THE CITY TRAMWAYS.

Evening Star, Issue 11658, 19 September 1901, Page 7

THE CITY TRAMWAYS.

RESIGNATION OF THE TRAMWAYS MANAGER. At last night’s meeting of the City Council the following letter'of resignation from Mr D. R. Eunson,. manager of the tramways, was received:— -• The Town Clerk, Dunedin.—Sir,—l have to acknowledge receipt of youre, dated 6th inst., conveying to me the resolution passed , at the meeting of the Council on , the 4th—viz.: That Mr Eunaop be informed by letter that his duties as general manager be confined solely to the~management of the City Corporation tramways from date. The wording of the resolution is somewhat ambigu°us, but I take the meaning to be that the Council have decided to'.make it a condition of retaining my services that I should give up my connection with Momington. When I.was approached by the Council, and invited to continue in their employ as manager of the tramways on the terms of my then existing agreement with the Tramways Company, it was only after very considerable hesitation, and on the clear understanding' that my connection with Mornington should not be interfered with, so long as it did not conflict with my duties to the Council, that I decided ,to accept the Council’s offer. •As there has evidently been some misunderstanding as to the terms of my engagement it will possibly simplify matters if I resign my position,- and I therefore tender my • resignation accordingly.—Yours faithfully, D. R. Ednsok, General Manager. After the reading of the letter there was a slight pause. Cr Tapper then rose and suggested that the chairman of the Tramways Committee should move that the resignation be accepted. If the chairman of the Committee did not do so, ho (Cr Tapper) would move in that direction. Cr Scott: Very well. I move that the resignation be accepted. Cr Muir: I second that. The Mayor; It has been moved and seconded that the resignation of Mr Eunson be accepted. , Cr Park: When does that take effect, sir? The Mayor: It is dated September IS. He makes no conditions. Cr Scott: I take it that this is a matter entirely for himself. The Council do not wish to strain the point. If he requires a month or so there can be no objection to it —that is why I did not mention anything about it in the motion. Cr Park: Suppose the resignation takes effect from the date of the letter? The Mayor: As Cr Scott has said, if Mr Eunson asks for any reasonable notice I am, sure we won’t refuse it. Cr Scott: I should take it that he means a month. Cr Maitland said that before the motion was put he did not think a matter Of that kind should be settled off-hand without giving the public the full information that the Council have at the present time. It was a matter for very great regret that they had the resignation of Mr Eunson. He had proved himself during the time he had been in the employ of the Council a most capable man, and one who had engineered the Council through a few difficulties through which the y ™ight not otherwise have come successfully. It would be very easy for him (the speaker) to go through from start to finish of this matter, but he was not going to do so that night. He thought, however, that it was only fair that the whole of the correspondence which was read in committee should be placed in the hands of the Press for publictaion. He thought it. was right, not only in the Council’s interests, but in the interests of Mr Eunson also. The facts before the Council were such that they had simply the evidence of Mr Eunson and the evidence of the late Mayor (Mr Robert Obis' holm). .Councillors knew perfectly well that the late Mayor was not only Mayor of the City, but he appeared to have been the waole of the committees as well, especially as far as the Tramways Committee was concerned. No one on the Tramways Committee knew anything about Noyes Bros.’ appointment until long afterwards. Now, in connection with Mr Eunson’s dual appointment, the Tramways Committee say they never heard of it and knew nothing about it. If the one was true, so was the other. Both were disgraceful, and he thought it a most disgraceful position for any committee to be m that two such appointments were made and they knew nothing about it. Air Eunson had always stood up in a dignified manner for Ills position, and his opponents iiad shown that they were quite prepared do all they could to worry and harass him; so that now his resignation was in their hands. It would oe a very ungraceful act on his (Cr Maitland’s) part to oppose the acceptance of this resignaman witn any manly feeling could hold the position of general manager ot the city tramways with anything like dignity, to himself under the circumstances, tor Maitland then proceeded to read a letter, when Cr Scott rose to a point of order. The letter Cr Maitland was about to read had been rend in committee, and could not be rend in open Council. The Mayor said that was correct, Cr