ONEHUNGA TRAMWAY DEADLOCK.

New Zealand Herald, Volume XL, Issue 12281, 27 May 1903, Page 6

ONEHUNGA TRAMWAY DEADLOCK.

A NEW DEVELOPMENT.

At the meeting of the Onehunga Borough Council last night, the deadlock which exists between that body and the Auckland Tramways Company, came up for discussion. It was introduced by a letter from Messrs. Russell and Campbell, borough solicitors, who wrote as follows :—" Some considerable time ago Mr. Coleman, solicitor for the Auckland Electric Tramways Company, submitted to us for perusal on behalf of your Council, a copy of a deed of trust for securing the payment of debenture stock to be issued by the company. Under the provisions of the Order-in-Council and the deed of delegation, the deed of trust requires your Council's consent. Pending the disputes that existed between your Council and the company we refrained 'from perusing the deed or submitting a report to the Council thereon. We have now received a letter from Mr. Hansen, the attorney for the company, asking us to inform him at our earliest convenience whether the deed has been accepted by your Council. He also requests us, if it has not yet been approved of, to look into the matter immediately and let him have our decision at our earliest possible convenience. In these circumstances we beg to place the matter before you for your consideration, and we would ask you to inform us whether your Council, having regard to the existing difficulties with the Tramways Company, desires us to proceed with the perusal of the deed, and to forward it to the Council with our report thereon." The Mayor said the Tramways Company wanted to raise a loan of about £300,000, but before they could do this they must obtain the sanction of the local bodies in whose districts the tramways were laid. He believed that the Auckland City Council had given its consent, but that none of the other districts had. • The Onehunga Council had not signed the deed referred to, as requested by Mr. Hansen, and so far as he, the Mayor, was concerned, they never would until* the present deadlock had been removed. ("Hear, hear.")

Mr. McLeod said he supposed the Council would agree to the Tramways Company's proposal and sign the deed if the latter complied with the Council's request in regard to the poles. Several Members: " Of course we would." . Tl *e Mayor moved : " That the town clerk inform the borough solicitors that this Council will defer the consideration of the question of grafting its approval to the deed of trust for* securing the payment of debenture® proposed to be issued by the Auckland Electric Tramways Company, Limited, until the adjustment of the present difficulties with the Council."

Mr. Hill moved as an amendment, "That the matter be deferred for a week." The amendment was lost and the original motion was carried.

Mr. Pi owe moved two resolutions deal in with the Tramways Company. The first was in regard to the company's plant in Onehunga, and was as follows : "That the borough valuer be instructed to value all tramway *>lant ratable within the Borough of Onehunga, and report to the Council at its next meeting, and that permission be given to the valuer to consult with the borough solicitors if necessary." The second resolution was as under: "That a committee, consisting of the Mayor, and Messrs. McLeod, Rishworth, and'che mover, be appointed to confer with the borough solicitors for the purpose of drafting a letter, setting forth the difficulties existing between the Onehunga Borough Council and the Tramways Company, and to forward the same to the Home office of the company." Both resolutions were unanimously adopted. Mr. Howe said lie had another motion to move on this question, but he would like the Council to go into committee first, and lie moved accordingly. The motion was agreed to, and the Council went into committee.