THE ELECTRICAL PROJECT.

Timaru Herald, Volume CIII, Issue 15740, 26 August 1915, Page 11

THE ELECTRICAL PROJECT.

To tlie Editor of the "Timara Herald" Sir, —Your correspondent John E. Hurdley has made some very important- omissions in his letter appearing in the "Timaru Herald" of Wednesday. It is quite true what your correspondent states that Mr G. Scott waited on the Council and that aji arrangement was arrived at hv which the principal streets of Timaru were to have the 30 candle power lamp® replaced by 50 candle power lamps. But it is equally true that Mr Scott informed th© Council of his intention to raise the price of current to the consumers, and this lie purposed doing by rediwmg the discount. The agreement debarred him from increasing the price above one shilling per imitf and the Council agreed that if lie would not raise the price of th© current and would increase the light from 30 to 50 candle power on 125 lamps the Council would alllow him to use 13,000,000 gallons of water per year free of charge—not a had bargain on Mr Sooti's part, I think, seeing that the water computed on the lowest charge made by he Council for water would amount to no less a sum than £139. 14s. Mr Scott aSso stated at the same time that lie was asking for an increased price for current, that there had been heavy losses on the business. He also stated that he would not take the responsibility of carrying on through this presfent winter unless tli® Con-noil allowed him to increase the plant at tlie power house at a cost of £4OOO. As by tlis agreement the plant was only allowed to develop 75 per cent of its'capacity, and seeling w r e had Mr Armstrong, of Chriistchureh, to look after the Council's interest at tlie time the agreement .was made, a man of known capabilities with no interest to serve except to see faimies between both parties, he knowing then that the plant was not new, I think the ratepayers vtfill do well to attend to What he put in the agreement, and not pay any heed to mere assertions. The position row is that the Council is carrying the responsibility of allowing the plant to work over the 75 per cent., and if anything happens the Council is responsible. Mr Kurdley next speaks of tho number of increased consumers. Well, sir, I have before me the information supplied to tho Council, and I find there was an increase of light consumers last year -of 47, power consumers 19 —not "a very tarfij iwcteasfi Mr Huvdley miist admit, j

Ml- Hurdley also says a large number was held over on account of difficulty of obtaining material. But he forgets to t«il you what Mr Stark says about these would-be consumer®, how that they can be obtained only by spending between £4OOO and £SOOO, anrl then comes the question whether tlie revenue derived from that source would pay interest in capital. I don't think it would. Parsing on to the Council's finances. I will here state what has taken place at the Council's meetings. I think it was jxi Juno last, Mr Maling, as chairman of the Finance Committee, stated that the finances of the Council would need very careful handling. Even Tvith the increase of 2d in the £■ rate we should cloee the financial year on the 31st March next £3.500 t> the had, or in other words our expenditure would bo more than our income by the above amount. Now let me ask how long any concern wou'd be able to go ou at that- rate without finding themselves in difficulties? I know that the deficiency can be mot, but only by again increasing the rates, and this is where the opponents of this speculation object. They say the time is inopportune, the price is high, and there is bound to be a heavy loss for some years winch must be borne by the ratepayers. Mr Hurdley next touches on what the ratepayers will do. He tliinks a large majority of the ratepayers will endorse the action of the Council in purchasing Messiis <T. Ii and G. Scott's interest. "Well, you never know, better wait till the numbers go up. And to know there will be a loss you have only to read Mr Stark's reports where he states we shall make a loss of £IOOO the first year and then it would taper off. He further states that we have but one scheme before us. Buy out Scott Bros and introduce the Lake current, so that it- is only bluff talking of part of the scheme, namely buying Scott Bros' only and this loss of £I.OOO first year is bared on buying at his estimate of £22,725 exclusive of land and buildings. which are valued by Scott Bros, at about £3OOO. making a total of £27,725 as per Mr Stark's first report, which I consider very reliable. Again les us consider the running account for Inst- year which, shows a profit oi £2,421 9s 9d, which profit would hi considerably reduced if all the charges such as manager's salary, secretary's salary, al?o wages for men on streets, horse and cart, etc., office expenses, stationery, stamps, etc. were added, and this does not include interest or depreciation on plant. Mr Stark further tells UiS in his first report that if the system is altered to an alternating current system it would mean the abandonment of the electrical equipment at the generating power plant, or in other words the scrap heap. Thanking you 'in anticipation.—l am, etc. j W. H. HUNT.

