CHRISTCHURCH GAS

Wanganui Chronicle, Volume 83, Issue 29, 4 February 1939, Page 15

CHRISTCHURCH GAS

SMALLER DIVIDEND RATE. POSSIBILITY THIS YEAR. The possibility of the Christchurch Gas, Coal and Coke Company, Limited, having a lower dividend rate for the current financial year was mentioned in the report of the chairman, Mr. F. E. Graham, to the annual meeting of shareholders oci Wednesday. Mr. Graham was absent because of ill-health and the report was read by the acting-chairman, Mr. F. I. Cowlishaw. “While the directors fee] justified in recommending 7 per cent, as the dividend,” the report said. “I must point out that increases in wages, freights and taxation will be such that, unless we are able to overcome them in the course of the year, a lesser dividend may have to be accepted next annual meeting.” The report said the next accounts would have to bear the full effect of increased wages under the Dominion award for gas workers, and there was also the recently announced increase of 10 per cent, on rail freight. Rates and taxes had increased last year by £3310. Taxation was now approximately 65 per cent, on t he paidup capital and was likely to be more in the current year, because of the social security tax. As was announced in the company’s annual accounts, which were published recently, last year’s net profit was £24,845, against £27,785 the previous year. The dividend rate was maintained at 7 per cent, and requires £25,250.