WELLINGTON GAS CO.

Dominion, Volume 5, Issue 1363, 14 February 1912, Page 6

WELLINGTON GAS CO.

ANNUAL MEETING.

The annual meeting of the Wellington Gas Company was held in the Chamber of Commerce at noon yesterday, Air. D. J. Nathan (chairman of directors) presiding. In moving the adoption of the report and balance sheet (published in yesterday's Dominion-) Mr.- Nathan took occasion lo congratulate shareholders on Ihe satisfactory resulls of the vcar's working. Owing to (he existing works oeing pressed to their fullest productive capacity in tlio winter time, no very special attempt had been made to push business, but nevertheless the growth of the gas sales had been satisfactory, the increase amounting to 5 2-3 per cent. The amount of gas manufactured during the year was 324,!55,000 cubic feel, of which the henvicst day's make was 1,204.000 feel. The number of new connections made was 717, while SGO chains of new mains had been laid and the reticulation of Soatoini and Worser Bav had been completed. The policy of the company in encouraging the use of gas for cook*ing had again been successful—732 gascooking stoves having been fixed during (he year. As he had pointed out O last year, flic directors had decided to erect new works at Miramnr, utilising the system of vertical retorts having a capacity of three-quarters of a million cubic feet of gas per day. It was hoped that these new works would have been sufficiently advanced to be producing gas by the oiul of next mouth, in time, for tho winter season, but. consequent upon the shipping strikes and other labour difficulties in Great Britain it seemed as if there would be a delay of fully three mouths.

To find money for tho new works and to pay off- the ,£50,1)00 worth of debentures falling due oii .Tune 12 next the shareholders sanctioned in August last tho issue of 75,000 preference shares of -El each. These were offered tu shareholders and G0.751 shares had been allotted, producing a small premium on .shares tendered for-in excess of tho«o----to which individual holders were entitled. shares were retained to enable shareholders residing in Great Britaiji and elsewhere at a distance, to apply for them, and the applications would close tho day after to-morrow. The shareholders would Ire pleased to learn that 3G employees of the company applied for, and were allotted, lid" preference shares, and on a comparison of the present and last year's balance-sheet they would notice that the number of fully-paid .£lO shares had been increased by 175 shares due to the completion of tho payments by employees on the shares to which they were contributing by weekly or monthly payments. The directors were satisfied that it was to the interest of the company that as many of its employees as possible should bo encouraged to become shareholders.

The value of the land, buildings, plant, mains,. motors, etc., appeared this year as J!3GG,9SG, as compared with ,£320,80G last year, an increase of ,£(3,180, 0 f which ,£33,485 was due to the erection of works at Miramar, and ,£9695 to new mains, etc. A sum of .£6570 had been expended, out of revenue on extensions and repairs, and full allowances had bfen made for depreciation of stocks. The half-yearly dividend on the ordinary shares recommended would absorb «£9-'7(i leaving ,C2I,2GG to be carried forward" to next year. In last year's speech he had stated that the policy of the directors in view of the largo increase in capital was to carry forward each year a large sum if possible, approximating to the amount of the yearly dividend. At the risk of repeating himself, he asked shareholders to liear in mind that whilst in 1906 the dividends and interest charges amounted to only JU5.300, this year they amounted to .£21,100, and they would be increased by somo .£SOOO during the current year. It must l>e some time before the' newworks and main extensions were fully remunerative, and lit was in their best interest that the finances of the company should be kept: in as strong a position as possible. The company, with the money it-had in hand and the calls coming in on shares, would have the funds available to pay off the deventures when they matured four months hence, and the shareholders would then be in the strong position of not having any encumbrances on their property. If tho adoption of the report and balance-sheet was carried it would confirm I lie action of the directors in paying an interim dividend of 5 per ci'nt. in August last, and provide that a further dividend of 5 per cent, bo nowmade on the paid-up ordinary share capital. Br. ('.. V Knight, seconded the motion. Mr. (..'. M. Kebbell congratulated the directors upon the report, and, in doiiv; so, made a comparison between the working of the Napier Gas Co. (based on last, year's figures), and the Wellington Gas Company, in which he advanced figures showing that the Napier Gas Com'pany sold gas at ss. |>er 1.000 feet and paid 15 per cent., while the Wellington Company charged ss. sd. and paid 10 per cent. He thought that there must, he something wrong, and that the Wellington Gas Company was making a great quantity of gas at an enormous cost. lie confessed that ho could not understand the great differences between the results of the two companies' working.

The chairman remarked that' without sonic of the figures to which Mr. Kobbell hail referred before, him, he could not deal with his criticisms. Mr. Kobbell's remarks always Rave a spice to annual meetings. If, however, anyone was in doubt us to the Rood management of lire works and the undertaking a« a whole, he could be assured that everything was working satisfactorily. Mcs»rs. D. Andf-rf.in and 11. Honuehamp fill- retiring director-) were rr-elecled, ,ind Mc.-srs. Wilberfoss and Walking were re-appointed auditors,