ELECTRIC TEA M WAYS.

New Zealand Herald, Volume XXXIX, Issue 12002, 26 June 1902, Page 3

ELECTRIC TEA M WAYS.

THE CONTRACT TIME EXCEEDED. At the meeting of the City Council held last night, a letter dated Brighton, Sussex, April 15 last, was read from. Mr. W. Gentry Bingham, stating that the question had been raised under the deed of delegation by which he purchased from the City Council the rightto run electric trams in Auckland, as to whether he was wholly, or in part, the guardian of the interests of the corporation, or ouly of the concessionairesthe Auckland Electric Tram. Company. In case the corporation looked to him, as the concessionaires in London say it was entitled to do, he begged to say that there were features in connection with the financing and prospectus of the Auckland Electric Tram Company, as also with the works, which, in view of the terms on which the deed of delegation was granted by the corporation, did not appear to him to conform to what the corporation had a right to require.

The letter was referred to the Legal Committee with instructions to send a reply to Mr. Bingham. • The town clerk (Mr. H. W. Wilson) reporting on the electric tramways contract, stated that the two years within which the trams were to be running had expired, and that certain of the stipulated work had not been completed. By this default the company had made themselves liable to certain penalties provided in the deed of delegation, and in order to preserve the Council's rights he recommended that the company be served with a notice informing them of the penalties to which they had made them selves liable.

The Mayor (Mr. Alfred Kidd) moved that the necessary notice be served on the company. Mr. .T. XV. Hewson seconded.

Mr. A. Glover thought that if the electric trams were not ready the company should reduce the fares on the present trams. He thought the company were required by the contract to institute reduced lV.res in .June.

The Mayor explained that the reduced fares referred to electric trams only. Mr. Glover: That is how it is got out of.

Mr. T. T. Masefield thought there was a good deal iu Mr. Glovers contention. Mr. .1. H. Haniian considered that theCouncil should take a firm stand when it had entered into an agreement and that agreement was broken. The Mayor's motion was adopted.