GAS COMPANY.

New Zealand Times, Volume XXXVII, Issue 8355, 15 February 1913, Page 8

GAS COMPANY.

DISPOSAL OF CITY PROPERTY NEW WORKS AT MIRAMAR. THE ANNUAL MEETING. The forty-third annual meeting ot shareholders of the Wellington Gas Company was held at tho company's offices yesterday. Mr J>. J. Nathan, chairman of directors, presided over a satisfactory attendance. Tho chairman, in his review of the company’s affairs, said that the new works at -Miramar had been in use since July 20th, with good results both m the quality and quantity of gas obtained. “ Owing to the various labour difficulties in Great .Britain, tne arrival ol tuo piant was greatly delayed, wuicu postponed the completion 01 tuo mtramar wonts ror several mouths, and prevented tneir being brougut into operation at tne beginning ol mst winter. The management Had consequently a very anxious Lime, and, tor more tiiau a montn before the make of gas at the new works gave relief, the works in the city were pushed to their utmost capacity. The new works consist. as you arc aware, of an unit designed to supply three-quarters of a million feet of gas in twenty-four hours, as compared, with the maximum capacity of tho old works of about 1,125,UUd feet per day; or, in other words, the new works are two-thirds the size ot the old ones. “ Your directors will shortly have to decide, from the results obtained from the working of the vertical retorts, whether it will not be more economical to erect a second carbonising unit at Miramar than to replace the city horizontal retorts as they wear out. If there were any immediate demand for the purchase of the Courtenay place works, such as for city markets (for which tho buildings and situation are suitable), or for warehouses, it undoubtedly would be the right policy to concentrate the manufacturing on the new premises and to dismantle the old works and dispose of the land. As the value of the land thus set free for disposal would more than cover the cost of the change to Miramar, there would not be any call on tho shareholders for fresh capital, as the expenditure could bo easily met by temporary loans. ADDITIONAL TRUNK MAINS. “During; the past year, additional trunk mams have been arranged for through tne city to give larger supplies to tnoso districts vvTicre tne continued increase in demand lias outgrown the capacity of tne old mains. Tne reticulation of the \vade.stown district is practically completed, and, as the, Borough Councils ot Onslow and Ivarori do not seem to be anxious to obtain the advantages of gas lor their outlying districts, it would appear that there is not likely to be any large expenditure For main-laying for some years to come, except in respect to the duplication of the supply-main from Miramar to Wellington, which it may be deemed prudent and desirable to lay when the works are entirely removed to Miramar. “.I think I may congratulate the shareholders upon the fact that, when the shares are fully paid up next month, a considerable time will elapse before any demands are made on them for the raising of fresh capitaL “Though the new works have led to considerable economies in the amount of labour employed, these economics are, to a large extent, counterbalanced by the increase in dividend that has to be paid to you as representing the expenditure on the plant requisite to enable them to be made. “The growth in the gas sales wat during the past year 5.8 per cent., being slightly greater than 1 the increase in tho previous year. The imbibe; of new connections made was 670, and over 800 gas cookers were fixed. EMPLOYEES TAKE SHARES. “The directors have issued 72,-10. preference shares of £1 each, of which I am pleased to state employees took up 1588; and, on the expiration of the payment of calls by those employees, the directors agreed to issue at par to employees 577 more preference shares, to be paid in instalments up to oi before April, 1914. Your directors arc satisfied that it is to tho benefit of the company that its employees should have a personal financial interest in the concern, and they propose to hold the unissued balance of tho authorised 76,000 shares at the disposal of any employee desiring to take them up. “The debentures issued l in London in 1887 to the extent of £50,000 matured on June 14th last, and wore duly repaid, thus relieving your properties of any liability and rendering easier the disposal of the property lying between Courtenay place, Tory street, and Wakefield street. VALUE OP PROPERTY. ■“The value of the lands, buildings, plant, mains, meters, etc., appears this year as £421,408, as compared with £366,986 last year, tho increase being £54,422, of which the sum of £42,512 is due to Miramar works, and the balance to new mains, etc. A sum of £6264 has been expended out of revenue on extensions and repairs, and ihe usual allowances have been made' for depreciation of stocks. The cost of tho works and gasholder at Miramar, os existing at present, is about £116,000, inclusive of land. “The directors have placed a sum of £1250 as this year’s contribution to a reserve for providing for the resetting of carbonising plant, and for the replacement of portions of the plant at Miiamar that are known to have only a limited life; and have carried the sum of £SOOO to tho works extension reserve, which now stands in tie balance-sheet at £40,000. On the erection of the second unit of the plant at Miramar, a largo portion of the city works will become obsolete and valueless, and will have to be written off; but the existence of the works extension reserve will enable this obsolescence to be provided for without disturbing the company’s finance. STANDARD DIVIDEND. “The half-yoai'y- dividend on the ordinary shares that is recommended to bo paid will absorb about £10,943, leaving a sum of £21,277 to be carried forward, as compared with £21,266 last year. Though the amount carried forward is practically the same as last year, the directors adhere to their previous policy, which has been several times placed before you at the annual meetings, that the amount carried forward should, if possible, be increased until it is not less than one year’s dividend. This is desirable, in their opinion, so as to provide funds to enable the standard dividend of 10 per cent, per annum to be paid, oven if, through labour difficulties affecting the coal supplies, that dividend should not

be earned in any one year. The amount of the dividend on tho 5 per cent, preference shares, and on the ordinary shares at 10 per cent, per annum will, ■/hen the ordinary shares are fully paid up, absorb each year nearly £27,250. “Tho fact that a largo sum has been carried forward towards meeting the annual dividend must have tile effect of continuing tho company’s shares in future as a very safe and steady form of investment that ought not to be liable Jo serious Stock Exchange fluctuations.” On behalf of the directors, the chairman expressed appreciation of the manner in which the engineer (JMr Dougall), with the foreman (Mr Ingerton), had carried out the erection of tho Miramar works. The board felt certain that the shareholders would be pleased to hear that tho directors bad suitably recognised their services. Mr Nathan then moved adoption of the report and balance-sheet, and said that, if canned, the motion would confirm the actum of the directors in paying an interim dividend of 5 per cent, and provide that a further dividend of 5 per cent, bo made on the paid-up ordinary share capitaL The motion was seconded by Mr H. Beauchamp, and carried without discussion. OFFICERS RE-ELECTED. The chairman announced that no further nominations had been received for tho vacancies on tho directorate, and he accordingly declared that Mr A. E. Pearce anti Dr C. P. Knight ware re-elected. These gentlemen briefly returned thanks. Dr Knight stated that while in Christchurch recently, Mr Bishop, secretary of tho Christchurch Gas Company, requested him to congratulate the Wellington company on Wsuccess of its now works. Messrs Wilberfoss and O. S. Watkins were re-elected auditors. On the invitation of the chairman, a number of shareholders proceeded to Miramar to make an inspection ol the company’s new works and plant.