THE GAS DEPARTMENT.

Otago Daily Times, Issue 6384, 29 July 1882, Page 4

THE GAS DEPARTMENT.

Tha following explanatory letter has been received by the City Council from Messrs Martin and Watson with regard to the statements made at a former meeting concerning the supply of inferior coal by that firm to the Gas Department :—

To his Worship the Mayor. Sir, —Our firm's name as contractors for the supply of coal to the Corporation Gasworks has been brought before the public in connection with the dismissal of the engineer, and, unless explained, the public must believe that there has been collusion between ourselves and the engineer. Our contract' commenced on the Ist of January last, at the following prices : 3Gs sd, 35s sd, and 33s 5d per ton, delivered and Btacked at the Gasworks, the latter price being for small coal. Up to about a month back we were able to get vessels enough to keep the works supplied; since then we could scarcely get a vessel at any price. After securing four small crafts they proceeded to the Grey, and coulfl not get in on account of the bad bar and weather. They were knocking about outside from a week to a fortnight. The consequence was they ran short of coal at the Gasworks. There being only a small quantity of Greymouth coal in town, we had to'send Newcastle from our yard. The engineer informed us that he must have some Grey coal to mix with the Newcastle, and that the Gas Committee's instructions were that we must purchase Grey coal. The Brunner Coal Company arranged to let us have some. We started Messrs Hastie Bros.' drays to cart it out, as we were too busy with our private trade. They had carted 23 tons 9 cwt 3 qrs (see account attached) when we received a note from the engineer that the coal was too small. We stopped any more of it going out, and told the manager of tha Brunner Compafty that he would have to make a reduction in the price, so that we could charge it as small coal, which wks done. We niay here mention that not one of the members of the Gas Committee mentioned this. The Coalpit Heath Company having a little Grey coal in stock, the manager of it very liberally informedjis we could have lome at 38s per ton (his letter attached). Two-and-sixpence we pay for carriage makes 40s Cd, showing a loss of 4s Id.

With the excepbion of the coal we have had to purchase at great loss to ourselves from the Brunner Coal Company and Coalpit Heath Company at Dunedin, all our supplies have gone direct from the ship's side at Port Chalmers or Dunedin, and have been screened coal, and no cause for complaint has arisen during the current year—save in the instance to which we have referred—and we feel sure your Council will at once agree that the explanation which wo have given is satisfactory, and should remove any ground of suspicion as to collusion between your engineer and ourselves, and should also remove any idea that we have not endeavoured to carry out our contract in a faithful manner. But for the bad weather on the West Coast, our supply of screened coal direct from the ship's Bide would not have been interrupted, and as there is a prospect of finer weather, we expect about 700 tons to arrive during the next two or three weekfl. Possibly one-half of that quantity will be here within a week or ten days. We desire that the same publicty should be given to this letter as was given to the disparaging remarks on ourfelves which several of your councillors unwarrantably made,—We Sre, &c, Mabtin and Watson.