A SOUND POSITION

Dominion, Volume 28, Issue 113, 6 February 1935, Page 12

A SOUND POSITION

Wellington Gas Company, Ltd. DIVIDEND MAINTAINED j\t the annual general meeting of the Wellington Gas Company, Ltd., yesterday. Sir Harold Beauchamp, chairman of’directors, in moving the adoption of the report and bnlnm’S-sheet (a summary of which was printed in this column on January 16), said the board was pleased to be in a position to recommend a dividend of 4 per cent, for the last half of the company’s year, and with the interim dividend of 4 per cent, paid m August last this would give shareholders a return of S per cent, for the full year, and permit the carrying forward ot £14.769/4/11. . , The debenture redemption fund had been increased by £10.900. the total now being £llO.OOO. The insurance June! had also” been strengthened by £2500. that fund now standing at £15.000. To provide for contingencies, it would be the aim of the board to. .augment that reserve from time to time. . The company’s policy of making adequate provision for depreciation of plant, machinery and buildings had been Continued. The amount written off for the year was £18,301. Increased Gas Sales. It was gratifying to report that the volume of gas sold shows an increase over the preceding year. The popularity of gas was shown by the steady growth of the sales of gas annlinnccs. For the year ended December 31, 1934. the sales were as follows: —Cooking. 1843; waler heating, 659 ; heating. 227 : total. 2729 ; being an increase of 141. over the year U3o. The number of meters in use at the close of the year was 30.436. The increase for the year was 1050. The 12-inch steel main from Kilbirnie to Hall Street, a distance of one mile, had been replaced with cast iron pipes which were manufactured bv the Onakakn Iron and Steel Company. ‘ a New Zealand-owned company With a view to meeting the demands of Consumers wishing to purchase gas in small quantities, the company had added fo the number of pre-payment meters. i . . It had been the policy of the directors to adopt the most modern and efficient plant whenever the need arose. Shareholders could feel assured'that the company’s plant and methods were of the most up-to-date kind, and ranked nigh among the best of similar undertakings in tlie Empire. The first installation nf their present carbonising plant, the vertical retort system, .was erected in 1922. and the second unit of equal size was put into operation in 1921. The results obtained from this system continued to be satisfactory.. The whole of the plant has been maintained m firstclass repair. Employees’ Welfare. In connection with the superannuation scheme, started in ID2G, Sir Harold Beauchamp said there were now 201 employees assured. The total life covered was £104,000. The amount paid by the company for premiums last year was £2599. The board also established’ some years ago a sick and benefit fund. The company subsidised this fund £ for £ contributions from the employees. This enabled members, by paying sixpence per week, to receive £2 weekly for a period of thirteen weeks during illness. The cost to th" company last year was. £237. Both ,of these schemes were working satisfactorily. The total wages paid 'by the company for the .past financial year amounted, to £62.000. . -x * Sir Harold Beauchamp said it must afford shareholder? satisfaction to recall that, during the general decline in the market prices of most company shares, the value of all gas shares was well maintained. The market price ot the company’s shares was higher to-day than at any period in the history of the company. This was an indication'of the esteem in which the shares of the company were held by investors, and was striking evidence of the stability of the company, and of the gas industry. It has been h:s privilege to be a member of the board since September, 1904. a period of over 30 years, which is nearly half the life-time of the company. This was a record, being the longest period of office held' by any director since its inception. When one considered the size of the company when he was first associated with it as a director, as compared with the present operations, one could not but be impressed with the remarkable progress and development that had taken place in the interval, not only in the extended use of gas, but in the growth of the city. In concluding. Sir Harold Beauchamp expressed the directors’ appreciation of the good services rendered to the company 'by their very efficient general manager, Mr. M. J. Kennedy, their engineer, Mr. J. Hungerford, and all the employees who served the company so loyally and efficiently. . . The motion for the adoption of tae accounts was seconded by Dr. 0. Prendergast Knight, and carried unanimously. Directors’ Fees Increased.

Mr. Allan Strang moved’: “That as from January 1, 1934, and until otherwise determined in general meeting, the directors shall be paid out of the funds of the company for their attendance at hoard meetings the sum of £llOO per annum. All such remuneration shall be divided among the said directors as they may determine.” He said the responsibilities of the directors had increased considerably and he congratulated, them on the way they had done their job. The company had continued to pay the same dividend through bad times. The motion ivas seconded by Mr. C. J. B. Norwood, who said the directors had certainly brought the company through very difficult times. Their shares occupied a place on the market alongside giltedged securities. Sir Kenneth Douglas opposed the motion, and contrasted the business of the company with that of other companies, whose directors received much less in the way of fees. He did not see any justification for increasing the lees from £BOO to £llOO. Mr. Id. Booeoek asked if it were true that gas companies were prevented from paving n greater dividend than 8 per cent. He. was of opinion that the dividend should be increased to 10 per cent, before increasing the directors’ remuneration. The chairman said there was no law against a higher dividend, but: there was an understaujling that the dividend would ■not be increased until the company could reduce its charge to (he consumers. That time .was not yet. The motion was carried on a show of hands. Mr. F. Dyer moved: “That in view ot the improved position of the Wellington Gas Company, and the improvement in business generally, the directors will at an early date take into their favourable consideration the restoration of the 10 per cent, cut they were fot'eed to make in the salaries and wages ofjhe staff during the period of depression.” He said lie trusted that the directors would give the proposal sympathetic consideration. Sir Kenneth Douglas, in seconding the motion, said be was surprised that the directors had not. restored the cut be£oie increasing fiicir own remuneration. Mr. R. A. Wright. M.T’.. supported the motion, and said that the directors, if they could not restore the full 10 per cent.. ’ should consider restoring 5 per CPnt - ... , • The motion was carried, the chairman remarking that the directors would gite the matter due consideration. The retiring directors. Dr. C. Prendergast Knight and Mr. A. L. Warburton, were re-elected unopposed. Messrs. 11. A. Bold and K. R. Dynioek were reappointed auditors, their remuneration being increased bv £’io to £‘2oo.

Shareholders in Neou Signs (Asia), Ltd., have decided to increase the nominal capital of the company from £40.01)0 to £lOO.OOO. The directors propose Io issue only 20 000 shares, which will be offered to shareholders at par in the ratio of one share for every two held.