POINTS OF VIEW

Dominion, Volume 2, Issue 563, 19 July 1909, Page 8

POINTS OF VIEW

GAS MAIN THSOCGB MELROSE

THE OITYfM'BAMAfIifAMD THE

O^^W-COVNCOiT,

S;"'V';;:;-:;^.a©^ ;{(;;{:( tlie^oteactai:'ne&tiations lieiween (the(WeV ;Co!.-? aiid.t > : 'tlie: -. City; Council '{in );i^; : fi|Kp^tj^the;!3esire : ;bf (the ! ( former^.,i;un; i^ffi;'■ai(ihjiin{^through;(theVMelrose'■':district {(i.e., from the .vioirdty.,' of .the, top ■ of.' Constable : ;isfflffins)'.^,^ (; iHaaXi announces'.{ tHat^;/.'the. ;^:(*;; : fpr(tne \wprk;! will; be•• issued; j(y*on'(MOTday/; : (uiiless' stronger;!;fca'sbns(,than :' r;-' 'tiose'; alrcadyr given against /fi; ; i^cli/:aotkih.' v ;VHe';^^receire:;a;'; deputation ({{( ; (*;fc^vthe;CHtyCouncil {to-day : on'the subject. V;v:'i';The';boiincilj;in(the' instance, .'asked !:?3>'£ipoo'per.'.annum for,the privileges desired '?£wl'by;-ltho- ; (»^ p 'with(an;;;offeY(pf "£IOO .(per annum. {■':((Later, ; {th(e({opuhoil demand to i ;S :'£SOO .per:annum,''ahdv'the "company (came : 'a.mitter,.6f '£2DU'a'(year;':"-(;;•■■'■';■/.■

