THE GAS YEAR

Evening Post, Volume CXIII, Issue 32, 8 February 1927, Page 10

THE GAS YEAR

SERVING THE SUBURBS

THE WELLINGTON COMPANY

DEARER COAL, CHEAPER GAS

"A year of steady and substantial progress" was the summing up of the Wellington Gas Company's annual report to-day, by the chairman (Sir Harold Beauchamp). In addressing shareholders at the annual meeting, held at the company's office, ho said thai although, as compared with 1925, profits were somewhat smaller, this was due to several increases in the price of coal and reductions in the price of gas—two adverse factors as far as the company was concerned. "As to coal (he said) we have had to face three rises, amounting in all to 3s 7d per ton, which on the year's carbonisation of coal means an additional impost to us of no less than £4000. During the past four years the price of gas has been reduced seven times. These, concessions total 19d per thousand cubic feet, -which broadly indicates a saving to consumers of £35,000 per annum. Notwithstanding the fact that consumers have benefited to that extent, the board has not felt justified in recommending a dividend beyond 8 per cent, per annum, at which it has stood since 1920."

HEAVY CAPITAL OUTLAY.

The company, said the chairman, still had to face a heavy capital expenditure in respect to the reticulation of Karori, Ngaio, and Khaudallah; the erection of a now gas holder; a second unit of Glover West vertical retorts; the laying of a 24-inch main from Miramar to the city; and alterations and additions to Courtenay place premises. As they were not likely to get a substantial return on this outlay for some years, they deemed it prudent to provide for it to some considerable extent out of profits. On completion of these works, they were looking forward to .being able to benefit alike consumers and shareholders. On manufacture and sale- of gas ' a further record was established for the year ended 31st December last, and the directors would be disappointed if the. figures for the current year did not exhibit equally satisfactory results

"A BANNER YEAR."

In the sale of gas appliances, 1926 was also a banner year, as the following figures of sales show, those for 1925 ?£- g S 1™" in Parentheses:—Cookers ofn /w\ 2\ul athlg contra<=ts made 200 (247), bath heaters sold 385 (282} c,P£ e, r? 212, i-U6)' gas services lai<* i?2n /moA 1 addiUon*l- meters fixed

Owing to the miners' strike in England, much delay has occurred in obtaining pipes for the reticulation of •Ngaio and Khandallah. Replying to inquiries as to probable date of shipment of these pipes, the company had just received the following cablegram- — Yours thirteenth, endeavouring utmost resume work, but so far supply raw materials inadequate: Expect resumption within fortnight. Hope make icgular shipments in execution total order at early date." This would give you some indication as to the serious up" of trade and industry in ta-eat Britain consequent upon the strike, which lasted seven months, and nnn'nnn & *?** °f not less than £m r 000,000 on the nation.

MILES OF PIPING.

The chairman mentioned that 1 the company has on order 21 miles of cast-iron pipes-. Incidentally nine miles of mains were laid in 1926, bringing the total mileage under this head to 180 miles The new gasholder was completed in August last, and is now in ™?;, Itf capacity is 2,000,000 cubic feet. With this additional holder the storage capacity has been brought up to 3,850,- ---°°° ™blc feet. Results obtained from the Glover West vertical retort plant continue to be eminently satisfactory and fully .justify .the cost incurred in ttieir installation and equipment. Erection of the second unit, it was hoped would be completed next month The carbonising plant will then have a daily capacity of 4,000,000 cubic feet, which it is understood, will provide for all demands made for gas for several years

PROGRESSIVE WORK.

Good progress was being made with the laying of the new 24in main from Miramar to the city, and the company expected completion of that work next month.

Residents in Wellington will have noticed the extensive additions and alterations to the company's buildings in Courtenay place. After providing all the additional accommodation required for the carrying on of its business, the company had been, successful in letting all the remainder of the place at rentals that will return remunerative rates on capital expenditure. For the accommodation of the clerical staff, and the display of gas appliances, iti its attractive showroom, the company claimed to be quite up to date. At the last annual meeting he had referred to the debentures then current for £200,000, bearing interest at 8 per cent, per annum, and then stated that holders would be afforded an opportunity of renewing the same from Ist October, 6J per cent., for a further period of five years, or accepting repayment. Well, of that sum, no less than £183,950 had been renewed, and £16,500 repaid—a very appreciable saving of interest, they would note, had been affected by that financial operation.

To give effect to the resolutions passed by the shareholders in general meetings, the ordinary £10 shares had been divided into ten. shares of £1 each, and new scrip therefore had been issued. The smaller denomination of shares had, he was sure, increased their popularity with the investing public.

EMPLOYEES* INTERESTS,

We have just ■ entered into a new agreement with our employees tor a further period of two years," added Sir Harold Beauchamp. "It is gra+ifying to report that our relations with all classes of our workmen continue to be most satisfactory. You will be interested to know that the wages paid by the company for the past financial year amounted to no less than * 75,000."

The chairman also referred to the inauguration in August of the company's superannuation scheme, established for the whole of the company's employees. So far, 159 had joined, the total life cover being £102,000. The cost to the company at present .was £2300 per annum. "I am pleased to say (he' added) that this scheme is greatly appreciated by our employees, who were consulted, through their representatives, before it was brought into effect."

XOYALTY AND EFFICIENCY.

"Before moving the motion for the adoption of the report and balancesheet," said the chairman, "I would like to record my own appreciation, and that of my colleagues, of the loyal and efficient services rendered by our staff of every rank and grade during the past year. In that connection, our special thanks are due to our capable general manager and secretary, Mr. M. «T. Kennedy, whose efforts, on behalf of the company, have been so ably seconded by our engineer, Mr. John Hungerford. The latter is entitled to special merit for the manner in which he so success-

fully superintended the erection of the large gas-holder to which I have alluded. To the gentlemen I have named, the board has marked its appreciation in a tangible form."

Adoption of the report and balancesheet was then moved, the deputy-chair-man, Mr. Gerald FitzGerald, seconding. Tho chairman concluded by moving the adoption of the report and balance? sheet, which have already been published.

Mr. G. Fitzgerald seconded the mo tion.

In reply to Sir Kenneth Douglas, the chairman said that the amount of remuneration of the directors was fixed by a special resolution of the shareholders passed at the annual meeting in 1925, and woujd, in terms of the motion, remain as then agreed to until otherwise determined.

Sir Kenneth Douglas said it was usual to mention, the amount in the report and balance-sheet. He regretted that he was not present when it was agreed to increase the honorarium, as he could see no justification for it! 'sThere was, he pointed out. £3000 less profit this year than last year.

The motion for the adoption of the report and balance-sheet was carried.

Dr. C. Prendergast Knight and Mr. Arthur Warburton were re-elected directors; and Messrs. H. A. Gold and E. E. Dymock were reappointed auditors.

In moving a vote of thanks to the directors, Mr. Charles Pole referred to the excellent now offices of the company, which were not only a fine advertisement, but also an accession to the shopping area of that part of tho city.

The motion was seconded by Sir Kenneth Douglas, and carried.

On the motion of Mr. Allan Strang, a vote of thanks, was passed to the general manager and secretary (Mr. M. J. Kennedy), the engineer (Mr. John Hungerford), and to the staff. In seconding the motion, Mr. C. Pole alluded in; terms of appreciation to the establishment of the superannuation scheme.

The chairman returned thanks on behalf of the directors, and Mr. Kennedy on behalf of the staff.