WELLINGTON GAS COMPANY.

Dominion, Volume 1, Issue 112, 4 February 1908, Page 5

WELLINGTON GAS COMPANY.

''ANNUAL. MEETING.

THE PRICE OF GAS. MR. FERGUSON'S APPOINTMENT . DISCUSSED The- anmial meeting of the -Wellington Gas : Company was'held at tho Chamber of Commerce yesterday, Mr.-D. J. Nathan (Chairman- of Directors) presiding. Thcro wa3 a fair attendance of shareholders. THE PRESIDENT'S ADDRESS. - I Thc- ; report>and balance sheet havo.already boon published in In moving their adoption the Chairman; said:— ' ' The past: year has been the very best so . far in. the. history of.'.the'.Company,;from 'the , point ;of>view of net profit, .output- .of- gas,--ftnd- sales in all departments; and from 'prc-sent-'appearariqes I ,'think : . we.farc' warraritetl •.' r i^-'sUtjngvthot for the com- •, ing year aro; eqiial to |tßose of -the. year just. - closed; The net ' profits for the'-year., exceed those of-last.vear l)y-the-sum of £7609, and I might; add that''had-we ~received ..the qiialitv or coal equal to that deliveredvto us in 1005' and 1906, the result would have hcon fully £2500 bettor. J am. sorry to say that, tho quality of the coal useil this year, gave a less' return -of gas per ton than the, previous year, - and-tho previous -year a lesser return' than the, one proeeding.r You will note that tho expondituro has .materially increased.- This • was.'naturally.'to tie; expected on . of the --growth of business, , and later on I shall point out-.to you : the stops;the directors propose tp' 'tako. to • provide for tlid • continuous, and regular growth- of the business, for-our • statistics-'shott - the".time has now- arrived wlion: you-musf'tako steps ,to :increase tlio size of your works -to 'cope with the increased' and increasing demand. • ,; 'INCREASE IN TRADE. ■ In addition to having a larger output of (us and products Ihan'm any previous year, wo, havo expenencod an. increased-demand for; stoves; ranges, .and. other goods that we manufacture. and handle, and tho injreased trado is spread over the whole of our, departments;- most notable, though/ is the satisfactory increase. in our by-products which, total £1828-more than for the^previous year. 1.. particularly;"draw your 'attention.; to the increase in the amount- of property and plant -account, of-£14,340. This, increase has not been exceeded in 1 , aiiy year, during the last decade excepting IMS, but this year it has taken us" all our time, with our present --appliances/ to cope with .'the ' demand for 'newiservices, and extensions- have been made at Hataitai, Melrose; and, Northland. Our expenditure on mains aloiio dur-mg-this: year has reached the sum of. £8322, and wo yet- find tlio demand for fresh sorvicos unsatishcd. Tho increased quantity of ga smade this year is 13.24 per;cent, over . that ofi the previous year: The number of laid was over 1100; the number (if , , cookers sold was 537; tho l number: of work dockets.issued was.upwards of 6-500.

