PRIVATE POWER CO

Hokitika Guardian, 28 August 1929, Page 6

PRIVATE POWER CO

POVERTY BAY FAILURE. Another “boom time” development received its final quietus when the shareholders of the Gisborne HydroElectric Company, on Friday, wound up the business by a formal resolution, as required t>y the Companies Act. The concern started during the prosperous years after the war, with the object of developing electric power from the Waikohu river, to supply Poverty Bay, and public enthusiasm, supported by encouraging reports from engineers, resulted in the subscription of nearly £IOO,OOO. The company met reverses, and after a certain amount of developmental work had been done in the Waikohu Valley, the project failed completely, and the license granted it by the Government lapsed Iby effluxion of time. • '

The principal cause of the failure was the prospect of the early development of Waikaremoana powgs, dind the local bodies’ general impression that national power would he cheaper than that from Waikohu. This impression led to a keen controversy, and finally to the launching of the Poverty. Bay .vower Board, which now operates extensively, while private enterprise in this .connection is definitely dead, y.o.