Maitland (continuing) said he would not read the letter, but he thought that a matter of this kind, which meant so much to the public, should be placed before the public. The Mayor : I think it is extremely likely that, with the consent of the Council, the whole of the correspondence will be placed before the public. Mr Chisholm’s part of the correspondence was not meant for publication, but, with his consent, the whole of the correspondence will be published. Cr Maitland (continuing) said it was a very peculiar position for tire Tramways Committee to be placed in to have to write to Mr Eunson and ask for a copy of the correspondence relative to his terms. He had supplied this, and it showed that there was notliiug underhand as far as Mr Eunson was concerned, as he could have refused to supply these had he chosen. On the strenath of this correspondence the whole of these disturbances had taken place. It was curious that a threat was made privately bjr one member of the Council to the effect that Mr Eunson would suffer for a certain act he was supposed to have done. That threat was made by the chairman of the Tramways Committee. Cr Scott: I ask Cr Maitland to state the effect of the threat. Cr Maitland said he would do so in a minute. It was a very wrong thing that this should have taken place, and it was since this threat that all the trouble had overtaken Mr Eunson. He (Cr Maitland) was not going back to the beginning of. the matter, but would simply say that Mr Eunson had shown himself to be a thorough gentleman from start to finish. The correspondence itself showed him to be a man who thought too much of himself to allow himself to be trodden on by those who had tried to do it. Unfortunately, he knew somewhat of this threat which the chairman of the Tramways Committee had made in this matter. Cr Scott: I am anxious to know it. It is news to me. Cr Maitland said it was a very unfortunate thing this threat was made. The threat, if he must go into particulars, took place in connection with the transaction of the business of the Council. Cr Scott had accused Mr Eunson of using another councillor to put notices of motion on the order paper. Unfortunately, this came to his (Cr Maitland’s) ears, and he spoke to this other councillor about it. He (Cr Maitland) and the other councillor went to Cr Scott, who denied it in toto, bub admitted it afterwards, and said: “ I will make Mr Eunson pay for this.” If this was untrue, he (Cr Maitland) would apologise to Cr Scott. Cr Scott: It is untrue, and I defy anyone to prove that it is not so. Cr Maitland: Well, I will sit down, and if I get no confirmation from another member of the Council I will Withdraw it. The Mayor: If you do not go on with your speech you forfeit your opportunity to speak again. Yon must .withdraw the remark and finish. ■ Cr Maitland: Well, if you insist upon my withdrawing it I must do So, and stop. The' Mayor: If Cr Scott denies it, it is distinctly proper that you should withdraw it.. , , ' , Cr Maitland; Well, I will withdraw from the statement. Or MDonald ; Cr Scott did say it. Cr Scott: What did he say? Cr M“Donald: He said words to that effect. Cr M’Donald was sorry that this personal matter -had been dragged up. He had

challenged Cr Scott about it, and received a denial.' Ho then accused Cr Maitland i f saying what was incorrect, Ho said to Or Maitland: “You told Cr Scott that you, were using nie as a tool,” Cr Maitland rang up Mr Eunson, and Mr EunsOn said Cr Scott had said so. He went back to Cr Scott, and told him what Mr Eunson had said. Cr Scott said: “I will see into this, and make him sit up.” Cr Scott; I must give that an unqualified denial. I made nothing in the nature of a threat. The Mayor asked Cr Maitland if he had finished what he had to say. Cr Maitland (continuing) said that it was unfortunate that the matter should practically reduce itself into statements from Mr Eunson on one hand and from Mr Chisholm on the other. He would point out this as beinor in favor of Mr Eunson’s statement. Ho was in the position of one man doing one thing and being guided at the time by his solicitor in doing it. On the other hand, Mr Chisholm was immersed in patriotic matters, and it was possible that he forgot a great deal of what took place in some of the interviews with Mr Eunson, Cr Scott said that he was sorry that personal matters had been dragged up. He desired to deny the statement made by Cr M'Donald. Ho asked that councillor to get the name of the man who made the state-' ment, and Cr Maitland went to Mr Eunhon.. It was a private conversation that took' Elace between the manager of the trams and imself (Cr Scott) in his own shop. Ho could not remember exactly what he actually said, but he went to Mr Eunson next day and said: What did I really say, Mr Eunson? Did I say somebody else wrote those motions for Cr M'Donald?” He said; “ You did not say so, but you said you thought