PRICE''OP GAS ' Irijicw of; tho'-lirgeiicyi; aiicf tho 1 a expenditure before'us; the ifoard does not iieem it any; reduction -in theprico■ of;, gas.-;; The?prudence,of..this .course must,. :, I- think, - bo J obvious :■ to. - you. 1 , Tho ; TV or ksha y o v beeu^mairitain'ed'-.'during tjife year and "all • replacements" paid ' out' of' revenue. iou iwill' have noticed-from tho Mayor's, marks lately miade, that the;municipal electric .;light'. ivorks«;are:,also;iiprogressing at-'a satisfactory irate.:' ■ .This,; need .riot .cause. us anyarixiet.y as ..vfe; are prospering' with the' growth of Wellington. 1 Our average increase during N tlie last five yearsTis over 10• per.'cent. This; last/year it r-is- - tl-3' P&- cent,-;-;so '.that-iMs quite: plain to shareholders .that; if,-Wellington main tains - its present^-rateof; growtli/:iii;six ; : we; must ha ye.; works capable of'turning' out nnuplp ; ; the'quantity of gjis'''that wo are iiow laSt Tlie Board s&)it Mr;' Birch tp'-Loncloii' 'for'tHe. ])iirP?? n .- ?J; consulting^oiie. of : the' niost' ieixiincri't gas' engineers available.' Mr;. Birch pkcil himself- in the hai'ids of Mr. Corbet Woodal), .Ti'hosa - reputation" af;snpp6s6,"-vjs' second to none in expe'rtUn a ® pleased to state ;that Mr. , Woodall -hiis 'fully'>confirmcd''all Mr'.- Bitch's' reports; ahd' : recbmmendafibns; : Mr? Bifch' 'ii • Doy.. "preparing'.'a ; .'-f»i]l for ; 'th«: Board as to .his .reebnimehdat-ibns for- tho immediate - arid; distant future;- - Thb- first axU rises,Vaijd;\which; th'rf \Board lias- ■a"dpptcd;'.is the" ordering of' a': ]argb ; ,gasbmeter' to -h*oldone.'and .a; h a If' nj ill ion ■ f cct. : n y moment wo ■ "'ay hear, that, this gasometer -te' ready ' for shipment,- and:we<"h6po' : 'toYliave;' it in use before this time'iloxt year; • Tho cost of this,' 'Wellington;''"will " be : . within tho noighbourhopd'o t hia'ehinery atuTplant were -ordered'.at'ther saniel time, w that we anticipate, being able to'gopow'it-h the incr'eaa'd- consumption' during the next two - or.three; -years,; .but .:we' reallv' cannot . coiitniue 'beyQnfl ; ; 1910 or. 1911 without the extra facilities for manufacturing:; a greater quantity; , " .. j : -. ', ;•

A NEW SITE •/ when .Mr.,-Birch left here, that' the present area of land was inadequate for the. extension of :.tho, manufacturing plant, ' the, directors ;set to work to find another site tnar. rtoukl bo equal; to.the. demands of Wo]iington tor all time, and, at the same time, carry .nitli- it thequalities necessary. ;/or economical, manufacturing. Tho - first si to fixed ujwiL. by your- Board. was the I'ateiit, blip,-but, after months ot negotiation and - mucii. wpny and-anxiety, tho. Board had to . refuse,.to,.contimio the negotiations on account ot tho.legall. difficulties, involved. . Wo tiu'ii tripd iviiliii-nit- and other localities, .butcould .not■ find ■ a sito that would 'answer the whole •;oKoiir:'. purposes as well, we think; ss tn.o land .we. eventually, securedi.at Mir'a-, V ur -;f, ei ?spii • Wr hot. at first;.going, to.' ri )i D ®r v ? s , that tho company possesses no legal-.powers: to. enter ; that 'boro'ugli, and, '' irom.-past experience, :tbe directors know- the • i J ro , übioubioyand , expense,' to, bo .facM.-.when'v.at- . tempting to, got proper legal rights! :. 7"no ; ' directors at. the' beginning, attempted 'to' se-' curo.an option'over soino twelve acres of lirid at'Miramar so that they could not be forced to purchaso until they had secured the neces- > - of .-Parliament; ; Unfortunately,-the option could not ho obtained, and we; had to buy the land. or -loso. the: Opportunity then i. presented., . We Jiavd, bought 'fourteen acres of .land' at a 'cost,'of; £§922, arid from whati tho Board, can gather "from Mr. Birch', and Mi-., ford (who ton]c Mr., Birch's placo .when be lvas away) ,' andi-nports from : othor' expcrts. it should-prove an ideal site, , providing we get'; as. we anticipate,'wharfage accommo- ' , ) iltl " 1 , I ', an(l - a tunnel through thc.hiil. The ■lj !,ar d .basJiad protracted negotiations' with 1 the. Jliramar liprotigli Council -to secure: full legal rights for the, inaiji that would'link tip the. now works- at. Jliramar"with' the. town' : supply, and also for the supply of gas to the ratepayers at Mii-amar. . Lnfortunately,'-tht> have been futile*, and- nothing ' -has' eventuated; .The Board," thinking that . tho terms -insisted' upon; by; the, Jliramar Borough wero harsh,'and in some.cases'un-worka-blo, terminated the' negotiations. ''.; Finding ourselves in this jihpassc, - tho Board approached' the Government, laying '. their. . case before themj and a cla'uso"'in I,lio Be- . servos and Other Lands Disposal'and/Public; Bodies -Empowering-Art was- passed- giving iho Uxsciitivo power'to grant l us tho right to lay pipes undor.. .the. road, so/that we.'could make tho nccessary .connection ' between the two .works. Sinco this Act was passcd'l li'avo seen tho'Mayor of Miramar;''Mr. ; : Crawford, ' and ;I understand '-from him 'that .thero will bo no opposition'to tlio laying of the main', but. as' to tho reticulation- of i\liramar and tho supplying 'of gas in the borough nothing so' far has-keen done.'; At the' same time, the; directors .'aroiquite willing to supply the borough w*ith gas 011 the same terms as they • supply the; city of Wellingfen or any of the otitsido boroughs. ' Theso negotiations have . taken up an iinmensei amount of. time, not ■only of-tho Executive'officers, but of tho Board.: and' especially of - Mr., -Biaucli'atup and myself,' and account for so much of tho abrior'nial.expenses wo have incurred this year. I can'as'suro tho'rnceting that : it'has ; been a most anxious and trying time, and. .we have dono. our very best in tho interests , of ■ tho shareholders, ai>d : I do hope that the Order in; Council, we have- now applied -for will

