NORTH-EAST VALLEY TEAMWAY SERVICE.

Otago Daily Times, Issue 11201, 25 August 1898, Page 6

NORTH-EAST VALLEY TEAMWAY SERVICE.

A public meeting, convened by Mr J. Evana, Mayor of North-East Valley,, was held at'the ; Public Hall in 'the Valley last night, for the ; purpose of hearing his Worship with refer-, ence to the council's transactions .relating, to the. tramway service. ~ There .was a large atteiidance'. upo li the . occasion; ■ the hall being crowded. '■ ''. '( ' - [ The Mayor-said it 'gave him great pleasure to meet such a large audience, and to find that the meeting which he had cailed to. fulfil his promise was so well ' attended. He had promised them that nothing should be .signed :or sealed in connection with' the. trams until |he had' called a, public meeting. The final ' arrangements with the. tram way directors were as far off that day as they, were the; day when he first knew that the concession deed had expired;" It was; not'his intention ,to ask them'to vote that night; but to listen to him in a calm and. dispassionate way, and to take no 'action until after the meeting, > when the excitement had calmed down. . Tho borough as a whole was to be considered, arid in considering the borough they -had. to look to the proper conveyance of the residents to the city. He very much doubted the wisdom of the meeting held last Saturday; but.he would deal with that .later on. .He proposed to, divide h's .remarks under three heads—first, the meeting held last Saturday; secondly, the correspondence between the directors- of the Tramway Company -arid the council's solicitors, etc.; and, thirdly, the action of his councillors. He asked them to listen to him and give him a fair hearing. They had acted as men, and honest and xipright men, and were not afraid,. of anything that anybody coiild say about them.' At..this stage the speaker was interrupted by someone in the audience asking, "'Which side are you'arbitrator for—the council or the Trainwity Company?" 'This remark was followed by an . uproar, and . . • The Mayor asked the. gentleman who had interrupted him to resume his seat. He then proceeded to say that lie was sorry to have to state that there had been a great number of misstatemonts made at the meeting held last . Saturday. He would first deal with Mr Moritzson. He did not blame that gentleman for trying to get the best tramway service, he could. Mr Moritzson had made reference ■to the jfact-that the mayor lived at Opoho, but before the evening was^, over he would show that he had acted unselfishly and given a great amount of time and money in the best interests of the ratepayers. Mr Moritzson had said the meeting had been; called by. himself. ±fe did not think that a,ny private. individual had a right to go surreptitiously ffehind the council's back' to jthe directors with whom .the council were negotiating. .When .he (the. iriayor) read of. the meeting in the paper' he began to wonder how many persons the council's solicitors were acting for. He had asked them about the matter, and . they ' wrote as follows : — " Re Tramway Concessions. —We write you to point' oiit that a clause which appears in Mr Moritzson's ' speech at the meeting of ratepayers to the effect that 'Mr Mondy and Mr Eunson thought there would be no difficulty in getting the concessions asked for lby the petitioners'—i.e., that Normanby should bo the terminus for all cars—is not correct. Mr Payne did not see Mr Eunson with reference to the petitioners' request, and Mr Mondy (after interviewing Mr .Eunson) informed Mr Payne that he did not think there was any chance* of the petitioners' requests being aci ceded to." . • ■ . jHe would also read the following letter from ! the. council's solicitors:—. ... ' "Re tramway.—The "report in the Otago Daily Times of the meeting held on Saturday gives an erroneous impression, as to whfc,t has taken place in this matter. As you are aware, we advised you some time ago against holding any public meeting pending the negotiation's with the Tramway Company, and noticing an advertisement calling a meeting of ratepayers at which Mr S. S. Myers was to preside, we on Friday morning telephoned to him pointing out how undesirable it "was to discuss at a public meeting a subject which was under negotiation between the council and the Tramway Company. Mr Myers seemed to agree with y.s, and stated that he would' communicate with Mr Moritzson. Shortly afterwards Mr Moritzson called on u's,u,nd explained that ha had called in consequence ot our, message to Mr Myer3, and that the meeting was intended to strengthen the hands of the council, of whose action those calling the meeting approved,, except that they thought Nbrmanby should be-the terminus for every car, and that if this-were .not agreed to the ratepayers in that