ELECTRIC POWER FOR SALE.

Evening Star, Issue 12964, 8 November 1906, Page 7

ELECTRIC POWER FOR SALE.

THE 'MILBURN LIME AND CEMENT ‘ ■ ‘ At last night’s mating of thp City Council the Electric Power and Lighting fsdnimitteci Bubmjtted the following' report :- “ That tho route of the road to Waipori be altered, so as to escape a dangerous part and to speupe a better gradient, wort tp he parried out' by the electrical engineer at an estimated cost of £75; that tho agreepaeut’alreadyipadc with the AJilbnrn Ljtno and, Cpjnent Company, Ltej., for tjjc supply" of ppwer be 'adbpreS to, and a proviso inserted in tho formal agreement that the average load "factor is not to be exceeded between the hours of 4 o'clock p. in. and "6(15 o'clock p.m. during May, Juno, July, and August, and that the city solicitors be instructed to* prepare such agreement ; that power for elevators he supplied from direct current tramway circuit at 3d per unit flat rate; that (be snip flf £ls be paid to Mrs Crossed, telephone bureaukeeper at Berwick, for her past” services ; that the electrical engineer be ‘authorised to erect a. bridge over the Waipori River in front of the power station, as per plan submitted? estimated cost £l5O. The town clerk has teen authorised to settle the claim for 18s 6d from Mr 11. Poole for alleged damage to his bouse in lyaikorai Valley by transmission line pole, and to ascertain from the Land Board if proposed cultivation area at Waipori can bo purchased, or on what terms thp lease of same can he negotiated. ''The application forms for the supply of electric light and pqwer, which contain conditions relating thereto, as prepared by the electrical engineer, have been approved, and authority given for the printing of 503 copies. The request freon the Tramways Committee that the electric power and lighting department bear halfcost of Mr Pergusson’s salary, temporarily taken over until Waipori construction (forks shall have been completed, has been agreed to. Pay 'sheets and accounts amounting to £3,821 8s 6d have'been passed for payment.” Cr Brinsley, in moving the adoption of tho report, said that in regard to the question of the supply of power to the Jililburn Lime and Cement’ Company, sent back to the Committee for further consideration, the Committee had decided to adhere to their original proposal. In connection with Ups matter a. lot of wild rumors h.-'d boon going the rounds—one that there would Iq a- loss of £6OO. He thought that those who bad gqpe into thy question had come to the conclusion that no such loss would be 'made. flic Committee derided that they could not sell tho power at_ the price proposed by Mr Goodman'. When they wont into the report they found that provision was made for 750 b p. for lighting purposes, 900 h.p.' for power purposes, and 620 h.p. for tramways. He did not think there was a councillor who believed that they’were going to coyer the cost of that scheme on the first installation. Where, lie_ believed, Mr Goodman nmd o a mistake in fits Report was in Irving” to make (t up so that the first installation would cover all expenses. He (Cr Hrinsleyi "did not 'think it at all likely that 'the first Installation was going to be a payable concern. It was estimated that there*' would be a loss of £2 per h.p. on this contract with the .Milburn Lime and Omicnt Company, but it should be remembered that this £2 would he a loss upon 57 per coni, of the amount of (sot cr that was so}d. The loss would only take place u(>on 57 per cent., so that the loss was nothing like, what had been statedMr Gdbdmap said that they would make a loss because it would not Ire available for lighting purposes, but was it likely that it would be wanted for lighting purposes for three or four years; Ho did not think SO Cr Burnett asked if air Gqoqrnan had recommended the adoption of the clause ref. rriug to, the supply of power to Hip if iburn Liriic aqd Conical Company. T r -e argument that because .tlio thing was not payable therefore the Council should let Hie (rower at a vest that would not pas. was besond Ins compic-hcni-con. Cr Connor said tlm Iff Goodman’s letter to the Council condemned the arran.'enient made bv the Commit tee. Her o ifi o Committee going to put the engineer on one side? Thev had appointed an expert, and while ho was away from Dunedin the Committee went round about ou what belied rccomnjcudod, and had done the very ojipegite. . , , • Cr Gore said that the ComrmU«( had no power to make any agreement'. they h:id acted on the natural assumption that £ was le-a than £lCb hut it wap not wlie.ii the City had to give a- twenty-fpir hpiil}}’ service. Ho would have preferred to have a report' on the matter from Air Uoodmqn. It was very iicoefsary that there should bp such a report. This agreement was 'for seven years. Were they going to lose money for seven years? He moved that the clause stand oyer rmtil a. report was received. Cr Loudon seconded Cr Gore's amendment. ’ Air Goodman was emphatic that the £5 for twenty-four hours,- with the right tp cut olt the supply for four hours, >vas the best course for the Council. Ho did not think that the' Milburn hi me and Cement Company would consent to the resolution, because it wan a departure from the tends of the letters betwetm'the Council and the' company. The clause ought to be referred back lo the Committee, and ilv Goodman should interview the Milbum Company and ascertain whether they would arrange for power in the terms of the previous offer lor £8 for twenty-four hour a, and the right of the Council to cut off during the ” Peak load.” The Mayor said that Mr Goodman had already 'waited on the company, and lire following letter was ,-ead from him.In accordance with the instructions of the 'Electric 1 Light and Power Committee, T had an Interview ' this morning with Mr Qakden (manager of the company).'and asked him,' it the ‘City Co until supplied blip With power at £lO )>cr kw. for twenty-four hours per day, wotild he allow the Council to cut off power from 4 p.m. to 6.15 p.m during -four months of the year. Ml Oakden stated that Ills company would not depart in any way whatever from the terms of the offer made by the City Council, and I have just iweiveel u 'letter from him dated the 3lst irlt., which I attach hereto. [Encltsuve-j I wish to confirm details of pur interview held at the rrirliquisp this morning, and thus to place on record that there mav be no misunderstanding. You are instructed by the Electric Power and Lighting Committee to obtain for the Council” a concession —viz., the right to cut off ISp kw. during ' tho hours of 4 to 6.15 p.m. Mur months of cadi year. I' replied'that it Was quite impossible to agree to any such concession. I have on a previous 'occasion pointed out (o yourself the ihcofivenicnee' and joes this company would sustain by enforced stop - page. I cannot now reooinnicnd my Board to’ van - lire contract ' iti any particular, iis {he dc-jays, already extending oyer a period’ of five months, have proved seriously' in'ceaivenient, nbf' only” to this company, but to other tenderers.' I consider' the (hue inopportune, to discuss any variation of’ the existing contract.— F. Oakokx. Gr Wilson said that if they treated other customers as they hatf treated the -Milburn ‘ ' Limp -and pqitenf Company they bould say 1 ’ good-bye to ’obtaiiimg cortomcio. Cr SjiacklocK said that {he argument that £3 'would' bo' betfer than '.£lo billy held when they were toding" every' liorse-pdwo.r they had. They ‘would Ixi veiy fortunate it they sold the whole ppply in seven years. ‘ ' : , Cr Gore: Xltcn it is going to be a big vbite elephant. " \ ‘‘ Cir Shackidck: Of course, it is going to be a big white elephant. ’ Yoti do pof need if.ucli 'duoerriincnt-to see’ that, ’ ‘ •' Gr S'cotf. said that so'me of the statements piadc were only partially -correct. H" did not hold a brief for the Milburn Limb itjid Cement Company,, like shine people. ‘ Cr Loudon; Your Worship, I think Cr Scott should be asked '-to withdraw that remark’. : Gif Scott withdrew tlie remark. ( Cr Loudon • r ffiiinl-■■■He tlibuld be asked to apologise. ‘ ‘

