PRODUCTION OF GAS.

Taranaki Daily News, 16 August 1921, Page 7

PRODUCTION OF GAS.

PAST YEAR’S DIFFICULTIES. NEW PLYMOUTH COMPANY. The annual meeting of the New Plymouth Gas Co., Ltd., was held yesterday, Mr. T. Furlong (chairman of directors) presiding. The forty-third annual report (already published) was 1 adopted. CHAIRMAN’S ADDRESS. The chairman said: We are just emerging from a very troublesome period, which those* who have followed the fortunes of gas companies throughout the Dominion will have realised ere this has existed. Taking a brief survey of the position and summarising the accounts, it will be found that the volume of business has increased, but that the gross revenue shows a falling-off; also the profits. The gross revenue amounted to £12,804, a decrease of £412, and the expenditure to £12,201, an increase of £1407. Of this amount £1047 was represented by the increase in the cost of coal as compared with the previous year. In pre-war days the cost of coal was approximately 30s per ton, whilst last year it was costing £2 16s per ton. Residuals show a decrease of £1024 and the capital account has increased by £4lO, represented by mains, services, meters, etc. During the last five years we have expended £1920 on plant, etc. The receipts for gas amounted to £ll,lBO, an increase of £772, and we have to pay by way of Government taxation £458. Local taxation amounts to £5B, a decrease of £B4, this having been brought about by the change in the incidence of taxation. Wages in the carbonising department show an increase of £lBO and maintenance an increase of £165. The increased cost of coal over the first six months of the year was £B2l and over the latter six months £226. The business of the first six months from various causes was somewhat disappointing and it certainly did not come up to what was reasonably expected, and this has had an adverse effect on the results of the year’s working. It was obvious that steps would have to be taken to adjust the price charged for gas, so that it would be more in keeping with the increased cost of producing it, and this was accordingly done. The fact that the coal position eased also helped to improve the position during the last six months, but at the same time the margin of profit, even with the increased charge and the improvement of the coal supplies, is very small. During the past eighteen months the company has had to contend with many difficulties, difficulties however which have been common to all cjm panies, but I am glad ta be able to say that our financial position is a thoroughly sound one. In fact the auditor informed me after surveying the position that he had been struck with the solidity of the company in view of all the adverse conditions that had had to be I Faced, and that the balance-sheet as submitted was under the circumstances aci tuaily a very satisfactory one. The i overdraft has been kept within reason- [ able limits, but indicates that a certain amount of floating capital is necessary I to carry on if we are to keep up to the 1 standard of efficiency that should be i maintained by all normal gas works. We ' had to rely on the bank and friends to i assist us in meeting unexpected contin- ' gmeies, but we cannot expect them to ■ supply permanent capital, and there- ' tore when financial conditions be'-ome ■ more favorable we probably will have |to take the necessary steps to increase our capital.

The board have been reluctant to rush into any large development of technical equipment while prices are ruling so high as at the present time, but provision has been made for immediate requirements. In the near future, however, no doubt fresh problems await us, but in the meantime it is some satisfaction to know that an expert from Wellington, who recently visited the works, considers that the works at present are in good order and capable of dealing with 120,000 feet per day. In conclusion, I may state that the experiences brought about by the scarcity of coal have stimulated an appreciation of the value oi gas, both for domestic and industrial purposes. The demand for appliances, in fact, has never been greater and a considerable volume of new business awaits us, provided we can supply a commodity suited to customers’ requirements at a price which will compare favorably with other sources of supply. The adoption of the report and bal-ance-sheet was seconded by Mr. M. Healy, who thought the results were very satisfactory.

Mr. G. A. Gorney criticised the bal-ance-sheet. The large deficiency in the residual account as compared with former years, he thought, required some explanation on the part of the manager. A general discussion on the matter ensued in the course of which the chairman, Messrs. Healy, Medley, A. AV. Webster and F. C. Bellringer took part All thought that the results under this particular heading were not up to expectations, judging by the results achieved in former years. Formerly the residual account had shown remarkable buoyancy. 1 The manager (Mr. R. G. Arthur) gave a technical explanation of the loss under this heading, in the course of which he pointed out that residuals had shown a downward trend for some time. Though he had sold a large quantity of tar, this had not realised the amount estimated and this had a considerable bearing on the amount which appeared in the balance-sheet as stock in hand. ELECTION OF OFFICERS. The retiring directors (Messrs. T. Furlong and M. Healy) were re-elected, and Mr. J. S. S. Medley was appointed to fill the vacancy on the directorate caused by the resignation of Mr. E. P. Webster. Mr. C. S. Rennell was appointed auditor, vice Mr. J. S. S. Medley (resigned). Votes of thanks were accorded the directors, the staff and the chairman. At the close of th? meeting Mr. Furlong intimated that he was not prepared to accept the office of chairman of directors for a further term. He thought that this important office should be changed periodically. After consideration the matter of the appointment of a successor was deferred to the next meeting of directors.