NEW PLYMOUTH GAS CO.

Taranaki Daily News, 17 August 1920, Page 6

NEW PLYMOUTH GAS CO.

TROUBLE WITH THE SUPPLY; REASONS EXPLAINED, SUCCESSFUL YEAR'S WORKING. The annual meeting of the New Plymouth (Jas Company was held yesterday Afternoon. . Jir. f. Furlong (chairman of director?) presided over a good attendance of shareholders. The director.--,-'report for the year ended •Tune 30, ]!)20, slated: During'the period' the variable supplies of coal gave tho staff a good deal of anxiety and at times it was impossible to maintain the service. The company's business, however, has been well sustained throughout the year, and every department shows a satisfactory increase. This has to a. great extent assisted the Board to meet the burden of increased charges for coal, freights, material, etc. After providing for expenses of management; cost of cool, etc., the profits of the year (including the balance brought forward from the previous year) amount to £3553 13s; the interim dividend paid in February absorbed £1387 10s, leaving available for distribution £2166 3s. This the directors propose to allocate as follows: In payment of a dividend which will absorb £4'n2 10s, bringing tho total dividend for the year up to 10s per share in the first issue (fully paid up),) 8s per share nn. the second issue ( £4 paid up), and 6u<per share on the third issue (5s paid), to renewal account £500; leaving to be carried forward £1203 13b.

TROUBLE WITH THE GAS. In moving the adoption of the annual report and balance-sheet, Mr. Furlong said he thought it would be generally agreed that the results of the past year's working of the company were satisfactory, particularly so when one bore in mind the many contingencies which had from time to time presented themselves.. "It will not be any surprise to shareholders to hear that the year just closed has not brought any cessation of the trouble which many people thought to bo the product of the war," added Mr. Furlong. "In some respects, particularly in regard to coal, the position has been just as acute, in fact even more so than at any period, (luring the last four years. At time' the coal stocks became so low and the quality so inferior it was almost impossible to g : ve the necessary pressure to avoid complaints. On one or two occasions they could not meet the demnnd with the reduced pressure. When in this extremity, the local industrial concerns', the Harbor Board, the Freezing Works, both here and at Waitara, placed coal at our disposal and thus enabled the company to relieve the tension."

In common with all such companies they had had to meet increased costs for all requisites nnd also for labor, but against this there had been a considerable growth in the business, and thus the general receipts of the company had been increased.

THE YEAR'S OPERATIONS. A satisfactory feature of the year's operations was the substantial, increase in the amount, of business in all departments. The total output of gas was 32,000.000 feet, an increase of over '2,000,000 feet. The sales of gas amounted to £10,408 compared, with £9740 for the previous year, an increase of £fio2. The receipts for residuals amounted to £2504, compared with £2O(SS in the previous year, nn increase of .MOO. The working receipts for the year totalled £13,210, an increase of £IO7O, whilst, the general expenses increased by £1325. Taxation by the Government amounted to £407. an increase of £244. The total cost of coal for the year represented £3!)a3, an increase of £1217; 2500 tons of coal were carbonised during the year. The total number of consumers was 18S0, showing a good increase over last year, while nt the present time there was an increasing demand for gas for general utility purposes.

„ .NEGOTIATIONS FOR A SALE. It would have been noticed by Press reports that the Borough Council had shown a desire to purchase the company's undertaking under certain conditions as a going concern. The directors were willing to negotiate on the question of a possible transfer and accordingly a conference was arranged. The question had been discussed on the most friendly lines, but up to the present nothing definite had been accomplished. At the request of the borough the directors had quoted terms' for the transfer of the undertaking which they believed would be. satisfactory to the shareholders. These were considered by the Council, but were not entertained. "Although the negotiations were unsuccessful, one cannot help but recognise that the municipal public utilities are receiving a good deal of attention at the moment, and I have the conviction that sooner or later our interests must pass to the ■ Corporation," added Mr. Furlong. THE PRICE OF GAS.

. Mr. Furlong proceeded: "The price of gas in New Plymouth in comparison to other towns in the Dominion remains a very moderate one, but in the existing unsettled state of a/fairs, it is diflieult to make any statement as to the future, which to my mind seems full of uncertainties, particularly as to keeping our finances in relation to the frequent changes. During the past six months there has been an upward tendency in all working costs, coal for instance "cost CSOO over the amount estimated. You may rest assured, however, that the directors are fully live to the position and will safeguard the interests of shareholders. At the same time we hope it will not be necessary to revise their charges for gas, T think it will bo generally agreed that Hie financial position of the company is a sound one, a very satisfactory feature being that no capital or debentures issued has been called up since J III.'!, notwithstanding the .fact that .£fl!H2 has been spent in renewals and plant during that period out of revenue. The company is not overcapitalised in any way, and this ought to be an additional safeguard against any disturbing elements in the future. "Still with the rapid growth of the town it will not, 1 think, he very long before we shall require fresh capita! for the extension of our plant in order fhat we may be in a position to meet the increased demands that will be made upon us. There should be no difficulty about the matter, however," and shareholders will. I hope, give expressions to their opinions on the question. In conelusion I would like to acknowledge the hearty co-operation I have received at the hands of my co-directors during the | past year." Mr. M. Healy seconded. j Mr. W. T. Jennings, M.P., referred to [the trouble with the gas, and pointed

put that owing to the scarcity of coal and the inferior quality of some lots other towns had suffered just as much, if not worse than, New Plymouth, and lie instanced the dislocation of the gas supply at Auckland, Wellington, CLvistckurch, and Wanganui. OTHER BUSINESS. The retiring directors, Messrs. E. P. Webster and P. C. J. Bellringer, were re-elected. Mr. J. S. S. Medley was re-appointed auditor. Votes of thanks were passed to the directors and to the staff.