CITY COUNCIL.

Otago Daily Times, Issue 3244, 29 June 1872, Page 2

CITY COUNCIL.

A special meeting of the City Council was held yesterday, to consider reports from the Water Works and Lighting Committees^ The Mayor, Councillors Livingston, Neale, Rossbotham, Mercer, Ramsay, Barnes, and. Thoneman; were present. AVATER WORKS COMMITTEE'S REPORT. The following is the report of the abovementioned Committee :— " Your Committee has the honour to report as to recent correspondence between^ the Directors of the Dunedin Water Works Company and the Council in the matter of the negotiations for the purchase, by the City Corporation, of the Company's works: "The offer agreed to by the Council, oa the 24th April last, having been duly anhmitted to the Company, was replied to by letter from the Company's Secretary, under • date 29th April, 1572, hereto attached. ..-; "Your Committee further wrote to the Company, iiuder dates Oth June (6034) and... 18th June (GG'42), and has, hiroply, received, a communication from the Company, under date 25fch June ; the whole correspondence *. being herewith submitted to the Council " Your Committee recommends that the offer from the Company f or the sale of the w&rfts, as pev letter of _the 25th instant, be accepted by the Council, subject to the conditions that the Council will assume only any legal responsihility which the Companymay be under as regards Colonel Kitchener's claim.

"In' view of the completion of negotiations for the sale of the works to the Corporation, the City Solicitors are drafting a Bill foo submission to fche Assembly at the approaching session, to confer necessary powers ont the Corporation of Dunediu for the proper conduct of the works, and for rating purposes."

Mr Nealk called attention to a statemen.fr in an editorial in the Daily Times, to the effect thafc the Council had not made any inquiries as to the efficiency of the works. It Avas explained fchafc the reporfc of the Committee on thafc matter had not been before fche Council.

Mr Livingston moved the adoption of the report, -ntimating that he did so because he believed that if the works were purchased by the Corporation, the citizens would ulti*mately derive great benefits. Afc fche same time the Council should Jcfc fche public understand clearly that, even if tho* Avorks were purchased by tlie Corporation, the circumstances Avere such that, for some time, afc least, no reduction could be made in the rate. now charged for wat«r supply.

Mr Baknks also spoke in* favour of the adoption of the report. He mentioned some of the advantages Avhich the citizens .woidd. deriA'e from the purchase of the works by tho Corporation—namely, the entire control of the streets Avhen opened up in connection. Avith the works or otherwise, and the thorough purification of the water—the experience of the last few days justifying the conclusion that it Avas necessary something, should be done in thafc respect.

Mr llossiiOTUAM thought that a public, meet-lug of the citizens should be called ta discuss the question before the Council decided definitely. Ho also hoped that Councillors having a pecuniary interest in the matter would decline fco vote. He referred to the Acinous offers which, he said, hact been made by the Corporation from time. to time, taking exception to the lastr a3 being too liberal, aad quoted the alleged statement of one Councillor, whot had said thafc, speaking as a shareholder, lie never expected the Company Avould get such a price. Yet a still higher offer liad been made. Tho works h<id cost £70,000 or- <■ upAvards, and he st i wd, on good authority, thafc similar Averts could bo erected for £-10,000. Whj.theii should the citizens be pledged, o>- their interests trifled with m this A\'-n'- He moved as an amendment tha* no further action be taken in the mafc*er.

The amendment Avas nofc' seconded, aud it consequently lapsed. Mr H-amsay said that the main question Avhich the Council" had to consider was whether it Avould bo ultimately to the advantage of the citizens for the Corporation to pay the Trice mentioned. The WaterWorks Committee had considered the matter

carefully, and they had reason to believe 'that the undertaking would be a souoce of profit. Councillor Rossbotham had said that similar worjf'lI could be erected for £40,000, but he shoidd consider Avhat powers the Company possessed. During the last session of the General Assembly an attempt Avas made to abolish some of those powers, but they kneAV the result, the proposition emanating from the city being almost unanimously • rejected. Referring to the state- -■' ments which had been made concerning the efficiency of the Avorks, it should be stated that the Provincial Engineer, after inspection, had laid a report before the Committee which spoke verj' favourably of the undertaking. In speaking in support of the report, he did not think it Avas necessary to say anything further than that he supported the motion for its adoption, because he honestly believed that in purchasing the . Works a great benefit Avould be conferred upon the citizens. Mr Mercer, referring to some remarks which had been made by Councillor Rossbotham, and being a shareholder in the Company, explained that he had not taken an active part in the negotiations for the disposal of the Water Works. As he had retaarked, they Avere giving too much, though Jhe thotight ifc ay.is Avrong for Councillor Ross■H. botham to imagine that he had come amongst men^Avho would do anything that was not strictly honourable. The Council consisted of upright and honorable men. He also believed that the Committee had done all they •Could to further the interests of tho citizens. The Mayor agreed with Councillor Livingston, that in dealing Avith this matter they should look beyond the present time. The Company had a monopoly of a stringent and -strong character, Avhich the Council rould

