ELECTRIC POWER SUPPL

Hawera Star, Volume XLVII, 16 June 1928, Page 4

ELECTRIC POWER SUPPL

POWER BOARD AND COMPANY. OFFER AND COUNTER OFFER. Matters in connection with the proposal that .the -South Taranaki Electric Power Bo'ard should acquire the Hawera County' Electric Company’s- undertaking, have advanced to the stage- that the board made an offer to the company 1 , this offer being considered at an extraordinary meeting of shareholders, held on Wednesday’ last. The attendance thereat whs the largest for many years past. The position up-to-date is -best disclosed -by the following correspoudemee, which the “Star” has authority by resolution of the -shnrcnolders ’ meeting to publish. POWER BOARD TO COMPANY. Hawera, May 29th, 1928. The Secretary’, Hawera County’ Electric 'Co., Ltd., Hawera. Dear Sir, — 1 am directed by’ flic 'South Taranaki Electric Power Board to write you in regard the sale and purchase of the company’’s undertaking in terms of “The Local Legislation Act, 1926.” Subject to the terms of this latter, the, the board offers to .purchase: — (a) The company’'s undertaking including all lands, corporeal and incorporeal rights, buildings, materials and plant of the company suitable to and used by .the company for the purposes of its undertaking (other than stocks and tools) • for .the sum of £67,000. (b) All stocks and tools suitable to and used .by the .company for the purposes of its undertaking and on. hand at the date of taking over, at a price to bo ascertained by valuation.

This offer will remain open until 12 noon on Monday, the ISth day’ of June, 1928, and in the .event of a favourable reply’ not being received by them, this offer will be treated as refused. _ In the event of this offer being accepted .by the company, the -contract for sale and purchase -shall ,be expressly subject to and conditional upon:— (a) The approval thereof under seal by the Hawera Borough Council, the Hawera County -Council, .the. Waimate West County Council, the Normanby- Town Board, and the Manaia Town Board. (b) The authority of the GovernorGeneral by Or.der-in-'Oounicil in •terms of Section 76 of “Tic Electric Power Boards’ Act, 1925. ’ ’ (c) The carrying .of a poll taken on a. proposal of tne board to borrow money for the purpose (inter alia) of acquiring the undertaking of the company-, and the obtaining of all the neces-sary consent's ■to the ' raising of the loan. ■yours faithfully, - (signed) H. S. Elliott, Secretary. COMPANY’S REPLY TO BOARD. June 10th, 192-8. The Secretary’, .South Taranaki Electric Power Bel., Hawera.

Dear Sir, — I have been instructed (by my executive to inform y-ou that the .board’s offer contained in your letter of the 29th ultimo was .submitted on Wednesday last to the shareholders at an extraordinary .general meeting of the company when it -was decided that the offer of the board could not be accepted. The whole question was carefully considered 'and I have been instructed to submit to you the following -three alternative .proposals: — 1. The company is willing to sell its undertaking lands '.corporeal and incorporeal rights, buildings, materials and plant suitable to and used .by the company- for the purposes of its undertaking (save as hereinafter excepted) as on 30t.h June next at the price of £140,000; the board to take over the company’s- stocks in hand as on the date of completion at a price to be fixed by valuation; .the company to retain all cash in hand or at the bank, .book debts, investments, undistributed o-r accrued and undeclared profit's, ’and any reserve funds; the bo'ard to undertake and fulfil any current and nnexpired contracts entered into by the company and to indemnify the company against, all actions, proceedings, claims and .demand's in respect thereof. The comp'any to discharge any .debentures, mortgages 'or charges on the company’s undertaking or property-. 2. 'The company is willing to proceed, .immediately- with the reticulation of those parts of the bo'ard’s area at present unwired on the conditions laid down in The Electric Bower Board’s Act, 1925, and to distribute power to consumers cither as agents of .the board or on its own account an such terms and conditions a’s may be agreed upon between .the board and the company. 3. The company- is 'willing to proceed immediately to have its selling price fixed by arbitration in accordance with ■ the provisions of Section 16 af the Hawera -County Electric Lighting Act, 1902. It is recognised that the board can onlv purchase the company’s undertaking if it -obtains the necessary authority and the mion-ies required ito be borrowed are authorised by- a poll of fhe ratepayers in the .district, and consequently "if the board decides to accept the company’s first offer and requires -the contract to be conditional on the obtaining of such consents provision would have to be made in the contract for sale settling the terms on which the company would continue operations up to the date when the board was in a position -to complete. Th is letter is written entirely with - out prejudice to -the .company’s Tights in the event's of the matter proceeding to arbitration, and one or other of the offers must be accepted on or before noon on the 30th June next, otherwise thev will bo doomed to have lapsed. Yours faithfully, ITawera (County Electric 'Company, Ltd. (signed) B. W. Lamb, , Manager.