PURCH SE OF THE WAIPORT WORKS.

Otago Daily Times, Issue 13856, 20 March 1907, Page 3

PURCH SE OF THE WAIPORT WORKS.

HISTORY OF THE NEGOTIATIONS. REPORT BY THE TOWN CLERK. A report by tlie town clerk (Mr H. W. Richards) on the purchase of the Waipori Falls Power Company has been circulated among city councillors; ■ ■ : Mr Richards reports:—la accordance with the instruction from the ccrnbmed',.Scetional Committee. I have to report that 1 find that the first letter w?.s written on 29th August, 1904, and tho correspondence therein continued up to 11th September, 1905. From a perusal of the correspondence it would appear that all the ciicumstances leading to the purchase are not disclosed, and apparently the trim position was covered and controlled by telegrams from Wellington un'dor the hand of the then mayor (Mr Christie! and Mr Joseph Bi-aitb-waifo, who I understand was chairman of the Tramways Committee at that time. The first definite- olfor re purchase of Waipori rights aiul undertaking was contained in a letter to his Worship the Mayor and coui.cillors of Duncdin, dated 4th October, ISM, and signed by H. V. FuHon, secretary o£ the Wnipori 'Falls Electrical Power Company (Ltd.). of 5* Crnwford street, Duncdin. This letter was written 'under instructions from the 'Board of Directors of the said company, and contained a detailed offer to soil tho company'e undertaking. On tho next day foUowiiig-r-viz., sth October—this letter was withdrawn, and another [otter was submitted, setting forth tho conditions upon which tho offer to sell the rights and undertaking of the Waipori Falls Power Company to tho City Corporation was made. On the 6th Oetoljor, 1904, the town clerk, at the request of the then mayor, requested tho socreiary of the Woi. pori Company to furnish as early as possible full particulars of the commitments of his company and tho contracts entered into, copy of agreement entered into with tho Tiiieri County Council, a. statement of tho rights, title, and interests of tho company— in short, with full particulars of everything relative k> the company's offer to sell _ to tho Duiicdin City Corporation tho Wnioori rights and undertaking. On 7th October, 1904, the information asked for was furnished by Mr 11. V. Fulton. To this the town cierk replied on 3lh October in the following iorms:— Referring to your letters of tho sth and 7th inst., I am now instructed on behalf of the Dunc«din City Corporation to accept the terms offered by your company (except as regards proposed dato of completion), subject to nu agreement to be drawn up in legal form, and provided (1) the titles to your company's water and I other rights prove on investigation to be valid, subsisting, and not nußjcct to forfeiture, as well as sufficient for their professed objects, and (2) that your company passes its private bill through both Houses of Parliament this session, with all amendments unci additions considered to bo necessary for the protection anil purposes of tlie corporation. Mr Millar wira (hat Iho bill must go back to the Latter House finally on Tiles- . day first; I would therefore suggest that, (ho respective solicitors ■ meet 10-day lo draft the necessary additional tlniwo.i lo tho bill, go as lo have them typewritten and forwarded lo Wolliir-rlmi by Monday morning'* wail for in-er'tion in thu lull iU.-]f on Tuesday. . Tt might also save precious lime if III" various titles vjf-n- produced 10-daj to the corporal ion solicitor-, as the (,»!<•. of rourso, must l;o aubjcrl to I heir validity in all ro.-pi.TK. as well as subject to. tho complete piiisagn of the bill liiis session in a form satisfactory to tho City Council and iU legal adviser.-'. By this it would appear thai. Iho council had resolved to purchase the fights upon the terms asked by tho Waipori 'Company, subject to an agreement fo be drawn up in legal form and with certain provisos. On 12th November, 1901, ihc town clerk, Indirection of tho then mayor, requested the secretary of iho Waipori ".Falls Power Company (Ltd.) lo foniiiiue iho current work in connection with tho above until further notice, and on 14th .Mr Frank Oakden. of tho company, wrote stating Ihai, ho wouUl givo effect io ?amc Then 011,17 th Xowmber, 1904. the town clerk tt-roto lo tho secretary of Ihe Waipori Company as follows:~ 1 have the honour to inform you that iho City Council's Tramway? CoininitU'o at its_ meeting lest owning'resolved 'that liis Worship Iho Mayor take