The Times. Published on Tuesday and Friday Afternoons. TUESDAY, SEPTEMBER 6, 1921. ELECTRIC POWER FOR FRANKLIN.

Franklin Times, Volume 9, Issue 665, 6 September 1921, Page 4

The Times. Published on Tuesday and Friday Afternoons.

TUESDAY, SEPTEMBER 6, 1921. ELECTRIC POWER FOR FRANKLIN.

At its meeting on Thursday next the County Council proposes to discuss the question of the area over which the agreement made between itself and the Franklin Electric Supply Co. is to operate. It is to be presumed, also, that the objection of the ratepayers of the Mauku Riding to be included in this area, and the request made bv them, and by the Tuakau Town Board, that the County shall install its own electric power works, wilt be taken into consideration.

“We nothing extenuate, nor aught set down in malice.”

Tiie Franklin Electric Supply Co. is a public company formed to take ever the little company that has lighted Waiuku village by electricity. Without the consent, or even thej

knowledge of the ratepayers concerned, the Qounty Council has given it an option confirming to it a monopoly of the right to sell electric power for a term of twenty years. It is to be permitted to charge for this power a sum sufficient to enable it to make a net profit of 12 hi per cent, on all capital invested. Provision is made for the Council to have power to buy back the rights to sell the electric power to its own ratepayers at a valuation.

The company, however, is not satisfied with the large area over which its monopoly extends, comprising the Waiuku and Waipipi Hidings, part of the Awhitu Riding, and the greater part of the Mauku Riding. It wishes, we understand, to get control over

the Pukekohe Riding also, and this is one of the matters the Council has to settle on Thursday.

When we last dealt with this matter, we expressed our fear that having parted in this light-hearted and irresponsible manner with this valuable franchise, which belonged not to them, but to the ratepayers, the Council would be found buying it back, but we were, not prepared for the suggestion .coming so soon. At the last meeting of the County Council, when the question ,of a conference of local bodies on the question of forming a Power Board was being discussed, Cr. Reid, member for Waiuku Riding, pointed out that although the Council had granted concessions to a Waiuku Company it could at any time take the company's interest over. As Mr Reid is the registered owner of £ISOO in stock in the company, and as we understand that he was one of the committee of the Council who arranged the details of the' option afterwards given by the Council,. we have nt> doubt as to the Correctness of his statement, and trust that the ratepayers will be grateful for the information that they will be able to buy back* the rights that were given away behind their backs. Let us now j;urn to the financial side and see how the county rate ; payer requiring light or power is likely to fare at the hands of the company. Under the arrangement with the County Council the company is empowered to charge a price that will give it a net profit of 1214 per cent, on all the money invested. The capital of the company is £IOO,OOO, so that when it is all expended, it will require -to earn not less than, £12,509 annually above its running expenses. But this is not all, for it will have to pay income tax at the highest rate, which will require another £II,OOO annually Therefore this deal of the County Council, in which the chairman assured the , Minister for Public Works at Patumahoe that the interests of the ratepayers had been carefully safeguarded, will take from the consumers of electric power in the western half of the county £23,500 annually, more than they would have to pay for electric fluid if they had been allowed to retain possession of their rights. We do not know whether the option given binds the, county irrevocably, but we have little doubt the company’s solicitor saw to that. If the Council is unable to rescind its ill-considered agreement there remains one avenue of escape. The Minister for Public Works has to issue his license before the company can operate, and if the ratepayers generally disapprove of the position, as we are assured they do, they should lose no time in laying the facts before the Minister. If the licensees once given it will be farewell to any cheap hydro-electric power for 20 years, unless the ratepayers are prepared to put their bands in their pockets and buy the company out.