AUCKLAND GAS CO.

Auckland Star, Volume XXXIV, Issue 28, 2 February 1903, Page 2

AUCKLAND GAS CO.

ANNUAL MEETING.

The forty-first annual meeting of 'shareholders in the Auckland Gas Company tras held at the offices in Wynd-ham-street at noon to-day. Mr J. H. Upton (chairman of directors) occupied the chair, and about thirty-five shareholders were present.

The directors' report stated that a satisfactory year had been, experienced. The profit for the year amounted to £29,471 18/6. which left, after payjnent of the usual dividend a balance of £6376 18/6. The increase in the quantity of gas sold was 8.87 per cent., equivalent to £5508 12/4. A call was made on August -21st of 10/ per share (or with premium, 15/j, being the last of the uncalled capital. All shares were therefore now fully paid.

The Accounts.—The statement of ff*™ . capital showed that BI.SW Quires bad been taTued, out of the 50.000. The capital account save the following items:— Expenm hire: General expenditure to 81st Dec-em- . ber, 15)01. £267,700 0/8; toehold oncft, . unencumbered, £12,585 18/6: «PC°" dltun during the year cAdeQ the JUst December, 1002, viz., _ new buildInss and machinery In extension of works, •f!.7'« 15/" now and additional mains and iToVv'ices £4479 19/3; now and additional ; KL'CT IS/7: Total, £206,800 12/. lleccipta pave the following items: By paiflup en pita lon 81,804 shares, at £•> each, dE159.320: premium rapital, not carrying dividend, E0r,.779 8/0; balance, £41,790 o/... Total. £200,895 12/. In the revenue account tli" cost of coals was put down at £2>v 885 3/r>; and the other manufacturing pxjirnses brought the total np to £yS.4O.i Tn/.f; the distribution cost £6t550 11/3; public lamps, £2230 38/; rents, rates and taxes, £:U3l 2/4; management, £4G4J 11/10; to law charges, £10 2/; to bad debts, £ISO 4 1. Total expenditure, £53,275 0/4. Balance carried to net revenue account. No. 4, £20 471 18/6. Total, £84.740 18/10. Re-.-.•ip'ts: By sale of gas, £67,508 5/2; public lighting under contract (including Kas supplied, extinguishing, cleaning, repairing, j-cnewing. etc., lamps in tlie city and suburbs), £3Ssfi 3/8; residual products, £11.97'_ 10/7; gas fittings, pis engines, fitting. Qreclay soods, etc., £1027 7/2; rents receivable £04 10/2; Interest, £197 16/1. Total receipts, £M.74(i 18/10. Further amount paid on account of contract for excavations at Freeman's Bay site, £2017 8/2; balance ot net profits 31st December, V.) 02, £4(5.2ifi 7/31. Total, £48.203 10/1. Receipts: Balance of net profits "Ist December, 100., £41,568 13/11; less dividend for half-year ended 31st December. 1901. £1.1.318 0/8; loss dividend for half-year ended .",oth June, 3;>02. £11,428 15/8; balance from revenue account No. 3, £20,471 IS/6. Total, £48.293 3fl/l. The depreciation account showed a credit of £10,000. The reserve fund included the following items: 11 debentures of £100 each (issued under the Auckland Public Buildings Act, 1875), £1100: 55 debentures of £iOO each, Auckland Harbour Board, £350Q; 40 debentures of £50 each, Auckland City Council. £2000; balance employed in the business of the company, £11,400. Total, £20,000. The balancesheet was as follows: —Debit: Keserve fund, £20,000; depreciation account fund, £10,----000; net revenue account for balance, £4H,----276 7/11; sundry tradesmen and others, £2030 11/;}; deposits by consumers, £114S 6/; dividfnds unclaimed, £356 5/. Total, i'SO.7II 10/2. Credit: By cash at bankers, £3397 2/0: debentures, account No. 6. £8600; stores in hand, £17,131 14/0;. accounts dirt to the company, £BSO6 0/5; arrears of calls, £816; acrued interest on debentures. £104 10/; capital, bsiance per account No. 2, £41,796 3/3. Total, £80,7.11 10/2. Tho Dividend.—The dividend for the ,year was stated to be 7/6 per share, equal to 15 per cent^ on paid-up capital. The chairman, in his annual address, stated that the income for the year amounted to £84,746 18/10, an increase of £6766.and the expenditure £55,275 0/4, an increase of £ 6745. The company paid during the year rates and taxes •amounting'to £3005 14/4, besides £1613 7/4 to the Harbour Board for wharfage. There were now 15,559 Welsbach burners in use in the city. This was a great increase, but not so great as ought to be effected, in view of the great advantage of this form of light. Lucas lamps had slso been fixed to shops in fifty-six places in Newton and the city, and greatly improved the lighting of the streets. The chairman then moved that the annual report be taken as read. Mr J. A. Buddie referred to a lengthy letter which recently appeared in the local press from Mr Atkinson with regard to the change o:f site of the manufacturing plant to Freeman's Bay. He presumed that the -writer of the letter desired that the attention of the shareholders juid the Board should be drawn to the matter. The. writer of the letter appeared to contend that the company had shifted the works from Customsstreet to Freeman's Bay, and bought land at an enormous expenditure with very little benefit; that -the company had done much to improve Freeman's Bay, and assisted to fill in the Victoria Park reserve, and received very little benefit in return. Mr T. Allen asked whether the removal had been effected with the full concurrence of the engineer and to the advantage of the company. ' Mr McLaughlan said he believed the writer of the letter was their old engineer Mr Atkinson. Tiic letter was apparently not written in a tone of animosity, but with a view to promoting discussion. The cnairnrn (Mr J. H. Upton), m reply, said the object of the letter was evidently to initiate discussion, but it would have been better for shareholders to initiate the discussion in that room, and not in the public press. In regard to the points raised, the area of the old place in Customs-street was S2BO yards, while the excavated portion of the new nine acres was 102,420 yards. If the Customs-street site were to be excavated it would be necessary to build a batten or an enormous -wall to make it quite safe, so that the area available would not be more than 8000 yards. The new site was, therefore, more than double the size of the old. He did not like to re-open matters which happened six years ago. If the question of changing "the site were to be criticised, it should have been done then, when there might have been an opportunity of preventing the expenditure of forty or fifty thousand pounds. The extension of the Customs-street works would have necessitated the cutting down of Nelsonstreet near Victoria-street, and it would have been impossible for even an enginer to decide whether serious landslips might not follow. Mr Atkinson had stated that sufficient accommodation could have been provided to s.ipply a thousand million feet of gas per year, hut the retort house, coal store, and other buildings necessary for such an output, would require a far larger area. The directors did not decide to leave Customs-street because they wished to do so, but because they had to do so. It had been no additional expense, probably, to go to Freeman's Bay, for if they had not done so, the whole of the Customs-street works would have had to be ve-organised and re-erected. The land was bought many years ago, because it was the only suitable piece of land available. Probably further excavation would be necessary by the next generation, but at present the -works on the 16,000 feet were capable of producing 500 million feet per year. How Would it have been possible to gr.odu.ee

