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Southland Times, Issue 1574, 7 May 1872, Page 2

We took occasion, a few days ago, to point out that certain undertakings, such as works for the supply of gas or water, become, from the very conditions of their establishment, practically monopolies. They are not subject to the ordinary law of competition, which in most cases regulates the price of the commodity supplied. Once in possession of the ground, they need fear no opposition. Rival undertakings are at such a disadvantage, and exposed to such a serious risk, by being second in the field, that in practice they are seldom attempted. When they are, they may be carried on for a time, but the result is always amalgamation in the end, leaving the

consumers in the same position as before. Fortunately, however, the control which the consumers cannot depend upon from competition, lies ia their own hands at the commencement of any such enterprise. Gas and water works, being chiefly for the supply of towns and villages, cannot be successfully established without certain concessions on the part of the municipality ; and the granting of such concessions may be, and always ought to be, Acorn pan ied by conditions sufficient to protect the interests of the public from the greed, or it may be, the caprice, of the shareholders. We are glad to observe that our town councillors, in replying to Mr Hutchison's proposals, seem to have been aware of the necessity of proceeding with caution in making arrangements of this nature ; their resolution to obtain some further information on the subject before concluding any arrangement, we consider extremely sensible. We trust, however, that the information will really be obtained, and that the matter will not be allowed to drop. The Mayor and Mr Lumsben are likely to remain some time in Dunedin, and will be able to ascertain everything that is known there on the subject. There is no reason why the question should not be considered on their return, with a view to an early practical solution. Supposing the Council decides on leaving the supply to private enterprise, as may probably be thought the more prudent course for the present, there seems to be no good reason why the terms offered to the projectors should not be the most liberal the town can afford, so long as care is taken to secure an equivalent advantage by the imposition of fair conditions. Arrangements which would cost the town little or nothing, might be of great value to the contractors in establishing the works, and could be treated in the bargain as a quid pro quo for better terms for the public than might be otherwise obtained. For instance, a lease of one of the municipal reserves might be granted for the works on nominal terms, tor a period of years. Exemption from town rates on the buildings, and from jetty dues on the materials used might be allowed. Ou the other hand, the conditions to be imposed ought to be sufficient, though, not vexatious or embarrassing. An outline of them might be ascertained from an examination of the various Acts of Incorporation granted to Gas Companies at home and elsewhere. The first, and most obvious, would be provision for the proper re-instatement of roads, footpaths, drains, &c, interfered with by the gas-works, and power to effect repairs at the cost of the proprietors, it not done in time, or to the satisfaction of the Council. A maximum price of course would have to be named for both public and private lighting. The gas supplied should.be of a stated minimum illuminating power, and a proper method of testing this point should be agreed upon. Approved means of determining the accuracy of the meters should be pro\iled by the works. To protect individuals from the effects of caprice or ill-feeling, the proprietors should be bound to supply gas on the usual terms to any premises before which tbe gas mains pass, so long as the ordinary regulations as to-payment, &c, are complied with. There should be a provision for revising the price at stated periods ; and this might be equitably based on an estimate of the quantities sold. The proprietors should be bound to submit their accounts to proper inspection, for the purpose of settling this point. And, finally, there should be a purchasing clause, by which, after a fixed period, the municipality should have the option of becoming proprietors of the works, on equitable terms, to be determined by arbitration. Other points might appear worthy of consideration, and some will no doubt come to light during the examination of the subject by the Council. It should not, however, be a very difficult task to frame a contract, including the concessions which the municipality is willing to grant, and the^ terms which it requires to be complied with by the ownera of the gasworks. Tenders might be invited for supplying the town with gas, on the terms and for the time determined on. The profitable character of gasworks is so well known, that we have no doubt offers would be received in sufficient number to choose from ; and probably better terms would be obtained than by dealing privately with any firna or individual. Three months advertising in Dunedin and Melbourne newspapers would bring the project under the notice of many who might otherwise never think of making an offer, and yet who might be very willing to do so when invited. And whether the works were undertaken in the end by a local company as has been suggested, or by strangers, there would be fair play for all, and the public would obtain the unquestionable advantage of having the town supplied with gas on the very best terms attainable.