over to-day, on bohulf of tho C'hy"Council, (he Waipori ui'dcrlakiuir. The Mayor saw Mr Oakden ihia morning, and relieved him of lha temporary responsibility lus was; kind enough to take until Ihe. committee met. I have to request that you will please insmu'i- Mv Stark to see iho Mayor as early to-day as possible. Arrangements are being mailo for an early audit by Midlines lirown. F.1.A.X.Z.,' of tho company's aieovmt?. in accordance with the. terms of piirdtaso. On 19th November, 1901. iho secretary of the company wi-ole suggesting that preliminary steps required by sections 7 lo 13 of (lie Local Bodies' Loms Act of 1901 he eumnieiicod, so (hat. i.!io issue of deliontuivs t«r thothrce-fonrtlis of purchase might, he accomplished as early as possible, and urging an early commencement, as their solicitors had advised that these early tileps ivcro indispensable. To Ibis the town clerk replifvj on 22nd December, 1904, thai Hie City Council had been advised by (heir own

and two independent solicitors that (ho proceedings taken wcro all that were reimired by law. On January 13, 1906. the town, clerk acknowledged receipt of (ho company'e lelier of 11* li inst., conveying the resolution passed by tho Board of Directors in respect to the loan of Mr Stark's services as follows: — Resolved that die secretary bo instructed to write to the City Corporation that tliis company cannot allow the loan of Mr Stark's services to it to bo further continued on iho present indefinite fooling; and it has therefore withdrawn these services from (lie corporation pending completion of tho purchase. On 23rd January, 1905, Mr Fulton wrote as follows: I beg to stale lhal liic amount of the company's claim against, (lie corporation IS mow completed, and was passed by my board this morning, subject. Io settlement being mane by tho corporation, the, event of any claim tu Mullay's contract going against the company, the decision for which has not yet been given by the court. i On February 4-reference is made to Mr Slark'ssalary per contract, and from I hose tonus it would appear that the company was about to go inlo liquidation: — In writing to the board on January 21 Mr Stark staled that ho wished Io be paid in full until the company liquidated, and for the balance of the oonfrart (halfsaliu'y) to be paid at the rale of £600 per annum. Mr Stark has received pay up to Iho end of December. Tho contract was for three years, executed in July, 1004, and terminating July, 1907. Therefore, presuming lifiuiilnt.ioh takes place- in February, the following is what is due:—January-February, £200; 10 months for 1905, 12 months for 1906, and six months for 1907, equal Io 23 months at, £50, equals £I*loo,—making £1600 in nil, as submitted to Iho auditor, and which is correct. On March 1 a claim in respect to payment of £187 14s Id in connection with Mullay's ease was forwarded, which was followed by as=ent and cheque, forwarded by town clerk's letters of March 9 and 13. 1805. In July, 1905, the acting (own clerk wrote Io the secretary of tho company as follows:— By direction of his Worship the Mayor, I have, tho honour to ask you to kindly furnish mo with the following information:—Of the sum of £34,032 9s Id I paid to your company, how much was fc* (ho electric portion of tho works, excluding £12,600 bonus? To which a reply on July 11 was written by the' secretary of the Waipori Falls Power Company (in liquidation) as follows :— In reply to vour letter of Bth inst., I would say that there was no portion of the £34,032 9s Id spent on the electrical portion of Iho works. The only machinery paid for and included in thu amount above slated was io the Pelton Datcr-whccl Company, and this belongs to the hydraulic portion of tho works. The'first of the electrical portion of tho Waipori scheme wore the amounts due to the General Electric Company, and these were taken over by the Dunedin City Corporation as commitments. From a perusal of the documents heroin briefly reviewed, I do not, in tho brief time at my disposal, presume to have reported fully upon the circumstances leading to the pmchaso of (ho Waipori Fails Company's rights, and have not touched upon the consequences that follow; but it may bo assumed that the council, in 60 far as the consequences are i-om-orncd. are fully aware. The purchase seems to have been suddenly determined upon, and, as before stated, was accelerated, if not governed, by telegrams from the tlicis Mayor (Mr Christie) and tho chairman of the Tramways Committee (Mr Joseph Braillnw.ite), and special meetings of tho fenuncil. I have not Wore me any reports from officers or exports that one would suppose would bo necessary as advisory to the ."ouncil before embarking upon such an iirdertaHmr. It is sum' cient to say. that Ihe council has purchased the Wnipori Falls power undertakint.' since which it has entered into an agreement \yilh a firm of electrical engineers to complete the work in accordance with designs prcparml bv them for the eonm I ion of electrical energy for the purposes of the City of Dunedin. -Legislation also governs the position, and it is novAfor the' council to make the best u'so of its powers and the control and administration of the HiinVrtokinsf. It is somewhat We in the day to havo the business reviewed. If it bo the council's wish 16 pursue (his matter furl lior, and, so to speak, " flos: a <'e.i<! horycy' flion'i. the only cutrjc that is open to tliem is to appoint, a commiv.ion to make Iho inquiry, with power Io examine witnea-os ami to call such evk'.onco as it thinks necewiry and germa.no to. its intentions The whole of the works consequent upon the purchase of this undertaking i« now apnrnaHiing completion, and I am'tol'l that within 14 days from tho time of writing (March 12) pawor will b< l available for delivery in Dnnedin. ami. the whole concern being the prorortv of the council, further inquirj at this sta/ro roav not ho deemed necessary. Such, however, might have toon with- wwlom prosecuted at the time of the negotiation* hereinbefore set forth. (Signed) R. W. Rtciiards, / ' Town Clerk, March 14, 1907. P.S.- Since, writing this minute tho deputy town clerk has handed me, after search, a letter dated 7th October. 1901— note that this is the day before the purchase was determined upon, a-s set forth in the town clerk's letter of the Bth October, 190 J. Mr Hay's report embraces a review of the Waipori Electrical Power Company's werke so far as he bad designed and carried them out. He also embodies a comparative statement of tho cost of Leo Stream and Waipori. and, inter alia, he rtated that the power could probably bo ilclivo;e;l into Dunedin within 10 months, adding, too, that in tho final purchase of tho Wa-ipori Company's property it would bo necessary for the corporation to have, inter alia, all plans, specifications, and agreements, contracts, and correspondence with contractors and other, all titles to water rights, sawmill, bush areas, power sites, and easements Mr 'Hay concludes his lettor by intimating that at that time bo held 100 shares in tho Waipori Company. As to whether this report can be read as a recommendation to Iho council to purchase, seeing they purchased on the next day following, is a matter of opinion, and it is not my function to express one.—E. W. It. MR lIAY'S REPORT. Tho following is the full text of Mr Hay's report, to whiuli reference ie made in tho pestcript of tho town clerk's niimitc.' It wa-3 forwarded to the town clerk at hk request, and it can hardly •Iμ raid to be in the nature of a recommendation to purchase— Dunouin, 7lh October, 190-1. To the Town Clerk, City of Dunedin. Sir—Agreeably to your requenl, I have <lic honour to furnish you with some particulars of Ilio AVaipori Electric Power Company's works so iar us I have designed and carried Ilicin out. From the dam r.t iht intake to the pcuulook h a distance ot about our ini'.e and alioif, and Ihu water will bo conveyed in aflume constructed c>[ ml birch timber at a, ■/rcdifliil oi Bit Io the mile; About 70 chains in' the Iliiinc have been constructed, and the water lies been running through it for some lime. The flume has been constructed up 1o the lime 1 resigned Iruiu the company's sen-ice in a substantial manner, and I have no doubt the work has been since carried out in a similur manner. Tiie cost of tho flunio will Kinoiint to about £4000, and should, with proper attention and maintenance, have a life from eight to 10 years; and. if thought desirable at some future time, a tunnel could be constructed about one mile in length ihat would allow of the gre.iter part of the iiumc buing done away with, or an iron flume could be substituted for the present wooden cue. Benching.—The benching r,n which (lie flume is carried has been excavate;! out of tho side of the bill, and a- considerable portion is in solid rock, while the bulk of ilio remainder is in gocd soiid ground.