that they were instigated to a certain extent by Cr Maitland.” He (Cr Scott) then understood that Mr Eunson called on Cr M'Donald next day, who was quite satisfied with the explanation. He did not think anyone could accuse him of being unfair to Mr Eunson. He had stood up for Mr Eunson in the Council against his own convictions. and he did not think it right that statements about worrying and harassing the manager should be made. Cr Tapper said that he know nothing about any threat at the last meeting. He found out that Mr Eunson was still in the employ of the Mornington Company, and when he did that he made it his business to find out the rights of Mr Eunson’s appointment. Ho became convinced that Mr Eunson had deceived the Council, whether he had deceived Mr Chisholm or anyone else. For this reason he brought the matter up in the Council, and moved that he get notice. He quite agreed that all the correspondence should be published. Cr Braithwaite did not think Mr Eunson had deceived the Council. The very fact that he had resigned a position carrying £6OO a year proved to some extent that he felt he was an injured individual. The unfortunate part of the matter was that there was no proper record of what duties Mr Eunson had to carry out, and as to whether he was to occupy a dual position. It resolved itself into this: that Mr Eunson made a statement on the one hand and the Council and Mr Chisholm made another on the other hand, and there was no corroborative evidence of either. He thought it was a wise decision that the subject had been considered in committee at last meeting., Mr Chisholm was not present to defend himself, and it was not wise that these matters should be bruited abroad among the public. The Council, he thought, took a very wise step in taking the stand that Mr Eunson must not occupy a dual position and in giving him notice to that effect. He (Cr Braithwaite) thought the step was not only & wise one, but a very fair one to Mr Eunson. That gentleman had now chosen to resign, and he agreed with Cr Maitland that the resignation was a very manly one. He thought' there was no necessity to go further into the matter, seeing the' position Mr Eunson had taken up, and he ventured to say that the position to be vacated could be fittingly filled. Surely there was someone in Dunedin to fill the position. He somehow thought that Mr Eunson had not been fairly treated all along the line, but seeing that he had resigned the Council should accept the resignation and set about filling the position with a suitable person. Cr M'Donald thought it would be a graceful thing to let the matter of the resignation stand over for a fortnight. Mr Eunson had been a very good man, though he (Cr M'Donald) admitted that he was not a very popular man. Considering there were three of the old councillors absent, ho thought it would be only a wise thing to do to lot the question of accepting the resignation stand over for a fortnight, and Mr Chisholm would then perhaps have signified his readiness to have the correspondence published. Whatever Cr Scott might say, he did say those words. The Mayor: 1 have already ruled that, in the face of Cr Scott’s denial, it is neither polite nor parliamentary to continue the matter. Cr M'Donald; Well, it is not very nice now it is to go to the public; bht I shall obey your ruling. I think it would be very much wiser to let the matter stand over for a fortnight. Either Mr Chisholm or Mr Eunson has told a deliberate untruth, and I think it would be very kindly to—in fact, I will move as an amendment—“ That the question of accepting the resignation stand over for a fortnight.” Cr Maitland rose to second the amendment, but immediately recollecting that lie was not in a position to second it said so, and sat down. Cr Muir said he would second the amendment pro forma, although he intended to vote against it. The more they wont into this matter the more recrimination they would have, and the best thing they could do was to accept the resignation ns sent in. It would be open to Mi’ Eunson to again apply if the Council advertised the position. The impression in his mind now was that it was hardly safe for one councillor to speak to another in the street; he must only do so at the Council table. When they met in the street they were thrown off their guard and forgot caution and reserve, and if- what was said was to be brought up by a fellowcouncillor at the table it was a most unfortunate thing.