THE GAS CONTROVERSY.

Dominion, Volume 2, Issue 603, 3 September 1909, Page 7

THE GAS CONTROVERSY.

/COW PA NY;:y;-.CpyNCI.L; , ;w , -Yesterday,: thb: .'town-clerk • fMr.', Jrio. R. Palmer)(forwarded us.:bopies;of a letter he rc : , 'jeifed iirbm,- Mr.'..Wm.'./Fbrguson,'\. managing iirectbr:pf : the:,Ga3iCompany,.on August 27, and the': reply 'he (the-.towii clerk) forwarded yesterr

..; , ; The;'f .letter ' : from ; the; Gas Company" states ;— '■■ Tb.b .- in the. form'submitted to the ■<;■•■.• company./in- your:. letter do riot cntiroly com- :■■ mend themselves to'the'board lor acceptance, : -;'Firstly;; with, reference ..to the-, permission ■V joujtht.tb'vlay-' mains 'to connect; with the ..Bor- :.- oughsigof-Karori;-- Onslow,' and Miramar, -and ..:>' othor.Vsuburban. : districts:—Your proposals aro '■'.-.■■ not. v agre"eablo.'to the!, company on, tho-following '.igrolindjiV'' l .-r ; -,;«'■■,.; :•.';.•:.','-".'.-. -"- ■.:,...■ .-:■; ,-: (a) Ycyil: ; term■• of;' grant' to" thirty ' :■ yeam;rjpon certainpayments, and praying for ex- ■.. ;., tensions, of the terrir upon; payments to be deter-. ....,. minedtoartbitratiohatthe. time of-such: extcn--Iv' slons'.-ltJis clear, that the company could not cx- .. '■ pend large sums of money at Miramar on so short ;:tt.tenrir'4..or on so'lndeflnitO) termii. /Eho com- ••'■■■ panyjdesires that'any .grant for such main or .';.'■■ mains';.:be, for,,,tho'.whole '.term, of ownershin ... .by :the'j;company' of J.it3'...undor,taking, (b) The r ,'■ ' amounts;; demanded .'for; rent' are such 'as the board;is not disposed *to agree to,:. An offer .;.'; -'Was -previously, made to' the.committee of the ■■', payment'; of a. sum . Of'- £100.- for': the first -.year; -.'..and .jESpperv annum afterwards,, to "cover" any. ....;-.- but-of-pocket costs.'■■ of. supervision ■",during ' tho * ; t'••,' layingfjpf. the;' main to: Miramar,' arid possible ,:'.', supervision.in subsequent years; and this offer ;.-.- ■ I:haveipleasure' in confirming. Further, as un- ;.-.''. dor .the'; present, proposed, arrangement.it is', in- ... tended Jto ■•'include ; .tho . possibility that mains ' •.may.at-somo future..date bo.laid ~to Katori, ,-, : OhsloWA and: other -.suburban districts,' in add!-' ■ :tlon;tOi'theipropos'od'immediate connection to •' :■; Mirani(i'rrxthe .board has authorised' mo to in-' ..;,, erease.Hhis ofrersto:-. & •• payment of.'■ £10 jer an- : '.- num after.;,tho.first year, :it .being unUersfood ...-,•-,.. .thatiWevterm.of'grant is,not restricted to,any. :-.''denmte'Knumbor.of years.' and that pay-cease.-in tho event of-the aequisi- : , tipn; .byj the ■ Corporation,- at any' futuro timo,' of. ... : ■ '-•: *■•■:'■•*,■.'■'■ •. >' .'.. /.,/;,,•; ..,.■■ /.,- ■. ■' '•'.:' Secondly, dealing .■.with.;'the,prbpbsedioxi«ision ■..:'...■ of .tho/Melrose Dlrec-: /.•: aware of any ..circumstances that; ■;-.-.:,;. nave-Oiourredr since :.-your/lbtter of. July. 17-las't. ;-;;;, thaftAKayp-'rehdere'd the,':nro'po6cd' oxteusion'. of- ,:■ tho-'lKlrdsov-agreemont• of■'.a!;greater monetary ' \.; valuftvtaanvlt'then cwas.'Even/assuming-that.tha . give exclusive righto: .■/•• Bitor.-,tno :twenty..flrflt:.year,--aa: recHircd...by,.the .;',;: - eompariyv; the- board is. of.opinion' that It :ia ; ■ not "irf;tho interests. of i tp.eV company' that the, .;.:• termstpfoposed by the council should bo agreed' :■■;■ to,?andjwiat it-would ,bo better to cbritiriuo un- .