AUCKLAND GAS COMPANY'S BILL.

New Zealand Herald, Volume XXVI, Issue 9370, 21 May 1889, Page 6

AUCKLAND GAS COMPANY'S BILL.

A social, meeting of the shareholders of the Auckland Gas Company was held yesterday afternoon, at the offices, Wyndhamstreet, to consider the question of proceeding with the Bill for an extension of the company's powers. Mr. Reader Wood presided. The Chairman explained the object of the meeting, and said he proposed to state the nature of the amendments to which the shareholders! would be asked to agree. The main object of the Act was to enable the Gas Company to supply electricity for Lighting, heating, and motive purpose;*, in the same way as it was now authorised to supply pas. The electric light would probably be the groat light of the future—whether of the near or of the remote future he could not say ; rapid strides were now being made in tho utilisation of that light, and in some parts of the world it was becoming very commonly used. It seemed to the directors, therefore, that it would be advisable at any rate to take the opinion of the shareholders as to whether they should not apply for powers to enable this company to construct apparatus and carry on the business of electricians as well as of makers of gas. Mr. Wood having read the preamble to tho Bill, proceeded to say that in America the electric light was more generally used than it wub in any other part of the world, and there the gas companies supplied that light with efficiency and in the great majority of cases, the ga& companies of tho city lighted the city, the public buildings, and the houses with electricity. h\ South Australia, some years ago, power was given to the gas company there to do exactly what they proposed should be done with reference to the company here. Since it had been known here that they proposed to do something of this kind, it had been bruited abroad that they wanted to get a monopoly into their hands. But they did not want a monopoly; they wanted a Bill for this purpose. In order to establish the electric light, it was necessary to put up posts, wires, etc., in the streets; and it was necessary to get a Bill before they could interfere with the public streets, which were Crown lands. They thought also that the time had arrived when this question should be submitted to the consideration of the shareholders; for if any othor company came in and got those powers, they (the shareholders of the Auckland G,as Company) would say to the directors that they had been supine, and had neglected their interests. (A shareholder: "Hear, hear.") He would draw their attention to section 10 of the first part of the Bill, where it was distinctly stated that they did not w nit a monopoly. The chairman read this clause, as follows:—" Nothing in this Act contained shall be deemed to imply any agreement or undertaking on the part of Parliament not to grant powers similar to those granted by this Act in respect of electricity to any other person or corporation." The chairman pointed out that independently of this, the City Council, in virtue of their office, had, he believed, the necessary powers to start electric works if they chose to do so. Then there was this clause : "It shall be lawful for the company, under the superintendence specified in the said Act, and if the superintendent or other officer having the control or management of electric lines in New Zealand, and with the consent of the local authority of the district, to erect all posts," and so on ; so that if this Bill were passed, and the company wished to establish the electric light, they would have to go to the Municipal Council and ask for permission to do so. This Bill was divided into four parts. The first part was simply preliminary. The 4th clause of the second part granted powers to extend the Gas Act to electricity by the erection of standards and posts, and almost the whole of the remainder of this

