STRATFORD.

Taranaki Daily News, 28 July 1915, Page 3

STRATFORD.

MOKE LIGHT COXFEREXCE. (From Our Own Correspondent.) On Monday evening h conference of the Borough Council and the Electrical Supply Company was held in tlw Borough Chambers. in order to discus* the matter of purchasing the company's undertakings. The company was represented -by .\Jr. R. Musters (chairman of directors) and Messrs. A. W. Budge, Reid, S. 11. James, S. M. I'orritt, 0. Wilson, X. •). King and I.Mr. \Y. J. Newton (the company's manager), while his Worship the Mayor (Mr. -I. \V. iBoon) and Councillors "irimter, Davey, Rutherford. Stanley, Mills. I.awscn, Hancock a,ml Young looked after the interests of the borough. Before starting proceedings, his Worship asked the meeting if it was in favor of the press being present.

Mr. Masters said the company was willing, in fact they wanted no Star Chamber or hole in the covnev methods. The company had nothing to conceal, and thev were anxious that the ratepayers should know how they stood in the matter. He moved that the press be admitted. Cr. Hunter seconded. Or. Laiwson said he would vote against the motion, but gave no reasons for his objections, and eventually the motion v,as put and carried. ITU Worship said the council was pleased of the opportunity of meeting the company in order to discuss matters with it. Some of the councillors would like an entirely new plant. If the company was just starting operation#, it would not instal the present plant, but 'wculd have somctlnns newer. He wanted to make it clear that the council had no personal feeling towards the romipany, but that it was trn-t.ee for the people of the town, and whatever was agreed upon wou.hj have to receive the ratepayers' sanction. 11l rei'avd to the present plant, the iron poles were worn out, and others had been lengthened to cross over the telephone. lines. — ('Mr. Xe'wton: That is done all ovc Xew Zealand ). —In regard to the water plant, was a problem. It might go at* any time. It had been erected for some considerable tiive. and was not Tuiilt of hardwood. If the we'r w'.is washed aiv.iv. the company would not re-crect it. If the eouneiil had it, they would prohubly not renew -it. That meant that the water rights thev were asked to pav for would be money los't. Many more transformers were renuired. and be had expert opinion that the cables wee not nearly strong enough. If the council bought the plant, it wouid have to consider the advisability of installing another f/eisel engine. Taking ail these thins* into consideration, the council would submit the following oiler for the company's undertakings: The council to take over the plant

l at a value to the arrived at by the I appointment of valuers, by either sidfl. and an umpire if necessary, subject to the company accepting £1 for

its goodwill. His Worship continued: In taking over the concern, a lot of the pre-ent plant Kcmihl have to be thrown out. a.ml transforuif.i's and .poles would have, to be adjusted. The company had four years to run. Tt .pavs to put in good and up-to-date machinery

Mr. Xe.wton: Which the company has. ' Ilis Worship: S<ime of the meters arc 3."i voars old. (XaugTiter.)

Mr. Porritt: There were no meters in existence at. that time.

Ifis Worship: Well. .saytfrom 2."> to 55 years: at leist that was the date | on the meters. daughter from the com- j pany.) (Tliis was the (late the patent was taken out.—(Juir Correspondent.) His Worship: You say you made £7OO profit last year, but surely you cannot call it a ,profit, .because you paid no interest out. Mr. .Masters: Von mean dividend-*. Surely that doesn't make a loss ,j.f we made the profit and did not pay it out in dividends? Mr. il'orritt: Vou forget v»o have a re- | serve fund of £;!000. His Worship: The point is how much' will jron set, lor the yla-nt at tlie el)d" of I fi-.nr years? Personally, be was sorry! the plant was (here at r.II. He would like, to «tast with a. new plant entirely, I hut j! they started before the company's I concession was up. the. council wcu'd hftvc to put its cables under ground in Broadway, and the lines would have to he erected 011 poles inside the footpaths, outride «f Broad.wav. The trouble was that more street lights were wanted, and the council was not in a position to pav for any more. , Mr. Masters said the company was very iplea.sed to meet the couri -il as a whole, instead of a. small committee. When thev met small committees of the council in the past, thev invariably agreed with the company during the conference, but when they reported to the council the reports were not altogether 'in accord with the views expressed by them ait the confccnce. With regard to the olTer made hv the. council to the company thev could not entertain it. In the ,(1 n-'t' place, the company \va- working under a. deed of concession granted by the council. TJie council had kept tile company up to tin' oon n ession. There was only o:'e c'ause in the con-i-c-sion which diiv.tlv atfected the counci 1: that was -the elnise making provision .for the council taking over the company's business. This clause .provide! ,for arbitration. The council evidently was not iprepared to stand to an agreement made, by its own solicitor at its mm instigation. The council, in offering ,C 1 for tile goodwill, had affirmed' the p.-inciplo that there was a goodwill attached to the company's busi.lies*. Peeing that was so. neither the 'speaker nor the council were competent to value the goodwill, and he submitted that the question should .00 referred to two competent accountants, so that a decision could be. arrived at that world be fair-and equitable to all .parlies. With regard to his Worship's remark.- a.s to the plant being out of date, assuming that this was so, the vui.ers would put 011 the Kiune. a ju ice that would .accord with its value. The company contended that the plant was not out of date, and he ventured to say that there was not a plant standjus in Xew Zealand today that was mole up to date, or 'be,lter value, than the company's Deisel plant. Regarding the hydro plant, ,Mf. Sheppa rd. the council's valuer, at the last valuation, stated that, although the plant was not what mijt'il termed up to date, neverthe-