shortly.bo in our hands. It is proposed,to erect tlio new gasometer at ill iramar, ami? gradually to build new works there during tlio course, of the next three years..;' Tlio board quite expects, when the new •' works. aro completed, that-we shall havo one of- tlio most uprtp : date,. if.'not the most, up-to-date, works in the Dominion.' and'bo:able to pro-: duco our gas cheaper tlian Me aro now doing in Courtciiay. IMace.; evolution-and cheapening-in the Course of.manufacture. of - gas has be«ri great , during the last few years; and I do not think we' are; optimistic in stating' that' there .is- an opportunity, of..our .turning: out.'fcas at. a.muchr cheaper rato: than we can possibly hope to do in our present'congested, site.: ■ . SALE OF!THEiI'EESBNT ,SITES. . -;i t It must be apparent: to shareholders that when the works: are completed at. Miramar, we shall have available for sale or lease largo' blocks of land, part of the sites of our pre-, sent • works. ■ Tho result of tho sale of this land would go a long way towards paying tho cost of the new works, and, (Considering, the rates and taxes now current in tho city of Wellington, tho value of/land,'- and tlio impossibility of increasing the sizo of the present , works, , tho policy of moving ' the works fronv tho city appears to be the right"and only cto pursue. MR. FERGUSON . -The .work;in the office is,of an.important charactcr,' and in-the' near future will bo'still of .'aC mora character,-''and one. in-'rolvihgi-tne;control of,'very;large.-sums.-of money.- :lt- is therofore impossible for any" lio'i!',.! comprised; ot busy business men to contimie- to .'dv.voti as liiiich tiine.'to the de- • f-ail' of tho business as they -havo beoii called upon to do during tire last, 18 'months,.-so--that' the Board "decided to. appoint- Mr. FerI gnson to-tho. jjosition ot, general manager. I-Mr., Kelliwell will rcmifin .is '-c r(nry;-and ■ Mr. .BirchViU ' With tho larg? expcncjiwir; l -' in .-front; of. .I!*,'-and thostrong necessity tliat organisation, wq-think -tho shareholders arc to be congratulated ..on .securing Mr. 'lerguson's'-ser-vices; - \ . -V- ' ■'■ ;■,, ■ . INCREASE IN CAPITAL. ■Tho expenditure for tho coming seal, 1 as far as"the Board can see at the present moment, including -new' works, will he; upwards of £70,000, and when the' Board havp before thorn the fuller report- ■• from. Mr. Birch, a specialy.nieet.ing of "slmrqlKildors■' will he ■called and resolutions submitted,' regarding increasing'the capital. The, present. intention of the Board is to propose to issue; to each -shareholder" one' £10 share for every two lie at present holds, at a premium 'of £5; • making calls, on • these ,extending .over at least-twelve months, and- at the same time giving shareholders the opportunity, of paying, up immediately under a rebate, and participating in{ dividends.. The Chairman con r eluded after a complimentary' reference to the staff. (Applause.)

