and a sum of £1350 was paid in July as an in terim dividend at the rate of 5 per cent.; the direc tors recommend the payment of a dividend at the rate of 10 per cent, for the last half year, and on the new capital 10 per cent, from date of payment; Iso, to place a sum --f £IOOO to reserve and carry forward the balance. The net price of gas been reduced Is per 1000 feet since the end of the year, the price now being los. per 1000 feet, with a discount of 4s. per 1000 feet tor prompt payment in place of 3s. per 1000 feet as hitherto. The extension-, of retort house an I purifying plant was completed in ,Tuly last. The main's have been.extended about 2j miles during he year The number of consumers now exceeds 900. By ship Eiv r Leven, due at an early date, a supply of material for extending the mains, and for a large gas-holder to contain 130.000 cubic feet of gas, will arrive : it is anticipated that the gas-hoider will be r adv for use for next winter ; an S-inch nn n will be laid from the works along Cambridge-terrace towards Newtown. Further extensions of the retort house will bo required for the winter of 1579. Two of the directors retire by rotation—viz., the Hon. C. J. Pharazyn anil >lr. A. P. Stuart, who, being eligible, offer themselves for re-election. C. J. Phabazvm, Chairman. The Chairman : I have to address very few words, to you. Any gentleman reading the report must be perfectly satisfied that the Gas Company is in a prosperous state. The only question which arises in my mind is that the shares certainly ought to be worth more than the quoted price in the market. You will see that there is an available profit of £5004 19s. fid., out of which a dividend of £1350 has been paid, and a further dividend of 10 per cent. for the halfyear will be paid, making lo per cent, for the current year, and in addition to-this we will be able to put £IOOO to the reserve fund. That must be very satisfactory to the minds of shareholders. In accordance with.the jiroraise held out at our last meeting, the directors’ have, wreat pleasure in announcing a reduction in the price of gas to lla. per 1000. , During the past year it has been 12s. Of course it would be impossible to say when any further reduction will take place; but the shareholders ought to have, full ■ confidence that the directors when they see their way to do so with safety they will do it. The value of the large gasholder and plant in transit is £BBOO, and the expense of erecting new buildings will be £3OOO or £4OOO. On the°last issue of shares we have borrowed, as you are aware, the sum of £IO,OOO at 7 per cent, interest. We have called up £3OOO on the second issue, which is now in course of payment, and we have a balance of £19,000 on the third issue, but it is not our intention to call up any of that money, as we shall be able to borrow money upon that at 7 per cent. There will be no objection to the shareholders of the last issue depositing money until we are in a position to take their money to pay up their shares, but it is not our intention to call up any of that last issue at present. That was understood at the time—the effect of it is upon the value of the shares, instead of having to pay 15 per cent, there will only be the payment of 7i per cent. I have nothing more to say upon the subject than to move the adoption of the report, Mr. Bannatyne seconded the adoption of the report, which was agreed to. The following is the auditor’s report : Wo hereby certify that we have examined the hooka vouchers, and accounts of the Wellington Gas Company for the year 1877, and are of opinion that the balance sheet now presented is a true and correct state of the Company’s affairs. Geo. hi- Keebkll, ) Auditors C. W. Schultz it, f Wellington, January 1. The Chairman intimated that there were two vacancies on the directorship, himself and Mr A. P. Stuart retiring by rotation, but both were eligible for re-election. Mr. Bannatyne inquired the extent of the damai/e by a recent fire at the Gasworks ? The Secretary replied that it was very trivial, and would be covered by a few shillings. Mr. George Hunter proposed the re-elec-tion of the Hon. C. J. Pharazyn, M.L.0., as director. t. Kkbbell secdoded the motion, winch was agreed to. , Mr. G. M. Kkbbell propoged the election of Mr. A. P. Stuart as director, which being seconded by Mr. Bannatyne, was carried. On the motion of Mr. Bannatyne, Messrs. G. M. Kebbell and O. W. Schultze were reelected auditors, at a joint salary of £l6 15s. THEDITIDEND. Mr. Green : It is my fault I was not here in time, but I want to ask a question regarding the second paragraph of the report, which says, “ The directors recommend th -. payment of a dividend of 10 per cent, for the last half year, and on the new capital 10 per cent, from date of payment.” I want to ask whether that is 10 per cent, per annum, or 2«. per year on the shares ? The Chairman ; Ten per cent per annum for the first year, but afterwards they take the same position as the others. Mr. Green contended that such an act would be illegal, and referred to a copy of the Napier Gas Company rules. It was not lawful for them to pay new shareholders at a lower rate than 15 per cent per annum, being the amount paid to the others. Ho had boirdit shares at a premium, and therefore it affected him. ' ■ The Chairman said it had been customary to make that distinction. Mr. Green : It makes a difference, and therefore! object. If you do anything that contravenes the rules you can bo made to rectify it. The Chairman : It is one of those things which have crept in and been continued. I was in the same position as yourself at one tU Major PaDH :We will risk whether it is right or wrong, and go to law. The only thing js —don’t do it again. The Chairman : I think you will find you have been dealt equitably with. Mr. Green : No; you cannot say that. You are perpetrating a fraud on the new shareholders.

Mr. George Hunter : I agree with the 6bjSoM6‘<“f»S«il by Mr. Green, hot we are riot in a position to alter the, report, having adopted it. ■ Mr, Green said he would consider twice before taking proceedings in the matter. Several other shareholders present expressed their concurrence with the objection raised by Mr. Green, and the meeting terminated.