WELLINGTON GAS CO.

Dominion, Volume 34, Issue 118, 12 February 1941, Page 3

WELLINGTON GAS CO.

Increase In Taxation MIRAMAR EXTENSIONS “Taxation payable by the company has been increased from 10/1 to 12/1 in the £1 and this increase applies to the previous year, 1939,” said Dr. C. Prendergast Knight, chairman of directors of the Wellington Gas Company, Ltd., in his address to shareholders at the annual general, /meeting yesterday. “It has therefore been necessary in this year’s accounts to make provision for the extra tax for the year 1939, as well as the tax at the increased rate for the year just concluded. Provision for this taxation is included with amounts owing by the company. The increase for rates, taxation and licences for the past year amounted to £9714. “It will therefore be seen that the Government is in reality the largest shareholder, and receives a greater amount in taxation than is paid to the shareholder. It should be emphasized that the present heavy taxation and increased costs may affect the ability of the company to maintain the rate of dividend to which shareholders have become accustomed. “There can be no valid reason for objection to necessary taxation, specially in war time, but it is a matter of serious concern to all gas companies, and it is very unfair that they should be. subject to heavy taxes from which electrical undertakings operating in the same territory are exempt. “Our policyi of making adequate provision for depreciation on plant has been continued.' The amount written off for the past year, £20.100. is.on the new scale allowed by the Income Tax Department. The plant has been maintained in firstclass condition. Record Gas Consumption. In his review of the accounts, the chairman said the results for the year ended December 31 had been satisfactory. The increase in the gas consumption for the year established a record in the history of the company. The increase for the past two years equalled the total sale of gas in the year 1901 after the company had operated for 30 years. The revenue of £307,952 was £19,540 , greater than for the previous year and this increase had very nearly, but not quite, enabled them to meet the greatlyincreased taxation and extra cost of materials and labour. The wages paid by the company for the past year amounted to £84,305. i , To provide for the increased demand for gas, it was essential to extend the carbonizing plant at Miramar, and this would involve further heavy capital expenditure. The gas equipment provided by the company for the kitchen and restaurant services at the Exhibition proved a most satisfactory installation, and the contractors widely praised the economical working and suitability of the new type of appliances. The sales of gas as a whole were progressing steadily, and the company had continued its policy of making available to consumers modern domestic gas appliances, together with commercial industrial equipment, at the lowest prices. Reserve Coal Stocks.

The directors recommended the usual dividend of 4 per cent, for the last half of the year. After payment of the year’s dividend of S per cent, on the ordinary shares and 5 per cent, on the preference shares, the carry forward balance was £14,851, which was somewhat less than for the previous year. The present abnormal credit at the bank, £20,892, was entirely due to the reduced coal stock. During the year 49,000 tons of coal was carbonized, and the quantity received was 35,000 tons. It was therefore necessary to draw on the reserve stock to the extent of 14,000 tons. The policy of the company had always been to provide a reserve stock of coal equal to six months’ requirements, and last year’s experience demonstrated the necessity for these stocks of the main raw material for gas manufacture. Staff Benefits.

The superannuation scheme had 192 members, with a total life cover of £152,515. The cost to the company since its inception had been £37,046, and the employees had paid u similar amouut. The total claims numbered 48, aud the amount paid to date was £24,393. The Sick Benefit Society had 151 members. The cost to the company for the year was £235, and the employees contributed a like amount. The payments for sickness amounted to £360. The funds of the society 7 now in hand amounted to £1099.

Fifty-two employees had loyally joined up for military service, and a number were now on active service overseas. The directors had agreed to pay the full contributions for the superannuation of employees who had joined His Majesty's forces, aud their best wishes follow them wherever they might be called upon to serve.

The company was giving full co-opera-tion to the emergency precautions scheme of the city council, and a course of training for employees was in progress. The directors acknowledged the efficient and loyal service rendered by the executive officers and all employees. The whole-hearted co-operation of the entire staff which was essential to a company rendering general service to the public, had been shown at all times. The chairman referred to the loss to the company caused by the untimely death in October of Mr. A. L. Warburton, who had been a director for 20 years. Mr. Warburton, together with the late Mr. Gerald Fitzgerald, was mainly responsible for carrying out the negotiations' to establish the company’s superannuation scheme in 1926.

Mr. W. 8. Wheeler, who bad been appointed to'lill the vacancy on the board, had had a wide commercial experience, aud the company was fortunate to have his services. His father was a director 47 years ago.The retiring directors, Dr. C. Prendergast Knight and Mr. G. F. Pearce, were re-elected. Messrs. H. A. Gold and E. R. Dymock were reappointed auditors. The report and balance-sheet and the dividend recommendation were adopted. A vote of thanks to the staff was passed. Southland Frozen Meat Co. The Southland Frozen Meat Co., Ltd., has advised the Stock Exchange Association that a final dividend of Bd. a share on the preference and ordinary shares is payable on March 1. The transfer register will be closed from February 20 to 26, both days inclusive.