THE COUNCIL'S POSITION. ' REASONS FOR ITS OPPOSITION. LETTER TO THE'ACTING-PREMIER. The City Council's position is stated in the following letter, written by the 'Town Clerk (under the authority of the Mayoi and' City Council) to the' Acting-Prime Minister: — ' ■ , July 16, 1909. ffo the Acting-Prime Minister.^ Sir,— Referring to previous correspondence with you 1 regarding the application of the Wellington Gas Company for an Order-in-ConhciT, under Clause 25 of the Reserves and Other Lands'Dtsposal and Public Bodies Empowering Act/'1907, requesting ,that such Order-in-Council be not issued pending the conclusion of certain negotiations on the matter"now taking place between the council and * the Gas Company; and to the telephone mos- * sago to-day irom jour secretary (in answer * to my letter of yesterday's date), fixing 11 o'clock on "Monday next as tho time for rc- ' ceivrng a deputation from the council; and re- ' questing the council to furnish'you in writing with any additional reasons they have to eiibmit, in order that you may give them consideration prior to receiving such deputation, P have to bring under,;your notice the ' following:— . ''< In youf letter of the 15th instant, paragraph 1, you say: "I gather that there are two questions involved in'this matter, the ' , first being the renewal 'of the company's con- ' tract for lighting the Melrose borough area, t end the other the 'construction of a .pipe line > ' 'to connect the company's city and pliramar iwprks." The first-named conclusion does not express the position—it is not a question of tbe'renewal of the company's contract for the Melrose borough area, but of negotiating for a 'new' contract asked for by the company, i.el, the contract at present existing does not ' meet' with the approval of the cpihpany, and , they desire 'a new one with .amended conditions.'! In the second statement you are right, ( i.e., the construction of a pipe line to connect the city and Miramar works. You further say:'"With'the former question tho Government has, I 'think, nothing at all to do," and refer to the section of the 1907 Act, in which'you say'that "tho Legisla- / ture has cast upon the Governor-in-Couhcil tho responsibility of determining whether such an application as that now made by the ( company snouluNbe granted." I would re6pectfully call yonr attention to the emphatic and energetic protest mado by tho late Mayor (the 'Hon.' T. W. Hislop) at tho time the 1907 Bill was before Parliament. Mr. HisJop personally attended the House, and, although the, Bill was actually passed when he arrived, he interviewed the Right Hon. the Prime Minister 1 , "and as the session was closing, and there was no time to reconstruct the Bill, the Premier, in his ' desire to meet the views expressed by the Mayor, agreed that the best and safest course to adopt under the circumstances was that the powor .should not be exercised without an Order-in- • Council being obtained, and this was done by ,Sir Joseph Ward in recognition that the Wellington City' Council, as the local authority, ' had an undoubted right to be consulted and satisfied before this very valuable concession was granted. The late Mayor and council ■ wore content with tho assurance given by the Prime Minister that tho insertion of the 'words would act as a safeguard to the issue as between the council and the company, and I am directed to emphasise this fact, in view of the possibility that you personally may not ■ be, as fully aware of the position as the , Prime' Minister. \ - ? m , » b ? say: "In my opinion it was not intended that the section should bo used to enable tho local authority to obtain a Tf veß ,oe from tho'proposed use of its streets. No such proposal is contemplated, , the annual payment asked fqr by the council for the concessions sought by the com-i pany is .simply in the nature' of a return to the .citizens for valuable privileges conferred for a term of years, enabling the company to exploit*the area unembarrassed by competition,in their own line of bust iiess, and for which valuable privileges, the local authority is surely entitled to demand, an approximate cguivalent. I might cite the caso of the Auckland Tramway Company, which pays .annually'a large sum ' i m . on< ? y ' i oTer £3000 IBEt ? ear ) to the 'Auckland City Council for tho privileges granted to the company \i or a lqng.tcrnTof years. Under modern civic government it is vitally important to the local authority that any v concession required by a company in connection with a public, utility should . be seriously considered in , order to \avoid » any further extension of tho universallyocknowledged evils arising out.of the vicious principle of monopoly. , There can be no possible reasonable complaint on the part of the company, m wishing to extend their enterprise after forty years of uninterrupted enjoyment of the monopoly granted to them originally; that m view of the present altered circumstances and conditions of local and general government, which are more or less world-wide, that conditions establishing and safe-guard-ing, the public interest should be required by the local authority. ,v These are the reasons actuating tho council in so, strenuously urging the Government to object to, the Order-m-Council being / issued unitl tho\ citizons' rights in the matter have been amply provided for. With all due respect, I .am to submit the council's 'belief that the general Government must of necessity be in accord with tho local authority in such a position. It is certain tho local • authority must look to the Government, and expect' its assistance in this direction. This is all that has been asked —there is no desire to prevent tho company from' extending its enterprise nor objection, in doing'so to the connection being made between its v works at Miramar and the city, but to grant this privilege over such an extended area'as Molrose, under the present conditions of a rapidly-in-V creasing, population (and practically for ever), without some quid pro quo from the company, would be a failure on the part of the council to recognise its clear public duty. y It is thought 'that you cannot fail to recognise, as head of the Government, that the proviso in the Act requiring the consent of the Governor-in-Council was placed ,' there for some good and 'substantial reason, end what hotter or stronger reason can be assigned than that the Government should bevsatisfied that no right or privilege of the citizens is being unduly affected, and that until such satisfaction k made absolutely clear, such Order-m-Counoil should not bo issued. This is the anchor upon which tho local authority must assuredly rely. As you will probably at once, admit, local government - must ceaso to bo effective if its reasonable requirements are not supported by the general .'Government. , I attach, hereto a statement, showing the present position of tho negotiations. In tho sincere, hope that the foregoing will be sufficient to satisfy you that the City Council is not acting in any captious man.ner, hut is taking an absolutely unquestionable and bona ndo course in endeavour-

