RELATING TO ELECTRICITY AND MACHINERY 201 



contended on the part of the defendant that, even given a good 

 3 h.p. engine, a cut-out and resistance were necessary. The 

 plaintiffs, however, replied that when making their estimate 

 they assumed that the engine was new; that if it had been 

 new, a cut-out would not have been necessary, and that they 

 were therefore justified in charging for cut-out and resistance 

 as extras. They also alleged that since the specification was 

 made out the defendant had demanded an increase in the size 

 of the battery. Had they known that the battery was to be 

 larger, this would have influenced their judgment in deciding 

 whether to provide a cut-out. In an action for the price of 

 the work done, the judge decided this point in favour of the 

 defendant, laying it down that for a complete installation a 

 cut-out and shunt resistance should always be supplied. He 

 was not, apparently, impressed with the argument that the 

 increase in the size of the battery would have affected the 

 plaintiffs' judgment. (For other cases as to the meaning 

 and significance of the word " complete," see Chap. VI., 27 

 ante.) 



4. What is " actual cost of generating " light. Where a 

 contract for the supply of electricity provides that the person 

 supplying shall be paid the " actual cost of generating," ques- 

 tions may arise as to whether this includes the cost of 

 transmission and depreciation of plant. In a case recently 

 discussed in the Privy Council (Municipality of Bulawayo v. 

 Bulaicayo Waterworks Co., 1908, The Times, March 20) the 

 defendants agreed to supply electricity for street lighting and 

 everything necessary for supplying electricity to the street 

 lamps. 



The remuneration clause was in the following form : " In 

 consideration whereof the municipality undertakes and agrees 

 to pay to the said contractors or to their assigns at such rate 

 as will yield to the contractors a return equal to 10 per cent, 

 over the actual cost of generating the light, payments to be 

 made quarterly." The discussion centred round the meaning 

 of the term " actual cost of generating the light." The Privy 

 Council held that the term " generating the light " was 

 intended to include not only the generation of the current, 

 but also the transmission of the current to the points where 

 the light is finally evolved. As to the " actual cost of 

 generating the light," they expressed the view that this 



