FIRST GARDEN CITY, LIMITED
EXPANSION OF UTILITY UNDERTAKINGS INCREASED PROFITS
ADDRESSING the shareholders of First Garden City, Limited, on December 27th, Mr. Eric Macfayden, M.A., J.P., after paying a warm tribute to his predecessor in the chair, Sir E. Bonham-Carter, who remains a director, said th6t the vital statistics of Letchworth were unique: an infant mortality rate of 37 per 1,000 live births, against 5o, for iLnzland and Wales; maternal mortality nil for the ninth year in succession; birth-rate, 14.59, and death-rate, 9.7. For peace or war, Letchworth had pointed the way to a better distribution of popula- tion.
Dealing with the company's utility undertakings he continued: Consumption of gas has risen from 140,000,000 to 152,000,000 cubic feet. Over 27,000,000 units of electricity were sold, consumption having doubled in the last six years. Substantial outlays had to be incurred on safeguarding continuity of supplies of both gas and ele:tricity, and higher fuel costs had to be faced, to cover which a small increase in the charges for both gas and electricity were necessary. Costs were higher at the waterworks, too, and for similar reasons, but the charges for water remain so far unaltered. In the case of the gas-works we have thought it prudent to provide for depreciation on a somewhat more liberal scale than hitherto. The electricity plant and the waterworks have been depreciated on the same basis as in the past.
• Our farms are in good heart, and further progress was made in the modernisation of farm buildings. There is a further rise in the balance to credit of the estate profit and loss account to which both property and ground-rents contributed. This is the delayed result of earlier developments; under existing circumstances estate develop- ment is virtually at a standstill.
BALANCE-SHEET ITEMS.
Issued shares and debentures as shown in the balance-sheet are unchanged and call for no comment except that the outstanding balance of Four-and-a-Half per Cent. Debentures has been reduced
to £5,380, repayment of which has been extended to 1945. Our fixed assets stand at £1,6o6,2o7, as compared with £1,578,751 a year ago, and the balance-sheet total is now £1,792,013. The result for the period was a profit of £34,007 1s. rid., as against £25,928 I4s. 2d. The whole of this improvement, however, has been absorbed by the provision—L12,5oo—which we are advised it will be prudent this year to make for taxation. After paying our usual 5 per cent. dividend we shall be left with a carry-forward of £43,096 15s. ltd. as compared with £42,587 2S. 3d. a year ago. And we have the satisfaction of knowing that the company is making a han 'some contribution to the Exchequer in the hour of its need.
The report and accounts were unanimously adopted.
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