-:.•... existing .'agreement rathor ■ than pledge •': the,.cdnipany-to so large'a^commltmcnt.-,: ■'•'■'■" l l '■fe? 08 '™' 1 ;tl,at 'I should.•. point -.out; that .: whenS the company, made, tho ■ proposal • to■• pay. ■'"■' •■£. s - a J?"W:.£2SO per. annum T for-. tho-extension of. ;■:•■;.-tnc part,,of. its. pro-' •; poaar, that -."to.each annual' oxpondituro during . tno.:;tolU.years: prior itp' tho /date" of -piirohaso . : ' 'hero sttalu.beaddtdsthoroto: the.sum of .5 pef cent:" Jof: annum from tho dfito 'of expenditure (and forthis purro'se - the date-of expenditure in anyronoyearshoUbe "r.s-]v,ooejicd;.;.to.',bo..a's''at'Dccembor.ol pf that year-" ..r.i.Thiifrequest', of/tho--company-was struck 'out -■■.•:■■ by. ypufecommitteo.;without 'any .correspondini: advantage being Jgrahted- to the .-company. This '..'•■• fwears;;< to Kbo : ; quito>, unjust,-; end. my -: board ;•,, .your commiltee.will .see. its-way '"■' K. wnptato this iclauso'.br agree-to somorelausa, :;.havlng;ia,;lili6v effect. A> y.°: ■■:.■■ '■.-'•: •;■■'-• / ...:;.■ I As'-yyour council.desiros -to -rblairi thd option ::. to • purchase!thc';*!!ros'6-reticulation-at the ex- " ■'?i r^!-°>' of > 21 .years,*ftnd 'subsequently. ■.;,;■• ft •. i-caohiporiod . of.! 14 years; -:, ,'by: giving. 12 .months'.'previous, notice, my Aboard- .,. ,r.6ptmi' it'•; only, equitable, that.: tho company -;, shouldieoually, have .the;right',toidetermine, the ;. Hgteiwipt ;in regard to Melrose, by ;glving 12 .;>. >nontni-,rnotic«':prior-'.,t0.-,the, expiration', of any ■',:■. .;snefcpeWod;'' -:,■:.:'(.;, '-.. -v: -,;.v,. . -•- ■■•- ;.,,■.-■ . : ''''■'■'ii. Bn SiWvt?'.these. 'conditions; being .'approved. ... tne *bard;.has. authorised me 'to agree' to the ;...;. .: propdjed; pnymentr-;frpm :-£IOO in: the first year > .. , to£MB increasin- , :',,' to '■'j»»/..Pfr, annum , for the -.hokt -period of. 14 : - ; '.years '(in you askl.'and by ■...';'-V.r"ev.oi.-^-Mr.Bimuid;;for;eMK'.iiMce!sivß,t«rßi' '•'■'■■■■ . ■ «„?,'"' ' u "til a maximum, payment is reached . .of - : 47M.;per. annum. ■■;■■■:■:■. ;;.' *;;s.c'te-*,■:;?,:' \- " ''r ; KEPW;';;« ; \'.',:: :: ,' ;^:; ':; )■■ v, - The Town "clerk,' in Mn states '; C?-' ■'■'■■■'• "' 'jf^ :^8 >', to i tne ; permission .'sought,>to .W: .!. and .-'to connect tho compariy's-works ~•;:'ln <,Wetlingtpn.iV:lth,'.the: Boroughs -of Karori; ;--; Onil9Wi<;Miramar,'- and '.other-.'suburban .'district's, ~ -'<•■• Iho adheroito- the' terras alroady com- •.:■-'•.;, muuicfitod- toyou in my.i letter of tho 20th Idem, ,'.;■, - for:tthß..ifirst .period :pf .thirtyXyears, 'but'have ..f.ff r P>n.' , '? : '?' !ml nato:,the .reference to, nrbitra'.tipp;. to/decide the annual payment'to-.be: made ; I; duringV'tbe successive'.roncwal 'periods; (which ~,; appears[ (to. be .objectionable to,yorir. company/ . -Inasmuch as the basis upon which such arbitra- ■ has n'ot'bcon'fixedland havo docidedyin lieu thereof, to,add to their proviouo -olf»r,-that"for the roriewal.periods, ,the payment bo fixed-, at thalow.rato of £250 per annum. This ' ;.:': will> gWe the, grant..which-'your -lottbr states . - your, company, dedires,, and will".Bx-the. annudi ',;,-i'-.paymenr-: so that 'no future dlocnssion-,of tho , : question- will bo nccossary-that"is. to isay: tho -..',.