ing to a proper and adequate recpgiatiori; of 'rights, " : ' ; - T have the "honour'bo be, sir, your' obedi- • : v- .•'.''-■'■■■:. '''."/•'{'{.'■."•"•(-.' .;;,.(;:(''((JNOi.EC PALMER,- " •/--:;(;•'.' ■:•■ ••. ('(•(( Town Clerk.; , ;(■{-THE PROPOSED ARRANGEMENT. The following statement sots (out the(pro-, .posed (arrangement, .as far as it has beenaiirired (at,..bejiween the. Gas Company and , :, tte{ City ; Council :-r- ' . ■ : i. '~'.; ■,'.. 1. The: existing Molrose (agreement to be extended for" one month from'- December. 1, .;1909, tb(,December(3l,: 1909, and then to be' canoened.for'a hew,agreement based oh the following(conditions:— { .. ( . .2." The(> corporation •to ■ grant and confirm to ;the Icompany. tlie exclusive; right to supply 'gas to the ,whole{of the city of; Wellington, lincluding' .any, suburban district' tha,t ; may have, beenj or. that may hereafter -be, within', the' city. . {-(;'/:', ' 3; in (respect ,to that portion of (the city formerly known.as the ."Melrose. Ward," ana in regard to, which the corporation claims to have; rights of purchase of certain mains and other works under the'agreetaent entered into between (the' company ■ and the Melrose Borough Council, the corporation to agree not to exercise such rights of purchase for a period of twenty-one'(years '.from December, 31, 1909,' onVttie following terms:— (a) Ifjpurchasebe intended, then twelve mqnths'i-iiotice of the intention shall be given pirior to( the expiration of-the,tenn of twentyone years;'. '•• : - : ':-'/':_- ■';( '(.'- ,s.

;.(b)' If 'notice be not' given, the company to 'enjoy further successive terms of fourteen years, subject to'.the right of the corppra'tion .tq.purchase'at.the end'of any, such'extended term 'on giving twelve months''{prior 'notice of. its intention to, purchase. " ~ (c) The. : works to be (purchased shall be the whole of ;the reticulation,'mains, services, public lamps,(inetfes, and other. works: within, the Melrose district and Town; Belt,' and used exclusively for :the supply.of gas'(tp( that district; put shall exclude an'y( ; other works and-any'main (pipes passing ; through that (district; or'(tho» Town Belt,, or.used -for the supply ofgas to.any other portion of Wellington, or to"-' any{ of the suburban < districts adjacent-ihereto'. ; ■■'.■.(;. ■[ . : '( :'';(((' '(d) The.company shall furnish- to the corporation; as' soon as,'convenient' after tho expiration;. of each year- (ending December 31)y-a: ;statement(:'Bhowing : '' ; the:cost (ofallijorks (carried out by it during the previous' twelve niprlths. (including therein all-: retic'uJa'tion,; itiaina'j "and 'services 'laid,' and (public lamps and meters J supplied) ;• (within.* the Melrose district and {.Town; Be)t,v and iisetl,' or to be'used,'-exclusively ;for( the.;(supply to'that/district;;snch (statementj:shall ,haye; added to" (the cost/ as 'shown (in the 1 bpoks', an( item. of, Ji\ per.cent.(to coyer supervision .ahd;sundries'''of(a';ch'aracter that-cannot 'be conveniently '(brought', to ('{account.';' Such statemerits shall ':'be'';-C!3rtified;:to' (n's correct' joihtly'by/tnp.cpmpany's auditors', and by (an' auditor('to;be -appointed.-by and- paid'iby l the corppratipn^"','■ In the' eveht' ; of 'any* .dispute between'ythe,-auditors of'' the company: and ■the-; auditor of the cprpofationi the matter in;dispute to be'referred to the arbitration of' ; ah .independent(accountant ;'(■ the (cost .of "such', arbitration-' to v be' "borne. by .''{the party whose(auclitbr-was .in 'the-wrong. ■;'.;'.■„;(''((

