[is; B. stark

1.—13.

32

133. If these conditions are true, would you advise your company to go into Dunedin if they cannot compete with the Corporation ?—I believe we can go into Dunedin and get power at a figure to make a reasonable profit on. 134. But suppose there was a war of rates, would not the Corporation successfully compete with you? —If such a thing happened I would advise the company not to enter into a war. There are other ways of fighting besides a war of rates. 135. But if they can produce the power so much cheaper, any basis that might be arrived at would not be a half-and-half basis? —It would be some basis we could agree on. It would not be a half-and-half basis in any case. 136. Is there any intention on the part of your company to go to Dunedin and act in agreement with the Corporation? —Certainly there is. It is my intention to submit a proposal to the Board. 137. You want to work amicably with the Corporation? —Certainly. I have never been anywhere but where we have worked amicably with our opponents. There is a feeling amongst engineers that we are brothers, and that our cause is a common cause. 138. Have you quoted any actual rates?—-Yes, we have made a contract, as far as we can make a contract, in one particular case, and we have quoted rates to three other people. 139. That is on the basis of getting your power in at £7 10s.? —No; it was a concrete contract for a particular specified thing at a particular specified price. 140. At a rate that will pay? —Well, the people saw fit to accept it, and they would not have accepted it if it had not suited them. 141. It is a rate that will give a profit to your company, and not a cutting rate? —No, it is not a cut-throat rate. 142. Mr. Fowlds.] At £7 10s. for the power landed in the power-house and at £10 per annum for reticulation, that would not come very far below the cost of steam, would it? —In that particular case it would not. That is one reason why it is difficult to go into a sparsely settled district. That is an extreme case. 143. That is more than by producing the power by gas? —Steam for twenty-four hours a day would cost considerably more than that, and steam in small units might run up to as high as £50 per annum. 144. Mr. Berries.] Included in the £7 10s. there is charged the interest on the capital, I suppose? —Yes. There is no profit added other than the interest on the capital, which, I believe, I figured at 5 or 6 per tent., including cost of renewals, upkeep, &c. 145. The Chairman.] As engineer of the company, have you formed any idea as to how long it will take you to land your power into the transmission-house in Dunedin ? —One factor in the consideration of that is as to when we can begin to obtain our rights of way. As yet we have no power even to ask a man's leave to put a right-of-way through his property, and shall not have until this Bill is passed. 146. Assuming that the Bill is passed, how long will it be before your difficulty is surmounted? —The machinery is expected here in December. It would then be possible, perhaps, to supply power within seven or eight months. 147. Seven or eight months after the passing of the Bill?- -It might be a trifle less; it might be as short as five months, but not less than that. 148. Putting aside ail other difficulties and taking simply the engineering part of the works, how long will it take you to complete them so as to bring power into Dunedin? —We could have the power into Dunedin by the end of this summer coming—about April or, perhaps, March. 149. That is about eight months from now? —Yes. The slow part of it is that I cannot approach Mr. Orchardson or the Public Works Department until I get a Bill through. I cannot ascertain what they will let me do, but after that I can get permission for my pole-lines. The other work can be going on all the time, and we can finish by the time I state.

Thursday, Ist September, 1904. Thomas Reid Christie, Mayor of Dunedin, examined. (No. 9.) 1. Mr. MacGregor.] W T ill you tell us, please, where the Corporation gasworks are situated in Dunedin? —They are situated in the Borough of South Dunedin. 2. How long have they been owned by the City of Dunedin?--I do not know exactly. About twenty-four or twenty-five years, I think. 3. What amount of money has been expended upon them to date? —About £161,000. 4. The city purchased them originally from a private company, I think? —It did. 5. Can you tell us the amount that was paid for the goodwill —have you any knowledge of that yourself ? —I cannot say definitely what the amount was. 6. You know that there was a large sum paid, but you cannot fix the amount? —That is so. 7. From these gasworks you at present supply gas for lighting and heating —gas cooking ami so on —to the City of Dunedin? —Yes, and power for gas-engines. 8. From a lighting point of view, is it a good supply?— Yes. 9. We will leave the question of power out just now. Do you supply any of the suburbs with gas from the Corporation gasworks? —Yes, several. 10. Can you name them? —North-east Valley, South Dunedin, and Maori Hill. Those are all at present. 11. How about St. supply St. Kilda to a limited extent, if at all, It is a very small suburb.