-■ corporation,will bo prepared to givo.you ,t grant ' ;ln:.the;- first .-instance, for a period of thirty .... yp3re,':at. the• annual payments already stated, '~-. r with,the nght of renewal'-,(during tho tbrm of '•;:;,:,ownership of: the Undertaking byyour companyi ■;: - Id/- successive periods of : fourteen years there- .•.-.'-. i'aiter:,'St..an': annual payment of. £ZM,- As to .". your.'suggestion "that such payment should cease in, th6',:cvcnt. of the 'acquisition by tho corpora-' .--.'- tfor, ;dt any future time, of tho undertaking"— ,:';,'.- is it iiot'. obvious that this must bo so,; as there ... woiild'.mot.i.thon *o any .company/'to -mako tho '.■■■.payaiofrt?v--.'.-'; ><';,- :^:"-_:-- -.••^^v-v^■ ~, Spcptid.-Eegarding agreement in reapedito the lielrpso;*district, etc 7 .the.committee.adhere also :■■:'.■ to .the.terms set out in my letter already ..referred -~-' to,',except..:that they -hare,'so objection to meet ypUr-request that the payments bo made half. .'. yearly/in-advance; instead, of yearly,, and, as ' you suggest,'.in. tho'months of March and'.Ssp--.:.,tonibe,(t;of--each .year;-.but they will not. agreo i. .to.siieh; payments coasing-should tho corpbra- , •'■.''. .Uongl.Vo your company twolve months' notico of ;,-,. -■: Intention •; to purchase-during such - twelve monthij, as they cannot see any reason for, doing -so.'.v.The?committee :also decline, (as they did ; when,-;it.was first suggested) to agrco to your V i.renewSjl.proposal to-Jnoludca-payment of five .;.'■„• per .cedt.. boing ■' added ,to oach annual- bxpendi- . >. - ture-jby- the company, (tho 'basis of -faturo pur-':.-:'-.'dia«B)!i.during tho ten, yoars prior -to the date ,-of-purchase, should such .right of purchase be ■■'.', . exeroiwd -, byi.the .corporation.'. .In - your lottcr :'-..'. yonioiprcss. doubtras.tb whether-tho 'exclusive . ,'rightlto supply,-gas. Is "to; bo included in 'the .; lcasHs-vfor tthe renewal- 'periods.: Eofcrring to :■■; pigo',3,-of:-ms*':letter; it' is stated;that, "subject >■:. ' to-tHejcorporatlon net giving notice to-purchase I ; at- tho expiration.of 21 .years, ,; the company i> r. -.-''- - to''-- enjoy.: further, auccessivs -terms, of fourtocii ;, years-,».hcr'oaftor,' subject again to, the right-oJ • the .corporation.to.purchase at the ond of anv ;-', :;. anfl r ,iivery,'-such..extended terra;" . Those words ~.-;. clearly.; express - the intention pf the committee .'•v'-.to'ebmiriue tho .agreement- (as proposed tob« : InitiiUlri,' granted),- i.e.; with the exclusive. right L :■'" to, for.the further-:periods referred : to: '.. . bht'■'in... order .to put --the • -matter', beyond all ;, ..;• question,-I am djreoted;to state that sojong n« \'-■. .', the;»freeiient, or any extension thereof; is in •;:.force,;the exeluiiv'e .right to supply gas' withir tho ftlfilroso' district will be: inpluded therein. . :; In/cbnelnsion, I-am to add, that is the ques. 'tlbils;'at.'issue have now been very fully con .'■■; Tsiderea,-this-letter is forwarded as setting forth finally!the torms the,committee are prepared tt | ..recommend-, the-council to. adopt; .and-^they-de :'■"■■■■ sire-ne,ito request .that'your '.company will 'b< .-- gobd.jenbugh to either accept," or reject It, ae ■ eordlngly.--:.:.;-:, ■■' ■"''■■'■" : l-;