—(Hear, hear.) He had a certain degree of sympathy with Cr Maitland over the way he had stood up for his friend Mr Eunson. The Mayor: Excuse me, but I find that you have seconded the motion, and cannot second the amendment. Cr M'Donald: If you will allow me, I will withdraw my amendment. ■ The amendment was then withdrawn. Cr Muir, continuing, said the unfortunate part of the matter was that Cr Maitland, in defending his friend Mr Eunson, did not give those opposed to him any credit tor truthfulnes and candor, but seemed to think bis friend had a monopoly of those virtues. He was sorry to bear his remarks concerning Mr Chisholm. He had always given Mr Chisholm credit for sincerity, and was sorry he was not present to hear Cr Maitland’s remarks, for he was sure that if he had been present he would have given Cr Maitland a very bad five minutes of it. He thought the acceptance of the resignation would settle the whole matter, and they could start afresh. The Mayor said they all know that people were liable to a lapse of memory with regard to conversations, and it was quite possible that the precise words used were not accurately remembered. There was only one motion before the Council, and that was —“That the resignation of Mr Eunson be accepted.” He might mention that it was acknowledged by the Tramways Committee that Mr Eunson’s sendees immediately after the trams were taken over were invaluable. The motion was then put and carried without opposition. Cr Park referred to the position Mr Eunson held in representing the Council before the Conciliation Board in the matter of the tramway employes’ dispute, and wanted to know how that would now stand, but The Mayor said that could, not bo dealt with then. Cr Muir said he would move—“ That tie correspondence in the matter of Mr Eunson’s appointment be handed to the Press for publication.” The Mayor said the only objection that occurred to this course was that they ought to have the consent of Mr Chisholm. When he had written the letter of September 4 he did not. intend it for publication. Cr Tapper: It is not private. I will second the Cr Maitland: It is public property. Cr Scott i if .this matter is ..*4t

half-past nine w 0 can get Mr Chisholm’s permission. This course was adopted, and later the Mayor said he would now table Cr Muir’s motion, as Mr Chisholm.had no objection to the correspondence being published. ' The motion was then put .md carded. i ferrcd ow ‘ n " ' B the correspondence reTown Clerk’s Office, Dunedin, N.Z., n i> r' „ , August 14, 1901. it. R. Eunson, Esq., Manager City Tram--5,. ' ways, Dunedin. S> ir » I have the honor by direction of the iramways Committee of the City Connell to request that you will be good enough to answer the following questions;— 1. How often have the meetings of the Mormngtou tramway directors been held in tlie Corporation tramway offices? . 2. Has the liquidation of the late Tramway Company been carried out in the Corporation tramway offices? 5. Have you been employed by the late company in any capacity since you entered the service of the City Council? If so, have you received payment for your services? 4. Have any of your subordinates been employed in any way in business relating to outside concerns? 5. Is it your intention to sever entirely your connection with all concerns outside .the Corporation tramways ?—I have, etc., (Signed) Taos. B. PxmßAnm, Town Clerk.. Dunedin, 17th August, 19(51, The Town Clerk, Dunedin. ■^ Dear Sir,—l have to acknowledge receipt of yours of 14th inst., requesting me, by direction of the Tramways Committee of the City Council, to answer the questions therein set forth. 1 now do so No 1. How often save the meetings of the Mornington tramway directors 'been held in the Corporation offices?— Five times since the Council took over the tramways, each meeting lasting from twenty to thirty minutes. No. 2. Has the liquidation of the late Tramway Company been carried out in the Corporation tramway offices?— Yes. This was by arrangement between the late mayor and the chairman of the Tramway Company, which was tacitly assented to at the conference between the City Council Special Tramways Committee and,the directors of the Tramway Company, held in the Council Chambers on Saturday, the 16th March, 1901. . , No. 3. Have you been employed by the late company in any capacity since you entered the service of the City Council? If so, have you received payment for your services?—As these queries can only have reference to the liquidation of the late company, my answer to both is No; certainly not. I can only assume that these questions have been put as credence has been given to an incorrect statement published in the ‘ Evening Star ’ to the effect that I had been voted a sum of £IOO by the liquidators: In order that the matter may be placed beyond question, I extract the following from the minutes of the proceedings of the 'directors of the companyßesolved—That a payment of £IOO be made to Mr EuAson for the extra work that has been imposed upon him during the negotiations for the sale of the company’s property, and the assistance he has rendered the directors in connection therewith.” No. 4. Have any of your subordinates been employed in any way in business relating to outside concerns?