GAS WORKS LOAN.

Hauraki Plains Gazette, Volume XXXV, Issue 4789, 15 December 1924, Page 2

GAS WORKS LOAN.

PROPOSAL BEFORE RATEPAYERS. "A VERY DEBATABLE MATTER." The Mayor, In Introducing the proposal in connection with the gasworks at the public meeting on Friday night, said that the council was not asking the ratepayers to carry this proposal, but was only bringing it forward tor a referendum. It was a very debatable matter. The council was divided in its opinion, and he wan not advocating the matter. The proposal as set out was for a loan of £6500 for the purpose of purchasing the assets of the Ohineiuuri Light and Power Co., Ltd. (in liquidation), and effecting improvements to the buildings, plant, and mains. The security for this loan would be a'rate of three-fourths of a penny in the £ on the unimproved value of all rateable property in the borough, but the council was of the opinion that if the gasworks were taken over by the burgesses, then the price of gas should be raised so that no rate would require to be collected. There were at present 230 consumers of gas. of whom 147 used gas for lighting purposes. In consideration of these consumers’ interests, and the undoubted value of gas supply in a town, the council considered that ratepayers should decide whether or not Paeroa should retain the gas. If the borough did not take over, then the workf would close down in a few months. The plant was atiresent in a deplorable state, and required repairing and some renewing, all of which was allowed for in the proposed loan of £6500. There were almost as many consumers of gas in Paeroa as electricity. The Government valuation in 1920 was : five acres of land, £lOOO ; improvements, £3300 ; making a total of £4301, exclusive of furniture, fittings, and meters. The-land and buildings should be worth £1750', and the scrap value of, the plant was at least £lOOO, making £2750. The purchase price was £3725, book debts £275, repains as per the report (less No. 3 bed of retorts and deductions on building repairs £5O) £1745, reticulation repairs and extensions £250, cost of raising loan £lOO, first half-year’s interest and sinking fund £238 15s, contingencies £1665, making a total of £6500. His worship then referred to the fololwing report on the works prepared by Mr Leannonth :— "No. 1. bed of retorts of two retorts requires new fire door, new clinker door. 4 spy boxes, mouthpiece. Doors require new eccentric levers, new eccentric bolts. Binding rails ascension bridge pipes, and hydraulic main are in good order. To renew this bed for coal gas would be £lBO. “To make this No. 1 bed into a bed of Peebles’ oil gas process would cost £135. Only one retort would be required capable of making 4000 cubic feet of gas in 12 hours of 90 candlepower, which is sufficient to enrich 50,000 c.p. from 15 c.p. to 19 c.p. Owing to running this plant at a low temperature the cost of upkeep is very low. Temperature required 1400 degrees F.

“No. 2 bed of. three retorts requires to be taken right down. The arch requiies renewing, heavier binders, mouthpiece, doors,, new levers, eccentric bolts, clips, spy boxes, and clinker door also. Iron chimney, hydraulic main, pipes, valves, etc, are in good order. Price for resetting with generating furnace capable of uising a great deal of waste heat utilised to heat secondary air with the result of a considerable gain of fuel in heating retorts is £270.

"The arch in No. 3 bed' of five retorts will stand another setting. New binders, backstays, chimney, concrete floor in front of retorts, which acts as a great support are also required Price £350, “If No. 2 bed of three i etorts was renewed and No. 1 fixed for oil gas the No. 3 bed of five retorts could stand over for three or four years. "The station meter requires repairing. At present it is not working. Part’ of the brass front is missing, also glands and bolts for hack, and inlet and outlet valves. Price for repairing and putting house over meter and governor £2O.

"Purifiers require new set of grids for inside valves, and new worms. Price £5O New oxide of iron is wanted. five toms, including freight, costing £27.

‘The cost of tumbler for spraying water inside scrubber, new grids, one ton coke valves, pipes, and general clean up, would be £25. New springs, pipes leading from condenser, and drip pipes for scrubber, £lO ; wieghbridge repairs, £8 ; coat of distilled tar for small holder and bricks taken off top and plates painted, £l5. The large holder is leaking very badly—water 6ft 6in below top of tank. I* also requires coat of oxide paint. Not knowing just the amount of work and material required it is hal'd to give a price, but I should think £6O would cover the lot. Removing and renovating dwelling house £l6O. Office and showroom £9O. Retort house and cbalshed £l2O- Repairs to 300 meters and testing same £3OO. second-hand test meter in good order £5 10s. Calorimeter £45. 4 h.p. vertical boiler and small steam engine £B5. This boiler might be fixed on the flue of ietorts and the waste heat used for generating steam.

"Distilling Plant.—For a small works I think a steam still would meet the requirements until the make of gas increased. This still will take out all the entangled liquors and leave a good heavy dehydrated tai' suitable for roads and footpaths. For still, tar pump, worm, fittings, valves fitted complete, £75.

"Walker’s blue water gas, capable of making 14,000 ft per 24 hours, erected £220. hammers, chisels, taps, dies, wrenches, retort rakes, carbon bars, shovels, etc, £29.

