MODEST RETURN

Auckland Star, Volume LXXIII, Issue 45, 23 February 1942, Page 2

MODEST RETURN

GAS SHAREHOLDERS

PAST YEAR REVIEWED

Figures showing that interest to deben ture holders amounted only to l-15th anc shareholders' dividend to l-24th of total receipts were submitted by Mr. V. J Larner, chairman of directors, at th« annual meeting of the Auckland Gas Co. to-day. "This is truly a modest return for shareholders who have invested over half a million in this public utility com pany," he said. Wages and salaries (£174,000), and coal and other materials (£155,000) repre sented about two-thirds of receipts, and taxation (£71.700) about one-seventh, said the chairman. Depreciation was £38.780, or one-twelfth. The company thus had been carried on for the benefit of the State for nine months of the year, and for the benefit of shareholders for the other three months. Debenture interest was £34,000 and dividend £21,000. Receipts from the sale of gas. residuals, etc, amounted to £496,323, an increase of £9264. There was a rise of £14.000 in manufacturing costs; £5460 of this was attributed to the larger quantity of coal used and to a rise in price of Newcastle coal; the remainder was due to increased costs of material and labour for repairs to stoking machinery and other plant, and to an abnormal number of breakdowns, resulting possibly from the inexperience of some employees. Increasing difficulty was likely in staffing the works, and considerable overtime at penal rates had to be worked, as much of the plant had to operate continuously. As a set-off against the increase in cost Df manufacture there was a reduction of £9700 in other costs. Depreciation was down by £870, due to the lesser amount an which statutory depreciation was allowed. Interest on the perpetual debenture stock showed a reduction of £6770 ;aused by the statutory reduction of interest from 5 per cent to 31 per cent. War Effort Supported Subscriptions to the compulsory war loan totalled £36,140, of which £7000 had been paid the previous year and Elo.ooo had been contributed to the volunl oa P; Government stock worth EoOOO had been sold, £7500 had been taken jp in income tax certificates, and £20.374 *orth of perpetual debenture stock had seen redeemed.

Mr. Larner reviewed the steps, details of which have been published, leading up to the reduction in interest on perpetual debenture stock from 5 per cent to 31 per cent, free of income tax. dating from Aprl1 * h 1941, which relief had to be accepted In accordance with the Act. Reference was made by the chairman i°..» c. co ™P an y's action in leasing its Pitt Street premises to the Emergency Precautions Service; to the retirement of Mr. James Lowe, engineer and general manager, after 34 years with the company; and to the appointment of Mr. Rupert Worley, late borough enginew of Harnili° n - a ,s business manager and of Mr. G. h. Collins as engineer. The report and balance sheet (published on February 6) were adopted, including the recommendation for payment of a final dividend of 2U per cent, making 4 per cent for the year, unchanged. Mr Larner and Mr. J. A. Peacock, the retiring director, were re-elected upopposed.