PROPOSED NEW GAS COMPANY.

Evening Post, Volume XXII, Issue 147, 23 December 1881, Page 2

PROPOSED NEW GAS COMPANY.

A meeting was held at the Empire Hotel last night to consider the advisableness of forming a new gag company on the mutual principle. Mr. W. Clark was voted to the chair. Mr. E. J. Upham, one of the promoters, stated that he had thoroughly felt the pulse of the public, and on all hands had been promised support. He submitted a prospectus of the proposed company in which it was proposed that the oapital should be £40,000, in £ 1 shares, and that gas should be supplied to the public at 7s per 1000 cubic feet, instead of 10a 6d as at present, while it waa further proposed that no charge should be made for the meters. Figures were submitted to show that gas could be supplied at the price named, and a diviaend of ]2J per cent, paid to the shareholders. Mr. Upham stated that he could float about 10,000 Bharea^in Wellington alone, and he had friend* who would be able to place shares in Dunedin and elsewhere. He mentioned that the existing company were compelled by law to apply any balance of profit, after paying a dividend of 15 per cent., to a reduction in the price of gas, and alleged that, so very careful were the company not to come under this prevision, they only paid a dividend of about 12$ per cent., the extra profits being capitalised in buildings, <Sfcc. He (Mr. Upham) on behalf of the consumers of Wellington asked them to band themselves together and stand up against this monopoly. Mr. M. L. Marks pointed out th*t in London, where coal was almost as dear as in Wellington, the price of gas was on'y 3s. 6d. per thousand ; in Auckland, where coal was much dearer than in Wellington, being 35s per ton, gas was only 8s 4d per 1000, and a dividend of 15 per cent, was paid. In Melbourne the price was 7s per 1000. He was prepared to say that 10,000 shares would be taken in "Wellington, and he could float another 5000 in Canterbury and Dunedin. In Wellington the price was really 15s per 1000, unless the amoui t due was paid within 14 daya after the delivery of the account, when it was reduced to. LOs Gi. He then moved that a committee bd appointed to examine the proposed prospectus, and to ascertain the correctness of the data therein contained, the said committee to report to a general meeting to be held on sth Janu try. Mr. Hendrey seconded the motion, and stated that for Borne four years he was manager and part owner of gasworks in Swelen, where they found 6s per 1000 yield a handsome profit. He stated that it was a carious fact that in England no director of a gas company was ever known voluntarily to re3ign his directorship, although the remuneration was, nominally, only about .£IOO per year. As an explanation of this circumstance, he mentioned that in order that the profits should not exceed the statntory amount, the directors took the various contracts in turns, one supplying the coals, another Jajing additional mains, and so on. The resolution was t'aen carried, and the following gentlemen appointed as the committee: — Mes3r3. Clark, Hendrey, Hunt, Marchant, Dw.in, Steel, Aldous, Sample, and M. L. Marks. Mr. Hunt moved, M-. Dwan seconded, and it wa« carried, " That, in the interval between the two meetings, a thorough canvass of the city be made to ascertain the number of shares which can be placed upon the city, and that Messrs. Upham and Marks be requested to undertake such duties, and that they be authorised to obtain such assistance as they may think necessary." Totes of thanks having been carried to the Chairman and the Press, the proseeding* terminated.