THE GAS DISPUTE.

Evening Star, Issue 2937, 18 July 1872, Page 2

THE GAS DISPUTE.

The dispute between Mr Larnach and the City’,Council formed the subjcct’of a couple of hours’ discussion at the meeting of that body last night. The subject was introduced by the Town Clerk reading the following letter;— “ Sir, —I am informed by my collector that, by instructions from the Council, you still refuse payment of arrears of City lighting rates due me, now amounting to several hundred, pounds. If it could be shown that I was not carrying out my agreement with the Corporation for City lighting, there might be some justification ; but it cannot. “ I hare no wish to take legal measures against the Corporation to obtain what I deem to be my just rights as a citizen carrying on a large and important business here for the mutual benefit and convenience of myself and consumers, although I have of late had much provocation to do so from the petty attempts that have been made, even to the annoyance and inconvenience of citizens, to prevent mo fairly carrying on my w’orks. If the excuse for such a liue of conduct towards me is because I decline to sign a one-sided contract not approved of bv my solicitor, I have to say that I will never alter my determination in that respect; but, so far as the citizens arc concerned, 1 her by bind myself and assigns that to any and all of those who pay rates due before the 15th of each month, no higher charge than 12s 6d per 1000 cubic feet shall bo made for gaa supplied from my works, between this time and the first day of March, 1875 ; and in the event of my failing to carry out my promise, the Council shall bo at liberty by this authority to rescind any contract made iu reference to the city lighting daring the terra referred to.

“ I write this letter without prejudice, aud with the hope that it may be the means of saving expensive litigation—a prospect lam so anxious to avoid. 1 remain, &c., “Hes’rv Alers Havkkv, “ By bis Attorney, “ \V. J. M. Larnacb.”

The Mayor stated that on the receipt of this letter he requested Mr Massey to forward it to the Corporation solicitors to know whether it wis legally binding upon Mr Larnacb or his principal; and their reply wqnld now be laid before the Council. The Town Clork then read Messrs Smith q,ucl Anderson’s reply, as follows “Referring to your letter of the Iffth instant herein, and our note of yesterday, wo beg to state that, having perused and carefully considered the power of attorney under which Mr Larnacb represents Mr Hankey, we are of opinion that he is not authorised to bind his principal to such an engagement as that proposed in his letter of the 12th instant; but that difficulty can, in onr ©pinion, bo easily surmounted by introducing a proviso in the lighting contract making void the same in the event of the proprietor of the gas works or his assigns charging any private consumer, who pays his gas rates before the 15th of the month a higher price than 12s 6d per 1000 cubic feet. ”

The Mayor remarked that after the receipt of Mr Lirnach’s letter, he waited upon that gentleman and expressed an opinion that that letter would be sufficient for the Council’s purpose ; that all they wanted was that the Council should be able to enter into competition if they thought fit, in the event of Mr Hankey raising the price of gas to the citizens. The opinion thru expressed was of course subject to that of the Corporation solicitors. Their opinion, it appeared now, was that this letter would be of no legal value, and suggested that the idea conveyed in that letter should be incorporated in the contract itself. He did not think Mr Larnach would have any objection to do that. It was only sought to be introduced in the shape of a proviso, and he was inclined to think that there would be no objection. He thought that if it were referred tothc Lighting Committee with power to act, the whole affair would be arrange I in consonance with the wishes of both parties. Mr Barnes moved that the matter he referred to the Lighting Committee, and in seconding the proposition, Mr JRossbotham said he had hoard it expressed by several gas consumers that they did not jequire the Council to look after their interests. Mr Ramsay moved as an amendment, “That the Council accepts Mr Hankey’* letter as a guarantee that the ciiiz-ms of Dunedin will not be charged more than 12s Gd per 1000 feet for gas for the three yea s ending March, 1875, and authorises the Lighting Committee to consent tothc elimination of the clause or clauses in the contract with Mr Hankey referringto privatelighting. ” It was simply a question whether it would be prudent for the Corporation to enter into an expensive law-suit for the purpose of gaining this point. There were ceitainly several members of tho Gas Committee who affirmed that Mr Larnach agreed to enter into a contract with the Corporation for the supply of gas to private consumers ; but other members would not go so far, and simply said they understood him to say so. Mr Larnach distinctly asserted he did not. The conflicting evidence on that point, coupled with the fact that it was very unusual for a Corporation to enter into a contract for private citizens, would render their chance of a verdict in the Supremo Court at least very doubtful. He thought the whole thing could be settled on the terms now suggested without reaspnablc cause for fear that the pitizens would be clrarged more thiui 12s (id.

Mr Livingston said the choice was between the acceptance of Mr Larnach’s letter and going into an expensive law suit. The latter he would like to avoid, as in reality they had gained their end. The Mayor thought the Council, in order to save themselves from the charge of pussilauimity and wavering, should carry out the principle of the agreement entered into in its integrity; and there was no other way of doing that but to compel Mr Hankey’s attorney to enter into a contract which would be absolutely binding in law upon him. He had every reason to believe that Mr Larnach would consent to the insertion in the agreement of a proviso embodying the views contained in his letter now before the Council. If he did not object to it, there was no doubt that they had every right to believe that be was not in earnest when he said he would not raise the price for three years.

Mr Barnes could not see why there should be any objection to the insertion of the proposed proviso. Another consideration was, that when the Council made up their minds to buy the works, Mr Lnrnach would point to his agreements with gas consumers, and demand a consideration for them. The Council would finJ if that sort of thing was allowed to go on ; that in one or two years they would have to pay L2OOO or L3OOO more for the Gas Works than they otherwise would. The amendment was withdx-awu, and Mr Lamaoh’s letter, together with Messrs Smith and Anderson’s opinion, referred to the Lighting Committee, to report to a special meeting of the Council to be subsequently called.