YEAR REVIEWER

Ashburton Guardian, Volume 64, Issue 33, 18 November 1943, Page 4

YEAR REVIEWER

ASHBURTON GAS COMPANY. BUSINESS CONTINUES STEADY DESPITE DIFFICULT TTMES.

The annual meeting of the shareholders of the Ashburton Gas, Coal and Coke Company was held this afternoon, the Chairman of Directors (Mr W. B. W. Bell) presiding. With

him were Messrs J. W. Bowden, E. W, M. Cole and E. B. Newton (directors). There was a poor attendance of shareholders. <-

Moving the adoption of the. annual report and balance-sheet (which have already been published) the chairman said: “I need not enlarge upon the difficulties business is encountering today with the uncertainties engendered by the war, save to say that notwithstanding many obstacles met with —which I am sure are understood in this long period of war —the business has gone along steadily. Your directors have pleasure in reporting that the re-organisation of the Company’s working methods and overhaul of plant and machinery—of Avhich you Were told a year ago—have proved efficacious.

“It is satisfactory to report that the works have operated most efficiently during the year, and we are obtaining more cubic feet of gas per ton from the coal carbonised than ever before. Sales of gas reached a new high level. The arrangement for the wholesale disposal of our coke worked out very well and has saved your Company a goodly sum in wages etc. Sales of tar were good, there being a steady inquiry for this product, while the demand for appliances was about on a par with the previous year. ,

“The new meter-reading system, in Which the reader leaves the account when he reads the meter, is working satisfactorily and an increasing number of consumers are paying the reader at the door. As well, the cash in the pre-paid meters is now collected monthly, instead of every second or third month as hitherto.

Replacing of Street Mains. “About 20 chains of street mains have been replaced during the year, some having been worn out and others were taken up for replacement by larger-sized pipes. Some of the older mains are showing signs of corrosion, and these are being cleaned out as far as practicable, as it is impossible to secure new piping, to-day, at anything like reasonable cost. A comprehensive inspection of all our mains is being undertaken by the maintenance staff, and this will be carried on, street by street, until the whole area has been examined. “The policy of making adequate provision for depreciation on buildings and plant has been continued, the amount written off for the past year being £1065. This is £l9B higher | than the previous year’s writing off, and the reason is that a new bed of retorts was put into commission during the year and they were written down 20 per cent.; and, as well, items not previously 1 included —the railway siding and the new storeroom and conveniences at the office had the usual percentages written off. The plant and machinery has been maintained in first-class condition. | Heavy Taxation. ( “The heavy taxation, amounting to £585 for the year, hits a small company such as ours pretty severely, hut we realise there can be no valid reason for objection to necessary taxation, especially in war time. It is a matter for serious concern to all gas companies, however, and it is very unfair to them, that they should be subject to heavy taxation while electrical undertakings operating in the same area continue to be exempt.

“As your directors thought it would be too costly to modernise the foreman’s residence (which is, in parts, over 60 years old), it was sold early in the year to the State Advances Department, and the proceeds have been earmarked for the erectioji of a new residence when costs are more reasonable. At the same time, the whole of the land adjoining the works was surveyed and your board would be glad to dispose of some of the sections. T Supply of Coal a Problem. "The supply of coal has been one of our greatest problems during the year and we have not always been able to obtain consignments from the mine whose coal best suits our requirements. This position is well known to the authorities and letters and telegrams have been sent to, and personal representations made to the Minister of Mines and the Coal Controller, but we have only received hand-to-mouth supplies. We feel it is the clear duty of the Government to see that a public utility company, sucli as this, receives its fair allocation of coal that will be suitable to supply the requirements of our consumers.

“Stocks on hand at the end of the year were a little below last year’s figures, this being accounted for by (be depletion of our reserves of coal. Had we been able to procure them we could have sold many more fires during the winter, but supplies, which have since come to hand, were unobtainable during the cold weather. We are, continuing to carry fairly heavy stocks of appliances and fittings, your directors deeming this advisable as War conditions are forcing up prices and limiting manufacture. “The sum of £250 voted by you, at the last annual meeting, to be transferred to Reserves, was invested in the Third Liberty Loan 3 per cent, stock. “The total sales, as shown in the Profit and Loss Account, record a

small advance from £12,276 12s lOd in 1942 to £12,296 7s Sd this year, even though we disposed of our coke wholesale instead of at retail rates as in previous years. There was a saving in salaries and wages of £366; in coal, £142; repairs and maintenance, £430; general expenses, £18; and other items brought the total expenditure down liy £837. Depreciation was the only account that showed much change otherwise, this figure being up by £l9B. “This year your directors decided to establish a taxation reserve account so that, in future, income tax, social and national security taxes will be appropriated from the profits of the year in which such profits are earned, instead of, as heretofore, of paying taxation on last year’s earnings out of this year’s income. The total amount so allocated amounts to £585 13s Id. The sum of £265 8s sd, an amount equal to 4 per cent| of our reserves, lias been appropriated for transfer to the reserve fund. / “After these allocations have been ( made the credit in the profit and loss appropriation account, which includes the carry forward from 1942 of £322 11s 9d, amounts to £936 12s lOd. Your directors recommend: That a dividend at the rate of 21 per cent, per annum be paid, absorbing £750; and the balance be carried forward £lB6 12s 10: £936 12s 10d.” The chairman extended to the secretary and staff the directors’ warm thanks for the capable manner in which they had carried out their duties. The recommendation of the directors regarding the declaration of a dividend was adopted. The retiring directors (Mr Newton and Dr. J. Russell Wells), who were the only ones nominated, were re-elected. Mr F. A. Hickman was re-appointed auditor. At a subsequent meeting of directors Mr Bell was re-elected chairman.