i-(e) The corporation f to accept the -state-' menta.'of'the'.-company-'as';'the''ambujits: ex r '. peridSdtip 31,1908, as certified to by. the company's auditorsi: ; as. amounting to-£32j959 ; ;65; '5d.; in- the 'Melrose district to tbat'date./ ■•■.■'■r .'■'■'• '":'•'/: iy/ ; . i : i; : / :- i! -"/•'' - ! v", v r (f),Upon; the company removing'the lamp;/ .posta' l now /erected'in;the'Mefrbse" district ,bn-: the termination of"-the,lighting-'contract; a : cfbdit-Is to''.be riiade''iri' the. 'next' annual' statement of' £3; for each lamp arid pqsti'so ,rembyed/, ,: '/'-'i:/ : ; ;;-.ii c .'/"/-.'. L -/ ; . >„,./'A/i '' '.:"'g)i Such', statement -shall-.'nbt.'inlcridei-.ajjy'-snm ;^fdr.-, /';rep.aira'.';.tp;alter'itiona\'iri,: or -cost for :.new': : , mains': and''pipes used fbri'ithe'ire-plac^ment^p^'bld-ipri^s..'; 4 ...■'-.'•■■'■■ ; ,AA,-. ■ i ' . ,(h) Ifi'the corpbratibn elects purchase at ithe expiration) of term, or of any subsequent term: of years,; then the sum to .ho paid shall;'be/ determined on the basis of ithe yearly .audited .statement, less .such ah/ amount -for'.-,,. depreciation as ' shall bo''•■: mutually;agreed .iupon; or iif ."not j.mutu-. ally, agreed i.upon, as may .be determined by : arbitration: ; /:: -i/ i>,/ ..).;.•.'.■• ■':- > ~- .:■'' .".■' '■}'■■ 4.. The company to'ihave the right to' layi and use mains (through any part; of. Wel-' lingtonand the-Town Belt for the purpose ofisupplying any. district- beypnd the limits of : ' the rOity ,;of/i Wellington/ or : ,of -jirap-j plying ; '''from : any '■■ workssituated i,in ._any/such ''outside; district;- and | for that purpose the corporation to consent to and support any application made by the company for the consent;of;,the' Governor-in-CounciL' under,; the: Gas Supply.; Act, ,1908,. provided that the company'shall .'not lay-any-main; through .any of the' Town 'Belt !(other ;than.abroadi crossing same)'/that.,is ,'iised .as a public park, or is uiileasedj without' the special consent of'the corporation.; and "prbyided : : further, r.ariyVmain is laid, through., any portion of the Town-Belt,that is ,'leosed,; then;-the company shall../either arrangei'wth;".the;,lessee or,.imdeirinify the .'corporation ifrbm any claim ,for. damages, made•by.ithe.Jlessiee. thereof.' , :•; ".;■■: 5. The company to bei?bound; J by: the conditions and/clauses of .the Wellington Gas .Company's.; Act/1870, in respect to pipes arid services laid,, and >Ui. works ! carrica ; out irindef ithe/agreerhent. ■"' .■>' ','.•. -. '/.' ' i6/-'iTh"e'.coriipaiiy. : the'•.'annual 1 sum 4 of -£/(tb ibe•''debided)j':'payable 1 lialf-yeaxly',' in two: .equal- instalinents during; of -.April', ;iri-.ie'ach''year;'Buch'-'siim >is. to include any/payment"claimed -by/the corporation under.;the iagreement* entered into-, with ; : .the -Karori BbroughvCburicil; under;dateiMarch 26, 1907, and'such, payment':shall: cease • whenever the 'corporation;' purchases;the'' Melrose '■ works ufader'Jthe : a2reement:/;. ■ : .":. ; .;■■;■,. ;■" /;: ./. .;"■ '■'~'.,