neighbourhood would rather be without the service. We pointed out the objections to discussing the question at a public meeting, and that he could easily bring the matter before the directors of the Tramway Company by way of a deputation. Mr Moritzson saw our Mr Payne afterwards, and stated that the directors of the Tramway Company would not pledge themselves as to making Norrnanby, the terminus, and he produced a resolution in draft which he said he would propose. Mr Payne again pointed out that the meeting might drift into all sorts of questions, and asked Mr Moritzson to withdraw the id-vei-tisement calling the meeting, but he refused to do'so, and said that his resolution and nothing else would be considered. We need hardly point out that-the statement made by Mr Moritzson to tho meeting that "Mr Payne wrote out the resolution to submit to the meeting" is absolutely incorrect.—jJownik Stewart and ■Pa'xne: There was one other statement he took exception to, and that was with regard to Mr Moritzson's statement concerning the solicitors having said that the clause in the lease with reference to the council's taking over the plant was ultra vires. He (the Mayor) had asked Mr Payne if that was the case, and he had denied it. There had been a lot made of this matter being ultra vires, but oven if it were the council might have to fight out tho question in a court of law yet. 'Even if the council's solicitors had said it was vtltra vires,- they ■ also wanted the Tram Company's solicitors to say it was ultra vires, and until then they were not in a proper position. With regard to the action of Mr Green, he said that the clerk and mayor had suppressed correspondence and caused delayby not acquainting the council with their position. Now he was sure Mr Green had already

j read the correspondence, or had seen it in the > minutes. He (the Mayor) would put the mat- , ter as clearly as he could before them. On , July i, 1898, the town, clerk of the North-east ' Valley received from Messrs Stout, Mondy, and ' Sim a letter notifying the counciil that the ex- : tended terms of the deed of concession would ' expire on the 19th inst., and that Mr Robert > Ja.ay would act as the company's valuator for 5 the purpose of making a valuation of the land, s buildings, plant, etc., in the terms of the deed, ) and asking the counci to furnish them with the I name of the valuator who would act on behalf > of the borough.- Mr Arnold waited oh him (the Mayor) with regard to this matter, but he (the \ (Mayor) did not know that the deed had ex- • pired. Mr Arnold asked him to call a special [ meeting of the council, but he said there was ' no need for that. They did not know what ' position to take in the matter. -Ho (the 1 Mayor) said he was quite prepared to answer. 9 the letter and see what they Had to go upon. I He wrote .to the to.wn clerk .as follows: — s " Dear Sir,—ln Rnswer to your letter of the , sth inst. re tramway concessions, you will please . reply that we are prepared, in order to save | expense of valuation, to consider any applica- , tion made for renewal of concession' ' { on the same terms. as at present. Having read the letter, the Mayor asked tbe town clerk to read the reply, which- he did accordingly.- His Worship, proceeded to say that that was the correspondence which the -town clerk and he himself had'been, accused of sup--pressing. Supposing he had called a. special y meeting of the council, could they have done- > u-ore thart.they could- do. • Then Mr Green re- ' ferred to their " cringing,'teriified, and secret'" ' manner of conducting the negotiations. If Mr t Green spoke the truth he would say that he , (the Mayor) was not afraid of him or any other I man in the council. He was prepared to uphold his dignity, and so long as he could do that honestly and fearlessly he did' hot care for anybbdy. 'Then Mr Grteen had said that there was " a ■ villainous .statement by the mayor that. Schlotel had suppressed correspondence in connection with the first .lease." But it had never appeared before .the council, and how could he s suppress it ? .There was another statement that , Mr. Green made. He:said, speaking of the metal clause, in .regard .to;,the. concession to the Tramway Company,.that the metal would cost ■ £150 a'year. He was challenged on that ques-' • tionj and he said."That is the inspector's esti- ;' mate, and I can prove it." The Mayor then read' ah' extract' from, the "inspector's report, . dated August 6, 189S, in which the inspector j estimated the cost at.£sl a year. That.was the L report; his Worship- proceeded to say,- upon 1 which Mr- Green based-' his .statement. Withregard to the deed of concession,.they found out ; that it .was dated January 30,. 