10-u it was as olTootivp us a. now plant. Mr. P>lack, the company's valuer. confirmed this stivteinrnt, and Mr. I'Kmio,

in lepoiitinj;' on tlic company's plant a

jr\v months alio, oil beliali o.f tin* conn oil. i-('.ixii-t<Ml in exactly similar terms.

Cr. Hancock: What about the water? j Mr. Ma-iters: Did you eve'- Uu.w an hydro plant worked wHH auytlihix i but water? Wliat do yo.u think it onirht to bo run with —oil or whisky? I !>\i!>htel'.) Mr. Masters. continuing. said that li'n Worship had stated that the poles wen worn out. weiw dangerous to line, or wanted to be pulled down. Surely, if th.e poles were not .satisfactory, the valuer would put 'his value on them aceorilinjrly. The Public Works Department Juid recently inypectod (he whole of the company's lines, and had only drawn attention to three ipoles. l'robabiy. his Worship had woinc inside knowledge .which the. ptablie Works Department itself did not possess, which save him 'authority to make su:'h an asloum]ui.fr statement. WiHi reLoi'd to the w«r, it had stood the exceptionally had

v eatliior that had foeem exp4jrh»c<>.i t...last thrco weeks, and ho had no . ■» the weir would stand for years, reimu'k aniide by his Worship wjsw.l'is the meters was almost too arid i hto reply to. 'file, company only been going sixteen years, ami tl:r we.re certainly now wh.cn they were p'.'t in, aaul this statement of his Worship, that tliu meters were up to vcars old, was about on a. par with his other statements regarding the plant. J{.'nanll'.«« an wilier statement made by his Worship, that the company h-.ul mot made. any profuts because it liad. not ipaiiil any dividends, if .M'>\ Mas»ey know his Worship's capabilities as a. I'ltant'iH'ii' in* .would immnliait'ely nrpoiint. him Minister .for Vimince—(hwtffhter) for he must realise it was immaterial whether a dividend was 'paid out, extension's to Iplant made out ot vvi-ntc, or the amount transferred to a reserve fund. The net income (must necessarily be a .prolit. lie was again sorry that the company could not -accept the i-oim-e.il's oiler, but said it would he prepared to arbitrate on .the plant and its {foodwill.

Mr. King said that the fairest way for the. council was t.o take over the whole concern, by arbitration. There had bcieii a great deal of criticism regarding the plaint .in the past. "he hvdro plant wits, perhaps, a little out of date, but. nevertheless, was eltcc.ti'Vc, and the plant would be valued on that basis. Mr. Porritt said he was wry sorry if the negotiations were to fall through. It was hi both the company's and the council's interests to take the concern by ajfbifcraition. Neither the company nor the council was "competent to say what, was the value of 'the company's plant and uindertakiing.

Or. Quiherffird said it wa,; only failto the < oiraiu.n.v that it should receive some fo'.vk',oration from the council. T.t had started the company when Stratford was in its iniia.ncv; Wore the local liod" was in a. position to undertake the. w.-rk. He. world .prefer a more, modern iplnnit, alf'uoimh the louncil might purchase the plant, at a small value, it did not. follow it was in the interests of the to purchase it. The council, by taking over*the company's plant, was simply relieving it. of it, and a vexed question, and probuftlv legal expenses, in determining whether tin; coiphany should eea;<! to ex:i'4 »f----t<ir lftlfl. l'lie company, undiin-Mi'iHy, had n, goodwill .if it liad a right in perpetuity like some companies, apd was making any profit at all, but the company iiad only four years to run, and lie considered that the council had made a rcasonaible «sw>rwwse -to the. nrw partv. llesid'es, they must not forget, tliev had >te- face the ratepayers and get their sanction.

