OFFERS DECLINED

Hawera Star, Volume XLVII, 23 June 1928, Page 6

OFFERS DECLINED

TO GO TO ARBITRATION. POWER BOARD AND COMPANY. BOARD OBJECTS TO “BREL4.CR OF CONFLDLNCiE.’ Dec-lining to accept the valuation placed by Hie Hawera County Electric Company, Limited, and rejecting also tiie company’s oner -to continue supplying power, tihe South Taranaki Electric Bower Board decided! last eveumg to sulbmit the question of vaiuitdon to arbitration. About ten minutes’, consideration of the company's letter in reply to the board’s original oiler for the undertaking sufficed for the board, to reach its unanimous, decision. There were present at the meeting Messrs L. A. Bone (chairman), J. F. Stevenson, E. Long, G. J. Pireston, E. A. Washer, E. A. Paoey, J. Houston (legal adviser), and H. S. Elliott (secretary). Apologies for absence were received from Messrs J. B. Murdoch and N. O. Inne-s.

As published' in “The Hawera Star” on Saturday last the board, subject to ratification by ratepayers, had offered to purchase the company’s undertaking, lands, rights and buildings for £67,000, this being declined by the company, which fixed the price at £140,000, and as an alternative offered' to complete the reticulation of the Ibourd’s area and distribute power, either as agents of the board or bn its own account, on such terms as might 'be agreed upon. Failing agreement on the terms submitted concerning the purchase, or the alternative proposal, the company expressed its willingness to have its selling price fixed by arbitration. “COULD NOT AGQEIPT.” “I think it will 'be generally agreed tills is an oner we could not accept, ’ said the chaanman in referring to mo purchase price fixed by the company and fine terms which included the provision that the board should fulfil any current contracts entered into by the company and indemnify the company against future action. “There are many tarings which make it impossible and it is not necessary to enumerate them, like provision that tlie company would expect us to indemnify it in future against any action arising from possible misdeeds in the past is sufficient. That in itself condemns it in the eyes of the board.”

He moved that the hoard’s offer at £-140,(XX) be declined. Air Pacey: It is absurd. I quite agree with the chairman. The chairman remarked further that the board, had an engineer in whom it placed every confidence. The engineer luad exercised the greatest care in arriving at the valuation named by the board, Which considered the price waa a fair one.

The motion, which had been seconded by Mr Preston, was carried without further comment. In moving that the board deeirne. the proposal ol the company to continue supplying power, the chairman said it oou Id not be n-c-ceipted . because the board did not propose to extend, to the company the monopoly it had enjoyed for so many years. The motion was (seconded bv Air Stevenson and carried. “It appears there is no alternative,” sa id Air ’ Ixing, who moved that tire board proceed to arbitration on the question of valuation. The motion was seconded by Air Washer and was carried, the only >oino raised being a- question by Mr. Stevenson, who was informed by the chairman that the necessary action would be set in motion immediately. “BREACH OF CONFIDENCE,” “That the secretary be .instructed to assemble lire correspondence between the hoard and the company and place . n tne handis of the press.” Such was a subsequent motion moved iy M r Long and seconded by Air Bresccn.

Speaking to the motion, which was also carried unanimously, the chairman criticised the action of the company coiupsrning its latest letter to the boaid. He remarked it appeared strange that a copy of the letter, which did not reach the board until 11 o’clock cn Saturday, had been published in the first edition of the “Star-' on the same day.

•it ax-ms a breach of confidence for a. company to have deliberately taken the letter to- the daily press and made it available to the public before, the board had an opportunity of considering it,” said the chairman. The chairman took further exception to the remark attributed to the manager of the company (Mr P. W. Lamb), who was reported in the New Plymouth morning paper to have said: “The f}T .000 offered by the board is ridiculous,” anil also to the statement- that so. far as the manager was aware no detailed valuation had been made by the hoard and no books or documents bad been inspected bv the board except th ( > balance-sheet of the company. - "be correspondence is. published : t will show the who 1 © position in its —o-'o- and true light,” concluded the di airman.