— Not to my knowledge, with the exception of Mr Mitchell, who during his own time has done some clerical work for the liquidators, for which he has been remunerated by the said liquidators. No. 5. Is it your intention to sever your connection with all concerns outside the Corporation tramways?— Yes, provided that the Council will give mo a contract covering the term of my engagement. I assume that this question has reference to the advisory position which I hold in connection with the Mornington Company. Under separate cover you will receive the statement asked for by His Worship the Mayor, which also bears upon this matter.—l am, etc., D. R. Eunson, General Manager the Corporation of Dunedin City and Suburban Tramways. Dunedin, 17th August, 1901. The Town Clerk, Dunedin. Dear Sir, —In compliance with the reqtiest of His Worship the Mayor at the Tramways , Committee meeting, held on the 13th inst., I have respectfully to submit the following statement re the verbal negotiations over the matter of my appointment When the late mayor (Mr Chisholm) sent for me in this connection, he informed,me that he had been consulting with the directors of the Tramway Company re the advisability of securing ray services for the Corporation when the negotiations for 'the transfer of the property should ho finally completed, I assumed that Mr Chisholm had made himself conversant with the terms of my engagement with the company, and so freely discussed with him the possibility of my retention of the supervisory or advisory position which I held with the Mornington Tramway Company. Considering the nature of such position, and that it had not been found to interfere in any way with my successful management of the City Company, extending as it did over ii . term of five years, he said ho did not think there would be any difficulty in the matter. Neither did he consider it necessary that I should meet the Committee to explain matters in this connection. Subsequently ho seemed to see a difficulty in my stipulation that my engagement with the Corporation should be for a slated term, and candidly advised me that I might imperil my chances of appointment by so insisting. The copy of the correspondence furnished to you at your request on the 22nd nil. clearly shows that, despite Mr Chisholm’s kindly advice, I considered it essential to have the. security of tenure of office, and subsequent events have proved that I was justified in this opinion. The correspondence in question starts with your letter of 19th February, asking mo if I would be willing to continue in the Council's employ “ on the terms of my present, appointment with the Tramway Company," and my replies show that I was desirous that the Tramway Committee should' he consulted and made conversant with the terms upon which I was prepared to ’iiOept the appointment if it was offered to me. Had I been permitted to meet the Committee no misunderstanding could possibly have arisen, as I should then have submitted to them the terms of my engagement with the company as such related to the Mornington position, and it would then have been at the option of the Committee to recommend me for the position or not at their pleasure, or to have made it a condition of my appointment that 1 should sever relations with 'the Mornington Company. ; . The position was simply this: Anticipating the early transfer of the property, I had been casting about for something else to do, with the result that I had two offers, either of which promised as good a prospect as continuance in a position of increasing labor and worry; but the friendly manner of the approach of Mr Chisholm, : and his assurance that the members of the Tramways Committee were unanimous in their desire to retain my services, strongly influenced me in arriving at a decision to accept the position if it was offered to me by the City Council. -k To revert to the Mornington matter. When my appointment was under consideration and the terms were being criticised by members of the Council you yourself will remember how, in conversation with you, I was most emphatic with regard to the understanding which existed as the result of my negotiations with Mr Cliisholm. Mr Jas. Hazlett, one of the directors of the City Company, also a director of the Mornington Company, was in a position to endorse my statement to the Mornington Board that my appointment under the Corporation would not affect my position with Mornington so long as .my duties to the City Corporation ware not interfered with, and, if deemed advisable, - he (Mr Hazlett) might be asked to state ’ his grounds for snob endorsement, and I think you will find that he had warrant for his statements. To conclude, it will be conceded, I think, that my whole conduct in this matter has been open and above board. Acting in all good faith, I have held the dual position without in the least allowing my interest in Mornington to conflict with or in any way prejudice the interests of the City, I never saw any reason to conceal my connection with Mpnjington, which might have ceased ere this but for the irritating statements made public from time to time regarding my tenure of Office with the City. ” Having lost the opportunity of accepting positions of equal emolument, and possibly better environment, I have been impressed with the manifest • necessity of retaining a connection of such long standing until I am assured of such a tenure of office with the City Council as will justify me in making the sacrifice, - and place my position beyond cavil or doubt.