THE GAS QUESTION

Dominion, Volume 1, Issue 143, 11 March 1908, Page 8

THE GAS QUESTION

' THE CORPORATION AND THE ' COMPANY. THE ■ MAYOR -REPLIES TO MR. NATHAN: .i: The , letter of ,tho Mayor - (Hon. -,T. W. Hislop) ,to,.tho .chauman .of the Wellington

Gas Company (Mr; D. J. Nathan) suggesting the sale of tho company's assets to tho City Corporation has not been favourably received by, that :gentleman..' The /Mayor stated ,in his . letter :—- v. - • " While tho, Council is desirous of dealing fairly by your company, andireadily rendering -to'it all tho privileges which are-granted under the special Act,. the committeo con- : 6iders that such privileges should /not be extended. Tho, committee: has-also 1 m viow , that the Council is desirous of acquiring all public privileges such-as lighting, and it is ytts duty to the citizens not to increase tho value of''- any moiiopoly which it is. contemplated to purchase.- .The 1 committee''is a'd- ■ vised i that 'there is no .validity ■in tho claim put forward :by your company, . thiit the .privileges granted in respect of the-'ar.ea' comprised in the city when your/Act, was passed extends now throughout' the new limits ■of the present city. " ■ .." The committeo. is. also" advised jthat/.'aU'ij • $h° l ?gh..at first-sight the section* passed A last aessiqn, .if .giveh eff«:t toi' might bo regarded ! as' extending - tho privilege of your company so-as to give it the right of . taking gas; from ) Miramar through' ']Vlelrbsp'(to .the City : it' will not so opCTat-e,'; - Tho Committee does not seo its .way .to advisei the Council 'to grant ■ the privilege': of.; so conducting the is ■ under contemplation that tho Council will' exercise - ( its. rights', to purchase 'your -Melrose • it is believed such worlsswill prove ro'munerativo'.tb the City. ... ' ; During Jour; conversation;' andM i believe your 'conversation with; othe'r members of .'the .committeo. you havo said'tHat :if you werS > hot permitted 'to' bringgas from the works . »t' Miraniar. and ; so {supply.- the icity,' you /will 2 erect works. in the city itself and you'.de- ! plored : .thisyv because of . the inconvenience ;to the . citiztos -through , haying'- such ' works .pithi'n tho city, ; and becauso of the yalUe loi Tho -'city cannot prei^erit! t yqiii* isingi the landi for tho "purpose so long' a's jbu comply withthe law as to .nuisances.; ;_it, has, however, occurred to' the. committeo ihat ( -the solution of the""difßculty - will best )e brought 'about" byVarriving at, equitable I jienns npon which 1 tho city could purchase .your works. Jf jt . should appear to the . ompany, that terms could :be arranged, the iommittee; will recommend -. the '■•. Councilto V mter -into; ; an'ag'ree'ment for nthe purpose, ttf ;• this j suggestion i should reebminend itself \b. yqU; and yourl co-directors,- there is /no feason'>why y terms- should not be' arranged ffit-hin-a very short time."" '; , Mr.'' .'Natha7i, )' in ,; an . interview ' published ,'decfined, to believe,vthat;thei-City. Corpora'tion was" serious in the.'matter of tho proposed; purchase. - Ho recalletl; that ,acti6n' ■vvastbegun. jby !the.Council as ..long ago-las over, the - company ; ; for - some 'years 'the possibility of iitho: 1 works/ and 'on'.-'this account the company' had not' reduced \thS prica, ofgas to' consumers. as. it - might otherwiso .havo dono, fortho:reason thiit by so •tying, they would decrease , thoir profits and so reduce'.',the .sum .which a Compensation Court ; would bB, likely to ;give.,. : , He stated that tho company, in 1904, repeatedly begged the' Council to .declare its intentions, but withoufc avail. -At the present time,'- the; acquisition .of, the works and the development that would be • necessary would cost the city • in .■ the noxt five..- 'years something lilft £800,000, sincO; tho, company was. entitled to receive-a sum based _ou ■ tho ■ avcragoV earnings, •* and the ■ .voarnings ■ last year .-were £26,000. -In-viow of the fact that the Harbour Board had just committed itself to aii ekpMidjturo;of 'a'million, of money, lie conMderfed that another; £800,000 on 'the* city would .bo piling up, the debt on the citizens pretty hard. Mr., Hislop's recent actions in the matter seemed to.him .to be merely an electioneering dodge for., the -Mayoral election. , The.result'.of this flying kites for popular' favour was that the publici had to pay through the noso\. ' .- THE MAYOR' IN REPLY. The. Mayor (Hon. T. TV. Hislop), when seen by a-Dominion reporter yesterday, said - that the Chairman, of tho-Gas Company liad, in, his opinion, adopted a ,very unfortunate line, of argument. If the Corporation and :-i tho company-could not agreo as to terms of purchase, ithat ; .could be no . reason'for- increasing the privileges : of-the company! . As to. negotiations before he came .intovoffitAj, he - .was not'.' aware . that, negotiations 'of - the nature 'indicated ' had taken place;" but , it would have'been-easy for the company to repeat; itssuggestion's' to tha( Council after • the municipal election of 1905.X , '"U. '. y- \

, CHEAP 'GAS i /"It is only within the last 'month or so," .His Worship continued, " that I have loarnt - 'of; the .companyfs ibuming: desire to benefit •tho citizens by giving them cheaper gas: If ■ the.company will submit a 1 scheme whereby - the. citizens will have -this cheaper'gas, and will not have to:pay for it in the long run v by, granting privileges of immense rvalue, the • Council will,: no doubt, favourably consider it. If,-however, contrary to the statement niado by tho secretary in answering our let- • ter, the-board of directors will not consider tho question, of spiling out-..t0. the Council, wo must just wait,, until wo ascertain 1 tho Government's •> policy , with regard : to ' such public: services. • Tho Premier has promised us his support to a measure granting local bodies tho right of; compulsory purchase: • ( .VALUE OF THE CONCERN, i "v 'l; hotico , that: Sir. Nathan's;.valuation' has. gone up about £200,000 since he spoke to me.. The terms of such purchases aro generally based ou a-'slight advance ' -on th'o . market value of tho shares of tho undertak- ,; ing. , I understand tho shares of tho-Welling-ton Gils Company aro selling .at £15. • Sup- ■-- posing we'obtained 'the right, to purchase compulsonly on-the basis of £20, wo should ' thoni be entitled to tho concern at about hair ;;' the- figure, quoted' (by Mr." _ Nathan!;■; Evidently he-.considers that.tho privileges andmonopoly granted toVtho company- have-• beon , i worth hundreds of thousands of pounds Wo have to-consider -from-the ■ citv's-point I ■ ofview what -.the . increased rvalue, if - tho 'ex-1 •••" tra. privileges they- aro asking' for . wero i granted, would amount to in another. 301 ■ years. :■■■ ■■ v • r-■■ -.iv

' THE COMPANY'S PRIVILEGES.- 1 , " I don't consider that the company has any reason to complain. They:.have .Jkheir privileges—and they. aro : v'ory -great. grantiSd by Act, of' Parliament, - and we are not 'Seeking ; to interfero with those privilpges. ...Wo aro only determined that thoy shall not'ho/ made greater at the esponso 'of the' public. . ■ ■ .' . .; ; "I pass oven Mr. Nathan's. personal'bllugions . to myself with/ the advico to him not to measure, other people's com with his own bushel, which seems to bo not a very; generis one." ;