DIVING INTO CHAOS.

Wanganui Chronicle, Volume LXXVI, Issue 18257, 16 August 1921, Page 5

DIVING INTO CHAOS.

STEAM PLANT TO BE FORCED ON RATEPAYERS. REGARDLESS OF CONSEQUENCES. PECULIAR ELEVENTH HOUR DEVELOPMENT. * ANONYMOUS LEGAL ADVICE FROM WELLINGTON. SPECIAL COMMITTEE’S REPORT NULLIFIED. BUT ADOPTED BY COUNCIL. A special meeting of the Wanganui Borough Council was held last evening to discuss a report by the special committee set up to discuss finance in regard to the power plant. The report was published last Thursday. There was a full attendance, with the exception of Cr. Donaldson, who is ill. A letter from Cr. Donaldson was read in which he strongly protested against any item on the loan schedule being transferred for another purpose. He contended that the councillors who wanted to go on with the whole of the steam plant should show how to finance it. The Mayor announced that a communication had been received from Mr Treadwell, who is in Wellington, that he had discussed the matter with another solicitor who considered that the £140,000 loan could be taken as one. He suggested that the Council should authorise him to ap. ply for an originating summons to determine whether or not. all the items could be treated as one. Cr. Burnett: Whose opinion it is? The Mayor: Mr Treadwell got the opinion on his own initiative. Cr. Sigley said that he was surprised at Mr Treadwell taikng on himself to exceed the powers given him by the Council. At the last meeting of the Council the speaiker told Mr Treadwell that some of the councillors favoured getting an opinion from Mr Martin, but in deference to him (Mr Treadwell) the course was not adopted. The speaker contended that as a servant a£ the Council Mr Treadwell should not have sought the advice of another solicitor without instructions from the Council. If that sort of thing was done the sooner that there was no Council thb better it would be for everybody. He would not move a vote of censure althought he felt inclined to do so. The Mayor said that he was surprised at Cr. Sigley’s attitude. He was stire that Mr Treadwell had done his best in the interests of the Council and the community. lie would move later that Mr Treadwell should be Instructed to proceed as he suggested. Cr. Sigley suggested that the report should be taken clause by clause. Cr. Luxford considered that the report should be taken as It stood as it was a financial statement. They did not want to discuss it half the night when they were familiar with Ht and their minds were made up. Cr. Luxford ifioved the adoption and Cr. Burnett moved as an amendment that it should be discussed clause by clause Cr. Harris said if the report was adopted they could not vary any of the recommendations made. The motion was carried. Cr. C. H. Burnett opposed the report. They recommended the installation of a small part of the plant. The Council should decide what they should iustal as they nad not the money to carry out all the scheme. The proper course was to give some indication how to proceed with the work. There was no alternative proposal. It was the Mayor’s duty to submit how the money could be raised. Cr. Green asked why should Cr. Burnett expect indications when he could not give any himself. Cr. Sigley said it was an extraordinary position The committee was largely guided'by Mr Treadwell's legal advice that clauses a, b, c, d, and e, could not be bracketed with h and t. They framed the report on that understanding. Now came an amazing wire from Mr Treadwell. Why had he changed his mind? ■ . Cr Sigley moved as an amendment that the discussion be held over until they met Mr Treadwell. Then they would know what to do. The Mayor said it was being suggested that Mr Treadwell had changed his opinion. Mr Treadwell had consulted another solicitor who had informed him that the schedule could be treated as one. Now he suggested an originating summons. Cr. Sigley said that the Mayor stated that there was plenty of money to finish the steam plant but had signed a report shows that there was not the money.. The Mayor: If the orginating summons shows it, it will prove I am right. ’ • Cr. Sigley: I take great exception to that telegram. . Cr. Maunder said the report depended on the legal opinion given and if it was not correct it complicates the position. If the mattei was to be settled by the Court it was time enough then to bring down a report. Cr. Harris contended that Mr Treadwell had retracted from his position on the ground that he had consulted a higher authority than himself. It was unreasonable to vote intelligently in the face of the situation brought about by the, telegram. Another aspect was when the contract was let The Mayor: Let us deal with the motion for postponing the discussion. Cr. Burnett opposed the amendment as he disfavoured the Council diverting any of the money. It was only a “juggle” to get possession of items voted for specific purposes. They would then have to borrow money for those items. They would have to borrow for reticulation and extensions. The Mayor: The law is that you must expend the money before you can go to the ratepayers for another loan.

