THE GAS DISPUTE.

Dominion, Volume 2, Issue 611, 14 September 1909, Page 9

THE GAS DISPUTE.

FURTHER CORRESPONDENCE. • I'lirtJier icofrespbiiclorice lias taken - place between the Gas Co.' and the "Wellington Council -in the matter- of - liioj nc\v agreement for fhe 'supply of gas-to tho Melrosc matter .which arose! out; of' the recent differences ns to the; company's rights in.that district: ■ : i'rora 'the tone> of Iho'-latest letters*' itis estimated; thatja .•'settlement, of. has ibeea a vexed question, is 'not far dis.tant.. . .v,.: • "-v.1,. '■ In the last leltcr (published iti full in Thk *DoSi'iKioJiji;.thtf City Council- laid' tlbivn' certain '■rfoles''as to 'hii -agreements . ; To this Mr. W.. Ferguson; •- iriariagitig director of the Gas Company,'.has, .'replied* as follows:—.,;v-; rf .':.vj:. \\ ..... V6th, September.. 1509. .- '"l'lio "Town'-Clerk,'' ' V ••" ■' - V ' ' . :.; v ., u • ; PiIEjUDIOE. ..'■•fcir,-I am in rcccipt of your..letter- of 2nd'' iniltaht;"-btitr T)rior-to -placing before the board of.directors, I would bo glad to have answer .'to the last clausor.but -one of my i letter"' 6f 'tho 27th. ultiinbr wherein I pointed out ! that it. would he only .-equitable that tho company. "ecpihlljrwlJth- the council should have.tho; right to terminate the .agreement relating to the Jlel-Tp?o..district-.at,\the ;cnd;,of.. tho *llrst twenty-one i year?, and : at the expiration; of each , successive 'fourteen-year, s* period, ,;by... giving / twelve.: months 'prcvioi us"notice to' do - so'.' lily board .'cannot foresee . what . the future developments of indiistryovill'bo; aud-fcels indisposed to. tie down the company to ,pay large annual sums, practically in perpetuity. \ '.The directors therefore. : sc(ik!':the • companyt.Eiay'.'havo the option, prior to the-termination of any . period,; to elect '■ whether, it will continue during-the. ; next ending, Seriod to. purchase immunity from competition y payment., to : <.thc.,council of tho.amount de*--'your 'com'mitteo,. or, on the other; hand;- -toVruntho*-risk* of competition within tho Alelroso,'district, or of purchaso by the council of tho reticulation m the Melrose district.. J 'shall-'therefore be obliged if you will supply .an answer to..that/ portion, of ,my • letter _ which has -apnawntly ■ beon-> overlooked. /u 1 Bhall .be.'glad to learn whether I am cor--Tcftt"in" isSumin£?-that'; where 'yoii Btat'c" hf'your •lettery-nojv'. .under.; racknowledgment; that ,your : committed'ProEfoses to exclusivo rights dur- : ••in®. ,the r extended: .period,: that, ft is .'intended - to cover : tne 'whole; of the-vdistrict -reforred : to ; in' the proposed .arrangement.: and no.t he .restricted only to theMlelross-district,-a?;is stated-;t)rob-a.ijly:'.tfirough'ia; clerical tjrror,- letter.—i' am, etc.v (signed), '.William. Ferguson, .managing director,'-V-vy.• Cti •• THE COUNCIL'S REPLY The'following reply -was-forwarded-to the Gas Company.,yesterday

