THE GAS NEGOTIATIONS.

Dominion, Volume 2, Issue 593, 23 August 1909, Page 10

THE GAS NEGOTIATIONS.

0;'; CITY;COUNCIL AND THE COMPANY.■■ py'j'.:ty-'\ ■ i'r >.teems/submitted; :[■ '.'• i [ : : -»■,;. As an outcome. ofVthe more recent corre'spond-fi,>-.::enoa. between the City Council- and .tho-'Gas 1 ,,,■;- ■ Company,' the: town olerk (Mr? J.- E. Palmer) $ :: '<" : -'~~"' 7?* addressed the /following communication to iH'" - "' i? e company setting but the ■■ terms ' on ; which; f""' J?. 0 , oounoil; is prepared , to nieet'the company :- kf'i : .August,: 1909.; /Without Prejudice. Sir",— /; ."i, I am djrwted to acknowledge the receipt of f/xV/V'"'? 0 '" , ? of -the 17th 'instant,-and-to express the f:v..■■•/.: - cordml apeement of the council's Gas ComV/_ -■ y-.;wiWee with .your^very , naive suggestion that U :V.".':','■ ■'...■no good can possibly arise from.Any.further KvV •':•".■' reference" I .to ft position which has already been j ,■;.; :•• euffioiently Ttoorded. .;. ''. ;I am directed to' '£~\-yi refer'to : what'Jiiro' considered to';be: the only [/;': i- : '.pertinent ,snd /essential portions of ybur comJSv./. :.ntunicatibn, .viz.;\:those'contained.in its three l, ■;■;■,;'. '■) ooncludiug paragraphs :—You ask:'./. "Without' !_••:_ j - to any. rights, powers,! or;privileges' !•": >■ oompniiy has or claims to possess." !;,.•:.' .Krst: For'permission to ley anduse mains to ■t'l- v the , company's- works in .Wellington , . ifi'"..'i '.with, the boronffhs of ICafori, , Onslow, Miral;;;7.,.;: :inar, or with other, suburban districts. Second:. f , For-an agreement- (embodying the terms ar;V:■-■ V. rived at) in respect. ;to ■ the. Kelrose ' district, si: ■■•■• ■'.'- etc Having made the abovo application',"you f-:i,'■.;.: 'trust r tb«t raj;:. ooramitt«e , "will-now- bo able f:-.:LSf-tq disclose the'method by^which, , and thetenii's &&;; ■■'; 'under- which," it proposes' to afford the facili-pff,/;;.;;-;..;ties'spughtVfoi'.V-b,r.'.:the., company." '/■- Taking pj-i;- '■■-, : thes9 : ;reouc,sts.- in the order in 'which they .'are IC ':•':• ■■;:■' above' set forth, the replies are as:follow:— ' Si- V ; .-":■;'•'■■ rf '.'.Tirst:'' The'xo'mmittee «s the result of ye\y. p?;';S .■careful,'consideration is prepared-to recoinjnend ft .':./■ tho council to. grant'a lease, giving-permission ft'. ; ; ,to'the Gas Co'mpany to lay and use. mains 'to ■:' .: ; '. 'connect the company's'.-works at' Wellington ■?.'•??:• ■■'with':the borpiighstof Kar'ori, Onslow, ■■'■ and K'; f-i ~i. : Miramar, or .w.ith; other suburben; districts, for i;i:./i..:a, period of:30 .years,..subject' to the payment- ? :'/i ; :.(yearly :in-advance), of',vSso per niinuni' for tho. -;,;,, ..' hrst. ten je.irsi.ilCO.perVftnnum-for .the second &;■■:■:, ten years; 'and ;i C2oo per annum for the third' ■ iV■"•'.■■.,' 'tin .yearsi and with ■■ the,-rijht-.'of renewal .for " : i.,,:-;' successive periods ; of U years.thereafter, sub- .,:.;■-' jecf .to, the annual payment: for.each ■i :''. ! .;::period being fixed Tjy'arbitratibri;.and provided :';■;: ."rthat- , the "company -shall -not'.'lay.-- any-main ;B-.':y of the: Town ;BeH. (other .