The Feilding Gas Company.

Feilding Star, Volume XIX, Issue 132, 3 December 1897, Page 2

The Feilding Gas Company.

AN IMPORTANT DISCUSSION. At tbe meeting of the Feilding Borough CouDcil last evening a letter was read from Mr J. J. Bagnall euclosing correspondence between himself and Cr Goodbebere (Mayor elect), with reference to the latter's name appearing on the prospectus of the Gas Company now being formed to take over the recentlyerected gas works in Feilding Tho Mayor (Mr W. A. L. Bailey) said that he would not read tbe correspondence, as it was of a private nature between Mr Bagnall aud Mr Goodbe here, but if any councillor wished to read it they could do so. If Mr Bagnall bad a grievance he should take some other way to ventilate it. Tbe subject matter of thci letters did not affect the Conncil in any shape. Tbe ratepayers were protected by a stringent agreement between the Council and the syndicate. Cr Goodbehere said he would object to tho correspondence being read at the Council table, but if any Councillor wished to see it lie would he pleased to show it to them at his office. Cr Thomson was remarking that what the Mayor had told him in a private conversation was different to what he stated at this meeting, when he was called to order. Cr R. F. Hayhittle said the matter was talked about in the town and the letters should be read. If the syndicate sold out to the company and tbe Council thought of taking over the works, he I wanted to know how the Council would j arrive at tbe actual cost of tbe works if the company wore to pay .£7OOO now and the vouchers were not to be found. He moved that the correspond enoe be read. The Mayor thought they should force the syndicate to place tho vouchers in some place for safe keeping, where they could be obtained if the Council desired to pnrchase the works; but it did not matter if the syndicate did refuse the vouchers, for if they coald not prod ace them in eleven years tbe Borough could havr the works valued, which would fosbibly be lower than the actual cost. The company had everything to lose and nothing to gain by not keeping the vouchers. Cr Thomson said this matter might not have been brought op but for the ! names of the Member for the District and the Mayor elect appearing on the prospectus. With the names of two prominent members of the town attached people would be induced to take up shares and be considered they bad no right to permit tLeir names to be used in assisting to float tbe company. Cr Goodbehere considered it absurd to think that because he occupied the position of Mayor that be could not take part in any company, and he ridiculed tbe idea of bis assisting to float ac inflated company. A great part cf tbe correspondence was untrue, while tbe whole of it was of a private nature. Ho denied the charges which had been made against him and condemned tbe motives for such, and he felt sure the people of Feilding knew him well enough to believe him. Cr R. F. Haybittle asked who the letters were addressed to. Tbe Mayor : •' To Mr Goodbehere." Cr R. F. Haybittle said he had been nuder the impression they were ad dressed to the Borough or Mayor. He would withdraw his motion. Later on it was proposed by W. G. Haybittle, seconded by P. Thomson, That the Gas Company being about to dispose of their plant to a new company tbe manager be requested to deposit with this Council vouchers of the actual cost of tbe works up to the present date to iacilitate tbe purchase of same by this Council if found desirable at a future date. The motion was carried. The question of the Borough purchasing tbe gas works having been raised, Cr W. G. Haybittle read a clause from tbe agreement as follows : — " That tbo Corporation shall have the right to purchase the works at the close of tbe term of 21 years by giving one year's notice of their intention so to do in which case the consideration to be paid to tbe vendors shall be the cost price of all buildings and fixed plant less Ll per centum per annum for depreciation in value of buildings and other works. The movable plant in addition to be valued by three arbitrators Provided always that the said Corporation may at their option purchase tbe said works at the completion of the first eleven years of tbe said term by paying in addition to the foregoing stipulations for tbe value of the goodwill of the concern at that period to be determined by arbitration as hereinbefore provided. Provided that tbe basis of tbe compensation for the goodwill in case the Conncil purchase at the end of the first eleven yearg shall be tbe mean profits of tbo previous three years.