THE WAIPORI ELECTRIC POWER SCHEME.

Otago Daily Times, Issue 12448, 3 September 1902, Page 3

THE WAIPORI ELECTRIC POWER SCHEME.

A COMPREHENSIVE PLAN. A representative of this paper waited yesterday on -Mr Frank Oakden, chairman, of the Board of Management of the Waipen Falls Elcctric Power Company, who kindly supplied liim with the following information concerning the company's aims and prospects: — .The object, said Mr Oakden,"of the present company, is essentially the founding and establishing of an electric light and power company, believing, as wo do, that we hold rights to a power that presents unique advantages, and one that will enable the promoters to supply electrical power at a price that will command a ready sale. Thus tho undertaking can be viewed as sound commercially—indeed, it is as well to state that the founders have made it quite clcar to the subscribers that the company is formed to sell light and power precisely as, for instance, a soapworks or any other commercial enterprise might be established, and not for the purpose of mere speculation in the anticipation of a sudden rise, when the company's birthrights might be sold, accounts squared up, and the plunder divided. Neither is the dog-in-the-manger policy part of our scheme. We are going at the venture with our eyes wide open, in the belief that retail and wholesale trade in electricity will pay. and we are prepared to back our opinions financially. I think wo must succeed, and handsomely. To anyone, continued Mr Oakden, that has followed the trend of electric power distribution, our little scheme will be looked upon with anything but surprise. The only surprise is that a power such as tho Waipori offers has not been brought to market before this. When one considers the huge and successful undertakings of similar character that have been in operation for years in the United States transmitting large quantities of energy over very long distances, our proposal appears, well—modest. In America there are 90 installations worked at or above 10,000 volts. Take; for instance, the Jameson E. P. Company: they work at 69,000 .volts, transmitting 145 miles. The Bay Counties E. P. Company, in connection with the Standard Electric Company, holds the record for actual every-day transmission of over 220 miles, delivering into San Francisco. England is now feverishly active in the matter also, and electric power companies are being formed rapidly. The capital employed is phenomenal, and millions have been subscribed within the last year or two. As-instancing this, Mr Oakden showed a list of some 11 companies, with a total capital of over £12,000,000, included in which were ■ the Lancashire Electrio Power Company, with a capital of £3,000,000, arid the Yorkshire Electric Power Syndicate, with a capital of £2,000,000. . Does all this indicate anything, was the question. This, when analysed, means nothing more nor less than centralisation—concentrating under one roof and one management as large an amount of power as can be conveniently arranged for. The result should be the most, economical form of production. And what bearing has this on the Waipori scheme, was the question. Well, was the reply, herein lies our fundamental idea. We have an endless source of power in the Waipori Falls—Bo heads, with a fall of 600 ft, a total length of. race of one mile and a-half, and an approximate yield of 4000 effective horse-power; twice as much as .it is professed can- be got from Lee Stream. We are going to. concentrate that under one roof and sell it. 4 We know that the market is open, and believe we can sell all we. can produce, Of course, there may be difficulties to be overcome, but we are not going to set out to look for them. Our fixed purpose is to bring that power to market, to sell to anybody who wants power —to dredges and other mining concerns, to the proprietors of tramwaj'S, to factoryowners, to towns for lighting or to pumping stations. Opposition from gas, steam, or other electric systems we do not consider need be feared in competition in a fair field. Asked as to what steps had already been taken to further the scheme, Mr Oakden replied that they were already in correspondence with the States to find a capable man, familiar not only with the mere working of such a plant as would be required, but also with experience in the matter of distribution. At the present time, he continued, Messrs G. M. Barr and l'nder are occupied on the race. We have several men on the track arid others are'in the bush. In a few weeks we hope to have the sawmill'in full swing. The company have the rights of 100 acres of .bush, which .will be available for the cheap supply of nearly all the requisite timber for buildings and race. There is a fair amount already felled and ready for use. At the sawmill water-power ' will bo used. A separate race is .cut to this from Bad Creek, whioh will deliver about3o horse-power. The main race will bo constructed of timber-fluming, designed to carry with easo the full right, and to minimise the danger of breakdown. It will probably be lined with; iron throughout. The pipeline will possibly be in two units, each capable of delivering- 3000 theoretical horsepower. The proposed site for the generating. station is said to be admirably situated. It will be some 26 miles from town. Some considerable time has already been spent in collecting data, and it is the wish of the board that all works shall be prooeeded with as quickly as possible, while being at the same time designed in such a manner that when complete the whole may be free from danger, as before stated, of. breakdown. Apart from design and construction, it must be understood there is a vast amount of work entailed in organising such a business. The mere retailing of electricity is not quite tho simple problem it may appear. Mature consideration is required for euch problems as selling electricity at the generating station or distant sub-stations, and the question of electricity for power pui-po&ew, and for lighting in detail or in bulk. I may instance the case of the supply for lighting suburban boroughs. One council might favour a supply in bulk, and" make the retailing a source of profit, and another might wish, the company to undertake distribution. We rccognise that to supply cheaply we must supply in quantity, since the cost rapidly decreases as the quantity sold decreases. Wo therefore propose, continued Mr Oakden, to make all our estimates on tho basis of a high percentage of the total power available, and to encourage the use of electricity for all purposes by selling as cheaply as is consistent- with a fair return on the capital invested. Wo shall be shortly in the position to send circulars to all public bodies, private firms, and, in fact, all probable users within tho territory of our proposed operations, inviting consideration with a view, to close contracts. The field of operations is so large that wo are quite, satisfied that the demand will be greater than the supply. In tliat case "seniores priores" must be the rule. Is it' likely tliat you will entertain the sale of the rights in .toto? was the next ■question. Absolutely no, was the reply. As before stated, this is a commercial undertaking, and we neither court nor invite an offer from either corporation or syndicate. Asked next how tho capital was to be raised, Air Oakden replied as follows:—The total capital of the company, we anticipate, will be at le-nst £50.000. Thi.s will obviously not be required for some time, and rather than make an immediate, call by issuing the full number Of shares we propose to do it in three stages. The syndicate stage is already accomplished, and £10,000 is now available for immediate requirements. As more money is required, we shall either issue shares or debentures, as the board may elect.

