I.—IS.

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[~W. G. T. GOODMAN.

280. Would it not be a very large proportion of that surplus of 1,500-horse power you referred to ? —Yes, a fair proportion; but at the same time the power-load does not take place at the same time as the maximum lighting-load. Frank Oakden examined. (No. 5.) 281. Dr. Findlay. j] What are you? —I am general manager of the Milburn Lime and Cement Company. 282. Have you any qualifications as a civil engineer? —Yes, and I was formerly partner of the firm of Oakden and Begg, civil engineers, Dunedin. 283. How many 3'ears did you practice civil engineering? —Ten years. 284. Are you connected with the Waipori Falls Company? —I am chairman of directors of the Waipori Falls Company. I must say that I have been connected with it since its inception as a company, but had no connection with the previous syndicate. 285. Is there any intention that you are aware of to sell the rights of your company to any syndicate or other company if this Bill passes? —Absolutely none. When I was invited to join the board I clearly laid it down that we were to be strictly a commercial concern, and with regard to selling I pointed out that the previous syndicate had from time to time approached the City Corporation. 286. For what purpose? —For the purpose of selling, and I said that if I had anything to do with it it should be definitely with a view to starting a commercial concern to supply Dunedin. and especially the industries of Dunedin, with electrical power. 287. As chairman of directors you would have to consider the question of finance; what prospect of financing the company will you have if the Bill passes ? —There is every probability — indeed, certainty —of the whole of the capital being found in New Zealand. With regard to that I may say that some few months ago the board was approached by a syndicate at Home with an offer to take up the balance of our shares —80,000 shares —but I resented it on the ground that if it were done it would involve the head office being fixed in London, and the control of the company would pass to London. 288. With that view did the other directors concur? —Yes. 289. And you expect to finance the whole of the thing in New Zealand if this Bill passes?--Yes, that is so. 290. If this Bill does not pass what will be the effect upon your enterprise? —It will clearly prevent applications being made for our shares. I may say that from first to last there has been a difficulty—possibly through not having brokers —in raising the capital, and it has resulted in the members of the board themselves getting their friends to subscribe, and obtaining capital in that way —in fact, they have acted as brokers themselves, but without commission, of course. 291. Then, you got the full advantage of the subscribed capital without having to pay brokerage ? —Yes. 292. What is the total amount of money already spent by the company in, upon, or in connection with the work? —We have actually expended £15,600 to date. 293. How much have you committed yourselves to pay for contract work yet undone? —In addition to that I think about £14,000 or £15,000 under contract. 294. So that you have spent or are committed to over £30,000 of money? —That is so. 295. I want to make quite clear the position of those who were your predecessors in title. Mr. Duncan told us that 5,000 shares were given to the promoters? —Five thousand or 5,500 were reserved for the promoters. Two hundred shares were to be given to each subscriber of 500 shares. That was to start the company. 296. The total amount of loading amounts to what? —5 per cent., or £5,500. 297. That was to those who owned these rights? —Yes. 298. The shares have been increased in number up to 100,000? —Yes. 299. So that the promoters have 5,500 shares in the company? —They have less than that. 300. Less than that for their rights? —Yes. 301. It has been suggested that even if Dunedin be excluded from this Bill you have an amply profitable field for the use of your power outside in the area of supply? —That is not so In the first place, the success of the company is dependent on what we call the high-loading factor. Our object, I take it, must be, as business men, to get the business centre to commence operations with, and gradually to extend to districts where there will be less power required as we are able to extend. I might mention that in starting the company we first ascertained whether the rights were correct. The next was to put on three engineers to report on it, so that we had two lawyers and three engineers. The next question was to find out the probable demand there would be within the territory we proposed to operate in. This was accomplished by sending out schedules which did not in an} 7 way bind either the company or the applicants. 302. Applicants for what? —Applicants for power, and so forth, to enable us to ascertain if a large quantity of power would be used in the area of supply. The total applications amounted to, I think, 3,600-horse power. That was including the City of Dunedin and the area outside. This showed us that we had the necessary demand for our power--that we had the market —and as business men, the next questiof before us was to ascertain the cost at which we could supply it. The next step was to get the best man we could obtain from the United States to advise us, and we got him, because I considered the States the home of long transmission in connection with electrical power. I had an opportunity of visiting the United States in 1900 and 1901 and saw the marvellous strides that had been made. Knowing the effect of electrical power upon industries there, I concluded that it would have a similar effect upon the industries of Dunedin. It was more with a view of improving my interest in the Milburn Company and other industries, than of getting any advantage from the electrical power, that I joined the company.