THE CAVERSHAM GASWORKS.

Otago Daily Times, Issue 13674, 17 August 1906, Page 4

THE CAVERSHAM GASWORKS.

Ip we were disposed to think that the acquisition by the city of the Dunedin Suburban Gas Company's works at Caversham were desirable it would be because both Mr Courtis, the late engineer at the Corporation gasworks, and Mr Chenery-Suggate, the consulting engineer employed by the Corporation two years ago, recommended such a step. But neither Mr Courtis nor Mi' Chenery-Suggate was very enthusiastic on the point. Mr Chenery-Suggate declared, in fact, that he found' the plant at Caversham to be obsolete and, with the exception of the gasholder, quite useless for any extension of the Corporation works. He considered, however, that the gasholder would be a very serviceable adjunct to the Corpora* tion property, and that it would be nocossary for the city to secure it if the demand for gas in the Caversham district would bo such as might bo oxpcctcd if the price were reduced by the Corporation to a more reasonable amount than that charged by the company; and, this king the conclusion formed by him, he expressed the opinion that the purchase of the works would be advisable if it could be effected at any prico from £25,000 to £27,000. Mr Courtis regarded'the matter as one upon which the decision should depend entirely on the element of price. The Corporation, he said, could only look to the gasholder, the mains, the services, and the metres to be revenue-earning. The capital cost of those he put down at £16,152, and he estimated the outside value of the business at £2-5,000, at which suit), lie thought, the Council could profitably purchase the property, if it adopted the policy of reducing the price of gas supplied from the works to that already charged to consumers of the municipal supply—as it would necessarily do—and thus popularised the use of gas in the district served by the Dunedin Suburban Company. Both engineers would clearly regard a proposal to acquire the works for £23,000—the price for which • they can apparently be purchased at the present time—as a sound business scheme. But we are not satisfied on the facts which have been presented that it- would be a wise action on the part of the Council to acquire the property in existing circumstances. Certainly we have very little doubt- that, in view of the fact, upon which the 3 lay or laid emphasis on Wednesday night, that the Corporation is committed to a heavy expenditure upon the extension of the municipal works and upon the introduction of electricity, the ratepayers would not sanction any project to borrow £23,000 for the acquisition of the Caversham works. Moreover, there seems to be some considerable doubt regarding the extput of the property which the company has for sale, ft will have been gathered from what Councillor Scott said that a certain portion of the reticulation which has been effected by the company is, in the opinion of legal authorities, not in the strict- sense of the form- an of the

company at all. We have as great an objection as was expressed by Councillor Loudon to anything that might be described as confiscation, and we should protest strongly against the adoption by the Corporation of any step which might expose it to the taunt that it was taking an unfair or dishonest advantage of the company. But if the Council is advised that portion of the property which is placed under offer to it would, in terms of a contract entered into by the company, become its property in any ease in a few years' time, that is plainly ;v factor to be taken into consideration in tho assessment of the value of the works. AVe should favour the equitable treatment of the company upon the expiration of the term in question, and wo are sure that the sense of honesty which the community may be credited with possessing would revolt against any suggestion that, as Councillor Loudon fears, the company should "be turned out lock, stock, and barrel, and forced to surrender its whole undertaking." In the meantime, however, it has not been shown that, though a demand existed for the output of winch the works are capable, tho price tho company desires for such of its property as is within its disposition and is worth buying is one such as, in all tho circumstances, the Council would be warranted in paying.