portion of the Bill related to matters of detail. Then clause 7 gave power to construct all the necessary electrical works, and 8 to supply wire; whilst by clause 9 the company were empowered to charge for machinery. The simple question which they would have to consider would be, Do you think it well to give the company these powers ? If they thought it was not desirable, the BUI fell at once; if, on the other hand, they thought it desirable that the company should have those powers, they would authorise the directors to proceed with the Bill. The next part of the measure was to a great extent a modification of the existing Act, which was in a great many respects imperfect. Clause lb' related to the supply of meters and other things. There was a very imperfect clause in the present Act in rela tion to this matter, and some property of the company was on one occasion seized under bankruptcy, there being some doubt about this clause. They proposed to repeai this clause, and to substitute others, making the matter much more clear. The 12th section gave power to supply gaa, engines, and other apparatus, and to charge for the fittings. Clause 14 was a new one, and it related to the utilising of the residual products. They were all very well acquainted with the extraordinary virtues of coal tar ; almost everything in the world, from the most brilliant aniline to the sweetest sugar, could be made from coal tar; and they proposed to take power to utilise these residual products. Under clause 15 they asked for power to manufacture gas apparatus, and, in view of the taxation on imported articles, they would no doubt find it very useful to be able to do this. Clause 17 was : "The company shall supply to any owner or occupier of premises Wiithin t(he limits of this Act requiring the same, a meter for registering gas supplied by the company." Though they had the power to do it, the company had never charged rent for meters, but this clause would absolutely prevent the company from making any charge of this kind. Again, the company was to keep meters in repairs. Then it was stipulated that the registration by meter was to be prima facie evidence of the quantity of gas consumed, and to be charged for. Some time ago a committee was appointed to inquire into a variety of tilings in connection with the working of the Uas Company : the quality of the gas was one of the things, and the capability of the meters was another. At that time people complained of the unreliability of the meters ; but the meters were examined by pro fessors, who reported that the meters were the very best that could possibly be got, and were as reliable as meters could be. The committee recommended that an inspector of meters should be appointed, and a number of clauses providing , for the appointment of a meter inspector and gas inspector had beon introduced into this Bill. It was not likely that the Government would do anything in this matter, and it would be for the shareholders to consider whether these clauses should remain in the Bill. The company was to pay the officer, and then came the question as to who was to appoint him '! Ho should be appointed by some entirely impartial tribunal, and it was suggested that the resident magistrate should be the person. He (Mr. Wood) questioned very much whether it was advisable for the company to ask Parliament to pass these clauses with respect to this appointment. Ho thought that if this were done, it should be done through an Act for the whole of New Zealand, and bind every gas company in the colony. (Hear, hear.) In his opinion it was not ritrht for one company to go to the Legislature and ask that they should be bound up in this fashion whilst every other company should be allowed to do as they liked. Mr. Li. Keksing was also of opinion that any measure rendering this appointment necessary should apply to the whole of the colony. The Cuaiuman went on to remark that clause 47 provided for a specific pressure. They hud been told over and over again that sometimes there was too much pressure and sometimes not pressure enough. This clause was as follows:—"The gas supplied by the company shall, except in ca.se of accident, be supplied at such pressure as to balance, from midnight to sunset, a column of water nob less than G-lOths of an inch in height, and to balance from sunset to midnight, a column of water not less than an inch in height." This was the pressure decided upon in England and adopted in Melbourne. The existing Act did not provide in any way for the laying aside of a reserve fund, but clause 48 stipulated for such a fund, "provided that the reserve fund shall never be permitted to exceed a sum equal to onetenth of the amount of the paid-up capital of the company, including premiums capitalised as hereinafter provided," etc. it was proposed that clause 45 of the present Act be repealed, and the following substituted : —" That the profits to be divided amongst the members in any year shall not exceed 12 per cent, on the paid-up capital of the company for the time being, including premiumscapitalised as aforesaid." It was proposed to fix the price of gas by a sliding scale, and clause 50 set out that the standard price of gas within die limits supplied by the company would be 7s (3d per 1000 feet. This did away witli the rebate or discount ; it was impossible in a Bill of this kind to have two prices. It was provided in the Bill that the company might increase or diminish the standard price subject to a decrease or increase in the standard rates of dividend. There was a clause which applied to a matter that had frequently been debated in that room : it related to the capitalisation of premiums that had been received upon the sale of shares. Mr. Wood read this as follows :— " Whereas there are now "20,257 shares of the company undisposed of, and whereas the company has at different times received various premiums on shares sold by it, and such premiums have amounted in the aggregate to the sum of £55,750, which sum has been expended in extending the works of the company and acquiring additional plant therefor, and whereas it is advisable that the said su.ni shall be capitalised in the manner hereinafter mentioned, bo it therefore further enacted that it shall be lawful for the company to divide among its various shareholders in proportion to the number of .shares held and the amounts paid by them on such shares respectively (exclusive of any premium paid for shares) 11,150 of the said "20,207 shares, so undisposed of as aforesaid as fully paid-up shares, and to apply the said sum of £55,750 in payment of the said 11,150 shares, to be divided amongst such shareholders." He (the Chairman) moved, " That this Bill be now printed and circulated amongst the shareholders, and that the Directors be instructed to call a meeting at a future date to take the opinion of the shareholders thereon." Mr. J. M. MoLachijAN seconded the motion. Ho however, that the clauses with respect to tho appointment of inspectors be omitted. Mr. C. E. Button explained that the consumers had pressed for such a concession, and as the committee thought it well to take time by the forelock in the matter, the clause was inserted in the Bill. Mr. Gkaiiam moved, " That the clauses relating to the appointment of an inspector be left in abeyance." He thought that the Government could insert clauses in the Bill providing for the appointment of a general instead of a local inspector. Mr. J. Newman said the clauses were inserted at the request of a committee appointed by the consumers, and the directors had fullest confidence in the quality of the gas and tho meters, and were willing that the officer should be appointed. The Chaihman said the directors inquired whether the Government proposed to briti"in a general Bill for the colony, and were told that they did not. Mr. J. Elkin did not think that the clauses relating to the appointment of an inspector were the most important in the Bill, and he suggested that the directors meet the shareholders at a private meeting and discuss the measure. The Chairman said he saw every advantage in a meeting of this kind. Mr. Green seconded the amendment proposed by Air. Graham. After further discussion the amendment was put and carried, wihh one dissentient. The motion, "That the Bill be printed and circulated amongst the shareholders," was then put and agreed to. The Chairman said that the directors would be very glad to meet the shareholders privately to discuss the provisions of the Bill, and they would call this meeting by advertisement.