The Sun.
London, England, 1860-08-09 00:00:00

PARLIAMENTARY COMMITTEE.

GAS (METROPOLIS) BILL.
This bill, the consideration of which occupied the
attention of a select committee of the House of
Commons for several weeks, has been referred to a
select committee of the Upper House, consisting of
the Earl of Lucan (chairman), Ear] Amherst, Lord
Dungannon, Lord Courtown, and Lord Wynford.
Mr. Denison and Mr. Webster appeared on be-
half of the promoters of the bill; the gas companies
are represented by Mr. Serjeant Wrangham and
other learned gentlemen ; Mr. Paget appears in
support of a petition against the bill from the
parish of St. Mary, Lambeth.
Mr. Denison said the promoters of the bill were
prepared to take it in its present form, as an expe-
rimental bill, believing it would work well for the
public, although not so well as the bill originally
presented. The gas companies, also, were satisfied
with the bill. The parish of Lambeth, however,
was dissatisfied with it, and proposed to make some
material alterations.
Mr. Sergeant Wrangham, after referring to the
proceedings of the House of Commons, said the re-
sult of that inquiry was a compromise, certain
points being reserved for further consideration.
One of the parties to that arrangement was the
parish of Lambeth, which now sought to re-open
the whole question. He submitted that it was not
in accordance with the practice of their lordships'
house to allow one of the parties promoting a bill
to take advantage of an arrangement and then turn
their backs upon it, and hoped their lordships
would decide that the parish of St. Mary, Lambeth,
could not be heard.
Mr. Paget contended that the parties whom he
represented had a right to be heard. After the bill
left the committee of the other house there was a
" whip" on behalf of the gas companies, who suc-
ceeded in obtaining the recommittal of the bill,
which was then turned inside out, all the provisions
which had previously been inserted for the protec-
tion of the gas consumer having been struck out.
The inquiry before their lordships was a new one,
and he submitted that the proceedings ought to
commence de novo. The parties whom he repre-
sented had always protested against the provision
legalisibg the formation of districts by particular
companies to the exclusion of any competitor. The
bill, which was originally a consumer's bill, had
been converted into a producer's bill, and ought to
be reconsidered.
The committee, after evidence as to the nature of
the agreement which had been entered into, de-
cided that the parish of St. Mary, Lambeth, ought
to be heard.
Mr. Denison observed that the effect of that de-
cision was to place the whole of the bill before the
committee. Now, the parish of St. Mary, Lam-
beth, had not opposed the preamble in the other
house, and did not now petition against the pre-
amble' but against the sixth clause, which.pro-
vided for the division of the metropolis into dis-
tricts.
Mr. Paget observed that the substantial point for
consideration was whether their lordships would
sanction the districting or not.
After some discussion the committee postponed
the preamble, and intimated that the point might
be considered on the sixth clause.
The first five clauses having been agreed to, with
amendments,
Mr. Denison said the objection of the petitioners
to the sixth clause was that it would produce a
monopoly in the sale of gas, and deprive them of
the benefit of free competition. Now, the statement
which he had to make in support of the sixth clause
was this :—ln the year 1857 the gas companies
commenced the system of districting, thus depriv-
ing the consumers of the benefit of competition. In
this way they became arbitrary masters of the posi-
tion, and refused to enter into contracts with public
bodies on as favourable terms as before, and it was
feared that before long they might become more
arbitrary and raise the price of gas. The system of
districting being in existence, it was thought de-
sirable to deal with it and obtain some restrictions
advantageous to the public. The preamble of the
bill-recited that it was desirable that " districting"
should be sanctioned by Parliament, but the com-
panies were not satisfied with the preamble, and
procured the insertion of a clause prohibiting other
companies from entering their districts. The parish
of St. Mary, Lambeth, objected to the clause, but
with some alterations it was eventually passed, fol-
lowed by certain restrictions which removed the
objections entertained by the promoters of the bill.
Having pointed out the manner in which the clause
had been introduced into the bill, he would not call
any evidence, but leave the matter in their lord-
ship's hands.
