AUCKLAND GAS COMPANY

New Zealand Herald, Volume LXVII, Issue 20480, 4 February 1930, Page 7

AUCKLAND GAS COMPANY

EXTENSION OF SERVICES YEAR'S BUSINESS REVIEWED- ' ' ADDRESS BY THE CHAIRMAN. Thirty-six shareholders attended tha . annual meeting of tho Auckland Gas Company, Limited, yesterday. The chairman of directors, Sir George Elliot, presided. In moving the adoption of the report and balance-sheet, details of which ivere published in the Herald on January 24, Sir George Elliot at the outset referred to tho loss the company had sustained by the death of Mr. J. 11. Upton, who had served as a director for 37 years and had been continuously chairman for 19 years. After discussing tho accounts, Sir George said that during the year the premises of 1333 additional consumers had been connected, bringing the total number of consumers to 47,981. Nearly 13 miles of new mains had been laid, mak- - ing a total mileage of 642, while 3615 cookers had been installed, making a total number of 38,634 in use. Anticipa- . tions made at the last annual meeting of lesser, capital expenditure at the works and on the street mains had been borne out in fact during the year. Tar and Bitumen Competition. The reduction of £5093 in the company's revenue was more than accounted for by the reduced price at which tar had been sold, a courso rendered necessary by the fierce competition the company had to face from importers of bitumen for roadsurfacing. Once, tar was used exclusively for footpaths, yards, tennis courts, etc., > and the company then had little difficulty in disposing of it at a satisfactory price. Of late years, however, to compete with other bituminous products tho company had manufactured a tar preparation which was claimed to bo superior for its non-skid and lasting qualities. This was supplied hot within a radius of 25 miles and could be sprayed direct froni the tanks in which it was carried. In spite of the company's efforts to improve the quality and methods of application . of its products it was immensely handicapped by the cut-rate competition of bitumen which was dumped into New Zealand, free of duty, by foreign countries that themselves barred the importation of the Dominion's products by heavy. customs duties. A decrease of one penny a gallon in the price of tar was equivalent to an increase of approximately one halfpenny a thousand cubic feet in the cost of gas manufactured. If the company failed to market its tar at satisfactory prices, the cost of gas must increase in the same ratio. Difficulty With Coal Supply. For some time during the year the company had considerable anxiety in regard to its coal supplies. The mining ; trouble in New South Wales had dei prived it of its usual proportion of coal ' from tho Maitland coalfield, with the result that it had to depend entirely upon j the west coast mines in New Zealand. i The ro< i .it earthquakes in the South r Island had cut off supplies completely for six weeks. At the present time the stocks e of,, coal were smaller than usual, but the s position was improving, and, if there were no further interruptions the company would gradually accumulate satisfactory reserves.

A new and more scientific system of charging for gas, whereby progressive reductions in price as consumption increased was given to all consumers at the beginning of the year. The alteration should tend to increase the sale of gas and bring" about further reductions in the price in the future. Although the price of wages and raw material had not. come down substantial reductions had been made since the war. Threepence had been taken Off the price in 1922, sixpence in 1923, threepence in 1924 and sixpence in 1925. Those reductions, totalling Is 6d, represented £90,000 a year to the gas consumers of Auckland and suburbs. It also, explained to a large extent the reduetion-in gross revenue during the last eight years. In addition the new scale of charges with its progressive reductions represented a further £6OOO, making a total saving to. consumers of £96,000 a year. For the first time in the history of the company the capital expenditure during the year had been more than offset by the amount written off for depreciation of machinery and plant. The total dividend recommended for the year amounted to £89,756, £444 more than it was last year. The increase was due to the allotment of a further 5043 shares to the Employees' Provident Fund. Problem of Taxation. Reference was again made by Sir' Georgo to the question of the non-taxa-tion of Government and local body concerns in the Dominion. The amount paid by the Auckland Gas Company for land aiid income tax and local rates last year was £23.560, which was, of- course, paid by the consumers of light and power.. It did not seen equitable that consumers of electric light and power should not be called upon to make a similar contribution to the revenue of the country. It was a certainty that if the law remained unaltered and if tho Government and local authorities wero encouraged by. preferential taxation to extend their industrial enterprises, private traders would cither be taxed out of existence or other ingenious methods of taxation must be instituted to raise fhe. necessary annual revenue to carry on the affairs of the State. If the Government could realise the danger'of the present position and make such alterations to the existing laws as would place all traders on an equal footing a large addition to the public revenue would be secured and a general reduction in taxation made possible. The motion io adopt, the report and balance-sheet was seconded by Mr. A." Clark and carried. Mr. W. R. Wilson and Mr. E. R. N. Russell were re-elected directors and Messrs. W. W. Bruce and F. C. Buddla were reappointed auditors. < Votes of thanks were accorded to the directors and the staff.