And will the capital be raised locally or otherwise? So far as we are aware, there will be no occasion to employ foreign capital. We intend to rely on local subscriptions, and are advised that wo need liavo no anxiety on that scorc. Wo intend to buy for cash tho beat material -obtainable, and decline to lie .bound by any particular electrical syndicate or organisation either for finance or tequifrinelit. And in what ■ tinw do you expect to be able to. sell, power? In reply to that it is difficult at tho moment' to'' form an accurate estimate of how loug the .works will take to complete the first unit. But _no time will 1m lost in ordering' tKd necessary' plant, and in the meantime pushing on with the works that are definitely fixed upon. As to the constitution of tho board, continued Mr Ojikden, it is at present composed of Mr Howard Jackson, Mr John Loudon, and myself, Mr H. V. Fulton acting as secretary. The board will be strengthened from time to time, as may l>e found desirabla and as the work increases. Mr Riohardson is the prime mover in this business. It will be remembered that he has already been'identified with a successful little scheme—namely, the lighting of Outrani. He was so sanguine as to the possibilities of the Waipori that he sold out his interests at Outram for the specific purpose of starting this company. I look upon him as its founder. As a last question our reporter inquired if Mr Oakden had considered the valuo of the Waipori as compared to tho Taieri and Lee Stream possibilities. '.'Well,", said Mr Oakden. in. reply to that, "I do not wish to be drawn into any discussion, recognising that the City Council have sufficient difficulties, to face in the meantime; but I would refer you to a report of Mr W. H. Hutchesoii. He states that 43.heads of .the Waipori do the work of 228 in the Taieri and Lee Stream. I prefer to express-an opinion only on the Waipori, i and that is that it is an undoubtedly permanent supply,' giving a 'minimum that will more than cover the rights we ht ve acquired."