MR. BEAUCHAMP'S REMARKS.' Mr; H; Bfiauchamp : seconded the motion for the adoption. Regarding the matter of the ■ reduction iir the' price of , gas ho, said that' certain factors': mentioned by the chairman had'rendered it desirable that'- the price should riot bo . reduced at. present; . The demand'for gas 'during the' last 12 months had been-as great as they iworc .supply; . and they ;were therefore faced ( with', the 'absolute 'necessity' of. pursuing a • very "activo; forward "polity by deciding tb purchase . additional land and erect modern .works. The land";lmd -been purchased at. Miraiiiar, • and? .nothing 'now' remained hut to commence • the erection' of. the works—such; as : they ;had, forinstance^; in' the city of. 'Auckland.-", He had ; visit-ed ' those'; works '' recently; ■ and 'he had seeiii- hono' 1 more, complote: for their "■ size .in t!\o ;soutliern' hernispfiere;.' With the experience ' gained -by Mr. Bifch : 'they'-'should • have .as gbotl'.or.perhaps slightly better/ Ho je- ; ferred to tho difficulties vi'itli tlio'Jlivamar Borough, and hoped that' at Ja'st they' had heeti'' overcome.'' The cause ' had. been . that' 'the Mayor of MiramarV.liad wanted theni- to enter;into-an'agreement to reticulate Miramar, including Seatbiin; ' Had they done..that ,th'ey-''\vbuldlhavo'invest.'edi'a'great amoiiiit of, capital.;bn':'particnlarly' plant'; and.''thej".'ivoiild have'.be'eh'"failirig -in '■their dutK?to'y-thiff";sKafcholdcrs;.'.''.'lt!.«)?'s only 'at. the.eloyenth hour that' they 'had invoked/.tlic 'aid"- : bf Prbinier',",;/aiid''t;lio';-claiise''in: the ".Wnking-up'' -Bill. bf-,.last- session.;had-'re-sulted. . He .approved the,. suggested financial -.arrangements ,for the fiitnrp,"and,/a's far as', hp; could see,''tlioy woiild ; have ' lio .'difficulty' After; anticipating ;a' dividend of 10; per centi'pei- annumj; of providing out of ■ the profits a,substantial sum' towards itho cost of tlio.iicvr works. ' . • ....

' . SOME CRITICISM. 1 : r 'Mr. Gr. - M'.'-Kobbell,'' shareholder," qu'estiotfed the .Company- was not .likely, to be -over-officered, - and .whether they. could afford it.,: They ; had n" secretary, • and an engineer, and a', consulting •. engineer- iii - London,"and .'now they would have Mr.Forguson as 'general, manager, with-a- salary, of £1500 a / year, .with' the.. right of.; private practice, arid a at, the end;6f'five years ''not 'Sb?'.,. v .~ /'. • ;Tlie . ChairmanYour-j statement ,is ; not correct.. \ ' ■• > l ,Mr. Kebbell. said the papers said tlio salary was to be;£lsoo a year..,• ■ '-. The; Chairman replied that the .salary was correctly: stated; but.:,he - would answer later. Mr!ilyebbell:. Then what is,tho term of his employment? There.:could lie only-oiio wise man in tho bargain. They, must have been erriiig 011 the soft side,' and he ■ suggested 1 thev wcre:a side show of the Harbour. BoardHo- went on to argu'o-that gas should be.reduced." in ..-price.! •In the; past .two years they had paid.'lo per cent, dividend, and something. like £10,000-in repairs, and. nearly £20,000, in: extension- work. AVas it wise to expend that .amount?.' Could they not .give the •consumers a little of the benefits ? Gas at Napier was sold 10d;, a : thousand- feet cheaper than here, though finore , had to : he jiaid forcoal. There was nothing to prevent us..' being charged,.and-'still; a large profit he made. If that were .done,; lie believed they would b'o unable to supply tho demand that would result. Had the engineer Neglected to givo the directors information'.that the worlc-a would not be able to keep ahead of. the times, or was ,it that the directors had been neglectful? The, extensions- should • have been carried out: :two or ; three, years, previously. .They-should,not have-been run as close as thoy were; He also.argued that it .was'time that unpaid; capital'was! called up, and tho £5 . shares reaped Hhe-benefit of it.'' • '

