GAS COMPANY'S YEAR.

New Zealand Herald, Volume LXVI, Issue 20172, 5 February 1929, Page 7

GAS COMPANY'S YEAR.

DIVIDEND OF 8 PER CENT* • ( ;T. A- A-;. • ■' v . SUCCESS IN COMPETITION. ' ■ - DEVELOPMENTS IN INDUSTRY. The progress being made by the Auckland Gas Company in the face of increasing competition, and the manner in which it is keeping actively abreast of changing developments in the industry, wore outlined to shareholders at the annual meeting yesterday by the chairman of directors, Sir George Elliot. Sir George prefaced his address by an acknowledgment of the great services rendered to the company by Mr. J. H. Upton, its chairman from 1910 until his retirement last year. Deep xegrct was felt at the vacation of the chief office by so able and enthusiastic an advocate of all matters tending to the development and advancement of this j_great public utility. The annual report and balance-sheet (published in the Herald on January 26, and announcing the decision to pay the usual dividend of 8 per cent.) was quite satisfactory, the chairman said. Receipts were £3798 less than list year, but expenditure had decreased by £7043. Tne total dividend for the year, £89,312, was larger by £1962, owing to the last call on contributing shares, and a further 6451 glares had been allotted to the employees' provident- association. On" May 1 last the B debenture issue of £150,000 matured, and was replaced by a C debenture issue of £200,000, with a currency of seven years. Total of 629 Miles of Mains. During the past year gas service pipes were laid to 1469 additional consumers, making the total number 47,079. Nearly 16 miles of mains were laid, making a total mileage of 629 ; 3487 cookers were supplied, making a total of 35,925, not including those supplied from other sources. Nevertheless, the sales of gas, due to the past financial situation, unemployment and the higher efficiency of modern gas appliances, had been slightly less. 4 For domestic purposes 'gas remained principally a heating load, and at the time of maximum demand, between five and six o'clock in the evening, the gaseous heat units sent out from the works equalled in energy 100,000 h.p.~ an hour, only a little over 7000 h.p. less than the combined .oad on the 38 hydro-electric stations operating in New Zealand. Great success had attended the introduction of thermostatically'contrblied, gas-heated, water-storage systems, for which a special tariff had been framed, and recently there had been marketed a successful type of refrigerator operated by gas-burners. They promised to open up a new avenue for the sale of gas. The use of gas for industi-ial purposes was increasing, and now covered 1200 different operations. In Auckland hundreds of high and low-pressure appliances were in use, and the city had in operation the. largest gas-heated steam toiler in New Zealand. Restaurant and kitchen appliances had been installed on a mora complete scale than was known of anywhere else in Australia or New Zealand. Extending Supply Area.

The manufacturing capacity of the Auckland and Devonport works was ample for present requirements, and for years to come capital expenditure for extensions should be small. The heavy repair and renewal charges for rebuilding and renovating the carbonising plant were now considerably reduced, and the whole of the plant was being efficiently: maintained. The chairman referred to the resheeting of the crown of the- large holder at Freeman's Bay, and the installation of a wasto heat boiler, which was expected to result in a considerable saving in the cost of raising steam. Owing to the widespread area of supply the company's mains mileage in Auckland for the output of gas was very great . compared with other New Zealand cities and three to "four- times greater than in Britain. It added to the cost, but was inevitable, and some residents were asking that the limit of supply should be extended beyond the present radius of 10 miles fixed by Act of Parliament. If the outside inhabitants generally desired ta obtain gas from the company the promotion of a bill facilitating the extension of the area would be simple. High-pressure distribution by trunk mains to district stations where gas was fed into the ordinary reticulation system, had saved the cost of much larger mains, running at least into £IOO,OOO, that would otherwise have been required. The exist-' ing mains and compressors were adequate for years to come. Repair, removal and maintenance charges occasioned by the laying down of roads in permanent, material were now greatly reduced since; improvements to the main arterial roads had nearly all been completed. Competition in By-Products.

Coke, the company's principal residual* had continued in good demand at satis-.; factory prices. It was ail excellent fuel and that made from bituminous coals had all the advantages of coke made by the. low-temperature processes. The company's specially prepared "Distar" product for the tar treatment oF roads had given excellent results, bub strong competition was being met from imported bitumen, which was allowed into New Zealand duty free, thus displacing New Zealand labour rn the gas and coal industries. The importation of fuel oil, also duty free, was having a depressing effect on coalmining and to a lesser 1 extent on the gas industry. Both materials were imported largely from a country whose customs tariff was heavily weighted against outside competition, a country that already sold to New Zealand three times more in valtio than Isew Zealand sold to it. The imposition 'of a small import duty in each case merited the earnest consideration of the- Government.-. As the sale of bv-products affected the cost of gas, it was to the advantage of every customer that the company's products should bo used on roads in preference to moro costly but- no better' :mk ported materials. Ammonia and Fireclay. In commencing the manufacture of pureliquid ammonia, for which there w.13 little demand in New Zealand, the company had taken the first step toward the manufacture of the anhydrous ammonia; used by New Zealand freezing works. At Dcvonport tho fireclay works wore turning out goods unsurpassed in quality and were capable of a greatly increased output. The chairman's address concluded- with an appreciation of the work of the engineer and general manager, Mr. James Lowe, the secretary, Mr. E. I). Ashton, and the staff. The adoption of the report and balance.slieot was seconded by Mr. J. H. Upton and carried. A vote of thanks to the directors and staff was replied to by Sir and Mr. Lowe. As evidence that the interests of the staff were identical with those of the company, Mr. Lowe emphasised tho fact that during the year 6451 sha had been subscribed and paid for by anc j Mr. . Clark were re-elected to t ' ie ' r<3 p paid to-day.