"Including the No. 3 bed of retorts, the total price is £2145 10s.” The ratepayers must deal with practical facts, continued the Mayor. The plant could not be bought under £3750, and the liquidator said that he preferred to throw the whole plant into the river rather than sell for less. The price asked would just pay

the debts of the company, and the shareholders would lose the whole of the share money paid in. If purchased. the estimated income was put down as: Gas sales, 3.500,000 feet at 12s per 1000, £2100; meter rents, £168; profit on residuals, £3OO ; total, £2568. The expenditure would be: Coal, £825 , interest and sinking fund, £487 10s; working expenses, £930 10s ; renewals and depreciation,’ £325, thus eating up the whole of the incomeThe figures were born out oy comparison with the bad years of the company’s balance-sheets. The increase in pi ice equalled £350 a year, and the interest on capital required £390. With interest and sinking fund tin amount required was £487 10s, whicii would leave £l5O to be gained by reduction in working expenses, which should easily be passible with the new plant. From careful investigation he had no hesitation’ in saying that provided the present consumption was maintained, at 12s per 1000 the proposition was a sound one. The response to the invitation for consumers to say whether they would pay the extra price was disappointing, hrleeu, less than 100 had replied, and these replies had to be obtained by the town clerk. Of those interviewed two-thirds were in favour of paying the increased price and one-third were not in favour of the high rate. If that was an indication, then a loss would be made of £350 per annum. The figures quoted were quite safe. There was, of course, a possibility o" doing better than he anticipated, but he preferred to work on the safe side because they did not know what sort cf a competitor the Electiic Power Board would be. There was also ‘o be taken into consideration the nonconsumers’ rate. The council admitted that gas at 12s and meter charge of is 6d was costly. With the nonconsumer's rate staring them in the fare consumers might swing over to electricity. In view of the facts the council could not recommend the proposal. but before letting an industry in Paeroa die out it was decided to let the ratepayers decide the question. Tb.ere’ was a distinct risk, and the council, he considered, would be lacking in its duty in not letting the public know its view’s. QUESTION’S. "What are you going to buy ?” asked a voice from the audience. The gasworks,” wars a reply, also from the audience. Mr de Castro considered the proposition was a "balmy thing’’ from beginning to end, and should never have been put before the ratepayers. In replying to a question as to the condition of the mains, the Mayor said that they were in good order, but some of the reticulation pipes were not so good. Mr Flatt said that he thought the Mayor had been very fair in putting both sides of the question. He had devoted a lot of time to it, and had gone Into tiie question thoroughly. There was mo doubt in his mind that the power board would be a big coi»—«. petitor in the near future. For cooking, a reduction in price of electricity had been made from 31s 8d to 255, and it addition a hot water service could be installed at a cost of £3 ij year. It was now possible to get all cooking, and lighting at an average cost of £2O. The McCleary stove, the latest thing in electric stoves, he was given to understand, was a wonderful invention. The Southland board had ordered 1000, and a sample one was now ii> Te Aroha. He did not favour the proposition, but nevertheless he thought that all ratepayers should lock into the matter for themselves. Mr E. Edwards, Deputy-Mayor, said he wa- distinctly in favour of the retentioi. of the gasworks. (Applause.) The company had made a profit of £B2 last year. If the works had been able to make a profit under the present unfavourable condition, then with provements there would be no doubt about it. The main to Karangahake was in bad order, and the day the borough took over the gas the main would be cut off at the borough boundary. With the installation of a station meter they would be able : j tell the quantity of gas being made , and also the quality. If in face of all the disabilities the present manager could make a profit, what sort of a profit could be made if the works were in order. Leaving aside this matter, there was another factor, that was the question of the various clubs and associations in the town. There were gas and heating arrangements fitted in all the places for social life in the town, and if the gas was lost the town would be put to a - very great expense and inconvenience. There was no doubt that the gas was a great advantage for cooking, and he thought that every consumer would be prepared to pay more for the convenience of using it. He thought that before they deprived the town of the advantages every ratepayer should weigh the matter very seriously. Mr Learmmith had told him that if he had the money hp would buy the works himself. Now that came from practical man, and a man who knew his business. With a slightly extra payment they could retain tor Paeroa one of the facilities that was almost an essential factor in the life of any community. Mr E. W. Porritt said that it was wall known that the main to Karanga- ' hake was in a very bad way, and the loss of gas every year must amount to a good deal. In »’eply to a question His Worship said he thought that Mr Learmonth’s valuation for repairs were reliable. Asked if the council could express an opinion, His Worship replied: “The councilors were not unanimous. Cr. Edwards is in favour of the proposal, while I do not ask you to vote for it • and Cr. Flatt, while not speaking against the loan, tells you that he is not keen on it. So you see the council cannot express an opinion.’’ On the proposition of Mr O’Neill a hearty vote of thanks was passed to the Mayor and council for placing the proposal so fully before ratepayers. Tn replying His Worship s.aid he hoped that there would be a big poll. Whatever the result, the council wish-\. ed to have every possible vote re-7 corded at the poll.