To the Editor of the "Timaru Herald.'' Sir.—Mr John E. Hurdiey's reply to my letter of the 22nd inst. is one long personal attack without a single attempt to refute any statements I have made. He says "Mr Murphy goes on to say that the committee were conniving at a fraud by recomaiending the ratepayers to purchase a concern which was an absolute failure. : Now, sir, X do not ttiink for one moment that. Mr Hurdley means what lie lias written, X have always found him too much of a gentleman to do anything unjust. He lias writen haphazardly and what was in his mind. He certainly did not repeat what I wrote. Other sentences of my letter have been misquoted by Mr Hurdley (but I feel sure with no illintent"), such as quoting me as having sa.:d "Messrs Scott switched on every eonsumea:." 1 said "every payable consumer," which, makes all the difference in the world to the purport of my letter. Mr Hurdley bears me out in this statement by showing that only 54 new consumers were switched on last year. Sir, 1 did not make any personal reflection upon any member of the committee recommending this proposal. I simply stated that they wore in possession of the facts I had stated. Mr Hurdley has taken up the cudgels on their be>hal'f, so I presume he is prepared to see it through. Now, sir. will Sir Hurdley deny that Mr George Scott wrote to the Council on August 3rd, 19X4, expressing liis intention to increase the lighting charges? Will Mr Hurdley deny that on the same date Mr Scott wrote to the Council notifying them that it w>as Messrs Scott's intention to pnt in new plant to .the value of £4OOO, that it was absolutely necessary, and that they were not prepared to take the risk and responsibility of running without rt ? Will Mr Hurdley deny • tliat Mr Scott also expressed surprise in his letter at nob getting their water supply free? Will Mr Hurdley deny tnat this letter led up to> an interview between Mr Scott and the Council, when he stated his reasons for the proposed increase in the charges for light and power ? Wi'il Mr Hurdley deny tnat the general committee' recommended the Council to grant Messrs Scott 13 million gallons of water pea* annum free, in consideration that they would not increase their charges for light and power to private consumer.', and that they would increase the candle power of some, of the street lamps? Will Mr Huidley deny that after this Interview ' Srott again wrote to the Council notifying them that as they had not leceived notification of the concessions •asked and recommended, they were f™? "w l ® Council notice that tliey intended raising the charges Id per unit rot Light and -Jd per unit for power, and ttoat their Pimaru manaccr was asked consumers to this effect? W-ll Mr Hurdley deny that this second letter immediately led to another interview with Mr Scott, and that their a-siced tor concession of free water was gi anted in consideration that tliey do n ; ot increase lighting charges? Now, 1 SI J 3 Mr Hurclley mnsfc bo in possession I or aill these facts. He could not have made use of abstracts from the letters, as 110 lias done, without reading the i'ot. He was also present at Mr Scott's interviews and 110 one took a deeper interest in the proceedings than Mr Hurdley.

If there is nothing detrimental to the proposal wiiat is wrong with publishing ail the facts? If there is anything against the purchase, and there is, ah the more reason why everything should bo laid before those who will eventually nave to pay. X have asked to be allowed to put my explanations for op-osmg the proposal before the ratepayers at. the public meetings, and have been given my assurance to His Worship the Mayor +V ot'lier members of the committee, that I would desist if anything unparliaor out of order was uttered by me, and would only ask for twenty minutes in which to speak. I do not consider that an unreasonable request, considering Mr Stark was allowed over an hour, giving us an early history of and niic-u asked toi confine minseiit c-o Scott ,'Jros. sidetracked every me. Surely, sir, there can be no vaud reason ivny the other side of the question should not be put to the ratepayers, especially as the advocates of scheme say that I cannot bnnp; any arguments to bear against it. They must have some reason for keeping me £h % P a .y the expenses of their meetings out of publac money and are endeavouring to force their opinwin i P ° n V? at <au ' I if T wfi' W °i • 1 P® rmitfc ed to speak, t i „ ou eir sic * e the proposal? I have many more arguments m my favour, but tear of encroaching too far tb;f^ + SpaCe r' ! tay ? me feeing thera in this lettei. I trust, however, you will grant me the privilege of further space bf«re tne poll is taken, a privilege denied me by his Worship the Mayor and lus committee, and which .1 rrm none- as «v Councillor, ;£ m »

payer. Anxiously awaiting replies by Mr Hurdley to my questions.—l am, etc., J. P. MURPHY.