HUTT AND PETONE NEWS.

Dominion, Volume 4, Issue 1186, 22 July 1911, Page 3

HUTT AND PETONE NEWS.

(From Our Special Correspondent.) TRAM SYNDICATE. NEGOTIATIONS AT AN END,' Another special meeting of the Huffr Valley Tramway Hoard was held last night, those present being Messrs. M'Ewan. (chuirman), Ktevens, Itusliworth, Burridge, I'ipor, and Kempt horne. ] The cliainnan explained tlwt the, meeting had been called owing to the l'act. that a letter (undoubtedly sent to be road at last meeting, but unfortunately waylaid in transit) called i'or early consideration. There was also a subsequent letter, which had been received in answer to tho decision of the board at. its last mooting. Tho letters read as follow:— Letter No. l.—Thers seems to have been a misapprehension in the minds of members of tho board and tho public as to tho position. We notice that one member of the board desired to know whether tho proposed syndicate was an exploiting or construeting one. Does it matter what wo are, so long us the Hutt Valley gets its trams? Whether tho syndicate makes a profit or not can be neither the business of tho board nor the public. The important thing is the construction of tramn in Ilutt, and, if you are to have that tram constructed, it does not matter what' profit is made, or if it makes anything at all. It js true that, tho syndicate is only a preliminary to the formation of a company. We understand that one member of the board exjires'wd tho opinion that no company existed. That is quite correct, and, also, it is true that no company will lie formed until it: has something to acquire. It costs a considerable sum to float and register a company, and, in order to induce people to come into a concern, tho company must have something to offer. Until legislation has been obtained, there is nothing to offer, hi ordor_ to save tho board's and the syndicate's time, we desire to make it quite clear that wo arc proposing to take np the option with tho purpose of floating a company, to take tho concession, and carry out the. work. If they don't succeed in raising the capital, then the option will bo dropped, and this syndicate docs not proposo (and 110 other syndicate wo can conceive of would be fcolislr enough) to give any guarantee that it would carry on tho work. Tho syndicate will do its utmost to put up the capital required, but, if the board considers, it necessary to ask for a financial guarantee—tho amount of .which can bo forfeited by Hie board, if the", syndicate fails—then negotiations liad better come to an end. We arc under tlio impression that the proposals wore open for discussion, and were, in tho main, such as tho board would accept, but, if this is not so, wo shall bo glad to know it at once, so that neither ourselves nor our clients need worry any further about the matt or.

: U'Uci' No. 2:—lt is regrettable that' ! tho board should suddenly be- ■ come possessed of tho idea that tho coiii cession is of great value, liotwithstand- . ing that there doe>s not seem to bo any demand for it. The syndicate, was un- ■ der tho impression that the board: do-> 1 sired trams', ;iud wo are satisfied that, this ' could not be done in any other way than b,v granting a concession to private capitalists. The syndicate were, not aware ■ that, tho board was expecting to sell i\ > concession, as they wevo not buyers, nor were, they prepared tc deposit any nionoy' that was lial:Jn to forfeiture. Perhaps whoa the board realises that tho cash difficulty is insuperable with us, and.(as wo think) it will prove so, with others, negotiations may bo re-opened. ' ■-•■ ■; Mr. liishworlh, who wns responsible (or tint resolution in reference to tho guarantee, said that tho attitude of tho board was correct, and he hoped that they would adhere to it.. The letter was not at all a correct one, and, if the syndicate, were so easily frightened, then they were not prepared to see tho matter through. Mr. Kompthorne concurred with. Mr. Kislnvortli's view. . ■ - ■ . • ■ 1 Mr. Piper, remarked that, nfter conversing with business men, lie was more than convinced that the lward had hit ! on tho right plan. The matter was sim- ; -ply a contract, aiid he did not feel disposed to back down. "The chairman explained that no option ' could bo 'given until an amending Bill was put through the House. He agreed that some guarantee should bo given, to establish the. Bonn, fides of a syndicate,. If the board stuck to its guns, then the scheme wns "off." Mr. Eishworth then moved: "That (ho lwarod adhere to its previous resolution in reference to a guarantee." Mr. Piper seconded, and the motion wns carried. Mr. Hawthorn cavo notice to move: "That the Hutt .Valley Tramway Board dissolve." Now that the syndicate- had been tested, and: its offer had .fallen through, them was no further use for Clio lraard. Hβ favoured 9 scheme whereby iho two boroughs would havo trams of their own.