BOROUGH LIGHTING.

Feilding Star, 17 May 1907, Page 4

BOROUGH LIGHTING.

At the Feilding Borough Council's special meeting last night, the Mayor read corro-pondence between tho Council and the Feilding Gas Company. In tho correspondence it was shown the Company contended they were not bound to extend mains, as requested by the Council; also that they offered to hand over the plant, etc.. for £16,500. Tne Mayor then gave the legal opinion of Mr Bell on the agreement, which stated the Borough had no power to enter into an agreement with any company for private lighting. .As to public lighting, if the Council could show the Company had refused to extend mains as required by the Council, the agreement was nullified thereby. Cr. Goodbehore stated applications bad been made to tho Company to extend mains, and the Company re fused to do so, unless guarantees of private consumers in the streets where the proposed extensions were to be made. Cr. Cobbe moved— That the Feilding Gas Co., Ltd., be written to informing them — 1. That the Council is not satisfied either with the manner in which tho Company has performed its obligations, or the price which it ia charging for gas; 2. That the Council is advised that it had no power to enter into an agreement granting a concession of the use of the streets 'of Feilding for the supply of private lighting, and therefore the agreement, dated the sth November, 1896, is void; 3. That the Council cannot, as trustees for the people of Foilding, allow the present state of things to continue, nor can it continue in justice to the interests of the inhabitants of the Borough to agree to pay to the Feilding Gas Co. the price assessed by the agreement for good-will in event of the Council purchasing the plant and works of the Company at the end of eleven years ; 4. That the Council, not being anxious at the present stage to take full advantage of its legal right to treat the agreement as void — (a) In its inception as being a concession not authorised by the Statute law; (b) and, again, under its last clause, on the ground that the Company has failed altogether to perform its contract to lay mains for the supply of all the inhabitants of Feilding and sufficient for the publio lighting required by the Council, is willing to offer to the Gas Co., subject to the nett clauee, the sum of £5286 14s 6d, that being the I present value of sections 491-2 and the Company's fixed plant, buildings, mains, etc., is per accompanying list. 5. That, in the e\ont of the acceptance by the Gas Co., of tho above offer, then th© Council will submit to the ratepayers a pioposal for a loan to enable the above price to be paid, it being a condition of. any such arrangement tbat the Council shall not be bound to buy if the ratepayers leject the loan proposal, while, on tho other hand, the Company shall be bound to sell if the ratepayers approve the loan. Cr. Cobbe stated they had not been satisfied with tho price of gas, nor with tho way in which the Gas Co. fier formed its duties. The Company ailed to supply tar as agreed to, and there was a general fooling of disratisfiction amongst the ratepayers. There was no wish to take advantage of their legal rights in the matter. lf tho Council erected works of their fwn, there was no doubt tho people would soon become consumers from those works. As a matter of business it was not right to pay the price offered for the works, as a considerable sum would have to be spent in improving the plant. In Manchester street some of the mains were 3inch, followed by 2-inoh, and continued by 3-inch again, and a large amount of gas was wasted. In reference to the legal position, another opinion had been given by a solicitor on a similar ease, and it was on the samo lines as Mr Bell's. The Gasworks should be a municipal business, and they should make every effort to secure them. • Cr. Tolley seconded the motion, and said he agreed with what Cr. Cobbe had said. Mr Smithies' report said the Gasworks were in a poor condition; and there was no goodwill in the business. (Hear, hear.) The mains were deficient, and could not be depended on, and they would have to open the whole of the trenches, and test them. There was great leakage, and while such was the case, the plant could not be forked profitably. Mr Smithies told thorn they would have to spend a considerable sum of money before a profit could be expected. In answer to a question from Cr. Bramwell, the Mayor stated Mr Smithies said they could modernise the plant for £8000, and they could got a new plant for £12,000. Cr. Bramwell said he would support the motion. They were making a fair offer to the Company, although there was a groat difference between the price offered and that asked by the directors of the Company. The cause of the failure of the Gas Company was due to its own mismanagement. (Hear, hear.) The price of gas was high, and the quality of the fas not satisfactory. The service ad been unsatisfactory from the first. Tho fact that the Company had refused to extend the mains was sufficient to relieve the Council of its responsibility. The question of goodwill should be dropped at once. (Hear, hear). Cr. Atkinson supported the motion and he thought they could reduce the price offered by £1000. He suggested a special committee be appointed to re-draft the resolution, and give it proper legal form, For safet-*. Cr. Goodbehere supported the motion, and said they could not possibly offer more than Mr Smithies' valuation. The great difference between the valuation and the prioe offered was no doubt due to tho Company's mismanagement of their- business here. There was a good chance for such a business here when the Company was formed, but they apparently threw it away, having started on a small capital. He thought the motion should be put in proper legal form, and suggested it should be submitted to the Borough Solicitor. Cr. Fitzherbert also supported the motion. The motion was then put, and carried unanimously The following motions were also carried : — That all correspondence with the Feilding Gas Company by this Council be submitted to the Borough Solicitor before despatch. That a committee, consisting of his Worship the Mayor, with Crs. Goodbehere, Richmond, and Cobbe, be appointed to confer with the Borough Solicitor re the offer made by this Council, and that a reply be asked for within one month from date.