-:-:; .; : /.than a road' crossing ! sanie)" that, is used, asa V ./■■ public.park,':qr-'isi'unleasedi'.wif;h6ut\thes'pecial : ,'". '/■; consent of the ".corporation;, and provided .fur-- •■"';':. ;thcr that if any iiiaiiris'laid through any por.:...:;::tibn:of the-.Tow'n Belt that is leased, then,the :'b;" :• 'company shall'either. arrange:.with":tho;lessc* !' '.■...■.-.Oγ indemnify'.the t ;corp.oratio.n ; ;fr(ii'u'aiiy\claiiii' i.;" ■' for; damages >made s ,by : the lessee ihoreofi ■'■'■}■ : : -i 1 ':-.■,'■■: ■ I Second:.-My"le'fi.e'r. dated 'thft' , ; 17th" Jiily,- 'im -.. ; '. reply, to yours ofi the;Mth.idem, "stated that V>: -.'your communication, accurately expressed, the ''.'•' ;!■'. position'-arrived : 'nt, : .'ut : the' : conference held. ■■;-.''.;■ '.'.between the GasCommittte^of , the'council and' ■■::'■- ybiirsfllf bii:;,thc Cth. July;.''-"While'-rthat •''; : /'!'.-V:'irient':ig-oorreqjt,\is'6'-'fftr.',-aa it goes; it ! "cannot ■ ;■,•-■■ ndw"-'be ,held -as'.'a ■ conclusion' 'absdlutely suit;vv; able to -the -present ■'circumstances,'-inaijimich ?•-'.■.'■ '; as the : positipu : ,has been somewhat .changed by. :>;■:.': subsequent: correspondence,Veto..,'.-.,The .confer- , , .;';■' : ence then helu.i'.hrf'd;.under consideration- the .) '..:. " matters in 'qucsUpn as. a": ji-hole,' whereas, at ',:..: your '.express .wistf'the .two'/'featufes—the ;..::. -necting niain.and the ; ,Melrbse"a?reement—have V; -,i : BJnco been separately.- dealt.'with; , ...The. posi-' ::;:■/ ,'tipn arrived'/at. at(that meeting .has, therefore, : .:'./■'. been' reviewed,';and, while substantially.arthere'd. ';■?-""■:"-. to, has-.been.'slightly 'amended,, and"; as finally- '-.■.-:.:'-. approved by the' .Committee,is 'hereinafter '.set- ■;'';. ■■•.;-:out':—''' :" };/ : y.^':'- : ."'■ -p"..: •■■-'■"•' v' ?-'i ?•'■■;/.' : 'V •':'.. •', . ;i. "The ; committee,; after HJwrally viWing-' the. . -.-., whole .position, v js recbmmend-'to : ...'v theiconncil.-thati^-The-existing Melrose■ agroa- .. ".merit.he>continued,-mlforce for. convenience tp ; '■!■ ;■■ .December.. 315t,"i'1909,-and then cancelled-for a;

':.. - f new; / -agreement;': ■■,embraciiigf'. i .,the,rfon<"ring' •■•■; . :terms:— M"--.'-..--.;.:;;;.-,- :.•:■ .-'..VY:'■-.-.-. -f, : ,- i ,"(l)iThe.corporation will:graht?.and.:.cpnfirm • ■'■■ to the company a-term-. .." ■ of. 21 yenrs tojsupply.gas : to. ; tl!e.-whol(i of the. ' v City_of Welling'ton; ; .including■. l any''vs\itjiirban' ■ ::;; district,'tliat-.liiay have-been, or"that:may,here-' ■■; .aftcr.be during- tlic.currency": of. siicli: term,'in-. .•■'•;.•:.■ eluded- : within: its -boundary. '/ -W- >■?•■■)'■'■•■. ••V-;.-.'--'-' \ / :'._ . :"(2) In that' portibrivqf the. city" ■ ■■".-■• ;:fqrntfilly, know'fl.as; the 'Melr.ose.iW.ar.d/: .. ;'Jg_ard : to. whichXthe; corporation/claims/.to- ;have' ; . '.'. rights of pnrcKase.of certain ! .ii)aiiis;"and : .other,' • ■■ works; under':th'c'''agreeiiiientVojj'tered?iiit6''be-' . ' .. ■ tween... the. .coinpany ; ;and -' the'' late .' Jfelrose .-: .'Borough, thesSorporatioh -ivjll laijree'-.iiot,' to'. .-/,-■;. exercise ,su.ch : ■.riifht.'of- purchase'jfpr.a 'nerinrh ■.■■.:.-'of: ; 21:7«tos; ; ■"■•■■ P^ lrc^e ' is \ int^.d?d,:tirelvo,|]i'6nrhs',: up't;ice'of".! '.