SYDNEY GAS SUPPLIES

Evening Star, Issue 20428, 8 March 1930, Page 28

SYDNEY GAS SUPPLIES

COMPANIES’ DIFFICULTIES EFFECT OF COAL TROUBLE . Some of the difficulties experienced by the Australian Gas Light Company, Sydney, during the past half-year, mainly owing to the coalfields trouble, were outlined to shareholders last week by the chairman of directors (Mr G. J. Cohen) at the adjourned annual meeting. . Mr Cohen said that owing to the coal stoppage ,the qualities of the coals procurable, despite the use of all the available manufacturing plant, had been si eh that sufficient gas to 'satisfy the demands of consumers could not on occasions be produced. During August additional carburetter! water gas plants, the erection of which had been rushed to completion, were commissioned, and had since proved of great value in maintaining the city’s supply of gas in the face of a continued deficiency of both the quantity and quality of the coals available.

During the past half-year, continued Mr Cohen, coal had been obtained from twentyfive different sources. The gross cost of the gas made during the half-year ended December 31 last exceeded the cost for the corresponding half of the previous year by £52,431. Revenue from the sale of residuals increased by £22,235, resulting in an increase in the net cost of the gas made of £30,096. The whole of the increased cost, of coal, however, was not reflected in those figures, said Mr Cohen. The Gas Act provided that the special purposes fund, which at Juno 30, 1929, amounted to £197,093, should be 'applicable to meet, among othercharges. “expenses incurred by reason of circumstances which duo care and management could not have prevented, ■or by reason of strikes,” and the directors had drawn upon that fund to the extent of £114,151 to meet the increased prices paid for coal during the past half-year. Out of the neb profits, amounting to £295,547, the directors had set aside £134,000 as a contribution to the special purposes and depreciation fund, leaving £161,347 available for the payment of a dividend. The payment of a dividend of 4 per cent, for the half-year would absorb £164,400, which, would reduce the balance to be carried forward from £35,293 to £32,240.

HIGHER PRICE POSSIBLE. PROPOSAL BY A COMPANY. Unless the price of coal, when a settlement of the miners’ dispute is reached, is sufficiently reduced to enable the company to recover its losses sustained by reason of, the stoppage, the Yorth Shore Gas Company, Ltd., Sydney, intends to apply for an increase in the price of gas. . This decision was announced by the chairman of directors, Sir T. o.' Morland, when explaining to the shareholders at the annual meeting that the extra cost involved by the company through the use of inferior coal was £31,393. He said that during July the directors realised that the dispute might be very prolonged. The cost of making and distributing the gas and residuals was £I,OOO per week more than was being received for them. Acting on legal advice the company informed the Minister of Labour 'and Industry that they had decided to increase the price of gas, and asked who her his department had any legal objection to the company endeavouring to recover some of its losses in this' way. The Minister re-

plied that be had asked the Crown Law Office for' an opinion on the subject, and the office held that the company had no right to increase the price; further, that if they persisted in adopting this course legal action would bo taken by the Government to restrain them.

“As we wished to avoid litigation with the Government at this time,” Mr Norland continued, “we decided to lake no further action until the coal dispute .was settled. If the settlement resulted, in a reduction in the price of coal, which would enable us to recoup our loss without increasing the price of gas, we would be satisfied; but if by no reduction, or an insufficient reduction, wo could not (Jo this, then we determined to apply to the court for an increased standard price.’*