;■; ; '/>;,./;,,/THE -OTHER /.LETTER FROM, THE GAS COMPANY. '.REPLYt6;THE TOWN CLERK'S STATE- '■'-: ' ;;;';>-\'-:-.'MENT;' ;;/i.i; ■'' ,^ : .//' ,-;i Theifollowiric' letter has been sentiby;thb managing' director: of the / Gas Company to thei;Acting-Prime Minister:—.:. ;■■// ; p v/ ; /-;' ; -" ; ,; : ' J ;';.//' ''ju1y ! ;i7,..1909;i-/ The/ Hon. James; Carroll; .; : \- ""■. •'•• _•',.; '-'■ Acting-Prime. Minister./ ;...;...'"■"■ • :■ Sir,-r-In'-.the ■ '.'Post'' •this. evening appears a; copy of a letter, under yesterday's date, addressed. by the Town Clerk of Wellington to, you, and apparently..-.' being a reply to a letter sent by yori seeking ■ some .reason why there should, not be granted to my company a consent ,by, His Excellency ,the, Goverrior-in-Council, under the. Gas-Supply Act, 1908/ toi the laying down of a mam through tho old Melrose Ward ~of the city toi Mirarr.ar.. As'" ; it' 1 is .stated;, that the Mayor' and councillors of; Wellington _are to wait upon iyou on Monday;.morning in support of their request .fori further delay,i.l take the liberty of writing-to-you. on-the subject. ""..': .

i The Town Clerk's letter is drawn' up, 'in my opinion, in ,'a. .rnanner. not., so much, to place yoii. in possession of any ' matter. of which, you. are unaware,: as' with view to its ;publication,;;and. 1/submit that,;it has been ingeniously framed so as to. confuse and -mix up two' independent /propositions. The first point is that the City Council claim that as successors to the Melrose Borough, they have tha right, : after (December next, to purchase frorii the Gas Company Ijhe gas mains' laid down" by sthb , company withiin the old Melrose Borough at any. time';- by giving twelye months' notice! The council have,. I believe,- no 'immediate intention > of making such purchase, and it isi confidently believed that • the citizens ■ would, riot confirm any such proposals if submitted to themj'either at: present, or* in. the immediate future; but the fact'that there is claimed to be'such a power to purchase must necessarily pre--vent the frionv developing its services within/the. the..'Melrose district. . This district is, i aa ybu are awaro, sparsely populated, and requires,a large capital, output for some years' to 'oome .with the prospect of but a small : return in, order' to provide gas ifacilities ■;to '-'its- residents. •; My company has shown.,its ; great;public spirit- and enterprise; in, having expended• some £33,000 'in' nine years in providing services for-this district, in addition t0... a' : very large snm within the cityi'properi that'wbuld riot have; been .needed except for the'' suburban- business.; ; The directors' naturally desire that the' company shall beienabled to carry out their duties-to the: 'residents of the .Melrose district; with some prospect of a financial return for. their investment,' arid" with' a''certainty of tenure