Ah. Budge said that there should 'be no Sentiment in this matte l '. If t r company was not worthy of consideration, it .-houlil rccc'vc none from the council. Willi regard to the plant, botii the cr.mpii.ny aiml 11k- cewieil would i*et the I;cxnerta a-vailable to value it, and surely that should arply to the goodwill. Cr. Young: The whole ernx of the question is the goodwill. The company claims it.is ,putting by £7OO each yea; - , tint it Enwws quite well it is putting it by became At has only a short time to go. What t'he. company would lia-ve to .sell in four years' time would be a Deiscl engine. and a little bit of copper.—('Laughter.)—He regretted that the council had not written and Cold the vo'inpany what its oll'c ; " was. before to thia meeting. Tic admitted the oll'ev .looked a 'hit small on the face of it. Mr. Ciimic. despite what, the company nrighl say, mid condemned the plant, and reconnmcndcd a new plant with a. different voltage altogether.

Mr. S. H. James said that he would like to SCO' some finaJity come to, even if they had to meet again.

Cr. 'Yc.'.ing: The point is the council is not 'bound to take, it. by arbitration, but if Tile council cocnqffcls the company to Jiand oper itb ,plant irt must lie. done, bv ar'br'i.ation. The, reas'on he objected to going to arbitration over the goodwill was'the, question might be raised as to .bow Ion,? the company lirtd the right of .-.r-'plyiiag light in the borough. Mr. .piasters: We. are qur.-te 'p'e.]iarcc to take the goodwill a* for four years t" run.

Cr. Young: WVII, it'.s the first time I have heard the ce,ii':p«,;iy admit th-a.t.

Cr. Hunter: Js there, any other rtav the company could suggest as to the council taking over the, undertaking?

Mr. Masters: We have .made our offer, but we are willing to negotiate in nnv w«v the -Amipany desires. His Worship said that Mr. Masters had .imade staiwimts that he was not competent to deal im finance. The company must recoini-se that it had got to put. all its profits ibv ill order to clear out at the, end of its term. It would have precious little to sell at the, end of .four years., with the exception of a De'Vel engine and a little plant. The council Was not, prepared to talc t'ie platfoiim and fldvorate taking over t"ie companv's p'ant on the terms suggested by the, company. In Hking ovr' t'"c undertaking, it cleared the wav. Fxl'.oTts 'Would not take into consideration the oil jplant. Mr. H'lidtre: 'Vou wouldn't have to pay for it if it was no good. Mr. Po-rr'tt: With regard to not paying a dividend, the r>oney was not put bv to pnv for co*t of plant at the. end of tiie term, but 'Was used in maliiiig extensions in .keeping witJl the needs of tb< concert!.

Mr. Masters: .Reeairding the voltage, f.-om the company's point of view, it would like a. '221) voltage, but from a. conMimc.r's point of vie.w, 100. Xearly all the works in Great Britain are 100 volts, and if it is good enough for them surely it ought to be good enough for Stratford.

Cr. Youiiir: It wan .only following out Mr. CKmiie's report. lie is an cxipert and should know, and he recommended 3i new iilant with a '250 voltage. Mr. (Porritt: Is Cr. Young awa<v that most e-f the motors in use in the town are run at 2-50 volts? <V. Vountr: I "'as net aware of it. Mr. Xcwton: Wellington has not alte.'-e-:l its voltage. It has just 'put in two powerful motors, and they are running on 100 volts. Lamp* that could be bought for 2s, 100 voltage, could not be .sold under .'is (id, with '250 vo'tage. The generators will be .just as good i" ten years' time, as they arc now. ?he.ro ha,s never been a coil burnt out of them. As regards new inventions, no-t-'.'og mis been .mads since to beat the present generators. His Wor.shi.p said that he p'F;-U''.ncd there was iiothinu' to <lo but to adjourn, sreinc tliev could rot coii'e to ti'i'e^. Cr. Rutherford: 1 take it the matter oif will <be finther dis osscd bv the council? Hi-, Worship: If the coun.-i! widi-es it.

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