Mr. Sergeant Wrangham observed, that the " dis-
tricting" clause was the foundation of all the con-
cessions which the gas companies had made, and if
that clause should be rejected they would rather not
have the bill.
Mr. Denison remarked that the promoters of the
bill would not be satisfied by its withdrawal.
Mr. Paget objected to the clause, and denied that
any equivalent had been given to the consumer for
handing over the districts to the gas companies.
The committee had conceded to the companies the
possession of individual districts on the introduction
of clauses for the protection of the gas consumer.
One of these clauses provided for the appointment
of three inspectors, with power to call for accounts,
to investigate the amount of capital, the dividend,
&c., for the purpose of giving the consumers the
benefit of a reduction in the price of gas in the event
of the dividends exceeding a certain amount. All
these provisions were struck out when the bill was
recommitted, whilst the districting clauses were re-
tained, so that the bill now afforded no protecting
clause for the consumers. The question now was,
whether the Legislature would consent for the first
time to affirm the principle of monopoly in the sup-
ply of gas.
The Chairman said the committee were prepared
to adopt the principle of the .districting clause, but
would postpone their final decision until they had
considered the restrictive clauses, and would then
determine whether it should stand in its present
form or be altered.
The committee then adjourned.
The committee resumed the consideration of the
clauses of this bill yesterday ; the Earl of Lucan in
the chair.
Ou the 25th clause, which provides that the illu-
minating power of gas shall be tested at a distance
of 1,000 yards from the works,
Mr. Paget submitted that the testing place ought
to be at a greater distance from the wors, inasmuch
as the gas gradually deteriorated, and a test at that
distance would be no test of the quality of the gas
at the distance of three miles. The gas ought to
be tested at the place where it was supplied. In
the case of St. Mary, Lambeth, the Phoenix Com-
pany charged 6d. per 1,000 feet extra beyond a
certain distance, and the consumers ought to have
some guarantee that the light was of the proper
quality.
Mr. Sergeant Wrangham having been heard in
support of the clause,
The Chairman intimated that the committee were
of opinion that the clause ought to be retained.
On Clause 40, which gives an appeal to the Home
Secretary in case of an advance in the price of gas
by any of the companies,
Mr. Denison said this was one of the points which
had been left open for discussion between the gas
companies and the promoters of the bill. The clause
provided that in the event of any local authority
dissenting from any increase in the price of gas
they may apply to the Secretary of. State, who shall
institute an inquiry, and, if he be of opinion that
there has not been any such increase in the cost of
gas, or any other circumstances affecting the com-
pany as will warrant such advance, he may pro-
hibit the company from making an advance either
wholly or partia!ly. The consumers preferred an
open arbitration, under which witnesses could be
examined on oath, and hoped the committee would
substitute an arbitrator for the Secretary of State.
Mr. Sergeant Wrangham. supported the clause,
contending that if any inquiry was necessary the
Secretary of State was the most fitting person to
decide the question in dispute. It was too exten-
sive a question to submit to arbitration, involving,
as it did, the income arising from a capital of
£6,000,000 or £7,000,000, which had been invested
on the faith of acts of parliament. Under these
circumstances he hoped their lordships would sup-
port the decision of the committee of the House of
Commons:
The Committee decided to substitute an arbitra-
tion, instead of leaving the decision to the Secre-
tary' of State.
Mee Paget said, as the clause now stood, it allowed
the 100 el authorities of a district to raise the price
of gas at; their pleasure. He was instructed to oh.*
ject to that, on the ground that it would exclude
the parties who ought to initiate proceedings.
The Committee overruled the objection.
Some discussion ensued on the remaining portion
of the clause, which provides that when any gas
company shall change the supply from cannel
to common gas, the rate shall be reduced to the
lowest rate then charged by any company for com-
mon gas.
Mr. Baxter was called by Mr. Sergeant Wrang-
ham and examined upon thin point.—He said Mr.
Wyatt and himself had agreed upon the word-