Cr. Burnett said that it would be possible to get a short "Validating Bill through Parliament. Mr Treadwell* should have recommended the Council a year ago to go for a loan. Tinies without number Mr Treadwell had given them'financial advice. Cr. Gohns said that Mr Treadwell was to be commended for the advice that ne had given, the Council. The document before the Council was a definite one. If they were not satisfied with Mr Treadwell they should ger another adviser. Mr Treadwell’s telegram did not detract from his previous opinion. They should now obtain the opinion of the Court as suggested by Mr Treadwell. Cr. Sigley said the whole thing had altered and lie asked that his name should be withdrawn from the report. Cr. Sigley’s motion was defeated, those /supporting it being Crs. Sigley and Maunder. Cr. Harris did not vote, but on the Mayor Insisting that he should vote he did so for the amendment. Cr. Harris explained that he did not. like either. Ths report was adopted, Crs. Sigley, Harris, Maunder and Burnett voting against it. Cr. Richardson next moved that the architect (Mr Ford) be asked to prepare plans for foundations, chimney stack and a power house on as economical lines as possible. * Cr. Sigley: For the whole of the plant? Cr. Burnett: How will Mr Ford know unless you tell him? The Mayor: I take it that the foundations will be for the whole plant. The motion was ruled out as it was covered by a previous/motion by Cr. Gohns. The Mayor moved that Crs. Halligan, Green and Gohns should be a committee to carry out the effect of Cr. Gohns’ resolution to proceed with the plans, etc. He added that he told the Council six months ago that they had not got the money to erect the powerhouse. It was essential the plans should be modified to come within their means. The stack and the powerhouse could be reduced. The matter could have been settled months ago if the Council had been in favour of the modification of the plans. Cr. Sigley: I want to enhgr my emphatic protest. A very serious position is arising. There is a danger that the Council will “fall in’’ and I don’t want to be surcharged to the extent of £lOO. I am against spending any more money until the whole position is cleared up. The Mayor: The plans won’t commit you to anything. Cr. Green said if when the amended plans were ready the Council had sufficient monqy to put the foundations in less time would be wasted when they went to the ratepayers for a loan for the whole scheme. They had spent £l3OO in levpiling the site and had been paying interest eight or nine months. It was time the Council woke up, also the ratepayers. They ought to get on with the work. Cr. Burnett: What will be our position if the originating summons does not succeed? Cr. Green: The ratepayers will have to pay a heavy rate. Cr. Sigley: And you are one of the councillors bringing that about. Cr. Green: Nearly £14,000 loan money was expended in a way it should not be expended "and Cr. Sigley was as responsible for that as any other councillor. INSULT TO TRAMWAYS COM- > MITTEE Cr. Burnett—Why do you take the , work out of the hands of the Tramway | Committee ? The Mayor said the reason was that they wanted things done in a cheeseparing way, and it was desirable to put up a committee which would do it. Cr. Sigley—ls it intended to alter the plans Air Ford has now? Certainly it would be cheaper to do so, or the Council would have to pay £750 for plans already drawn-. Cr. Halligan said they were quite aware ct that. There was no need to make new plans. “A STABLE WITHOUT A HORSE.” Cr. Harris said the alterations meant practically new plans. He referred to Ihe Napier Council, which had made unwarranted commitments, and the councillors had been fined £lOO each. Councillors now proposed to incur a larger liability in making commitments for “a stable when they had no horse to put into it.” The ratepayers might not sanction it, and the councillors might be liable to a heavy fine. Cr. Hains sand lie would not take the risk and entered his protest. No blatter whether he agreed with the policy or not he had to protect himself. As to the waste referred to by Cr. Green, the plant had cost 30 per cent, more than it. should have cost, or what it could cost to-day. Councillors had no justification and no right to spend further money without consulting the ratepayers. No one knew what the extra amount required, would be, and that was not the only loss. The loss wourd go.on ever.', day the plant was worked. Steamplant electricity would cost four times what hydro would cost, with 50 per cent on. Lt was the experience of Wanganui that the more they went on the more they lost. It would be the same with the steam plant. As to the statement that Wellington was putting in extra steam plant, although hydro was coming, the position was that the Wellington system did not synchronise, and it would take three years to change over for hydro. New Plymouth had had a hydro system for nine years, and had no need for a stand-by. The Mayor said Cr.