1000 millions on the oid site, half the size? The old site also had the disadvantage of standing partly on Ha roomBoard land, which embraced the whole of the frontage, and as the iease expired eleven years hence, they would have been compelled to renew the lease at any cost. For his own part, rather than regret the removal to Freeman's Bay, he was delighted when the Board d 1 fid:>d to go there and use the site provided by their predecessors. In reply to Mr. Allen's question as to consulting the engineer, he could say that the directors never took an important step without consulting their officers. In this cuss they had not departed from their rule. When Mr. Atkinson laid before the board the proposal to cut down Custom street and erect works to make a thousand million feet of gas per year, the board asked him to submit plans and estimate, and his answer to that was hisresignation. The board was reasonable in wishing to know whether the work would cost £50 or £5000. He did not wish to reflect upon Mr. Atkinson, although much might be said. In regard to the cartage of coal, even if every bit of coal had to be carted to Freeman's Bay, the economy of working would be so great as to more than counterbalance the additional cost in thai ro3pect. The chairman then moved the adoption of the report, which was carried unanimous-

The retiring directors, Messrs T. Ching and T. Peacock, were, re-elected upon the motion of the chairman and carried unanimously.

Messrs A. W. Thompson and J. F. Buddie, the auditors, offered themselves for re-election and were duly rcappointed upon Mr Allen's mo don.

An amendment by Mr Henderson that the auditors' remuneration be increased from £25 to £50 found no seconder.

Mr G. A. Buttle moved that a vote of thanks be accorded to the Board, and also to the secretary, engineer and other officers of the company. He thanked the chairman for the very lucid explanation he had given of all the matters contained in the questions. His object in bringing them before the Board was to have an opportunity of discussing tho matter, as it was far better to discuss the question as shareholders assembled together than in the public press. They could entertain their thoughts more freely and could fet at the gist of a thing much more concisely than by airing their dirty linen before the public and bringing ridicule upon themselves. He felt sure that it had been very sound explanation to all which Mr Atkinson had had to say.

Mr Thomas Albn seconded, and the resolution was carried with acclamation.

Mr Upton, in acknowledging this, said the Board always devoted their best attention to the interests of the company, for' they were themselves interested. What hit the shareholders hit themselves, so they would not exactly cut off their noses to spite their faces. If they wanted to do the shareholders harm they would remember they were in it themselves. They gave careful attention to the interests of the company, always taking care to get the best advice they could from their officers. In Mr Parsons they had a very old servant of the company, whose long service, knowledge and unvarying devotion to the interests of the company were beyond all praise. (Applause.) What he" had to say of Mr Suggate was that their thanks were due to him. He came a young man and took up a difficult position, and had acquitted himself exceedingly well. They were quite satisfied as things were going on admirably. He (the speaker) did not think Mr Buttle needed to be alarmed about Mr Atkinson, because be had shown his own confidence in the company by a remarkable proceeding. Under his own management he sold out all his shares of the company, but now, under the present management., he had bought some (Hear, hear.) Mr T Chin" thanked the meeting for re-electing himself and Mr Peacock to the directorate, and the proceedings then terminated. The dividend is payable to-morrow.