AUCKLAND GAS COMPANY.

Auckland Star, Volume XLI, Issue 32, 7 February 1910, Page 6

AUCKLAND GAS COMPANY.

FORTY-EIGHTH ANNUAL MEETING. A REVIEW OF PROGRESS. The 48th annual meeting of the Auckland Gas Company, Ltd., was held today, a large attendance of shareholders being presided over by Mr. J. H. Upton (chairman of directors). The Chairman, in moving the adoption of the report and balance-sheet, previously published, remarked that the receipts for sale of gas showed an increase of £8,128, and for residuals of £062. The directors proposed an increase of 6d. per share in the dividend, making 9/- per share on the fully paidup shares and a proportionate amount on the contributing shares, which together constituted the nominal or share capital of the Company, and was ten per cent on the actual or paid-up capital, and this dividend would absorj £34,208 15/7, leaving £10,491 IS/9 to be carried to net revenue account. They had decided to reduce thn price of gas by v 3d. per 1,000 cubic feet from March Ist next, which was equal to a reduction of £6,2(11 on present sales. The shareholders, therefore, would receive £1,954 increase in dividend per annum, while the consumers obtained a reduction of £6,261 per annum in the price of gas. The sale of 1,300 shares in March last produced £18,037, bringing the nominal or share capital of the Company up to £ 195,482, and the premium capital to £153,790, making a total of actual or paid-up capital of £349,272. It was proposed to make n call of 5/- with a 5/- premium on the contributing shares to fall due in about a month's time. The freehold and leasehold properties in Customs-street had been sold for £11,850. Of this amount, £10,368 was profit, and this sum, together with other small sums acquired m a similar way, now standing in the ledger, and amounting altogether to £ 10,. r is3 f /i3/6, had been carried to the reserve fund account.

In view of the magnitude of the Company's operations, the reserve fund of £20,000 appeared small, and the addition just referred to was not large. The real reserve of the Company was, of course, the large balance which stood at the credit of net revenue account, and they had, therefore, transferred £09.440 (i/o from tha-t account to reserve fund a-c----oount, bringing the latter up to £100,000, and leaving a balance at credit of net revenue of £34,271 9/11, out of which the dividend of £17,5!)3 7/7 would be paid, leaving a net balance of £ 10,070 2/4. They had purchased a property adjoining their premises for £2035. The accommodation for both the office and the fittings department had become too cramped, and in the near future they would have to erect a building on the land just bought to provide the necessary c-onvenl-ence. Referring to the progress of the Company, the chairman mid: "The gas sold amounted to r>00,92(i,000 cubic feat, being an increase of 7.li[pcr cent over last year , t> sales. The increase in the number "of consumers ia 1420; the total number now being 18,130-

The length of mains has been increased by seventeen miles, extending to 255 niilea in all. We are also laying down a ■high-presßirre trunk main from tire works round behind Mount Eden to Green Lane to augment the existing supply, which gives signs of requiring some assista.net-. This main will be four miles in length, and will cost about £10,000. At .Devonport., where similar conditions obtain, a high-pressure supply is also being provided, at a cost of about £1000. In order to utilise these mains along their whole length, governor houses will be provided, and for the requisite sites a number of small allotments have been purchased. During the year we hail to renew our coal contracts, and found that we could only do so at a considerable advance in price, adding serknrsly to our costs account. On the other band, we made a better price for coke, which will go some way towards balancing the increased, cost of coal. Indeed, though probably in common with most other industries", we find the increased cost of everything we require a matter of moment. It is, therefore, no small satisfaction to your directors, as we arc sure it is to you, that tinder such conditions, and whflc complaints are constantly made of tbe increased cost of living all round, we are able to make a very substantial reduction in the price of that particular necessary of life which it is our business to supply. Nor is there any reason to suppose that we shall stop where wo now are; on the oontrary, there is every reason to think that we shall be able, in ■the future, to get the price down still further. By improved methods of working, and especially carbonisation, the product of gas per ton of coal is being steadily increased, and in various ways gas is being made and distributed with greater efficiency and economy." 'at is hardly to be hoped," the chairman continued, "that the gas industry will soon again receive so great a stimulus as that given to it by the Welsbach mantle, whereby the efficiency of gas for ordinary lighting was increased six times for an. equivalent consumption, which.result was again improved upon by the Keith High Pressure Lamp, using the Welsbach mantle, by three times, giving an efficiency eighteen times greater than ordinary gae. Yet there have lately been devised various methods of applying the system of continuous carbonisation by means of vertical retorts, that are so important as to raise the highest hopes of a very substantial decrease in the cost of production. The inventors of one of the most successful methods say that their aim was, To simplify tho proees of carbonising coals and to increase the output per retort, and to reduce mechanical operations; to increase the make of gas per ton; ai improve the working conditions of retort operators, and avoid as much as possible dust, smoke and steam being evolved into the atmosphere; to get more efficiency out of the fuel used in heating the settings, and to prevent loss of heat by avoiding the discharging of red hot coke from the retorts, and without saturating it wtih water;" and they declare that the invention fulfils these conditions. After seeing the process in operation, many of those best qualified in the gas business to express an opinion on such a matter, say that they quite agree with the inventors; and it is certainly the case that if the method does what its inventors claim for it, then it will be hard indeed to say how great an advantage to the gas industry the invention will prove to be. The output of gas has now passed the 500,000,000 point, and I will j therefore take the opportunity of placing before you a short summary of the progress of the company during the pa«t ten years. The total expenditure has increased from £232,227 to £507,310; share or nominal capital from £130,855 to £195,482; premium capital from £72,711 to £153,791; total capital paidup from £203,560 to

£349,273; mains from 134 miles to 255 mrilcs; number of consumers from 8100 to 18.13G; gas sold, from 222,639,000 cf io 500,926,000 cf.; dividend from 7/6 to

9/ per half year, while flhe price of gas has been reduced from 5/ to 4/3 per 1000 c.f. The. net result of ten years' operations is: To the shareholders, an increase in dividend of £5865 per annum; and to the consumer a reduction in price of £18,755 per annum. It may inttTest you to know that the reduction of price to the consumer is equal to the amount of a rate of 8.3d in the £ on the assessed value of the City of Auckland. The directors desire to acknowledge the devotion of the staff to the company's interest, an acknowledgment in which I am sure you will desire to join."

The report and balance-sheet were unanimously adopted.

Mr. Burns and Mr. Peacock were reelected to the directorate. Mr. J. F. Buddie and Mr. W. W. Bruce were reappointed as auditors.

Th<> meeting closed with a hearty vote of thanks to the directors, secretary, engineer, and staff. Following the annual meeting an extraordinary meeting was held, at which the following re-solution was carried: — 'That the regulations contained in the printed document submitted to the meeting and for the purposes of identification subscribed by the Chairman thereof be and the same are hereby approved and that such regulations be and they are hereby adopted as the regulations of the company to the exclusion of all existing regulations thereof."