ELECTRIC LIGHT.

Stratford Evening Post, Volume XXXI, Issue 71, 7 November 1911, Page 6

ELECTRIC LIGHT.

PROPOSED ACQUISITION BY THE

BOROUGH

LOAN TO BE PROVISIONALLY

APPLIED FOR

A special meeting of the Borough Council was held last night tor me purpose of considering the report of the valuers appointed to value the plant and stock of tiio Electrical Supply Co. There were present:-—The Mayor (Mi J, Masters), and Crs Sangster, McAllister, Boon, Healy, Morison, Lawson and King. Cr. Paget apologised for absence.

Valuers’ Report. The following report by Messrs F. R. Shepherd (lor the Borough Council) and F. Black (for the company) was laid on the table:—

“We the undersigned, having duly been appointed by the Borough Council of Stratford and the Stratford Electrical Supply Co., Ltd., to assess the value of certain assets of the beforomeutioiicd company in connection with the proposed sale of the company’s undertaking to the Council, do agree and determine tlu\t the value is as set forth herein. In making our assessment we have boon guided by a consideration of the following facts: 1. That the company’s leases of land neoesary for the operation of its generating machinery, also for transmission line and road over adjoining property, expire 30th June, 1916. 2. That the renewal of such leases is not guaranteed. 3. That the demand for electrical energy supplied by the company is increasing and now' taxes the capacity both of the generating machinery and the, water available for driving it, so that the company have found it necessary to order additional plant of a fuel using type. 4. That with the increase of the output of the undertaking, the value and importance of the water power will diminish. 5. That due allowance must lie made for depreciation and obsolescence of plant. We have made no assessment of the value of unexpired terms of any leases held by the company except in so far as the expiry dates have a bearing upon the value of the plant affected. Nor have we made any valuation of the coinpany*s town store building, and plant ordered subsequent to July 11th, 1911. • We determine the value of the plant, material and appurtenances of the company, in accordance with the foregoing conditions to he the sum of £5338 19s Gel, made up in the following manner:— 1. Power station, build-

ing, plant, spares, tools _ ... 1038 14 0 2. Stock and materials in town store ... ... 486 12 G 3. Poles and rails in stock 115 7 G 4. Meters in use and in stock ... ... ... 865 3 0 5. Stores and instruments at office 34 2 6 6. Transmission and reticulating mains ... 2447 17 6 7. Transformers erected 351 2 G Total £5338 19 6 We think it right to point out that the company’s two generating machines which are now ten and eleven years old respectively, cannot bo considered as unsuitable for further, service. They are in good condition and as a careful inspection by us showed have been well cared for. Their efficiency in water consumption may not be quite equal to that obtained with those of recent design, but the difference in this respect is by no means sufficient to depreciate their value to any large extent. With a continuance of the same degree of care, we consider they are good for a useful life of several years, although it may possibly prove advisable to discard them while still serviceable, owing to the growth of the business demanding a larger and more concentrated generating plant. Council Committee’s Report. The special committee of the Council set up to consider the matter reported as follows: Your committee beg to report that the valuation of the Electrical Supply Co.’s undertaking has now been completed. ’the report of the valuers is before you. Referring to our report or the 17th July we recommend that the amount of loan to be submitted to the ratepayers be £14,000, the money to he used for the following purposes:— £ Goodwill of company’s business 4000 Power station, building, plant, spares, stores, tools, and hydraulic works ... ... ...' 1039 Stock and materials in town store ... ... ... ... 487 Poles and rails in stock ... 115 Meters in use and in stock ... 865 Stores and instruments at office 34 Transformers 351 Transmission and reticulating mains ... ... ... ... 2448 New plant installed in full working order ... ... 3600 H acre freehold ... ... ... 185 Water rights on south side of river ... ... ... ... 300 Stock ordered since 11th July: Transformers, wire, insulators, etc., £5-10; less £3OO which is allowed for in the item £3600 for installation of now plant ... ... ... 210 Lamps and meters on order ... 224 Sundries and contingencies ... 112 Total £14,000 New Wot ks. Messrs. Cameron and Newton, of the Electrical Supply Co., waited on the Council for the purpose of discussing the question of any new work the company might undertake after the present date. Mr. Newton said it would not do to stop all new work; but the company desired to know who would pay for new work. Cr. Healy thought the company should go on as at present. The Council could not say how the poll would go. Cr. Morison held a similar opinion, urging that until the poll was carried the Council had no claim over the company’s material, and the company could do as it pleased with it.

Cr. Hbilly moved that the matter be referred to the Electric Lighting Committee for a report. To bis mind all that was necessary was to keep an account of the number of connections made.

'l’he Mayor: But people are waiting for connections.

