MELROSE GAS SUPPLY.

Dominion, Volume 1, Issue 311, 25 September 1908, Page 10

MELROSE GAS SUPPLY.

CITY CORPORATION V. THE COMPANY.

QUESTION-OF RIGHTS.

To last night's meeting of the City Council the Gas Committee reported that opinions of counsel had been taken as to whether the gas company have power to carry their mains through Melrose to the city, and as to whether tho city's power to purchase the works within Melrose had been affected, and theso opinions were in the negative. -A further opinion was being taken, and the;committee recommended that if it should" be to tho same effect, twelve months! notice te given to the gas company (of intention to purchase tho Melrose mains, etc., The Mayor, in moving the adoption of the report, intimated that he wished the following words added to the clause: "And tlat facilities be given the gas company to test tile legality of their claim' to carry their mains through .Melrose, also the right of the council,-'to purchase the works within Melrose." The company had, he said,'asked tho council to join : in taking tho necessary steps to havo those questions decided. It would bo to the advantage of the company as well as to the council if these, matters wore finally determined. If the corporation had .been correctly advised then the council hail ill Melrose a large field for- the supply of gas. He would not go into the legal questions involved, because it would not bo wise at present to' do_ so. It would appear that the mains laid in Melrose were set down as worth about £30,000. Ho did not kno'w if the company had included in ' the estimato' the amount spent on pipes through the Town Belt. Tho council held, that, .the company had not the right'to connect through, Melrose with .the city. Upon ■ that question woulcT ; tleifend .very 'largely- 1 the value of tho concession held by the company. Two of the best legal opinions that could be obtained in the Dominirin were on the side of the. council,- 1 and steps were'now being taken to' secure the advice of another equally prominent solicitor. If _ the latter ivas' to the same effect the council would be 'so well armed that it might' consider itself : fairly safe. Tho council had received a report with respect to the whole of tho company's works, but he thought it would be better not to make it public at present!" There was 1 considerable difference of opinion between' the company and the council.with respect'to the value of the company's works, etc. Mr. ' Biss, in seconding the motion, • said it had been erroneously suggested' the council were "bluffing,"-with a view to securing' a reduction in tho price. When Melrose became a portion of the ; city, the vaule of the agreement to the borough must have been taken into consideration. There could be no doubt that monopolies wero a very bad thing for any community. The time would come when the quantity of gas'consumed in tho Melrcse district would bo very considerable. If the council-did "not'acquire the mains, etc., it would be. neglecting its trust. He quoted figures showing the prica of ; gas in Wellington and elsewhere.

Councillor Luke thought the council had acted wisely in taking steps to' ascertain its legal position. He strongly supported the municipalisation of the gas works. The company would'be treated on a' fair basis. Councillor M'Laren'said he would want to know what price had been fixed before any deal, with the company gas brought off. .'. Councillor Smith held fstt if the comi pany's rights could - be 1 boujlrt the corporation should secure what was undoubtedly a very valuable asset. In particular, the outlying districts would then secure gas at a cheap rate. v The report as amended was adopted.