that would ■ warrant the pipe extensions that, are continually sought for. ' A leading (city ~ "councillor'. remarked that it was worth' a' ;gopd deal forj'trje, company ...to;; know ;that ;they wertt not going to .be continually "h'ar.assed" by "threats of purchase. That is really the position, and my board . feel that if the Melrpße'oitizenfi- are 'to bo .supplied,'the company must be'freefrom-tho ; risk of harassing,; even though 'it is more than' unlikoly( that; such threats to'purchase would-.ever eventuate,- and * are". therefore willing'to ; pay an'annual sum for the sake of peace. For this.quiescence the company ■ has offered : £250 ( per" annum, which sum the Gas Committee of the council declines to; accept. This"'position would naturally have arisen this 'year'-'quite independently of the Miramar'pipe question, and'L'submit'it has nothing whatever to do with it. The second; point is that the company has bought land and erected a gas-holder at Mira- . mar, at.'a' cost" in-all closely approximating to £50{000,'with the intention of gradually transferring its manufacturing works to that locality, and for that purpose has. entered into agreements with; the Wellington Harbour Board and the Miramar Borough Council. These works ,and contracts were not. entered 1 into until it'was clear by the passing of legislation now'embodied in; the Gas Supply ■Act, 1908, that .the. company could obtain access ivith the consent of the Go'vernor-in-; Council '(and that although the company do not admit .that!.they have,,not already got the right to ;lay the'main under its own private Act). An!application was made to the Government;, for the consent prior 'to- the erection of •the' gas-holder,' and as !no. negar tive reply .was. received,* the. works were, proceeded 'with; and on their completion;.;a formal-request was made for its l issue. : The,. Government have.had.tho original re-, quest for.'the consent before ,them' for some nineteen' months; and the recent application for over two months, 'and I respectfully submitl that there'is no valid.reason why it should, not be 1 granted forthwith. The laying down \ or', the existence when laid of a main from Constable''Street> to Miramar,,' which main is; to be used only for the purpose'. of connecting ,the works in Wellington ;With the works in Miramar, has no bearing upon (as it is, quite, independent of) any negotiations between the J company and the. council for, a delay for a term of-years of the, rights which tbe council olaim ...to have to purchase the reticulation pipes of the Melrose area. ' It.is .true that" the., council {attempt;(to mix; the two . points'' up.', by' trying -.. to; ; ; persuade you that'they are independent, and-are using their influence„with' the Government to delay the -issub\'of'.the'epnsent'with;.tho view:that ' thereby ;.they. may (be;. able \tp..extract better terms/from' the,company;in connection with the..proposed;,new Melrose, agreement. I ara sanguine' enough'','to, think: that'ibei Governmpnt wjll (not. allow, itself .'to be, made use of' in\this ; :mariher.'':.';'''.('(..'■;( ;.;,".!'• ■.'{.' . .•-.;'.

' ,;My board.i'felt.'so strongly, that the utilisation by the council :of. its influencb as a pub : lip. body with": the, . Government so "as to urge on", the. /Gov'erniherit. that the provisions of the law/should not be put into force, with the 'implication.th at;by a."nionetary. payment the council , would ".-withdraw its opposition, was wrong,-that' I .was'instructed to write, and' wroto;on'June 14 to the Town' Clerk that "the, board was deterriiined not to be forced into the payment. of a single penny to/obtain' the'':'conserit..bf the corporation'.to ,the "issjie: of; any,'.O.rder-in-Couricir,to % , enable the 'company, to ;cpniiect the. city' with, any suburban; district in whichi'ithe company hasor' njay: obtain.lighting/rights." 1 .. You will doubtless ■ agr'ee_ with ; me .that/it, is contrary to public; morality that .a payment should be 'made to. any .local' body for the. express pur-, bribing' that'' body/jtb. withdraw its' opposition; tp/tbe;'Gbve.rnrh'ent carrying- out its fußctions' with justice to both, parties. -'■'. ;. ',1/-submit, /respect, ..that'.ybur; prptection-ipfrthe'rights';of th.e I city oughti'toi be'-.liinited : . to" .seeing ..that in '■ the order em-' bodying"theiconsent'the, usual conditions are provided as to opening and refilling the pipe trench ' and > the repair :• and, renewal off the streets' surface'thereafter.' ,■' This is .'provided- for bothiby the Gas Supply Act and by the company's 'private 'Act;: but: if :tho Gbvarriment .think ' that ..the city.' is not sufficiently, protected thereby, ; the company, is prepared to accept any reasonable additional conditions; •;• ■' . • ".''i'^i'".'

