THE CORPORATION AND THE BATHS.

Oamaru Mail, Volume IV, Issue 1319, 29 October 1880, Page 2

THE CORPORATION AND THE BATHS.

There was a short but sharp discussion in the Borough Council last evening with reference to the concessions granted by the Council to the Baths Company. Tliis was brought in by Councillor M'Combe proposing a motion that the question should be re-opened for discussion. Councillor M'Combe, in moving the motion of which he. had given notice at the previous meeting, said he did so at the request of a large number of ratepayers, who thought, as they were heavily taxed, that they had not been treated justly. He did not think the Council had the power to grant to the Baths Company the concessions it had granted, and in the face of the . heavy taxation the Council should certainly not have acted as it had done.

The Mayor was proceeding to reply to Councillor M'Combe, when

Councillor Headland called attention to the fact that the motion had not been seconded, and that, in accordance with the by-law regulating debate, no discussion could take place until this had been done. Councillor Procter said that, in order to give the Mayor an opportunity of making an explanation, he would second the motion pro forma. Councillor M'Combe complained that Councillor Headland's action was singular, seeing that on many occasions motions had been discussed without being seoonded.

Councillor Headland said he had called attention to tha by-law in order to put a stop to tho discussion, whichhe considered a waste of time. The Council had unanimously agreed to make the concessions to the Baths Company, and it was not likely Councillors would stultify themselves by rescinding the motion. Therefore, no good object oould be obtained by reoDening the matter for discussion. The Mayor said that in order to, put Councillor M'Combe, and those ratepayers who believed with him, right in regard to this matter, he thought it necessary for him to make an explanation. It

was a matter of history that numerous attempts had been made in the town for the past fourteen years to provide public baths, but these had not been successful. It had been proposed on several occasions to erect baths by subscription, but these efforts had been failures. It was at last determined toforrn a Company to do the work, and this was done not so much wifch a view of making a profit as of providing the town with a benefit, The Company was formed, and it was decided to go on with the baths. Plans and specifications were prepared for the construction of self-sup-plying baths below the bank, thus avoiding the necessity for mechanical power for filling them. Tha matter was for a long time before the Council, and the Public Works Committee repeatedly visited the proposed site. The matter 'was referred to the Engineer, and that gentleman then reported that it would b,e dangerous to construct the baths on the scheme proposed. The Company was then compelled either- to abandon the project altogether or to erect the baths in the position they now occupied. They elected to adopt the latter alternative, and the baths were erected at a cost of LI6OO orLI7Q,O A The nominal capital of the Company was LI2OO, but of this s'(ra only XiSOQ or L9OO had been subscribed, in shares, and the Conip.axiy waa landed in debt. It was considered impossible to pay the balanoe out of revenue, aud an attempt was made to raise by mortgage a sufficient sum to pay off the Company's liabilities. As Chairman of the Board of Directors, he (the Mayor) went to Dunedin to negotiate the loan, but on submitting it to a solicitor the lease held by the Company was found to be merely a matter of faith with the Council, arid that it was o£ n<? earthly use as a matter of seourity. It was found that the baths were actually the property ,of the Corporation. A majority o£ the Directors, had actually decided to. recommend the shareholder's to, ha,nd the baths over entirely to the Co,unci! on the dition that their liabilities were paid off and that the baths were o.p.en to the public. The Council wo,s however, in a position take the baths over, and the was allowed to remain in abeyance until the present bathing season approached. A meeting of the shareholders was then called to decide what should be done. He wa s > however, called away to Wellington, and was unable to attend the meeting. When it had been suggested to him that the meeting should he adjourned until his return, he had said that this was unnecessary as the' shareholders knew his views upon the matter. At the meeting two n§w directors had been elected \n the room of two who retired, and it was decided to lease the batha for three years and apply the rent to paying off the Company's liabilities. Then followed the application to the Council, who granted a remission of the rates, undertook to supply gas for three years free of cost, and made other (Joncessions. The adoption of this course had . relieved the Council fnma the. necessity of taking over the baths, and gav.e the Company, a chance of making an effort to payoff outstanding liabilities, amounting to LQO.O or L7QO. According to. a.R orcUEiary calculation, it would a'' thia rate take several ye&ra to, the Company fro.ra de'ot. IjQpg before the Company had paid off its liabilities the Council would probably be in a position to take over the baths, and fflake the necessary improvements to render complete their benefits to the public. He had heard a good deal about the matter outside, and knew perfectly well who waa the instigator of the whole thing. He knew who had originated aud industriously circulated the report that a majority of the Councillors had used the ratepayers' money for their own benefit as shareholders in the Baths Company. This statement a base and malicious calumny, and many share-1 holders could oonfirm his statement that for many months they had looked forward to the Council being in a position to take oyer the baths for the benefit of the town,, and that they were prepared to, hand over all their -interest in, tha batha., Ths ftia,de the concession altogether for tife benefit of the jDqbliQ, and no,t for the benefit of tjie shareholders in the Company. He co.uld pat avoid , saying tha.t nqt the first time that ; €sduneillor M'Qombe had-brought up a matter withoiit making himself acquainted with the circumstances. So soon as the Council was in a position to take joyer the

