THE CITY TRAMWAYS.

Evening Star, Issue 10747, 6 October 1898, Page 1

THE CITY TRAMWAYS.

A PROPOSAL FOR THEIR PURCHASE.

la the City Council last evening the deterred consideration of the following clause in the General Committee's report, which waß before the Council in July, was taktn up: "The Committee having considered the letter (28/6/'9B) from the Dunedjn City and Suburban Tramway Company, Limited, desiring to submit a scheme for the reconstruction of the tramway service by the substitution of mechanical for the pretest haulage, and the raising of the necessary funds to do this, and to pay off the company's indebtedness by 'the issue of debentures guaranteed by the Council, and having received and beard a deputation from direttors of the company in respect to the Bcheme, beg:, to report lb at it has uo recommendation to make on the merits of the proposal, but submits the question for the consideration of the Council in oommittee of the whole."

Cr Cabkoll did not think the proposal was worth consideration, even if the Council had legal power to comply with it. He moved that the clause be deleted from the report.

Cr Pabjv seconded the motion pro forma, He understood that there was something more behind the proposal than Cr Carroll Beemed to think. He understood that if the Council guaranteed the debentures, in time the tramways would revert to the Council.

The Mayor : That is a matter for negotiation.

Cr Paek said if the proposal meant that the Council should eventually acquire the tramways there was something in it, and he thought that in the course of time the Coonoil Bhould acquire the tramways.—(Hear, hear.)

Cr Miixer thought the proper course would be to discharge the clause from the report. If the guarantee scheme were adopted the company intended to use an improved system of haulage, and in time the whole tramway service would revert to the Council. If the tramways could be bought at a good price he would be in favor of purchasing them.—(Hear, hear.) If he was in order he would like to move that a committee should be set up to inquire at what price the tramways could be bought. They had already controt of the gas and the traffic, aud now that the new leases had been arranged with the surrounding boroughß it would be a favorable time to purchase. He believed there were certain shares held by a certain institution of this town, and it he were rightly informed they were prepared to forego those shares altogether. He therefore thought that if the Council could get this property at a payable price, now was the time to get it. Cr Haynks said if the Council decided to consider the matter further the Council could simply refer it back to the Committee for further consideration. The substance of the company's proposal was that at the end of thirty years the company were to hand over the whole service free of cost to the city. Then for the first seven years they were to pay "£360 a year rent for the privilege of running the trams ; for the second term £:>(JU a year ; for the third term £750 a yrar ; and for the remainder of the term £ 1 .000 a year. If the Council were favorably uispoced towards the proposal, the company said they would demonstrate that it would pan out all right. When the matter came before the Council councillors, with one or two exceptions, pooh-poohed the idea altogether. The estimated value of the plant was £45,000. Now, he did not think it could be got for very much less than that, because he believed the company were getting interest upon that amount.

Cr Carroll said the Council had no power to guarantee the debentures of the company.

Cr Hayxes : In Melbourne the Council not only guaranteed the money for the trams, but provided it.

Cr Miller thought the report was worthy of more consideration than had been given to it. He would move that the matter be referred back to the General Committee to make inquiries a3 to the lowest possible price at which the tramways could be acquired for the City.

Cr Haynes seconded the proposal. Cr Carroll agreed to withdraw hia motion in favor of that moved by Cr Miller. Cr Miller's motion was then put and carried unanimously.