■•..■ the 'corporatioiVintentioii; to.ljegiyihrpripr fe' ' ,;tho': expiration'^of*■ tlie: said-term of. .-'2 l -years': ';■''■. If notice as aftfr-esaid-be not given p'nojvto'the j ;v: expiration; of ,term,of 21 ''$$%&, the .;':'■ companyrtoi-etijqyjJfurtUer'.SHccessiTe/fjfrms cf ■"', .-M: years'; tnereifJSjg subject to, the riflM of the/t V corporation .to 'purchase at theend,or.any;and .: every such extended .term, on. giving twelve months notice '.priori to the expiratibn./nf-'ariy; : ... and. every .Bncli'.extcnded' term, and subjc'cV-ttlso •'" to ■ annnal payments ast'hereinaftor,'set 0ut:..;..* ;. '(3)'The.'worts:"tp v b'e "purchased; shall be the :,;;. whole of the' : reticulation mains,; services,' pub-' -:•.':" i|f- lamps, meters, and Mother -works within the 1 -..'. Melrose.district and Town Belt," and. used .'ex-. ;;,. clusivelyjor the supply.of.gas to that district; ; but shall .exclude any ; other works and any main pipes-,passing;.through .that'-district or ■'. the.Town.Belt and.used solely for.the supply iif gas'to.anyvother, portion 'of \\yellingtoii , or/lb. ..' any. of the'suburban as aforesaid/''"' ;■'. ''W)The. ■company: .shall, furnish': to the..cor-;.'poration-within a period of.three months .'after- .'•'■■ the expiration; ofvoach year-' (ending,.3lst IJe v ' cember) a statement, showing in reasonabl* ■ detail, the'cost of all works carried'out by it; •-■ during the; previous rtwelve months '{(including.- .■; •.- therein allreticnlationinaiiis, nnd services laid ,"-.,- and public.lamps and meters supplied) within the. Melrose, district- and Town Belt; and used; , ■; or, tobe : used,, exclmively for- the: supply., of • e j 3 j to that district; suoh statement shall h\ve ; added, to the cost- as. shown .in the buoks of; .;■ ■••/.the.'company-, a charge of. 7i'per cent, to cover ; Gupervision ;and.. sundries; of. a, character :,that ■■ ; . lannot. be .donveniently --broiight ;.to : account.i Such statement shall; bo'-'q'e'rtified. tp as QPrrtct, > ipintly by' the company's auditors, and by an , auditor to be appointed'by. and paid by tha .corporation. In the event of niiy dispuio between, the auditors of tho company end Ilio apsitor'of the corporation'/the-matter in dis- ;■ -pnte,to-be, referred :to ./thevarhitration pf. an independent accountant; the cost of. such.arbitration, to bo borne'.b'y'..'-the party.whbse auditor ■:, was.in the. wrong. ;. ;, : \'. '/.• •-..., , .'.'. ■■•■■"(s) The 'corporation':"mil accept the', statement- of;th«,company.'that tho,sum,expehded,ih. ..'• .■ the Melrose' district --tip to the' 31st--.De'cember, , 1908; /.as certified fa by the company's auditdrs, '.-:. amoiints to'-.iE32,959 ,6s'.- sd! ■;■''- ■■■./ v >':'■. '~•' .':'(6)¥pori 'discontinuing the use of" the Street ' <■ Jdmp-posts now: erected; in the Mel rose'/ district forVpnblic-street lighting, the ; lamp-posts, maj**; be removed by the, company, and a credit'is' to be niade in the ohsuihg annual statornent;of, £& for each: lamp' and post so disused":'"'"'' *''• - "(<) Suoh'.annual statements shall not' incliid-e any. sum i6c repairsi'or alterations or , the cost ,of new mains,and pipes used for replacing old ones. '. •;" "-.