:7.'Bir,—l;'am ' jllrqctctl. fai'oelinowljsdso;-the re..; 'ccipt' of 'your.' letter, of th'e 1 6th. .instant, * ;in which you. stale tbat placing rtiy Utter'of-tho ?nd : ;in«tant -. before your ; board of . directors,yoliYwould !b'o .glad to. have a reply to the ,last 'clause but one, of your letter of the-27th ultimo, • wherein v board deems it only equitable that -the company should equally .have -the-rictit.-to-determine tho asreement-in-rcsara* HbMelros6;'::by^:givin^;;twbly^ ( -months'/ notieo. .priocijto.'.toojExpiration'. oi; any-period ,of, ; the •''V"in' ; reply,' : l L • that iiio , c6TWcii'' : caimbt!:agwti ; .tp such ' ail obviously in*, : Cquitable ; prop6aar,'-^hich'would ehablb-'tlid ; 6ozn«pany .toehold to'.place itH6 .City ; C6r:, ;ppratioh' .in-;ft,;!positioQ/.of .-necessity/ to/arrango •in, twelve months,for .a cda'-.plant. installation ari'd diflU'lct; reticulation; .which it,v has taken tlio companyyears to ' accomplish.'; - Twelve moiithg'. notice 'by:;th6.-cprporation;.to;,the .com-panv-bf :its;inteiition:t6 'purchase^.would afford* ' the ? cbrapany.' a' reasonable r time".pi "adjust' its future '.working programme,; especially, masmuch as avdecision by the. council to purchase, would ; necessarily-be * discussed,- and be. well kndwii,'. f pt , obably' for -.months' prior ;to' tlio giving , of4be actual written, notice;. tiut, twelve months' notice by. tho .company' to tjbo corporation.-,to dis-; continue Ibe ka'si'supply l 'to the. district'\v6uld bo; . :a^.it :would '.bo; abso-- : lut'cly*impossible' for, tHocouncil to cdrdplete. tho tiecossiry.' workij iriorder, to undertake the. supply L .within it.short,period;..and..would,;,virtually, mean • that" the*' company - would'' bo in - the'positiO'n l 'being able to'force the corporation -to :'appurr r :cliiieevof ; itho Company's reticulation, "i and poa,'siHv ,at a 'tirne least cpnvcfaientf'frdin the-citi* zens'; standpoint. : ■•v:-V}lJ):Lvour',.lclter tof; they 6th .-instant, you.;.also Inquire "whether . you.;.aro . correct •• in t pssuminfe that .my: -'committee' 1 -give',exclusiverights during the extended period* . . . 'to cover -fchfc whole;.of ,thdi district; referred to in ,tho. pro. and not to.be restricted only. In reply; to this, I am'to. state ihat'the ."exclusive rights proposed to bo. •given b>vthe. corporation.'extend (as 1 .would' ap; pc;ir 16 from my letter of .' tho, 2nd - in., startt).over-the 'whole of the area known asitho' district," "and "over 'such'.other" areas." as. the Kelburno'Ey.tension.and Northland (formerly portions ;of4hfrßor«»agh of Karori); Goldio's Braoartd ''Wa-dcstottfri' "(formerly-.portions, 'of the vßorouch.Yof-;;Pnslow),-',now.: included;;within,-tho jolty, boundaryj and also Over.-any. other areavbr. : areas, thereafter-, be. tincludcd within. • ltho' ..city,*' during " tho currency,-;of • ;any/ of ,• the , 'periods\of-' the leaae.' t but' .withont :< preJndic6 jtb . ahyiothec/iigrcoraentH, that ; aud-ihat .riiay : th'en; be. in eiistenco betwcen::tho. ' boropgh's'(in J which•'•shich areas' wdre' formerly' companyi vand •<which •may afffertrsiich .areas;V:.ln .otherAwords, the right! to ;p.urc|]as.?,^S-now;;*contaiped-in ,the .existing Mel*' rose' agriertienti .arid which is-,to becontmuod' /in", the-new agreement,-is to. exterfd. to,; and im*' abo'vo-.statcd; "ljuti. as:.ari examplo, "should say/.tha BorQngh'.bt,ilira-,' mar.-at/any -'tinie • elect. to , join, the/city^^lio f ;rights';.i:esbrycdi.by borough's fagreemcut •wft.h ".'"your, company^to- 5 consttuct : works,vMay; 'qtafas,- manufacture gas, and supply sainb; for: •h6 br privaff-.usc, etc.vetc..would bo taken i; ove^-by; :th« i cityi iand. used.- by. thoCity,, CorporatibDj ! Jni : coniunctiori with..their powers in tiio. district'of ► .Me'lr.pso(in''tho of;tHo < "beiTig ! 'exerCiscd /"by.tho- 7 sara^^wbuldv-apply,'.Bhould the'.Bovbughs; of, iOnslow' at any • time jbin the' pity, 'should V'thcT» r ;.- separate'boroughs, v"*mako.' your: f company:, l J !.To "further i-eirfphttsis^'the ' above/:..l,:'am :desired' to nva'ie'.it'tjuilto clcar that tbccorporation will ; 'not 'consent lto ,any -course which ,will^'in,the (least • -degreercxtehdrthe •nionop6lyr*legiSlativciy«*held;b;\^thc l "'Gds:Gompftny:;ovor;thc'*aMa'l;nown a^ahVCiiy. of .Wellington:'tit..thc timo when' tho/com-' pany. obtained its-charter. . - r '.: ', v ,VA«j this '^letter?;- fully■> answers TtherquerKs' set forth in yours of tho «h'instant'; and-in -my; com-, mittfto's view appears, tho discission oti-the; wholo; rango. of ..the negotiations, }I' am' •dir6ct.e.'Ut6,*'re(iuc9t.. that-: your-comtiany/. will i.be'good/ enough'. to :reply as requested in - mi* nre--vioua communication.—X.am,..sir,jyour obedient aei'vant, Jno;;.R.-.Palnicr, 'ToSvn-Clerk" ; ' - 7 i