Gr Spoft (continuing! said that they had tq pppyide the £9B!lJaay ptitb’ 83Qpptypj-- But the jiferngs I(i)(l-pp»'ep qnly 57 per cent." 'o( that. ‘ The ppmpany pcver 1 proposed to "'give ’ the Crimea' top pqiyfir (o: ciit'pg'thkt, 23Q ImperPOjqpF for four hours, but pply tp”pnf djf'tbfi''jipw eycept ”62' horse-power. ’ This thatfpr a certain time they wquld be receiving power for which they paid Yiothing pxtrai Vfheii the 230 horse-power w'k? leducta tp 57 per. cent, it was easy to see that the amount cut off wa« a small one. Wap it worth while considering? It hqd to be lemembtred that if the Council were going tq charge a priqe lor- horse-pqvfpr''that woukT’pay the whole pn tips fiist installation they would sell’nothing at all. If tliey charged £l2' for horse-power no one lyquld buy. They w:pp(d jps( have tu'make'>is.small a Ibis as possible ou_ the first installation. M'hut the Coimnittep contended for was that rinoe the company were only going to use 67 per cent, of the during the four, three, or two hours, tlitir average load Iqctoi should pot lie cyceciltd. ” Instead o( losing £BQd to the Council, t|||s agreement would put £4pp hi their pockets. -it \ . i.uudon’s request tfip following letter frun the 'ejpctrical engineer, datpij October 9, was road ; I have the honor to acknowledge receipt of your letter of the 3rd ipst., and note the Milburn Limb ajid Cpnmnt Company have accepted tho City Cpiiiicil’s ’ otter to supolv electric energy to that compajiy at a ”rice of £lO per it.w. ter twenty-foiu' hours’ sefyice,' based bn 300 days'of twenty-four'fours', the boiiipany to supply and install its own transformers, in regard to this matter 1 am greatly surprised that the City Council should have departed fron) my recommendation —Viz., (hat (he Milbiirji Limb and t.eiiicnt CQnipaqy should bo supplied with (xavor q't the rate of £3 per k.w. per apnum for twentydopr hours nor day lor 500 clays per year, with res trie I ions.' As clearly set forth in my original teports, and also in my letter of August 8, 1 am of the opinion that the (Milburn Lime and Cement Conipany will bo one of our largest consumers cf pp>ver, and onp of our most .. exceptional custoniers inasmuch as they reqi’lrbd a iwenty-four hour load, and there wjll Jjjj yen- few customers yyjtbin reach of' our 'supply at' ajiy' rate that will call lor a livent'v : four hour service. These arc a class of customer Vyhich U)e City- Council shonfd use’ every ’means to secure, and it was y.-ilii that object lh.it I made ihc original rcconimehdati- n to the City Council that power should bo supplied at the rale p£ £8 per' k.w. ppr annpni for 230 h.p., thq City Ccrporation to have thq rh-ht tp cut off tho su-elv for any four- hours opt of the twenty-foilir Hr 17Q li.p., leaving 62 h.p. to be supplied ccuitinnpcisly for twentyfour hours per diem. These terms I considered exceedingly advantageous to the City Council and algo' to the Milburn Lime and Cement Com pan v and the offer was oiily made after very careful and mature consideration of the rate of charges that would pay the City Corponytipq on their outlay. The Electric Light aucj Power jjpipfllittpc considered the rate' I "rocdininendeq too low, and the Milbnni Lime, and’ Cement Cqmpany

