GAS SUPPLIES.

Auckland Star, Volume XX, Issue 193, 15 August 1889, Page 2

GAS SUPPLIES.

(To the Editor.)

Sir, —Your correspondent, " Carpe Diem, ! in last night's issue takes objection to th° defence of the gas companies by Mr Fish, M.H.R., in his speech lately mado in the House, when he said that the Bill then being considered would, if carried, do " wrong to certain invested interests in gas companies already established, and that those companies ought to bo protected." Your correspondent places two notes of exclamation after "protected." In facto, heli'ffcs his eyebrows and wonderingly asks what rights a ga3 company of all things in the world can have ? Mr Fish thinks they have rights; other persons think so too, and Parliament will say so when the proper time comes. Your correspondent then remarks, " This is a subject that requires ventilation, because popular opinion has always been that companies can manage those matters so much" better than corporate bodies." No doubt popular opinion in this instance is quiterighb. Atall events, ibis true. Mr Fish, represents Dunedin, has been a member of the Council, and tcok a very active part in the management of the gas works. It is somewhat suggestive that ho should be the champion, and found doing what your correspondent objects to—defending the rights of the gas companies. All honour to him !• A delightful example for your correspondent generally to copy. " This city (Dunedin)," says the writer, " which, of course, is already supplied by gas from the Corporation works, yet he (Mr Fish) seeks to prevent other corporate bodies havingequal privileges." .Mr Fish does nothing of the kind. What Mr Fish objects to is that the Act shall be so amended that_ Corporations shall have tho opportunity of using the law to threaten timid shareholders in gas companies that, unless they agree to sell their works afc a nominal price, the Corporation will erect gas-works, and shut them up. As the law stands now, the Corporation must buy the companies works, or go to the House with a private Bill and get that passed. Parliament, in effect, says :—-" Before you take so responsible a step aa the borrowing of money to compete with an existing gas company, you must come here and satisfy us that it is a wine and prudent course. Besides which, these companies have rights. They pub their money into these works when others were unwilling or unable to do so, and afc a time, too, when public moneys were not available for the purpose. Moreover, these companies have been before us, we have laid them under obligations to supply gas to their several districts, and

they have raised and expended capital.for the purpose, believing thafc Parliament would keep faith with them. Wβ put htem under tho regulations which were considered sufficient, and.you yourselves appeared in many cases, the Bills being amended to meet your wishes. We must see that you have some more tangible reason for incurring loans than the mere wish to become gas manufacturers. It is too serious a step for-any local body to havethe-pbwor to pledge the security of the rates and ■ embark in'a competition 'which might end in shutting up the corporation gas works, and the levying of a rate to make good the loss. Beyond all this the-Municipal Corporations Act, clause 370, provides all the machinery necessary for acquiring these works in a fair and. proper man ner." Your correspondent asks, "And is ib the duty of our re? preventatives to protect the interest of monopolies?" The answer 'is, ",Yes,_certainly,if the State has granted monopolies." The monopolies in New-Zealand opart from local government consist of letters patent only, so far as lam aware. Does your correspondent mean these ? Was nob bhe allusion to gas companies?—l am, etc., Section 369.

P.S.—The subsection referred to, also the following section of the.Act, is appended to show what provision has been made for the purchase of gas companies. The Public Health Act, 1875, England, makes the same provision, and the clauses were in ■> sorted into the New Zealand Act, when ib was before the House of Representatives in 1876, on the petition of the Auckland Gas Company :— Subsection, clause 369, Municipal Corporations Act: "Where gasworks arc ab anytime established for the supply of gas in any borough under tho authority of an Act of the General Assembly, it shall not be lawful for the Council to establish any obher gas works to suoply the same locality or any part thereof except under the authority of a special Acb in that behalf." 370: "The directors of any gas company in pursuance in tho case of a company registered under ' The Companies Act, 1882,' of a special resolution of the members passed in manner provided by that Acb, and in the case of auy other company of a resolution passed by a majority of three-fourths in number and value of the members present,. either pereonally or by pioxy, ab a meeting specially convened, with notice of the business to be transacted, may sell and transfer to bhe corporation of tho borough, on such terms as may be agreed on between the Council and the Company, all the rights, powers, and privileges, and all or any of the lands, premises, works, and other property of the Company, but subject to all the liabilities attached to the same at the time of such purchase."