AUCKLAND GAS COMPANY.

Auckland Star, Volume XLVII, Issue 32, 7 February 1916, Page 7

AUCKLAND GAS COMPANY.

A SATISFACTORY YEAR. SHAREHOLDERS .CONGRATULATEDi CHAIRMAN REVIEWS THE POSITION: The annual meeting of the Auckland Gas Company was held at midday today, the chairman (Mr. J. H. Upton) presiding over an attendance of some thirty-one shareholders. In moving the adoption of the annual report and statement of receipts and expenditure (already published). Mr. Upton said that the report and accounts were such as entitled the shareholders to congratulate themselves upon the year's operations. The report showed a net profit of £(51.837 15/3, which, added to the net balance brought forward from last year, gave a sum of £90.654 9/11. A dividend of £25,71S 14/7 was paid in July, and thcTe wae now a balance of i£i)4,930 15/4 to deal with. The directors recommended a dividend of £25,737 10 l>, which, would leave £3SU9S 4/10 to be carried forward, as against £28,81 G 14/2 last year.

With regard to the accounts, Mr. Upton said: "You will observe that they are presented in a somewhat different form. The same information ie given, the chief difference being in the arrangement of the balance-sheet. Heretofore the balance-sheet has been presented in two parts, the one relating to capital, and the other to general assets and liabilities. In that form it has been laid I before you for a great number of years. Our late secretary, Mr. Parsons, took for his model the method adopted in Eng- I land for gas accounts, but, it always had ! the disadvantage of being different from j that almost universally adopted in com- \ mercial concerns, more completely so, probably, in the colonies than in England, but to persons not familiar with ' ■the various forms of Statements adopted iy accountants, it was less eastiy under- j stood than the familiar and customary method of presenting a 6ingle balancesheet embracing all the assets and liabilities of the company in one account. From time to time shareholders have stated that they did not quite understand the accounts, but now they will find no difficulty in that respect. PATRIOTISM AND ECONOMY. "In the working account I do not think there is anything calling for particular remark, eseept perhaps the item of general charges, which i≤ £1,362 in excess of last year. We thought it our duty, and we are sure we anticipated your wish in the matter, to subscribe *£2,000 to the Patriotic Fund, and £250 to the hospital ship. This accounts for the excess in general charges, which otherwise would have been less than last year. For the first time in many years the 6aie of gas shows only a slight increase. This is in do sense a matter for concern, and under the conditions which the war has brought about, it would not have been a surprising thing had there been a decline in consumption. The most significant fact in connection with this diminished increase in sale of gas i≤ that it ie concurrent with a large increase in tlie number of consumers, viz., 9,19, the obvious inference being that a general economy in expenditure ie beiag practised by consumers. Of that we can make no complaint. The balance of the account is £61,837 15/9, and is altogether satisfactory, particularly as the price of gas in Auckland is the lowest in New Zealand, and excepting Sydney, the lowest in Australasia.

FOCR HUNDRED MILES OF MAINS, i •'The capital expenditure for the year i' is £34,455, of which £12,398 is repre-1' sented by new buildings and machinery,;' £13,357 by mains and services, and i £8,638 by" meters. The extension of ' mains now reaches 417 miles, and the number of consumers is 27,914. Capital expenditure is much less than for several years back, bearing out what I mentioned to you some years since | when asking your authority for the . issue of more shares, viz: that in the: ( event of a check to the progress of this city, our capital expenditure would , drop automatically. CAPITAL AND LOANS. i "In the balance sheet you will notice < the item of £71,007 9/9, temporary . loans on deposit. In order to economise-j the cost of capital we have, as many of; you are aware, taken money on deposit at such rate of interest as was profitable for us to do. This liability has now Teached £71,007, which, however, is in no way excessive, considering the! magnitude of the company. We have,! a.s of *ouTse you are aware, your authority to issue debentures for a further sum of £51.250, so that the excess on deposit is only about £20,000. At the same time, debentures are fixed loans, and deposits are not, and therefore we propose at an early date to raise new capital of about £34,000 by making a call on contributing shares. DISPOSAL OF COKE. "As I informed you last year, we hnve taken the sale of coke to the public into our own hands, and I am' Lappy to inform you that we are now ] soiling more coke than we make, and that the large stock in the yard is steadily being reduced. Our success in this matter is largely owing to the adoption of a system of breaking the coke to sizes to suit different requirements, a plan that has solved many difficulties in dealing with the largrel quantity for sale. Size No. 4, for -which we supply a suitable grate at a low price, makes a household fire which, for efficiency and cheapness, has no competitor." Mr. Upton oonelutlM his remarks by I a reference to the death in Japan of I Mr. E. B. PaT3ons. formerly secretary of the company, and by a statement as to the company's recognition of its patriotic duty at the present time. HU motion for the adoption of the annual Teport and statement of accounts was seconded by Mr. T. Peacock, and adopted unanimously. SERVICES ACKNOWLEDGED. Messrs. John Brown and J. H. Upton ■wore re-elected to the directorate, and Messrs. J. F. Buddie and W. W. Bruce were reappointed to be auditors of the company. Votes of thanks to the directors and to £he staff were cordially passed. Mr. Low, engineer and manager of the company, acknowledged the vote of thanks to the staff on behalf of the employees of the company.