13

H.—44

E2,000, The Board found, therefore, that very little relief could be given to gas-consumers by the sale of the company's by-products. Taxation. As the subject of taxation was mentioned in the circular issued by the Gas Company, the Board sought information from the company's witnesses on the point, when it was explained that the circular issued was not correct in respect to taxation, as in order to meet the extra taxation the company proposed to reduce the usual dividend. This has been done, in the case of the interim dividends, only 2| per cent, being paid. It was expected, too, that after taxation and other expenses were paid the dividend for the whole year would be about 5 per cent, instead of the usual 10 per cent. It is patent that in almost all the items of expenditure of the Gas Company increases have been considerable. The increased cost of coal from 18s. 9d. per ton in 1916 to 30s. in 1918 accounts for 11-54d. per 1,000 cub. ft., the increase in wages accounts for 3\53d. per 1,000 cub. ft., and the increase in allowance for depreciation accounts for 5-Bd. These increases total 20-87d. The Board is of the opinion, therefore, that, the present price is reasonable, and that the increase in price was justifiable. Quality. The calorific value of Wellington gas was also inquired into. Daily tests were, taken by the company from the 16th October up to date. Results show that the company has not yet been able to maintain tin- calorific value at 500 British thermal units net (sec Appendix D attached to this report). The company claims that this is due to a variety of causes, which may be, summarized as follows : • (I.) Damage done to the retort, settings at Miramar during the recent, strike. Such settings as it, was possible to dispense with were put out of action, but. of those retained in operation repairs were carried out as thoroughly as was practicable while working on hot retorts. One setting is now in action after being rebuilt, and another will be completed in March. 1918. Every endeavour is being made by the company to complete repairs so as to maintain the standard calorific value of the gas. (2.) Inferior quality of coal. Owing to the difficulty in securing Australian coal the company has had to use coal that has been in stock for many years. Coal stocked, especially in the open, deteriorates very rapidly as regards the quantity and quality of gas that can be obtained from it. This source of poor gas is now coming to an end, but the company is still obliged to use New Zealand coal exclusively. In normal times it is considered advisable to use two-thirds Australian coal and one-third New Zealand coal in order to obtain the best results from vertical retorts. . (3.) Labour difficulties. Suitable men for positions in the retort-house have been very difficult, to obtain. Through the shortage of labour and the unsettled conditions prevailing at Miramar the quality of the gas was affected. The company, however, has now made arrangements for a, full supply of labour, and for the appointment of a retort-house foreman, whoso main duty it will be to see that the standard of the gas is maintained at a regular calorific value. (I.) Naphthalene. Owing to the class of coal used there has been increased trouble from deposits of naphthalene crystals in the supply-pipes. This crystal blocks the pipe, and either cuts off the gas-supply or considerably reduces the pressure. Steps are taken by the company to locate the cause, and to remove the stoppage from the pipes as soon as complaints are received. The causes, therefore, of the low calorific value of the Wellington gas may be summarized as follows : (1) Damage done to retort settings during strike ; (2) inferior coal ; (3) labour difficulties ; (1) naphthalene forming a stoppage in service-pipe reduces gas-pressure, and consumer naturally concludes that gas is at fault. To remedy this the company has adopted the, following measures : (I.) One setting has been rebuilt and is in action; a second setting will be completed shortly, and three more will be rebuilt, before the winter season commences. (2.) The company is endeavouring to secure the, best coal obtainable, and in sufficient quantities to maintain an ample reserve. Owing to shipping difficulties and labour shortage in New Zealand, that reserve has not yet been commenced. (3.) A foreman stoker has been appointed with each shift, and new men are being trained as stokers, so each week there should be. an improvement, in their work, and with it better quality of gas. (1.) Naphthalene usually appears during hot weather, and is immediately attended to by the company as soon as its presence is known. Independently of the evidence submitted in this connection by the Gas Company, the Board examined the Dominion Analyst (Dr. Maelaurin) on the matter. Tests were taken on coal-gas manufactured in Wellington. Auckland, Christchurch, and Dunedin between the 16th and 26th November, 1917, and the results showed that the calorific value of Wellington coal-gas was the lowest of all, while the percentage of incombustible gas was much greater than in either Auckland or Christchurch gases. The calorific values were calculated from the analysis, and represent gross values. The net calorific value would be approximately 10 per cent, less in each case. The following table shows the result : Calorific Value. British Thermal Units (Gross). Wellington (best of three tests) .. .. .. ~ .. 186-80 Auckland .. .. .. .. .. .. .. 508-00 Christchurch .. .. .. .. .. .. .. 506-0] Dunedin .. .. .. .. .. .. .. .. 495-89