nofc upset Avithout considerable agitation, and A „ then only -by giving them a fair compensa- * >. for the property they possessed, Referring to Councillor Rossbotharn's animadversions, he pointed out that being a new member, that gentleman could not be acf^uainttxl with the whole of the details upon ' which the report was based, and therefore it would perhaps have been better had he given the matter a little more consideration before he made such remarks in opposing the motion". ; He believed that the Councillors who the report had acted solely and '•simply—some of them perhaps against' their ■own inclinations as to the price which ought to be given—in the belief that great benefits would be enjoyed by the citizens m the iuture by the Corporation purchasing the works. He did not think the works could be made to pay the fabulous dividends spoken -of by some of the shareholders. The undertaking might pay 10 or 12 per cent. Avithin a feAV years, and he believed the Council would act wisely by purchasing the works. He ! alluded to the benefits which the citizens would derive by having the use of water,'' supplied by the Corporation, for fountains, baths, and other necessary public works, ■which, under other circumstances, Avould cost the citizens avast amount of money. He cordially supportel the motion. Mr Neale fully endorsed the action AA'hich *# /, had been taken in this matter. He denied that aiiy pressure had been brought to bear . on any member of the Council regarding it. Relative to the benefits Avhich the citizens , - would enjoy by the works being purchased * by the Corporation, much, he Said, that he intended to say had already been -**■ -aaid by other Councillors. He believed that the purchase of the works would prove one of the greatest blessings to posterity that the Council had had the opportunity of conferring. In conclusion, he would remark that it was due to ex-Coun-•cillor Cargill to say that it was only Avhen information. Avas required that that gentleman, being'then «a shareholder in the Company, took parfc in the matter. The motion to adopt the report was carried. Messrs Thoneman and Mercer, being .-shareholders in the Company, did not vote, ■although, as stated by the Mayor, they Avere in favour of the report. Mr Livingston asked Avhether it would be jnecessary to get a Bill passed by the General .Assembly to enable the majority to coerce ■■; the minority, in regard.to'the sale of the •works? It was explained that the matter Avould be '-fully considered. ... . THE GAS QUESTION. The following is the report of the Lighting "Your Committee has the honour to re;port that since last meeting of Council "further correspondence, which your Com:anittee begs herewith.to refer to the Council, 'has taken place between Mr Hankey's attorney, Mr Cook (Mr Hankey's solicitor), and "the Corporation in the matter of the unsigned lighting and gas supply contract. ' "Your Committee recommends that the City Solicitors be instructed to take such steps as they may deem advisable in order ibo compel Mr Hankey's attorney to execute :a contract in conformity with his Avritten •engagement. *' Your Committee further recommends that, pending a ratification of the contract, mo further payments be made by the Corporation in respect of gas supplied to the street Hamps, and that any tacit permission hitherto ; allowed the proprietor of the Dunedin Gas Wouks to open up the streets of the city in * order to lay_ or relay gas pipes, be with- ' drawn, pending a satisfactory arrangement Mr Hankey." The Mayor suggested that all the correspondence which had taken place between Mr Larnach and the Corporation regarding the gas question should be read. He made this suggestion because an advertisement , Vf liad appeared in tho newspapers stating that /m consequence of a misunderstanding Mr 7'LaTnach had -felt it his duty to inform the ""' -citizens that he had no intention of departing from the promise to the effect that for three years from the lst March last, the price cf gas to all consumers paying their Tates before the 15th of each month, should • not exceed 12s 6d per 1000 cubic feet. That advertisement was calculated to mislead the public to some extent, because it would appear that the misunderstanding was the result of some action of the Council, and _^ ; therefore it behoved the Council to let fche - public know that the misunderstanding was. -solely the result of Mr Larnach having declined to ratify the agreement which he 3nade Avith the Corporation. If the correspondence was published, it would show how the case stood, and the verdict Avould be one * *of acquittal, so far as the Council was concerned.

