TIMARU GAS CO.

Timaru Herald, Volume CLI, Issue 22215, 7 March 1942, Page 8

TIMARU GAS CO.

Successful Year Annual Meeting Of Shareholders The sixty-seventh annual meeting of shareholders of the Timaru Gas, Coal and Coke Co., Ltd., was held yesterday, Mr J. P. Newman, chairman of directors, presiding. Moving the adoption of the annual report, the chairman expressed the satisfaction that the directors felt at the result of the year’s operations, which had resulted in a profit of £2184/15/9, the best result since 1932. Against this there was the debit balance in the Appropriation Account of £lB6B/8/1. which was the last remaining liability of the expenditure incurred by the renewal of the vertical retort plant, which necessitated bringing in an amount of more than £4OOO to debit in the Revenue Account in the balance-sheet two years ago. Further, they had to make provision for the annual allocation of £2OO for the redemption of debentures, a small loss of £66/12/- on the sale of their contribution of £250 to the War Loan 1953, which left a credit balance of £49'15/8 to carry forward into next year's accounts. Mr Newman said that this result had been attained after deciding to make provision in the Revenue Account of £750 towards the anticipated cast of renewals of the vertical retorts in approximately seven or eight years’ time. Although this reservation had prevented them from declaring a dividend, they believed that the shareholders would realise that this reservation was prudent and one which would further strengthen the very satisfactory financial position of the company. In these times of stress and uncertainty as to what the future might have in store, it was well to stabilise resources and financial position. In this connection it would be a source of satisfaction to know that the liquid assets stood to-day at £8552, against a total of £5252 last year, or an Increase of £3300. Increased Sales Referring to sales of gas, coke and tar. Mr Newman said that they showed an increase for the year of £2143, this increase mainly representing a considerably larger consumption of gas. The total amount of sales was £27,557. In view of the keen competition they had to meet from electricity and other fuels, this steady Increase in output must be regarded as very satisfactory. Continuing, the chairman said that the year's operations had been attended by many adverse conditions, both on the manufacturing and clerical sides. In common with all other industries, they had had to contend with greatly depleted staffs, owing to men being called up for military obligations, and this had Imposed extra work and responsibility on those remaining. This burden had been loyally and willingly borne, and he was pleased to testify to the cheerfud manner in which all had responded. Altogether they had lost eight of the staff, three from the clerical side and five from the works staff. Dealing with coal, the chairman said that during the early part of the year, they had difficulty in obtaining a sufficient supply of Australian coal, a large proportion of this being essential for carbonisation through the vertical retort plant, and some 322 tons had to be borrowed from the New Zealand Railways at an enhanced price a ton to enable them to carry on. During the latter part of the year, the position improved and a fair supply from Australia came forward. But the price had been steadily increasing, and from September last to the end of the year the cost had risen by 2/3 a ton, and on top of this thev had to pay 4/8 a ton wharfage and 3/6 a ton cartage, which made a total cost of 61/8 a ton delivered. These higher costs mainly accounted for £945 in excess of last year.

Against this, the sale of gas had risen by about £2900. Severe Handicap Mr Newman went on to say that as he had mentioned in his last annual review, they had been severely handicapped by the increased award wages and the 40-hour week. This had meant ever-increasing additions to overhead charges, and made it difficult to show profits. He had also pointed out before that they were still labouring under unjust conditions in competition with the electrical undertakings in respect to taxation. The latter paid no income tax, while gas companies had to provide income, social security and national security tax, before they could provide for any distribution of profits to their shareholders. Negotiations with the Government by their own and kindred companies through the Gas Companies' Association on this question had been continued from time to time, with no sattsfactory result. The manufacturing plant had been carefully supervised and kept in a high state of efficiency by the general manager and engineer, and the directors fully appreciated the care and attention that he had devoted to its upkeep. Concluding, Mr Newman said that during the year. Mr J. W. Adams was compelled to resign from the Board owing to a long period of ill-health. His resignation was received with much regret, and with an expression of appreciation of his helpful service and best wishes for a speedy return to health. , ~. Mr J. W. Fair seconded the adoption of the report and balance-sheet, the motion being carried. The retiring directors, Messrs J. P. Newman. W. H. Walton and Dr. F. F. A. Ulrich, were re-elected unopposed, and Mr A. C. Martin was appointed auditor. The chairman introduced a proposal by the Board that the number of directors be reduced from six to five. Mr Newman said that the Board was able efficiently to handle the business of the company, and it seemed unnecessary at the present time to increase their number. The proposal was adopted unanimously. On the motion of Mr E. G. Kerr, Jr., a vote of appreciation of the services of the management and staff was carried, the general manager (Mr A. M. Taylor) and the secretary (Mr F. F. Neale) acknowledging the vote.