! .THE CHAIRMAN'S REPLY. , The Chairman.replied at;,somo length. At ovcry . of; tne Company, .without, exception,' be said,' they'always.:had .Sir. .Kebbell's speech, and it was tho same' that they had jiist lieatd. to grasp the ! practical: requirements, of the ..present. It' was not : the ;engineer's fault, nor tho Board's fault, ho proceeded, .'that the ; works ! were not 'extended -years ago. For the last seven years there; had been a> strong feeling •that the work's -should lie . bought .'by the municipality.' The Board; had-liad to consider. that,. It would have, been absurd .to put up new; works ,if there liad: feecii aiiy •jioSsibilityfof th 6; Corporation buying; The; last year,' however,-, had seemed to coiivinco the' directors .that'.there..,was-.no possibility of the acquircmeiit taking place.' Further be' showed that - they; criukl cope with this, normal increase ,'of.D; to 10 per. cent;, hut not with il3 per. cent./and .they had, therefore, to provide for. j.t. There was no blame attachable to tho engineer''nor'to the. Board. What he desired to emphasise was the'great increase 'in the demand. calling up tho sliaros, tho Board cqvild not, sec ,their way to do this.' Thoy had to lceop some security, against: tho liability of the • debentureholders" at Homo. ; These debentures were not' duo; until; .1012, and when that time arrived • no doubt' , the. suggestion of Mi\ Kebbell, wpuld . be , acted upon. All they could do was'to follow the policy laid down by thoir predecessors,- and keep the security of thoir. debentures intact. As. to tho price of gas, no comparison .could bo mado between - Wellington and other centred. No company was. up against electric light: (Hear; hear.) In;'tho' competition that liad gone 011 they had; reduced tho cost of putting. ■ light;'.through.-a';.building to, tho saino price.- as. the electric light connections, in order ; to secure- buildings. This had cost tlieni from £3000 to £5000, but' in tlio end the. policy had paid them 'handsomely. They intendefl to continuo it. If they reduced the price of . gas as suggested thev would .give awaj; 'another £6000 a year, and they could see.*;from,', their balance-sheet- • what : they

could do. They could not allow the two concessions. ■ Ho also mentioned tho extra cost of coal owing to its deterioration in gasmaking qualities. As to .Mr. Ferguson, tlio Company had engaged him as manager, hut ho liail no right- of private practice. For twelve, months they had been looking for a geiiei'iil malinger such as .Mr. Ferguson. Tlio time of'the officers of the Company was fully occupied, and ho and some of . his colleagues on the. directorate were not prepared to devote as much time to affairs as they had done. Someone was required to (alee, the responsibility of management off Vim shoulders of the i3oard. The Company was to he more thai; congratulated on securing Mr. Ferguson. (Hear, hear.) Tie thought Mr. Kebbel! was quite wrong in his q'flliteutions. He suggested that there were waVs iu which Mr. Ferguson's salary could be iiiOr'fi than made up; but of these matters lie could not spoak just then. „ -••Mr.' Kohbell said that Mr'.' Ferguson was to'-bo. consulting engineer to tlio Harbour Board. •

:aTli6 Chairman replied that this had , dbup-in tlio interests of the citizens of Wellington, though it > was -against their policy. (Hear, hear.) He felt suro the shareholders wei'e.with them. '■' ■ / ' - ; ELECTIONS. ■'..Messrs. D. Anderson, J. Barry, and H. lieauohanip, who retired by rotation! were re-elccted directors, '- and Messrs. 0. S. Watkins and R". AVilberforce auditors. : Mr. M. lirowii. 1 on' behalf of snareliolders, moved a vote of thanks to tho directors and .staff; arid' spoke, in a congratulatory spirit of, Mr. "Ferguson's appointment. Mr. Nathan replied l on behalf of tlio directors, aud;j\lr. Helliwell (secretary) for the staff.