The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. WEDNESDAY, MARCH 25, 1914. WHAT IS THE POSITION?

Stratford Evening Post, Volume XXXVIII, Issue 80, 25 March 1914, Page 4

The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. WEDNESDAY, MARCH 25, 1914. WHAT IS THE POSITION?

The thoughtful and quite reasonablyexpressed letter of our correspondent “Ignoramus,” published elsewhere in this issue and dealing with the Electrical Supply question breaks to some extent new ground. We still, however, hold to the opinion that it is unsafe for a layman to be too ready to decide on matters of law, and would ask if the complication he refers to in connection with the Hamilton Borough Council does not warrant this caution. Again, as to the much-discussed position of Company and Council with regard to the concession,. or its expiry: is it quite so easy as our correspondent supposes to decide? We think not. Clause 9 of “The Stratford Electric Lighting Act, 1898,” says:

“T 1 10 local authority or authorities having jurisdiction within such area of supply may at any time after the expiration of ten years from the date of the coming into ■ operation of this Act upon giving six calendar months’ previous notice in writing of its or their intention in that behalf, require the .company to sell to such local authority or authorities the company’s undertaking, upon the terms of paying the then value of the undertaking and also the value of all lands corporeal and incorporeal rights buildings materials and plant of the company suitable to and used by the company for the purpose of its underaking; such values to be, in case of difference, determined by arbitration: And the provisions of ‘The Arbitration Act, 1890’ shall apply to any arbitration held under tin’s section, and this Act shall ho deemed a submission within that Act if and when such local authority or authorities shall give notice to the company of its or their intention to exercise the power of purchase hereby conferred.” The Act also protects the Company in general terms during the currency

of the deed of concession, or until its business is taken over by the Council against any competition for the publicsupply of lighting and power. On the expiry of that concession what happens? There are certainly those who believe that at the stroke of noon or midnight, on the day the concession runs out the Company will bo compelled to absolutely cease operations and forthwith spirit away its poles and plant, unless permitted to continue to supply electric current on sufferance by the Borough Council, but there are others, —guided, we believe, by high legal opinion—who are confident that nothing of the sort can be enforced, and that though the monopoly will cease, and the Borough, or any other corporation or private individual who obtains permission, may run a lighting or power plant after that time, the Stratford Electrical Supply Company may still carry cm its business without lot or hindrance.

Personally we offer no opinion; as already pointed out to our correspondent, where lawyers differ it were indeed folly for a layman to offer a conclusion on a doubtful point. Our correspondent expresses the belief that a majority of ratepayers would ho in favor ef buying out the Company at the end of the concession—presumably some six years hence. Whv not make an effort to do so now ? Surely the ratepayers would be better off if they could acquire the Company’s business at a fair valuation and there are tremendous possibilities in the next six years. We have before said that it would he well for the ratepayers, and all concerned, if a definite understanding could he arrived at, by a submission of the whole facts to some tribunal to he agreed upon. If the Company is right in its claim the issue or nonissue of a license docs not matter one jot, except that it would enable the Company to extend its business into the County, and enable many residents outside the Borough to obtain conveniences they now earnestly desire. On the other hand, there are undoubtedly complication's if the end of

the concession means the legal ending of the Company’s business. The whole question requires to he reviewed’ dispassionately and without prejudice. Clause oof the License now

asked for, authorising the Stratford Electrical Supply Company, Ltd., to use water from the Patea river for the purpose of generating electricity and to erect electric lines within the Borough of Stratford and County ol Stratford, reads:

“This license shall, unless sooner determined in accordance with the provisions .hereinafter expressed, continue in force lor a period of forty-two years from the date hereof unless either the Stratford Borough Council or the Stratford County Council, or both, purchase the licensee’s undertaking, in which case this license shall only continue in force for such time'as the Governor may by Order-in-Council determine. Upon the expiry of such period, or upon the sooner determination of this license by revocation or otherwise, all rights hereby granted to the licensee shall thereupon cease and determine, but such expiration or determination shall not relieve the licensee of any liability theretofore incurred under this license.”

While the License, if granted, does apparently give the Company a run of • forty-two years from the date ol issue, it also expressly states that, in the event of a local authority acquiring the Company’s undertakings, the license shall carry with it no goodwill. But, as our correspondent again quite properly points out; there is the case of Hamilton on record. In fact the further one dives into the whole concern the more one is convinced that the position can only be made clear by taking the course we have already suggested. On whatever side one stands it is fairly plain that the lighting of the town ought to be in the Borough’s hands; further, that run on business lines the service should be a profitable one; and that the sooner the Borough acquires the business the better. In so saying, we do not mean that the Company should be bought out at any price, but on fair and reasonable terms. That is all the Company can expect or the ratepayers desire.