THE GAS QUESTION.

Evening Star, Issue 2923, 2 July 1872, Page 2

THE GAS QUESTION.

To the Editor. City Council Chambers, Dunedin. July 1, 1872. Sir,—l have the honor, by request of his Worship the Mayor, to ask you to be good enough to publish the enclosed correspondence between the City Council and Mr Larnach, as attorney for Mr Haukcy, in the matter of the gas supply contract. The Editor of the Otago Daily Times , having declined to publish the whole of the correspondence in this matter, as read at the special meeting of the City Council on Friday last, on the score of want of space, has this morning found space for so much thereof only as has been forwarded to the Times paper for publication by Mr Laruach. The missing documents, copies of which are enclosed, should, in fairness, be published, in order to enable the public to form a proper conclusion as to Mr Larnach’s case. —I have, &c. J. M. Massey, Town Clerk. Copy of rough memorandum signed by Mr Laruach in the City Council Chambers on 13th February, 1872 Declines to lix a price for the immediate sale of the works. .Agrees to appoint two persons on each side, they to choose an umpire, and to sell the works at a valuation at the end of six months from date. 3rd. In the event of the Corporation agreeing not to erect gas works for three years, will agree to supply to supply all private consumers without restriction at 12s Gd per IUOO cubic feet,

providing payment is made by the 16th of each mouth, and the public lamps at L 8 per lamp for a three years’ contract; and, further, will bind himself to sell at a valuation to the Corporation at their request, any time after six months from date—two persons appointed on each side, they to choose an umpire. (Signed) H. A. Hankey, By his Attorney, W. J. M. Labnach. Dunedin, 13th February, 1572. City Council Chambers, Dunedin, 17th February, 1872. Sir, —I have the honor to inform you that the City Council accepts your pioposal, as per memorandum signed by you on the 13th instant, to enter into a year’s contract for lighting the City lamps, and for general supply of gas to the citizens. A bond will be immediately prepared for execution as between yourself and Council.—l have, &c., (Signed) J. M. Massey, Town Clerk. W. J. M. Lamach, Esq., as Attorney for EL. A. Hankey, Esq., Dunedin Gas Works, February 27 th, 1872. Sir,— -Referring to the subject of my letter herein of date as per margin, 1 have been directed to inform you that the Council complying with your suggestion, has consented to reduce the price for now lighting of City lamps from 2s Od to 2s per lamp per night. I am further instructed to acquaint you that the Council has no power to covenant for a “renewal” of a three years’lighting contract, as you have suggested to his Worship the Mayor. Three years is the limit of time for which the Council can bind the Corporation in any lighting contract.—l have, &c., J. M. Massey, Town Clerk. W, J. M. Larnach, Esq., As Attorney for H. A. Hankey, Esq. Dunedin, 29th Fabruary, 1871. J. M. Massey, Town Clerk, Sir, —I have now to reply to yours of 19th and 27th insts. respectively—the first informing me that the Council had accepted my proposal, as per memorandum signed by me on the thirteenth inst, for the lighting of the City lamps for a term of three years, which term, I venture here to suggest, should commence from to-morrow, rather than in the middle of a month—the latter informing me oi the reduction to be made in the fines for the non-lighting of the City lanq s under the proposed contract. I cannot help thinking that with the present reduced charge for lighting a fine of Is 6d per lamp would be sufficient for accidents in connection therewith, and I shall feel obliged if your Council reconsider the matter. As I learn from you that three years is the limit for which the Council can bind the Corporation in any lighting contract, 1 presume I may look for a promise of renewal of the same at end of term, failing the Corporation not declaring to purchase meanwhile.

I have instructed my solicitor, Mr Georgp Cook, to peruse on my behalf terms of contract, to be drawn up by the Corporation solicitor. -I am, &c., Henry AfERs Hankey, By his Attorney, W. J. M. Larnach. 15th March, 1872. Sir,—ln reply to your letter of date 29th February, I have the houur to inform you that the Council consents that the new con? tract shall commence Ist March, 1872 ; also that the price be reduced to Is Gd per lamp per night. As intimated in my letter of date 27th February, three years is the legal limit of any city lighting contract. To covenant with you for a renewal, would amount to a six years’ contract, and would be illegal, —I have, &c. J. M. Massey, Town Clerk, W. J. M, Larnach, Esq. June 25, 1872. In reply to your letter of the 22nd inst., we have the honor to say thst, assuming Mr Lainach’s power of attorney to be sufficient for the purpose, we arc of opinion that his principal, Mr Hankey, is bound by the memo, of 13th September (coupled with Mr Larnach’* letter of February 20) to execute an instrument containing (among other agreements) an undertaking to supply private consumers at the price stated. There is nothing in our opinion (which we venture to express with much deference to Mr Cook's opinion to the contrary) illegal in such an undertaking, and considering that the memo, in question makes that undertaking the equivalent for the restriction to be im osed upon the Corporation of not erecting gas works for three years, we do not think the Council would be justified in waiving it.— We have, &c., Smith and Anderson. His Worship the Mayor.