-. '.'.:-■■■''■-''; -. ; ;' "' '-.. . '- .' ' "(8). If the '-'corporation elects to purchase at . the expiration/of tho''first term, or of any snbgequent term of years,.then the sum to be paid shall be determined .on the.basis,of' the yearly, audited statement, less such an'.,ampiint•fpr, .'. deprepiatipn as.sliall.be mutually:agreed.iippn, ■ or if not mutually agreed upon as may be deter- .:. jnlnsd'.by arbitration.' '■■':■■' /..,.'' .."■■- .".'."■:_.;. "(9).The company: shall: not lay any main . through any. portion, of the Town Belt (other, than (i-.rnnd crossing same)'.that'is used as a ' public,park, or is uiilcased, without, thespecial oorisentof the corporation, and 1 if any main-is laid through any, portion of. the Town Belt that is leased, then.'the-cpmpan.y shall either nrranije/with. the lc!weo : ,;or'. indemnify the/corporation from any olaim for damages mado by .-'."■■ the leswo. thereof,, .?■ : ' ,' ■ ■ ■ "(10).The company to be bound in central by 'the cnnditlena and olan.iea of tho Wellinnton Gas Cumpany , ? Act, 1870 In respect to all future operations, pipes, and services hereefter l»ld, apd'works,hereafter;oarrled out under, the agreement, /sublect, however, to' tho provlslen that -should the: council, owing' to alterations in Miel«velg,of any. stivct or publio pl»ce require any malns or, riipee (laid prior to '.'the.Slut Defiember, 19091/. to be 'raised, sunt, or a'Kred then .-'the" company-shall oompl.v with the'.written notice to that- effect el fen by the cnuneil or its engineer-, and in default ,, of such, oeinplianee, the ooiinoil may. at the. eost and expense of the. company-cr.iiw eueh mains, er .pipes to be raised, sunk, er altered in eonipli--0 hnce. with - suoh. notice,!,, ■ •• /:..'"'•.., v. . . "(11) The eranpiiny to pay to the eerperatien (vearly in.advance),the siim ef £W for. the first year, oonlraencine January l.«t, .1919,, with • yearjy inertness, 6t,''JW .up, ta £560' it the 2ist. . year, and ' further, tiat fop «»eh euccesaiv* perind of' 14 years '.an addittenal annual "..'ment-'ef .4100:.shall be made; that ,i», j?600 per annum.'for th« first period of 14 jfars; /per anunm' for the next: period of M and so on, until a maiimum -warn ef £WI) per anDum is reached, tiemfter oentin'uin? at snr.h sum p>r. aneeja. Ai to the method by whiah, and th» tonne -eiiiier. which, .'the--council.'proposes to afford the faoil;tiw -.. EsVed. for by tho. company, I p.m dipeoted t-o ■state that. the. corporation will, "h* te give a.grant sufficient to »nßWp',th» Gas Compapy to supply, the whole of th« Ojty- «f Wellington nhd«iiWrban area? •from (<0 Mireroar; or-from (b) Wellington; or (c) partly from Miramf.r anil part'y from Wellington.; ; •'. ."■ ;"' "■■.-■■» "Upon hearing win y«n'to the effect tKht the. sroposnls ..herejfl confp.iiwd ere acceptable to the"■ compahy, they will in diw? course be. :laid before the earliest. in«etinst thereafter of the City Council" for ''confirmation.":.' . .—. I am. sir; your obedient-servant (signed), Jno. R. town cWk.", _ : ■ . : .P.S.—The fras Committee lessecves to itee.H the right'of puHicatfon. of- this' Wter. afiert neeeipt by your compaiiy.-iJ.8,8.