<Ha.rris was the one man who almost forced him into favouring the steam plant as a stand-by. He challenged Cr. Harris to deny it. Cr. Harris—l do deny it, absolutely, as a stand-by. The Mayor—Do you deny that you took me to Air Birks to prove that it was essential? Cr. Harris —I do deny it. Cr. Maunder said the architect should have definite instructions from the Council to cut the powerhouse down to the minimum. The Mayor said it would not be necessary to draw fresh plan©. They would simply be reduced? Cr. Maunder—What was the result going to be? Was it to be left to the Committee and Air Ford? The Mayor said the plans would come before the Council. Cr. Green said there would not be any very great increase in the cost as Mr Ford would use all the plans that he could.

Cr. Burnett—Can you, as Mayor of this town, expect a councillor who is chairman ol a committee to retain his position when you fail to put him on a committee which has work to do of vital importance to his .department ? The Mayor —I have a perfect right to do what I think is in the interests of Wanganui. The motion was carried by 8 to 4, the usual members voting. AIR BIGNELL’S CONTRACT. Cr. Gohns said he hoped the Town Clerk would give effect to the report,' especially the part relating to Air Big-| nell's contract. The Mayor said the pit was nearlv j completed, and also the cover on the I blacksmith’s shop. If the Council was going to avail itself of the money it would have to have the work stopped immediately. ORIGINATING SUMMONS. Cr. Burnett said that if Mr Treadwelt had not. consulted Air Martin his opinion should be obtained Th* Alayu? moved that the Borough solicitor should be instructed to prepare the originating summons. Cr. Green seconded. Cr. Burnett said it was an extras ordinary position. Before proceeding with the originating summons the( Council should get the best opinion from the highest authority in municipal law in New Zealand, li might save the town a big expense. Cr. Luxford said Air Treadwell was better able to judge of legal opinions than laymen could, and even if they had Mr Martin's opinion the Council would want to go further and get a Supreme Court judgment. The A layer’s amendment was then carried by 8 to 4. THE UNKNOWN. The Alaypr—When we know what the powerhouse is going Iq cost we will know what to place before the ratepayer. Sigley—lf you go to the ratepayers how long is it going to take? Itmight be six or seven months. The Tiamway Committee had made good suggestions as to how to get along with the work. A Councillor—Where would you ger the money? Cr. Sigley—Sell part of the plant. Mr Treadwell had said they could go out and sell part of it. Cr. Halligan—You have tried that. Cr. Sigley—They have not. They have never had a lair chance. The Tramways Committee asked to he allowed to get to work and put up part of the steam plant, to get the 500 k.w. set going. They could have had it running to-day. Cr. Halligan—You had not the money. Cr. Sigley—We would have been able to go on and we would have had the wheels running sooner than we will now. But everything Las been put off and money and time wasted. < The Alayor said the position was quite clear.. They had to pay £12,000 a year interest. When they went to the burgesses the position would be placed be- I lore them, and they would back the Council. RETICULATION. Cr. Maunder said he had been accused of hanging up the work, but he wanted to help on the Council. He therefore moved: That wc decide to reticulate the whole borough. Cr.