'•■! in, tbo Town' Clerk's c lette'ivi' as^stating-Vthat'in your- opinion .the •law does not intend.: that; the* municipality should obtain a revenue from the use of. its streets by' the placing of the' pipe there--, under,..l need not allude further to ,this aspect of the matter, except to point out that it is in the interests of the citizens that'the rriaiirbe laid without delay for the following reasons:—That the. company may be enabled to bring, into use works, now unremunera-' tive/ahd for which, the public indirectly .pay. in the price of gas arid other products; that the citizens of Miramar may have' the 7 benefit of. a supply Of gas;, that, work may.be found for the unemployed by the prosecution not; only of ,the work of laying the main, : but. also of those Harbour Board, works of reclamationianch'tfharf building; which* works it _is understood from the' public press are: being'delayed until this question has been settled; and .also' that .the company may v be able"to,,proceed, with:'fts scheme of:building modern'-works- at- Miramar, whereby ~it is hoped'ithat'. in :th'e.near future'through, the introductibri v bf ;economical methods of worfe ing, the' purchasing may 'eventually benefit.': "' -.'.,*••'.•' V ■ .;'''-,''...,"•'.. '.'.'-'i-;'- •'■ 'As the Town Clerk"has handed to thepress for. publication, presumably with' your knowledge arid: approval,, his letter'to. you,-1 .conclude that'l will 'also'have your.permission, if or. the publication .of : this letter,i .and" unless I; hear frbiri iyou,' by r telephone or otherwise, to', the 'cpri'trary, I. propose to hand a copy , of/this' letter'to "the am,. sir,' yburs' u truly,' v■■ .'; .'.. ■•■" '.•/■'•''.;" '• : ":', L .

;/"-,.;//: ■, „;.:,:' ' ■/'''■,.■"■;, iManaging. Director.'-'.-'.. ,; MIRAJVIAR'S ATTITUDE. ' STATEMENT BY THE MAYOR. ■ LETTER TO THE HON. J. CARROLL.; / .. As the/Wellington City Council has published a,letter addressed; to the Acting-Prime. Minister with reference; to their objections to the issuing of an Order4n-Council empowering the Wellington Gas .Coinpany to connect their Wellington and Miramar works by a imain going through what, was originally the Melrose district, tho'Mdyor of -Miramar has handed to the press the following letter which was addressed to the Actin^-Primo;-Minister, dated July 5; and, which bnefly-sets out the Miramar Borough Council's view of the position';—-. ' ...■•'■' - 1 - ■•!• -.-•■

The contention of the Miramar. Council, Mr. Crawford pointa out, is that this connecting.) main to which the proposed Order-in-Cpuncil refers has absolutely nothing to do with the other matters about which the Wellington' City. Council are negotiating with tho Wellington Gas Company. The.City .Council has endeavoured to mix up the two issues, but-the. Acting-Prime Minister, referring to the connecting^;main, very properly points but that i "in ; his opinion- it was not intended, that the.Section (i.e.. Section 9, Gas Supply Act, 1908), should be used to enable : the focal authority; to obtain revenues from thoi.pror posed- use. of: its _streets." The City "Council •townclerk, in his answer to this, says, "No such proposal is contemplated," and goes on to say that a.n annual payment is being de-. manded from the Gas Company in return forprivileges enabling' tho company, to exploit the area. What area? asks, Mr.; Crawford; The connecting main simply passes through tho Melrose strip, it supplies no gas in that area, that area is otherwise supplied; therefore, seemingly, the City, Council on "their own argument are-asking for a payment.for tho right of the Gas Company to supply tho Miramar Borough with-gas, which is the only area which this connecting main can be said to exploit. Or, put another way,-the city is combining the,supply by'the Gas Company of gas to;tho Miramar. and.Melrose areas/and asking for a payment on the two—snrely a. very irhproper suggestion. The Mayor of Miramar further-points- out that the City Council-has been asked to ishow cause why this. Order-in-Conncil should not issue."l have,"; says Mr. Crawford, "carefully read through thoioity town clerk's letter, arid I find myself "quite unable to discover that one single reaspnihas been put fcrward', in fact the city, has : : no. case, whatever."' If i the Order issues at, once, iti; means thati the Gas Company,/will.-be able to -proceed .with their- aamitted riecessary work; of -installing new works. at; Miramar, that. the ■ Harbour Boardi will' have -the': assurance that i their proposed large ■ exponditnre at Miramax will

