CHRISTCHURCH GAS COMPANY.

New Zealand Herald, Volume XLIII, Issue 13094, 6 February 1906, Page 6

CHRISTCHURCH GAS COMPANY.

PROPOSED PURCHASE BY THB jffi CITY COUNCIL. r ..•"•" [by telegraph.—:-i:; s association'.] ' Christcjiukch, Monday.<•';• The special committee ret up to consider the question of the purchase of the Chriv.; church gas works by he, City Council reported to the Council to-night -the result of its deliberations with representatives of tie Gas Company. The report said that, alter a long discussion, the chairman of the G» Company said . that whilst he was sure the shareholders would put no difficulty in the way of the corporation acquiring the g*fl .works at a price commensurate withi|njj value, the directors had no power todoxaorej than submit a proposal to them. Ho; however, thought the shareholders should not be asked to entertain any proposal unless » sum is indicated, which, after paying out•standing liabilities, would yield an annual return free of income tax at- least equal to' the yearly dividends received daring tie past* 10 years. This would leave the »««- spective value of a growing business For; the! benefit of the buyers. Iteiore separating, the chairman mentioned that judging by the last 10 years' results; it would bt necessary ; to provide something like £50,000 addi- | tional capital during the nest two jearsto; j meet the steady expansion 'of trade. The ! report added that the committee, cfter grring full and careful consideration to the whole of the information, had unanimously decided to report to the Council that i? >** opinion it was desirable to acquire' the property of the Christchnrch ''-? Company, and "requested authority to er.;?r into necotiatious with the Gas Company for the purchase of their' property ,/'.■; on » basis which would yield, to tie shareholders of the company |§f|Sj annual return free of income tax, equal to the yearly dividends received during ;t». past 10 years. A table appended to thereport gives the prices of gas, and the com-, pany's balance-sheets for the past lOyetrs,. which showed a net profit and prices of ,g». : for each year to be as r o profit. £11,923. price •>•' gas 7s 6d; »». £12.240 and 7. 6d; 1897. fi«"»B -6d: 1898. £11.99u end 6, 8d ; 1899. M and 6s 8d : 1900, £11.750 and jfcg&gSgl £12.371 and 6, 3d; 1902, £12,4bS and 3d: 1903, £18.302 and fe 3d; gft £20,790 and 6s 3d. In 1900 the comply installed Liverpool lamps with :}l«2f burners, free of cost to the corporation, and in 1903 free mantles ™ 1903 and 1904 balances included,«»«; carried to reserve fund. the report was deferred till the nest meeting of the Council. -, :^Mb;