—l am, etc., D. R, Eunson, General Manager the Corporation of Dunedin City and Suburban Tramways. Dunedin, 22nd July, 190 L Tbos. B. Fairbairn, Esq., Town Clerk, Duiledin. r ■ Dear Sir, —As requested by you, I forward herewith for the information of the Tramways Committee a copy of. the correspondence

relating to my appointment as general manager of the tramways.—l am, etc., D. R. EuifSON. ■, (Private.) Dunedin, 19th February, 1901. D. R. Eunsou, Esq., Manager Dunedin City and Suburban Tramways Co., Limited. Sir, —In view of the .early taking over by the City Council of the tramways, I am directed by the Council’s Tramway Committee to inquire whether you would be willing to continue in the Council’s employ as traffic manager of the Dunedin City and Suburban Tramways on the terms of your present appointment with the Tramway Company.—l nave, etc., Thos. B. Paibbairx, Town Clerk. Dunedin, 20th February, 1901. Thos. B. Fairbairu, Esq., Town Clerk, Dunedin. Dear Sir,—Replying to your letter of the 19th inst., while I am not prepared to continue in the Council’s employ as traffic manager of the Dunedin City and Suburban Tramways, I am willing to act under the Council as general manager for any term not loss than three (3) years at a salary of six hundred pounds (£600) per annum. I may mention that I served a seven.years’ apprenticeship with one of the leading engineering firms in Scotland, and as my record may not be known to all the councillors I take the liberty of attaching an extract from one of the technical journals, published during previous negotiations with the Council and tramway syndicates.—l am, etc., D. B. Euhson. Dunedin, 25th February, 1901. To D. R. Bunson, Esq., General Manager the Dunedin City and Suburban Tramways Company, Limited. Sir,—His Worship the Mayor requests me to return your letter of the 20th inst.—Yours, etc., Tuos. B. Fairbairn, Town Clerk. (Enclosure.) Dunedin, 20th February, 1901. Thos. B. Fairbairu, Esq., Town Clerk, Dunedin. Dear Sir, —Will you kindly substitute the attached letter in lieu of that forwarded by me to you on the 20th inst., and also transfer the journal extract referred to. This second letter is written in deference to the advice of Mr Chisholm, but, realising the importance of having the matter settled, f should have preferred that the Tramways Committee had the opportunity of discussing the terms of appointment as concerning myself straight away. in view of the possibility of the Council taking over the business at an early date, you will no doubt know that there is much that should be done towards ensuring a satisfactory start, and whoever is appointed should bo in the position to effect such.—l am, etc., D. R. Eimsox. Dunedin, February 20, 1901. Thos. B. Fairbairn, Esq., Town Clerk, Dunedin. Dear Sir,—Replying to your lettew of 19th inst., forwarded to me, by direction of the Tramways Committee, I have to state that I am quite willing to act as general manager of the City tramways, but could not continue. for the emolument paid me by the Dunedin City and Suburban Tramways' Company, which is admittedly inadequate for the services rendered—a fact which may be verified by reference to the. directors. It is inevitable that the work of controlling a public service of a seventeen hours’ working day is onerous, and the position is also au increasingly responsible one, and will be especially so in view of the transition of the service from horse to electric haulage; but all this will probably be readily understood by the Tramways Committee. Had negotiations between tho Council end the company not resulted as they have, I should have been compelled to ask ray directors to agree to better terms. Should tho Tramways Committee so desire, T will be pleased to state the terms upon, which I would act for tho Council. I may mention that I served a seven years’ apprenticeship with one of the leading engineering firms in Scotland, and as my record may not be known to all councillors I take the liberty of attaching an extract from one of the technical journals, published during previous negotiations with the Council and tramway syndicates.—l am. etc., D. R. Btjnbon. Dunedin, February 28, 1901. D. R. Eunsou, Esq., General Manager Dunedin City and Suburban Tramways Company, Limited. Sir,—Referring to your letter of the 20th inst. in the matter of tramway management, I am instructed by the City Council’s Tramways Committee to offer you (subject to the approval of the City Council) the position of general manager of the Dunedin City and Suburban Tramways at a salary at the rate of £6OO per annum. X shall be glad of an early reply.