FEILDING GAS CO., LTD.

Dominion, Volume 1, Issue 216, 5 June 1908, Page 10

FEILDING GAS CO., LTD.

ANNUAL' MEETING. The tenth annual general meeting of shareholders in tlio Feilding Gas Company, Ltd., was hold last night, Mr. J. 51. Richardson being in tlio choir. • Tlio directors, in submitting tlio report and balance-shoot for tho year ending February 29, 1008, stated that they wcro happy to' bo ablo to state that tlio Court of Appeal had dccided in favour of tlio company in all points in tho caso brought against it by tho Corporation, and judgment had been entered in favour of tho company with costs on tho highest scale. Tho balance-sheet showed that the company had had a satisfactory year, the balance to credit of profit and loss, after making adequate provision for depreciation and bad debts being £936 3s. 2d. Tlio profits earned would, in ordinary circumstances, justify the payment of a dividend, but owing to the possibility of having to provide for the costs of an appeal to tho I'rivy Council, tho directors considered it necessary to maintain a strong finance, and therefore did not recommend that a dividend bo paid. The chairman, in moving tho adoption of tho report and balance-sheet, referred to the law-suit between tho company and tho corporation. Tho corporation had, ho said, the right to buy tho works under the agreement upon lines laid down therein which at the timo tho agreement was made were considered fair to both sides. It liad, however, allowed tho time to expire, and then raised the question of ultra vires. Tho directors had made every effort to avoid litigation, but tho price olfered by the corporation for tho works was too ridiculous to lay before tho shareholders. Throughout, the company had kept to its' agreement. From timo to time it had reduced the price of gas, despito increases in wage rates and tho prico of coal. As soon as tho writ was issued, tho bankers called up their debentures and overdraft, and the documents relating to a shipment of mains for extension purposes bought at 90 days, sight were rofused, except for cash, which Was' supplied by members of the board. The case having now been decided, tho board anticipated no difficulty in arranging their finances and' raising the necessary funds, and, when it could, be shown that-a reasonable return could .be earned upon an' outlay, tlio board would not hesitate to extend the mains, and even anticipate requirements. It must bo remembered, however, that, in ton years' time, the corporation . would again have tho right to purchase the works at cost prico. He moved tho adoption of the report and balance-sheet. Mr. j. J. Williamson seconded the motion. The chairman, at this-stage, read a report on the works by Mr. Uircli (consulting ongineer to the company), who expressed appreciation of the manner in which the manager was carrying out his duties. Tho plant, which had been overhauled, was, he said, now in excellent condition.

Colonel Gorton, of Bulls, stated that" he had come down from Feilding specially; to attend the meeting. Looking at tho history of'tho company since its formation, and comparing it with other gas companies, the Feilding. company came no-whero near the top. Ho attributed this in a great measuro to tho fact that thoro wore no shareholders in Feilding. Now was the time to enlist tho interest of residents. There could' le no doubt but that at-one time bad work had been done. Before the board in connection with tho Palmerston North works was located in that town £5 shares, upon which £3 10s. had been paid up, could , do bought foT £2 12s. 6d.y now £5 shares on which £4 10s. had been paid were quoted at';jC7 2s. 6d. If there was to he an increase -in capital, ho hoped that tho now issue would be available for a given time to the Feilding people alone. 1 Ho had not come down to find fault with tlio directors; they had pcrforihed

their duties .creditably. chairman, ill reply, asked whether thoro was a company of the same dimensions which had done,better. No one had endeavoured more than lie had to got the Feilding. residents to take an ' interest, iq. the cotripa'ny. ' On several occasions, since, he had told thorn that ho would like to seo two residents on the ■ directorate. ' Tho Palmerston North people had their troubles too. . .They began to. move aliead when the town commenced to expand; Aud'that ; .was the. position at Feilding now. ' Mr. C. Smith .said that lie believed the Board should bo in Feilding. _i Mr. Von Haast was of opinion that some of the directors should bo residonts'of Folding. : Hon. Dr. Collins, M.L.C., declared ho woul dliko to seo Colonel Gorton on tho directorate. . Tho retiring directors, Messrs. C. Smith and J. J. Williamson, were re-elected. -t was also resolved that tho number of directors should bo increased from five to six, and Colonel Gorton, who; was recommended -by the directors, was appointed to fill tho vacancy. 1 ' Tho retiring auditors, Messrs. Henry Kemher and Son, having been re-olected, tho meeting concluded with a hearty vote cf thanks to the directors and staff for their, services during tho past year., •