Cr. Mealy: But the report will bo down in a few days. Cr. Morison seconded. T 1 10 Ma yor moved as an amendment that in the opinion of the Council the best way was for the company to make all required connections, keeping a strict account of the cost, and to proceed with the work of laying the foundations for the new plant. This last work would, be presumed, be done as ebeaolv by the company as by tbo Council. Cr. King seconded. Cr. Songster said it would bo very well for the Council to pay for the foundations, but ho objected to any-

tiling being paid for making conn cell.ms, Vvhicn was just part of the company's operations. If it was contemn d tnat connections should lie paid for u\ the Council, it would be lair to suggest that the Council snould pay all running expenses at tlie works from date.

Mr Newton said that owing to uncertainty about the poll ciic company had suspended all lining operations. Mr Cameron said in relation to house connections, that the company would not press for an agreement, so long as the statement of the company’s engineer was accepted as to wnere material had gone, and lie would lie able to give a strict account. The projected street lining should be done at once. The question of house connections having boon waited, the Mayor withdrew his amendment, and it wais decided that the Works Committee report to next meeting of the Council on the laying of the foundations and on tiie question of proceeding with streetlighting alterations. Lean of £14,030 S'RisiK. The Mayor moved that the Town Clerk 1)0 instructed to provisionally apply for a loan of £14,000. He thought that amount would bo quite sufficient, as there was ample m;v tcrial on hand to carry on operations for some time. If thoy ran short, there was always the ton per cent, additional to fall back upon. Cr. Morison: Why not wait until wo know the result of 'the poll ? I'he Town Clerk said the suggested course would expedite matter, making it easier to get the money when tiie ratepayers authorised the loan. The Mayor said it might lie possible to get the Public Trustee to separate the six acres on which the plant was from the lease of the rest of the land. Cr. Sangster said ho would not like to raise tin’s loan and be compelled in a few years to go to the ratepayers for more money for the same purpose. Cr. Healy: Am I to understand from that that in Cr. Sangster’s opinion it will he necessary to have more money in a few years to replace the present plant? Cr. King: The valuers’ report show's that tiie plant is good for several years’ work yet.

Cr. Sangster explained that what lie meant was that at present as much as should lie was not being got from the water available. To get the full result, money would have to ho spent on the present machines or on buying new machines.

Cr. King said that, taking everything into consideration, the result fiom the plant was as good as from any plant in the country. The motion was carried. Cr. King said he presumed that before the poll was taken the Mayor would place the position before the ratepayers. The Mayor said this would be done. The First Report. From the time it was brought before tne Council in July, there has been a demand from several people for the publication of the report of the special committee set up to confer with the company in the matter of purchase. Cr. Paget having made efforts in the Council on several occasions to secure its publication. This report was again referred to last night, wiien Cr. Morison moved that it he placed in the hands of the press for publication. He thought it was time the ratepayers were given an oppoitrinity of weighing the whole of the matter.

The Mayor said the original report would not" lit in with the one brought down that night, which allowed for a' lower price being paid. __ Cr. Morison: , I think it is only right that the ratepayers should know wiiat the company asked for its property. Cr. Healy seconded the motion. He said that in the first place the publication of the report was withheld for the reason that the valuers would ho affected by it, but now that they had made their report this reason no longer had any weight. At that time the Major said the report would be published later on. Tlie Mayor said lie had stated nothing of the kind—he had merely said, that “a” report would lie published, and the report brought down that evening would be pnnlished. _ The original report allowed for £15,000 being paid, and if it were published it would mislead the ratepayers to the extent of a thousand pounds. The ratepayers would get the report just brought down and could draw their own conclusions.

Cr. McAllister asked if the mover desired to have the report published as an advertisement and to pay for it as such. He did not think the newspapers would take the trouble to publish it. If it were published it would reflect credit on the Council. The first report was now of no interest—the latest report was the real bone of contention, and on it the ratepayers would judge the matter and vote. Cr. King said the company had never named a nrico for their business —they only asked for £4OOO for their goodwill, the rest being left to the valuers. In reply, Cr. Morison said ho had no desire to mislead the public, but if the first report were _ published it would show how the operations had been “organised” or “worked,” .jvrul it would give an idea how the 'majority *of the Council had been decided to vote in favour of the purchase. All the proceedings in the past were in committee; and could not sneak their minds. He desired to see everything made public. Previously there had been no opportunity of objecting. The Mayor: That is not so. Cr. Morison: All proceedings wore in committee. . . The motion was lost, the divisionlist being as follows:- —Noes: The Mayor and Crs. McAllister, Boon, Lawson, and King; Ayes: Crs. Sangster, Healy, and Morison. The meeting then adjourned.