—l am, etc., Thos. B. Fairbairn, Town Clerk. Dunedin, March 1, 1901. The Town Clerk, Dunedin. Dear Sir, —I have to acknowledge receipt of your favor of yesterday’s date conveying to me an offer from the City Council’s Tramway committee of the position of general manager of the Dunedin City and Suburban Tramways ah a salary of £6OO per aimnra. If this i* confirmed by the City Council I shall accept the appointment, but subject to the term of engagement being not less than three years. —I am, etc., D. R. Eunson. Dunedin, March 8, 1901. D. R. Eunson, Esq., General Manager Dunedin City and Suburban Tramways Company, Limited. Sir,—Referring to my letter to you of the 28th ult., I have the honor to inform you that the City Council of Dunedin, at its meeting on Wednesday evening last, deddod to appoint you general manager of the Dunedin City and Suburban Tramways when taken over by the City Council, at a salary at tho rate of £6OO per annum. I shall be glad to know at an early date whether you will accept the position on the terms above stated.—l have, etc., Thos. B. Fairbairu, Town Clerk. Dunedin, 13th March, 1901. The Town Clerk, Dunedin. Dear Sir,—ln reply to your favor of the Bth inst., informing me that the City Council had appointed me general manager of the tramways at a salary at the rate of £6OO per annum, I have to state that, after much consideration, I have decided to accept the position on tho terms offered by the CoundL—l am, etc., D. R. Eunson. Dunedin, September 4, 1901. Thomas B. Fairbairn, Esq., Town Clerk. Dear Sir,—l am in receipt of yonr memo, of 24th August, enclosing copy of letter from Mr D. R. Eunson, purporting to be a statement re verbal negotiations in connection with his appointment as general manager of tho City tramways. The letter is not. quite correct as a statement of what actually took place or was said in any interview I had with tho writer on the subject, referred to. That I was desirous as mayor and chairman of the Trams Committee at, the time that the City Council should secure the services of Mr Eunson as trams manager I readily admit, believing as I did that it would require the undivided attention of a really good and experienced manager to keep traffic going during the time the lino was being converted from horse to electric traction. From information received, I believed that Mr Eunson had the qualifications requisite to fill the position. On no occasion did I say anything to Mr Eunson that, in my judgment, could be construed even to indicate that I approved of his holding a dual position. On the contrary, I impressed upon him that in the event of the Council, on the recommendation of the Trams Committee, appointing him to the position at the salary of £6OO a year, they would expect him to devote his whole time to their interests. This, I understood, he was prepared to do. Both to Trams Committee and Council did I urge as a reason why ho should receive that amount as salary that the consideration he had been receiving as supervisor and adviser to the Morningten Company would cease. There were two things about which I thought I was specially specific in all my interviews with Mr Eunson on the question of his appointment to the managership of the trams, and these were:—That there was not the shadow of a hope of his being appointed if he insisted upon a fixed term of engagement, and that neither Trams Committee nor Council, I felt sure, would agree to his continuing to hold a position in connection with the Momington Tram Company, but would insist on his services being exclusively devoted to the City Council. Referring to two letters which were not submitted to the Trams Committee, copies of which have been supplied by Mr Eunson I have only to say that to my mind it is rather an imusnal course to refer to letters that were asked to be withdrawn. ■ The first of those, dated 20th February, stipulated a three-years’ engagement, a stipulation I knew, and had before told Mr Eunson, neither Trams Committee nor City Council would agree to, and that it was therefore useless to place such a letter before the Committee. At Mr Eunson’s request the letter was returned, and another substituted, omitting any reference to a term of ment. The second letter, dated March 1, Ideated the stipulation previously withdrawn.

and, after consideration, I rung up ’Mr Bunson, and expressed my surprise that a term of engagement should again be referred to after what had already transpired. Ho told me to take no further notice of the letter; and on asking if I should return it, he replied : “ Don’t trouble: it’s of no value: put it in the waste-paper basket”; which I accordingly did.—Yours respectfully, R. Chisholm. J ,