baths, the shareholders would hand them over freely and willingly. Councillor Hardy would bear him out in saying that for months the shareholders had looked forward to this being done. Councillor Hardy and himself (the Mayor) held about one-seventh of the shares in the Company, and it was well known when they were allotted, and when he took up the shares, that he did so with a view of making the baths a success—not with the; desire of making a profit, but of conferring an advantage on the town. He' thought that those persons who had raised this storm in a teapot would have been better employed in attending to affairs that they- understood than in . buttonholeirig at the street-corners about the action of the Council. He felt this matter personally. If the ratepayers were dissatisfied with his action in the matter, they would soon have an opportunity of telling him to retire to his family. Ho was sure that when this matter was fully explained, every ratepayer who now felt aggrieved would take a different view of it, and cease to feel that an act of injustice has been done to them. He did not think it necessary to say more, but he did hope that for the future Councillor M'Combe, before moving in a matter, would make himself thoroughly acquainted with the circumstances of the case. Councillor M'Combe ; denied that he had been button-holed by any- single individual. His Worship had in no way enlightened him upon the matter. It would have be.en better had his Worship given information upon the matter instead of insinuating that he had been prompted to bring the matter forward. He held that the Company should have been held to the terms of their lease, and treated in the same manner as would have been an individual lessee, instead of being granted exceptional advantages. The Mayor : Councillor M'Combe had better make himself acquainted with the terms of the lease before speaking about it.

Mr. M'Combe said it would have been better if the Mayor had explained the terms of the lease, instead of speaking as he has done. He did not think the Council should have anything to do with taking over the baths until the lease expired. His Worship seemed to think that he (Councillor M'Combe) had been urged to bring his motion forward by one or two individuals, and apparently pointed to one in particular. He (Councillor M'Combe) believed that he knew the person alluded to, but he could say that that person had not spoken to him more than once on the subject. Councillor Hardy : Councillor M'Combe can scarcely pick the one out of a hundred. Councillor Headland said that it seemed to him that if the Council had been able to take the baths over, it would have been all right. He was opposed to multiplying the Council's responsibilities and making it a vast engine of patronage. Anything that could be done by private enterprise should be left to private persons, and they should encourage that class of enterprise. By giving a very slight concession to the i Company the Council had left the baths in private hands, and he thought the Council had acted wisely. Councillor Procter: It was infinitely better than taking them over; | Councillor Hardy :It was for the public I good. Councillor de Lautour, who entered the Chamber during the discussion, said that he had seconded the motion upon three grounds—first, that it would save the Corporation funds; second, because the baths were calculated to bestow great good upon the public ; and,third, because he wished to see the creditors of the Company paid. The motion was then put and lost, not even the mover voting for it.