1897. There was i supposed- to be a ,21 years' lease granted, but how it was made out to have, run for 21 years . .was a mystery. This was; however, 'solved [ in this way: that the deed was pre-dated two L years back, and actually 'five months before . the Borough of North-Easfc Valley was in ; existence.—(Applause.) 'There -were some ugly rumours about. It was said that-they as .a council- -were aware of this whole matter three '. /months ago. He was ■■prepared , to. swallow a i lot, but he assured them.ithat this, statement r astounded him. ~ He .was ••■qertain. he.'never heard a single word about.this.,.matter till.the " town, clerk. presented him .with a'letter .from the Tramway Company. In support of.- his1 | statement the Mayor ; read'some* correspondence including a letter from Mr'-Euhson, in which that gentleman said that- the first comnnmica--1 tion that the council had re the expiry 'of tram--1 way concession wds from the company's solici-' ■ "tors "on the 14th-otily. He would now pro- [ ceed to refer, to the negotiations, with, the Tram- ■ wity Company. On the.llth July the.council. :' received a letter from Messrs Stout, Mondy, J and Sim.to the effect that the service in .the Valley had been. run; at a very heavy loss during the whole, of, the "term o£ the concession, 1 aha that the company were how compelled to' call upon the council to purchase th^ lines, eta s in terms of the concession deed. 1 At the request of the mayor the town clerk ' rea-i a letter in'reply, stating-that' a deputation of the council would wait; upon the directors : with regard to this matter.: ■.:.. ■ ' The Mayor' said ■ that' Mr Green did not put in an appearance when the deputation waited ' -upon the director?'-. of'■ the; company. Crs Scoones, Bailey, .'the. town j clerk, and himself ' wenc to the •'JL'ramway Comvjany.. The deputation asked the dir.ecto.rs .ot.th.e company what I wa3 the meaning of the; letter they had j >sent to the council. .They ..told them distinctly ' that the lines had riot paid. . The deputation ■ then asked if the company wanted the council j to take the lines over. ■ Mi;: Fenwick said that i was the position. The. company were losing £600 a year, and were riot anxious to carry the 1 tramways on further^ The deputation laid the 1 matter before .the'council.on the 18th irist., on i which date a letter was also received from the . directors. The letter; was >s follows : — "The directors of the,^Tramway Company having,given further consideration .to the above. 1 matter since ,t}ie .deputation.irom. your .cbuncil ' waited, on them this inorrijrig ,'haVe^ instructed. : us to state'.that''pending the valu'atibn being , made in terms of .'.the concession deed' the 'cdm- '■ pany will, if desired' by thh council; butwith^' | out prejudice to its'" rights;'maintain »'modi- [ fied timo table between thte<eity and the com- ! pany^s stables at Helving Grove. We\ are ' further instructed to ■,state;/.that the company^ 1 stipulate in that, .event j.that^,none. ,of the ~-pre-* vious conditions of the' concession deed, are to '. be deemed to apply to.tho'^company while ouch ,modified time table,"is b'eirig' maintained." ' This reply was laid before the cou'ndil, the matter' was- discussed, and' the 'town clerk" was I' instructed to. co'mrhuriicat&'with !Messrs'.'Stout, ■ Mondy; ari3;"Sim.- •■jfrie- clerk wro'te'to the ef- ! feet that the council'requested the-company to continue the service as heretofore for the space [ of 10 days, meanwhile the; question of appointing a suitable person as valuator was to receive the council's' careful, consideration. A reply 1 was received to that on the 19th; in which it was stated that the comp.any. could not comply ' with' the''council's request,, arid that Hmless tho council accepted the company's suggestion to maintain, a modified time table, the service ■ would be stopped at once. ; The Mayor'went on to say that the borough solicitor waited on him at half-past 3 that afternoon. ,and wanted him to call a meeting. He said it was impossible. ,The solicitor said if h<3 did not the "cars would'stop running, and he added, "'What' am I to 'dp?" He (the Mayor) replied that'he would arrange to caU a meeting of the council that evening. He did so. The matter was. discussed, and it was agreed that -they, should allow the.company to.maintain a modified.' time table. ;?or one ■ month. As soon as the council "agreed to ■ a modified time table for one month, -they commlted their solicitors with regard to; their position in the matter.' On the 22nd July the council received a letter from their solicitors, the effect of whioh was that," Messrs.'