The correspondence, Avhich is of a very voluminous nature, was then read, but its i extreme length, and want of space, preclude us from publishing it. Mr Bakness expressed" the opinion that Mr Larnach was simply-playing with the Counci l; :if he (Mr Barnes) had his own free Avill he would bother with that gentleman no longer he would tell him at once that if he refused to sign the contract, the Council would call for tenders aud proceed to erect neAv works. The matter ought to have been definitely -settled long ago, and Councillors should not alloAV themselves to be played with any .'longer. Mr Mercer Avas inclined to the opinion that the delay which had been caused in this matter Avas attributable to some quibble be"tween the solicitors of the respective parties, because ho could not think that any upright man would refuse to do that which he had promised to do, and to which promise his signature was attached. He trusted that the Corporation solicitors would be the ■ met,^ of inducing Mr Larnach to sign the contract. \ 6 Mr LiviNOSTO^a no donl)t that M , JUarnach „ as since re ihv Qgar d to his promise -to supply pr« a te consiufiC at ioMra ««,. 1000 cubic feet, l mt as the^aL^! £Lf \ public body, it was O^sirable thatrEW should have something more ti^n a promiaeSw Mr Larnach promised -to contract for the lighfrL of the City lamps- fie also promised to con-* tract to supply private consumers at the rate mentioned. It he did not contract to sup.ply the citizens at that rate, he did not contract to supply thejpblic lamps. The idea ; put forth on hia behalf appeared to he this : a promise to supply in one case, and a promise to contract in the other; but he (Mr held that if there was to be a

contract in one case, there Avas also to be a contract in the other. Any arrangement by AA'hich the question of the supply of gas for the public lamps and to private consumers could be so linked together that the one could not fall Avithout the other also fell, Avould be satisfactory.

Mr Ramsay did not Avish to propose an amendment, but he thought that before any further action Avas taken, a deputation from the Lighting Committee, consisting of the Mayor, Mr Thoneman, and Mr Livingston, should Avait upon Mr Larnach, Avith the vieAV to a settlement of the dispute between the Corporation and that gentleman. The misunderstanding appeared to be simply the result of a mistake as to Avhat had taken place between Mr Larnach and the Lighting Committee. The Committee asserted that Mr Larnach agreed to sign a contract Avith the Corporation to supply private consumers at a certain rate;-Mr Larnach, on the other hand, admitted that he agreed to supply private consumers at that rate, but denied that he agreed to sign a contract Avith the Corporation to that effect. Now, if a deputation Availed upon Mr Larnach and called his attention to the conversation that took place Avhen the matter was discussed by himself and the Committee, it might be made to appear that he did actually make the promise-Avhich' it Avas now alleged he made. He (Mr Eamsay) Avas convinced that Mr Larnach did verbally agree to contract with the Corporation to supply the citizens at 12s Gd. The Council should recollect that Mr Larnach Avas acting under the advice of Mr Hankey's solicitor, and that a prudent man could scarcely be expected nofc to treat such adAdce Avith respect. Undpr ali the circumstances, he thought it was desirable to appoint a deputation to Avait upon Mr Larnach. At any rate, the adoption of such a course would very much strengthen tho Council's case Avith the citizens in the future, if the matter should remain unsettled.

Mr Thoneman declined to adopt the suggestion of Mr Ramsay. He had thought the question Avas definitely settled months ago, as it ought to have been. The Mayor said he Avould not act as a member of such a deputation. He Avould not wait upon Mr Larnach again ; fchafc gentleman had trifled Avifch the Council too long. Unless it Avas desired to make the Council a shuttlecock to be knocked about by Mr Larnach's battledore, the proposal to appoint a deputation should not be adopted. Mr Ro.ssp.otham said that in his opinion the Council ought to be guided by the opinion of their solicitors in the matter.

: Mr Barnes could not see how anybody could say it was a mistake, Avhen Mr Larnach, on being asked by the Committee whether he _ would bind himself, to supply the citizens Avith gas for three years, at 12s 6d, said he wanted to know first whether they were determined to build ne\v works, whereupon seA'eral of the members of the Committee replied in the affirmative, and Mr Larnach then said that, as that was the case, he should be compelled to do what they asked. He further said that if an agreement were drawn up, he Avould sign it. Mr Larnach alleged, as one of the grounds Avhy he must do so, the fact thafc Mr Hutchison had got so many signatures of persons willing to support a new undertaking. Therefore, he (Mr Barnes) could not see how any Councillor could come there and defend Mr Larnach. A memorandum of agreement was drawii up, and Mr Larnach signed it ; and if one portion of the agreement Ava3 incorrect, the Avhole Avas incorrect. Mr Ramsay denied that he was defending Mr Larnach. He had simply said that Mr Larnach understood one thing and the C mmittee another, and that Mr Larnach had acted <5n the advice of his solicitors. That Avas the substance of his (Mr Ramsay's) remarks.

The Mayor endorsed almost every word that had been uttered by Mr Livingston. He trusted that the citizens would not be foolish enough to sign a three years' contract, because the Council would protect them to such an extent that they Avould not haA'e to pay more.

Mr Neale said the Committee had done all in their poAver to settle the matter amicably, and he regretted that Mr Larnach had not seen fit to carry out the agreement. The report Avas adopted unanimously, and The Council adjourned.