PALMERSTON NORTH POWER

Taranaki Daily News, 13 September 1934, Page 5

PALMERSTON NORTH POWER

CASE IN SUPREME COURT BEGUN.

POWER BOARD THE DEFENDANTS.

By Telegraph—Press Association. Wellington, Last Night.

Town versus country considerations enter into a dispute between the Palmerston North City Council and the Manawatu-Oroua Electric Power Board which came before the Chief Justice, Sir Michael Myers, in the Supreme Court to-day. The city council and Mayor seek an injunction restraining the board from striking certain rates and also ask that the board be directed to rescind its decision to reduce the price of electricity for milking motors.

The position as alleged by the plaintiffs is that the Manawatu-Oroua Electric Power Board drew up its estimates for a deficiency of £6700, which included £2OOO, the estimated loss through reducing the price of electricity for milking motors by Jd a unit. In order to make up this deficiency if was decided to strike a general rate over the whole of its area, which includes the city of Palmerston North, and a special rate over the city of Palmerston North alone. The city council alleges that, with the exception of the Kairanga county representative, the country members on the board with a majority of eight to four display bias against the city. It is contended by the city that there is no need to reduce the price for milking motors. The power board submits that the reduction in milking motor charges was made after careful consideration by the board and was deemed to be in the best interests of the board. The levying of general and special rates was a bona fide exercise of the powers of the board. Counsel’s submissions for the city council were unfinished when the court rose. They will be continued to-morrow morning. Evidence on behalf of the power board will probably also begin to-morrow. A large number of witnesses is to be called.