ACETYLENE GAS COMPANY.

Press, Volume LV, Issue 10057, 8 June 1898, Page 6

ACETYLENE GAS COMPANY.

TO TILE EDITOR OF THE PRESS. Sir —It would appear that the promoters of this Company hope to prove the goodness of acetylene gai by abusing mc. It would have b-en better policy on their part to refrain from imputing unworthy motives to mc and to have devoted then* energies to proving that the proposed Company is really a good, solid and safe investment for the "-""whether this gas is more or less liable to explosion than coal gas seems to mc not to be the most important question. ine following matters ought to engage the careful consideration of the investing public: — The capital of the Company is to be £100 000. The promoters ask the pubbc practically to give them £55,000 in paid-up shares for the goodwill of their alleged patent rights—a. large sum to estimate the value ot the patents at. There ought to be reliable data to justify so large a demand. The goodwill of the Christchurch Gas Company, which is a well-established business, ajid'nas never paid a less rate of dividend than £10 per cent., is not, according to the market price of its shares, estimated relatively so highly. In othei words, for every 20s of the Christchurch Gas Company the market price to-day, cum dividend, is only worth 3i"s, whereas the. public is asked to give at the rate of 44s 6d for every £1 of available capital in this at present speculative Company. ( . r Ano-her question for consideration before subscribing for shares is whether the printed document sent out by the promoters with the "prospectus" of the Acetylene Gas Company, headed "The Science of Artificial Lighting," is to be treated as part of the prospectus, and-whether tlie provisional dii .ctor.*" and promoters are liable for the truth or otherwise of the statements therein tontained. Putting aside this accompanying document, it must be observed that the prospectus itself supplies no information, and commits the promoters to absolutely nothing. Ihe treatise on "The Science of Artificial .Lighting" would seem to be an extremely interesting attempt to evade the responsibilities of incorporating its allegation in the prospectus of the proposed Acetylene Gas Company. Further questions for solution are—Are the material statements in the treatise substantially true? Has acetylene become very popular as an illuminant during the last two years? If so, and where? The names of four places in the United States, two places in Germany, two in France, one in Canada, and one in .Scotland are given as places where works for the manufacture of carbide of calcium have been erected. No town or city is mentioned where the gas is used as an illuminant. The manufacture at Loch Ness (Scotland) has been in existence very many years, and yet the adjoining town has not been lighted with acetylene gas. If carbide of calcium has been manufactured there for many years, how could Mr Green, of New York, solicitor, have acquired any patent rights? The gas supplies undoubtedly a perfect light. Its existence has evidentlybeen known for years in America, France, Germany, Scotland, and England, and if it is of the great commercial value and importance which the promoters assert and claim that it possesses, then it is a matter of wonder that the Home and foreign newspapers have not advised us of the flotation of numerous companies to enmre its general introduction. Christchurch is always enterprising, and the opportunity is now afforded to its citizens of again demonstrating to the world its willingness to father, another-speculative undertaking by attempting to prove the commercial advantage of acetylene gas as an illuminant. There are other matters in the treatise worthy of careful consideration,but I propose to suggest one more ortly. Several companies have been established in different parts of the world for the manufacture of carbide of calcium. Tbey have been in existence for years in countries where labour is cheap, and natural facilities great, and notwithstanding, at the present time the market price of the carbide is 8d per lb. Can it reasonably be supposed that this New Zealand Company, with dear labour, coal and railway carriage, and with an expensive office staff and management, will be able to produce the carbide at a cost of a penny per lb?—Yours, &c, James Henderson.

-O THE EDITOR OP THE PRESS. Sir, —I have read with much interest the prospectus of the New Zealand Acetylene Gas and Carbide Company, Limited, by which it appears probable that acetylene gas will soon compete 'successfully with both kerosene and coal gas, provided that the carbide can be soli at a moderate price. I see that the promoters claim the exclusive rigfet to import, manufacture, sell, and use carbide of calcium -within the colony of New Zealand, and they cite an injunction against one Tame as proof of the validity of their patents.' I and sundry would-be investors would like to know—lst. Did Mr Tame defend the action, or did he consent to the injunction being granted against him? 2nd. Will the promoters engage to refund the subscribers' money if a defended action should result unfavourable to their claims? 3rd. Are the Scotch, Swiss, French, and German makers of carbide working under Wilson's patents? 4th. Are they precluded from selling their carbide in New Zealand? sth. What is the equivalent in good 22 candle coal gas to each cubic foot of good acetylene gas? 6th. How many cubic feet of acetylene gas will each pound of carbide produce? If these questions are answered satisfactorily, the shares should be subscribed readily enough.—Yours, &c, An Old Colonist. Addington, 7th June, 1898.