1. An agreement was made on the 13th day of July 1925 between Mr. Joseph A. Monaghan of Kinkora, P.E.I. , Miller, and Bannerman W. Tanton , Summerside, P.E.I. , Barrister at Law. It was agreed that they shall form a partnership in the name of Monaghan and Tanton, but partnership shall not take place until all liabilities are assumed by Bannerman W. Tanton with respect to the Kensington Electric Light Co. Ltd . and the Dunk River Milling Co. Ltd . The building of the Dam and the construction of a saw mill, both being fully paid and satisfied out of the earnings of the Company. 2. No payments to be made except by cheque by Mr. Tanton and he shall not issue any cheques without the consent of Mr. Monaghan . Mr. Monaghan was responsible for looking after and keeping repairs to all machinery in the plant, reading meters and collecting the bills of the Electric Light Plant from various patrons, and keeping a strict account of same and making deposits in a chartered bank. Also that Mr. Monaghan shall not have anything to do with the running of the saw mill or grist mill, except to advise with the miller with respect to repairs to the machinery and with Mr. Tanton with respect to persons to hire as miller and other necessary help. Mr. Monaghan was to have full charge of the Electric Light Plant, and the premises as well as all lines etc. Mr. Monaghan is to receive the remuneration of $50.00 plus before such time as he should marry; then a new agreement should be made between the parties with respect to his salary or wages. Mr. Monaghan shall receive each and every year the sum of $200.00 out of the proceeds so deposited in his name for looking after and keeping the books and doing the business. 3. And as soon as all the liabilities are paid, they shall enter into partnership, where each of the partners shall draw one half of the net proceeds each year. With his finances assured, Mr. Monaghan contracted Robert Rankin of Summerside to reconstruct the dam and raise it by three feet giving the dam a thirty foot head of water. Mr. Rankin proved a competent contractor. The dam was well rebuilt and lasted for many years, and the generator began to give satisfactory service. Mr. Monaghan was soon receiving requests to build new lines, connect new customers, along with maintaining the plant, reading meters, collecting bills, etc. He found the extra work too much to handle so he hired Mr. Allan W. Palmer , a man of considerable knowledge and skill with machinery and electricity, as manager of the electric plant and saw mill. Mr. Palmer proved to be a wise choice, as he managed the plant brilliantly and made many improvements to the equipment. The grist mill also underwent modernization with the installation of a roller mill to replace the granite stones, which cost in vicinity of $6,000. When this modernization took place is not definitely known, but it was soon found unprofitable, and the partners began to lose money in the venture. The grist mill was the responsibility of Mr. Weston Francis , who was a partner in the Dunk River Milling Co. Ltd . In 1924, it was decided that the capacity of the generator should be increased to handle the load growth. The 30 KVA, 2200 volt generator was replaced by a Westinghouse unit of 150 KVA, and 2300 volts. It is assumed that the 30 KVA vintage unit was sold, and the Dunk River plant became the largest hydro plant on the Island. In 1925, Mr. Monaghan hired Earl Arsenault , a well experienced electrician from Summerside , to construct a pole line from the plant to connect with a line at Kinkora . On 24 October Mr. William Brander was hired to operate the plant. In 1926, the Dunk River Milling Co. Ltd . was dissolved and the Dunk River Hydro Electric Co. Ltd ., was incorporated by the P.E.I. Electric Act . In 1928 the Freetown Electric Company was incorporated by the same act. It is not known who constructed or financed this system. However, it had been interconnected with Mr. Monaghan 's line running to Kensington in late 1927. It had been stated by many people that Mr. Tanton , along with the company's money, left the province at this time forcing the company into bankruptcy and Mr. Monaghan into despair. At any rate in 1928, Mr. Austin A. Scales purchased the shares and stock authorities and privileges enjoyed by the Dunk River Hydro Electric Co. Ltd . and in the following year he founded the Scales Hydro Electric Co. Ltd . As Mr. Scales acquired control of the plant, he noted the roller mill and machinery were in a deplorable state. In a somewhat better state were the generator and saw mill which were valued at $2000. He discontinued the roller mill and, since a buyer could not be found, it was finally sold as scrap for $200. The saw mill building was moved to Mr. Scales farm and was used as a machine shed. 68