haver an adequate • from tho Gas Company, it .means that' the Miramar ■Borough will bo supplied'with gas, and that the .Miramar Council' will know that those various progressive' schemes' which they have at least partly formulated during tho last few years .will not iiiiscarry/'and .that generally an imjwtus will "be given to industrial progress,' that much publio and private funds will -be expended, and that the unemployed difficulty'.about which wo have heard' so much lately will.'in thiß district, be for the n.ost part solved , .The following is the letter referred to :— ".'"'■■'.,'•;•' July 5, 1909. The Hon. the Prime Minister. ..'

Sir,-—Ro Wellington Gas Company's" application for an Order-in-Council to.; lay ; a gas. .main connecting Wellington and ,Miramar.. .Reverting to my letter.'of .April 27, 1909, to the Right Hon.. the Prime. Minister (Sir Joseph Ward), and the .reply thereto • (dated Ulay 6, 1909),' 1 have the. honour to inform you that at au interview which Sir Joseph ,Ward was good enough to grant me, on the morning of June 16, after fully explaining the position, . I pointed ■out that my council could have no objection to the granting of, the Order-ih-Council being reasouably deferred, to allonr the Wellington City Council either to come to terms with 'the Gas Company, or to make such representations to the Government's they might think fit. At'the. same "time; my council wish to impress upon/the executive tho very serious importance to our district of the granting of the Order-in-Council to the ".■Wellington .Gai! Company, and would respectfully urge that the Order-in-Council should now issue for the following reasons:—. ; 1. That our inhabitants should not be deprived, of the right to obtain gas. in terms of an agreement -already entered into with* :the Wellington Gas Company. : ' - '•. 2.. That the.-Miramar Borough Council has' entered into'an, agrement with the Wellington Harbour Board re improvements to' the Mirainar Wharf and foreshore, and has committed itself to considerable, monetary obligations in connection therewith.

. : -3;-That the district'lias authorised the expenditure/of £71,000 upon a.water and sewerage scheme and upon street improvements, and this expenditure can'only be ,wan-anted by every:'facility-being given to the development of tiie district and the increase of popu-: latio'n by the establishment-of industries. ■ ■■■"- ■ .4. : Thatthe laying of the main by the.Gas Company under the Order-in-Council is only the preliminary step to the erection of extensive works.atMiramar.bythe Gas Company. . 5. That our. agreement with the Wellington Harbour Board establishes an industrial area, and it 'is incumbent upon the Harbour Board to expend 'an'amount estimated at £51,000. If'the OrdeMn-Council did not issue the new wharf to be ejected would not receive the ex-, pected annual' revenue '-. from about 25,000, tons of f poal which, if the gas works' are erected j would be handled over the new Miramar Wharf. ; .■■'"■';'" " ' ■";;.. ' \ v My council are of opinion that in connection with the laying of.the connecting main by the Gas Company the Wellington City Council's interests are fully protected ■'■, by existing legislation, and while the Government may be loth to issuo an Order-in-Cqun-cil in opposition to the wishes of the Wellington City Council, it is submitted that the interests of,the Wellington Harbour Board, this council, and the community l at large would be best.served by a vigorous prosecution of the whole of the;contemplated works in. Evans Bay.. "•'•.■'■•'■•'■•..: . . .-I

Either'.T or a deputation of tho committee of this council would be glad.tb wait upon you with to, tho matter.- ■ .■■■' ■: I have the honour to be,-. ■ :•;.; :.:.,- -,:■-, 5ir,,•;, v ...>.. ; ,.' ;: . '■•■ ■ ,'•.. ■ ■■~■• Yours most'obedient servant, ...'■' . 0. J..CRA\yTQRD,'' ■ \- v .'.■'. :!"..'i .••••.' • >;.;..'.■• Mayor.