* Richardson—l second that. The Ala.yor said it meant huge expenditure, with no gain. It would be absurd. Cr. Alaunder said it was a matter ot principle. It need not be done in one year. It might take five. It was only fair to the rateypayers that they should know what was to be done. Cr. Halligan moved that Crs. Green, Luxford and Crampton be a committee to consult with the engineer as to what part of the town should be reticulated im media tely. Cr. Sharpe seconded. Cr. Sigley said that when the proposal went to the ratepayers it was preI posed to reticulate nearly the whole town. The committee recommended that the restricted area should be that included by Taupo Quay, up Bell Street, along Glasgow Street to the Avenue, down to Liverpool Street, along to the College Estate and down Wilson Street to the Quay. If that was done there would be no revenue. It was a case cf feeding the ‘fat man" again. The small man would have to pay. That was what the, decision arrived at meant. There were many other things that the public would know in t'he right time. WHAT’S WHAT? Cr. Burnett said they could not intelligently discuss the subject until they knew whether the whole or part of the plant was going in. If the whole plant was going in, the whole town should be reticulated. It would be used when hydro came. The best paying part would be the suburban areas The Council ’had to face it’ and had to agree on what it was going to do. (t should be unanimous on reticulation. COST OF DALLYING. Cr. Gohns. referring to the statement that the Tramways Committee had not had a fair opportunity to sell any part of the machinery, said that on June 9th the Committee was given power to ascertain a purchaser and submit the name to the Council. In two reports—June 23 and Jvfy Ist—the Committee referred to a prospective sale in Wellington. This showed that the Tramways Committee had every opportunity to find a purchaser, but it had dallied with the work. Interest and sinking fund cost about £39 a day. The cost of the car barn would be gone in 18 weeks. The position would be that the ratepayers would have raised a loan for the benefit of the money-lend-ers. NO AUTHORITY TO SELL. Cr. Harris said Cr. Gohns would have been fairer had 1> quoted the original report of the Tramways Coirihiittee. The Tramways Committee’s wings were clipped. They were only given the opportunity to find a buyer, but how could they do anything under those conditions? The answer as to the sale of the 1000 k.w. had not yet been received. The Alayor said that when in Wellington they had been told the Council would not buv the 1000 k.w. unless blocked in its own scheme. Cr. Gohns—And they have now gone in for 5000 k.w. ? Cr. Harris—lt was absurd to try and sell goods without having authority to sell. ♦ Cr. Burnett —If you want to sell anything put it into the hands of agents, with authority to sell. Or. Harris said he t»utoported the policy to reticulate the' whole town. That was necessary for either steam or

hydro. The tramway service wuold use only a paltry 280 k.w •AN ANOMALOUS POSITION. Cr. Alaunder said the Committee £ould hardly report as to what | art of the borough should be reticulated when the ratepayers had raised a loan to reticulate the whole town. And they had had no money te reticulate any at all. They could not reticulate one street, nor even build a.powerhouse. By reticulating a small portion ol the town they could not use all the electricity generated by the whole plant. The supplying of shops with light, was a very unprofitable business, owing to the fact iliat if. was only on short days that the shops required power. At other times the plant had to stand idle. It was uneconomical to have a very large star tian with a very small load. It was going to be a very expensive plant to run. and the only way to make it pay was to reticulate the borough. Tne Council should adopt that principle. To sell power to factories, the power had to lie sold at a price cheaper than gas engine power, which was about IF per b.h.p. per haur. It ‘.cost Wellington 3Jd per unit, so that Wanganui would have io charge 4ld to 6d per unit, which could not possibly compete with gas. In reply to the Alayor. Cr. Maunder said ho adopted the attitude of trying to make the best* of the position. The Council was in a very bad way. Cr. Maunder—Dunedin sold its power generated bx hydro at less than Id a unit. For all purposes it was less than IJd. In Vfelington they had to paV 4Jd In Wanganui they would have a very expensive plant. If the whole town were served, the plant might pay working expenses. It would never pay interest. In reply to Cr. Sigley as to whether the Committee had had. power to sell, Cr. Maunder said that if it had had it would have advertised it in Australia and New Zealand, where it would have caught the eye of buyers. But the Council, in its wisdom, asked the Corrvmittee to find out if any of the plant was saleable. It was difficult to find a buyer under those conditions, because it was not for sale. The amendment and the motion were both lost.