> Stewart and Payne . had advised that the original deed of arrangement should not be'signed unless .certain alterations were made,_ and that they could not take any responsibility' in connection''with it unless their opinion' was acted on iri this respect.' Messrs Stewart and Payne then went on to give an opinion on the. questions submitted. Until they were able to. inspect the whole of the mimites of the meetings of ratepayers held before the formation of the tramway and the resolutions passed, at such; meetings, and also the. cr.der-in;council. authorising- its-.formation, they, could not definitely aa vise, as to the liability of , the council under the. deed. However, from the documents, .they thought ,the oriaihal deed ot arrangement was ultra vires, and -Hie council could not at that time enter into ah agreement' to pay the valuation', 'moneys 14 or 21 years ;*f-t9i-ward3. . Even if 'the -deed were binding on i the council at the .present time, doubts would arise as to how the Tramway Company could get payment of the. valuation. They advised that any person whose interest would be likeiy to bias his mind op that,he would not be in_a position to arrive at a judicial opinion, wouul be disqualified from acting as arbitrator. 1" the other side did. not object- to a man after he wa3 appointed, but went on with the valuation, they could not afterwards upset it on the ground of'bias. The1 valuators would be re- I quired to decide its to what stock, plant, etc., I would be included^ in the valuation. The Mayor then ' proceeded to read further correspondence, including a letter from the , council, dated Ist August, as follows:-— "I have the honour ,to advise, you > thai my council has respited'ito'offer^ your clients, ;he Dunedin City and Suburban' Tramway Co.. a ] further.lease for a term of seven years on the iollowing conditions, that is to say:— ; "1. The council will concede it the so^ right . to run a tramway service in the borough. [ "2. Council will consent to a peppercorn ren- ; • tal of one shilling per annum. i "3. Council will/allow the aompany a free hand . as to time table) but ,at- least 15 cars par diem j must run to and from1 Kelvin Grove. i "4. Council will concede to the company a free ! ha,nd as to what fares it shall charge. "5. Council will supply the company, free of i charge, with sufficient road'metal for it tc maintain the tram line between the trem rails and for 2ft on. each side thereof. "6. Council will-concede the stoppage of ths ! -\rormanby-Hawthorn length, making Normanby ths terminus,.stipulating that at.least : iix cars be run to and from tnat terminus j or \ diem. . ■ . ■ "I have also to inform you wiat in the event i of your clients not accepting these terms,' Mr ; John Wright, of lloslyn, will act as 'council's valuator,withoui pr.e.iudce, or'in any way" admiting the validity of the'deed of concession dated ; January 20, 1879, under the provisions of whicn j he is appointed. , | "Kindly favour me. with your reply by the ; 18th inst." . ;.:'■' i Mr J. Rhodes moved—"That we, the ratepayers of North-eaßt Valley, affirm our confidence in the maycr, councillors, and town clerk, and empower them to conclude the best, possible arrangements with ;tho Tramway Company. . — (Airclause.) '■■■'•■' Mr C. Bradley seconded the motion. After some discussion, Mr Moritzson moved i and Mr Bland SECpnded the iollowing amendment-: " That this pJeetjing of North-East Valley hoi seh&lders approve of the concessions made by the Worth-East Valley Borough Council to the Dunedin City and Suburban Tramway Ccmpany, but.do not approve of Kelvin Grove being made the terminus of the tram service; and instead insists upon Wormanby being the terminus of any time table issued for the Valley service during the term in which concessions are in force, as a fair quid pro quo. That a minimum of 18 cars be insisted upon, and arranged by the council and the Tramway Company to suit the wants of the district; failing this demand being granted, no concessions whatever be made to the company. Further that tho new lease be upon the same basis as to right of renewal and arbitration, and fixing the upset rent as that entered into between the City Corporation and Dunedin Tramway Company, and that this meeting respectfully ask the counci! not to close or enter into any agreement with the Tram Company until the company agrees aud gives effect in the deed to be prepared to all the demands made herein."

Mr S. G. Smith said that the Tramway Cornpay belonged to the^Bank of New Zealand. He said that the company owed the banK £36,000 on a promissory note, and they also owed ;£COOO on an overdraft. If the tramways did not pay the company had been asked often enough to sell. They had been asked tol put a price on the trams, and they would not do it. He,was prepared to buy the company out tomorrow. &. friend in Melbourne had offered to give him the money at i per cent, to buy the lines. Mr Green having spoken at some length, The amendment was put and carried by an' overwhelming majority.