submitted an alternative offer of £3 per k.w. for twenty hours per da”- and £lO per k.w. for (wenty-feur hours per day. In my report of August 8 it was dearly’ indicated that the offer of the Milburn Lime and Cement Company 4 would mean an annual revenue of £1,083 per annum instead of £99o' per annum as estimated hv me Ln my original, quo- . tatiqn. Tho City Goiincil adonted my scale of diargr-s for electric light and (lower, in which the rale of charges l'i r (Kiwor to consumers of pypr 25 k-w. demand would be sumilkd at (tie rate of £ls Ss 6d per kAv." for Uvcnty-foupliours per day for 300 days per annnrn. If is most essential that we should havc'Thc option of cutting off the 170 h.p., required by the Alilbnni Lime and Cement Company, for four hours per day, as bv doing so we should be able to dispose of same at increased rates for Hehting during peak loading hours. Tho (crips whirl) have now been arrauecd with the Milbnni ’Lipic and Cement Company .are in my mind entirely wipim, apd should not form the basis of the contract, ‘as the scale of charges indicated on diagram No. 1,195 are such that should not be departed froin. In other words, it means that If the Milbnni Lime and Cement Company require. UO h.p. for tiventy-loni- hours per d;iv the City Council will be giving them q discount of £5 8s 6d per k.w. pgr annum below the scale <T charges which have been adopted bv resolution. This 170 h.p. is pracfjcally equivalent to 150 k.w., which’ shows that, with the discount of £5 18k 6d tier annum the City Council will be making a present of £Bl3 15s 6d per annum to the Milburn Lime and Cement. Couraany. I feel sure the City Council do not fullv realise t.hc meaning of mqxiinupi demand, and I direct ypiuattention to the arrangements _ which have been entered into ;is calling fqr further consideration, and am still of die’ opinion that my oriuinal recommendation Ls the fairest to the City p'oricil anil the Atilbnrn Lime and Cemeiil Conipany. Cr Small thought thqt the Cqinmittce in making this bargain had done very well.' If they sold the power at the price’ of £lO per kilowat. they would have 'a' revenue of £40,000. Mr Goodman had, he thought, gone out of bis way to cast cdiiuu ci) the Committee bv saying that a loss of £BSO would be made- cycry year if (his contract wore entered into. On the clay {be Council agreed tq purchase ()ie iVaipqri Air Gcodinan said he would have the power in within nine months, arid that ho had tested Mr Ft ark’s csd(fp’atc of £SO 000 to Halftyhy. Bush, and two years afterwards the power was not in, and they had spent £l4O 000. The "Mayor 'said thev had made what they considered one of the most imp-'riant aiv-iomtinchts 'when the" appointed the electrical engineer. Thev were all laymen In electrical matters, and he considered thev should leave it to t|io electrical engineer to advise op. He thought they had made a riiisfake in denqrting from the advice he had given them. It seemed to him thev had gone nlaarilv against the advice of the engineer, and ho was sorry to see s'liie were trying (o'shift the blame off their own .shoulders and trying to put it. on the engineer's, which was net fair.' If they were not going to be guided by the advi'c of the engineer in matters of this kind they might as well get rid of him at once and manage the whole affair themselves, or hand it over to someone else. He would vote for the matter going back, so that matters hi HR be rectified, if’possible, by the eiiHnecr and the cqrijiinnv comr-nied ; but if tho comoaiiv wore deteniiiiied hot to deviate from their bargain—if ail adjustment could net beinqile —let the Council carry out their obligations. ' The amendment was then nut and carried by 10 votes to 8. three voting in-its favor being the Alavor. Crs Gore, Arkle,

* London, Connjpv Rutherford, Cole, | White, Bumeif,' and Fiddis.—The report 1 as amended was then adopted.