THE AUCKLAND TRAMWAYS.

New Zealand Herald, Volume XXIX, Issue 8889, 27 May 1892, Page 6

THE AUCKLAND TRAMWAYS.

PROPOSAL TO ENFORCE

PENALTIES.

A lengthy discussion took place at lasb night's meeting of the Auckland City

Council with regard to a proposal bo enforce the penalties due by the Tramway Company for the non-completion of the lines. All the members of the Council with the exception of Mr. Trenwith were present. Mr. llkwson, in accordance with notice given, moved, " That the penalties duo to the City Council by the Tramway Company for non-completion of tramlines be enforced." Ho said that he moved this motion not only in the interests of the travelling public but also in the interests of the ratepayers generally. There was an agreement between the Council and the company, and one of the conditions of that agreement to which a penalty was attached had not been fulfilled. At the request of the company an extension of the original time for the completion of the lines had been granted, as well as the privilege of extending the linos in four different places. The extended time expired on the 25th November, ISBS, and the company now owed the Council as penalties for tho noncompletion of the original circuit and noncompletion of the extension they themselves asked for, the sum of £1094. It was originally provided that the company should pay in default of carrying out their agreement the sum of £10 per week, but another concession was made with the others and the amount reduced to £0 per week, an Order-in Council setting forth all these concessions. But neither the original lines nor the extensions had been completed— fact, there was scarcely one condition of the agreements with which the Company had yet complied. There remained, for instance, a gap between Queen-street and Ponsonby Road, although at an interview it had been stated that the Company had I £3000 set aside for this very work, pro- ! vided the Corporation demanded its completion. Property-owners in Upper Queenstreet, College Hill, and a portion of Ponsonby were debarred from the convenience of the tramways : even the people of Epsom were better otf in this respect than some of those who lived within the city. Then, a certain amount of injustice had been done to those property-owners who had bought their allotments on the understanding that they were to bo connected with the centre of the city by tram lines. He had often been told that the Company should not be unduly pressed, because tho trains were a very great convenience, but he knew that they were also a very great inconvenience. The principal thoroughfares were taken up by two tram lines and all other traffic had to give way to the cars. The inconvenience outweighed the convenience, as many an unfortunate driver of a vehicle had found to his cost through his wheels skidding and his axle snapping. These accidents were the result of another infringement of the conditions, which said that the lines should be level with the road, and offer no obstruction to traffic. He asked the Council to consider the condition of the streets, a condition that was a disgrace and would not. be allowed in any other city in this or any other hemisphere. Another condition was that all the necessary work on the lines should be done at night, but the company had invented an infernal machine which

they worked during the day, and which in summer time created a very great nuisance in the way of dust. During these first seven years during which the company oaid no rent the Corporation was paying more than it ought to keep the streets in repair ; more than would have been required had the tramlines not been there. He concluded by reminding the Council that in October last year the Council had passed a resolution demanding payment of the amount then due by the company, £864. Dr. Walker seconded the motion pro foivna, and asked if the resolution passed in October had been acted upon or rescinded ? The Mayor said the motion was in abeyance. It had been passed for a particular purpose, namely, to have the ownership of i the tramways definitely settled and the legal responsibility in connection with them assumed by some person or persons That object was accomplished, and it was understood that if certain minor matters were attended to the question of the penalties would be further considered.

Air. Garratt said this opened up a wry grave question. There was no doubt bub legally the Council had the power to enforce the penalties. They must all admit, however, that the trams were a very great convenience, and far in advance of the old-time omnibuses, and they must also admit that they had not been profitable to the promoters. Supposing the Council did enforce the penalties, and proceeded to extreme measures, what could they do " If the company refused to pay, the Council could only have the empty satisfaction of taking up the rails, and he questioned if they would dare do that in the face of public opinion. Ho thought that if the company would keep the streets in a perfect state of repair, the Council would be justified in making them a present of all the penalties that had accrued up to the present date. There was no doubt but Queen-street itself, as well as the main arteries to it, were in a dangerous state, and it was only the other day that he had personally witnessed an accident in consequence thereof. In the winter, now so near, these streets would, unless something was done, be worse than ever before in the history of the city. This opened up the question of who was to blame, and it seemed to him that the fault lay with the engineer, who had the power to draw their attention to any repairs required, and the company were bound by their agreement to give effect to his instructions. He did not think the motion should be carried in its present form. If the company were prepared to keep the streets in a state of repair to the satisfaction of the engineer, ho would not support the enforcement of the penalties. Mr. Atkin* said the resolution would leave the Council in an unpleasant position either if adopted or rejected. If adopted, the Council would be enforcing heavy penalties; if rejected, the matter might be thought finally settled. He would, therefore, move as an amendment, " That the bona fidt owners of the tramways be asked to meet the Legal Committee, with a view to the final settlement. He thought it was best to do this before either enforcing or revoking the penalties. He was also of opinion that the owners might be forgiven the penalties if the streets were properly maintained. Mr. Dignan seconded the amendment. If the motion were simply rejected, it would be equivalent to telling the company that they were free. Ho agreed that the company should be made to keep the streets in repair, and if they did so might be forgiven the penalties. But still the claim might be kept a set-off, to be used if, when the corporation came to take over the lines in after years, any extortionate demand was made. Nothing would bo gained by demanding payment now, because the company could nob pay. Mr. Wright said he much preferred the amendment to the. motion, because he thought the Company had suffered under very great disabilities. Their operations had been hindered by corporation work, and, as one instance, the alterations of the levels in Customs-street had caused them considerable trouble. He considered it would be dangerous to take cars up College Hill, not only because of the steep grade but because of the turnings. They ought not to press a company that had done a great deal of good to pay penalties for a delay which the Council.itself had to some extent caused.

Mr. Waiirkn thought some understanding should be come to as to these penalties, since they were still going on. His desire was to see the matter settled so that the continuing penalties would cease, because the longer they run on the larger the amount owing by the company would become. It would be easier to forgive them a small amount than a large one.

Mr. Couktenay said it seemed to him an extraordinary thing that the complaint about the Ponsonby circuit should be made by a gentleman from Mount Kden (Mr. Hewson). He believed that if a tramway were run up College Hill there would be many accidents, and he assured the Council that the people were well pleased with the present service of 'buses. No complaints nad been mado from that quarter, and in his opinion ib would be a gross injustice to rip up College Hill to put down a tramway. Mr. Farrkll said he was certainly nob i in favour of forcing the company to make

the extensions. In forming tramways for horso cars it was necessary to make the road in the middle higher than the rest, or the water would lie, and thus the street could never bo level or in good condition. He hoped the time would soon come when there would be cable instead of horse trams in use in Auckland as in Dunedin, and he would assuredly object to a horse tram up College Hill. The penalties might bo forgiven, and he did not see that they should be allowed to continue increasing. Mr. Paterson said this was a much vexed question. If the tramways had been unfortunate to the shareholders only, councillors would not have had so /much to say, but | they had also been unfortunate to the ratepayers. He knew, for instance, that the ratepayers of Grafton Ward were helping to pay interest on thousands of pounds expended for the benefit of the Tramway Company. As to the penalties, some agreement might become to, and a middle course taken. Theso penalties were growing, and unless some arrangement were made they would grow to a very large amount in a few years. Concessions had previously been granted to the company, but all the councillors knew that they had been gained through the influence exerted by gentlemen who were members of the company and of the Council as well.

The Mayor said no harm could be done by the conference which the amendment proposed. If it were held the Council would have nob only the arguments of its own members to guide it, but also those of the other side. He referred to the altera-

tion of levels in Custom-street, and said that while, according to the argument the company had to put up with all such difficulties, but no honourable gentleman would enforce a contract which was rendered oppressive by an alteration of conditions. It was extremely desirable that an amicable arrangement with the company should be arrived at.

Mr. Hewson, in reply, said that as a J matter of fact the company had stopped the traffic in Custom-street and taken up the rails before the alteration of the levels had been made. He had never said that ho wished to force the company to lay the rails up College Hill or to complete the circuit. What he wanted was to place the Council in a fair and manly position. He considered this £1000 owing by the company as an asset belonging to the city of Auckland, and he questioned if the Council could give the amount) up. They had the power to remit rates in cases of extreme poverty, but no power to remit anything else.

The Mayor : We have a right to compound. Mr. Hkwson said this was not a case of compounding. He estimated that the city was paying interest on £13,000, which had been actually expended in assisting the company to carry out their agreement. That was a large amount to pay for a convenience, and a convenience to only a portion of the ratepayers. He had heard a lot of gabble and talk of not paying, but Paterson and Co.'s agreement with the Bank was to pay £2000 a-year for rent. That did not seem as if the lines were unprofitable. The Mayor said the rent mentioned was for the use of £4S,ooo's wont!) of property. Mr. At kin said the plant had cost £00,000.

The Mayor said the amount the Bank ad advanced was £16,000.

Mr. Hkwson, continuing, said it had been stated that if they asked for this money they would not get it; but there was no escape from the agreement or the Order-in-Council. The Order said that, "in default, the company shall pay " the penalties provided, and the Council could not say that they should not — least he would try to see that they (the Council) didn't. The longer this matter went on the more difficult it would bo to deal with ;

if there were difficulties in the way now, what would the position bo when the amount owing had increased to say £2000. The penalty was going on and he doubted the power of the Council to remit it—that was the reason he wanted the whole thing settled. If settled at once, the company would pay at once—there was no doubt about that. Their acknowledgement of the debt was in the corporation offices. They had asked the Council to remit the penalties, which was an admission that the Council had the power to collect them. In addition to this the Council would remember that he had asked the city solicitor if the payment could be enforced, and that gentleman had replied " Most decidedly." Anything the Council might do or had done in the way of altering levels, breaking up roads, and so forth, did not take away any of the company's responsibility for the penalties. He repeated that he considered the amount owing by the company an asset, and denied the Council's ability to remit it. The amendment—"That the bona. fide. owners be asked to meet the Legal Committee with a view to a final settlement " — was then put and carried by fifteen votes to two, the voting being as follows :—Ayes : The Mayor and Messrs. Farrell, Warren, Julian, Kidd, Holland, Atkin, Luks, Dignan, Swales, Wright, Courtcny, Laver, Paterson, and Carratt. Noes : Mr. Hewson and Dr. Walker.