KAIKORAI TRAMS

Otago Daily Times, Issue 23690, 23 December 1938, Page 6

KAIKORAI TRAMS

COMPANY’S OFFER REFUSED / ULTIMATUM BY CITY COUNCIL The endeavour of the Kaikorai Tramway Company to obtain from the City Council a better offer for it. plant than £SOOO, plus the value of the rope and stocks, on the expiration of the lease under which it now operates the hill service, has failed.

The company, in answer to the offer of £SOOO by the council suggested that the payment made to it should be £SOOO and £6OO per annum for five years or any less part of five years, but this suggestion was turned down. The company then asked that the purchase value be arrived at by independent valuation, with a maximum payment to the company of £ 12,000; that is to say that if the value happened to exceed that sum, the company would not accept more than £ 12,000, while on the other hand it would take such amount under that, as might be decided on by the arbitrators.

The following reply has now been received by the company:--“It is noted that the offer is definitely and finally refused. I am now desired to say that the proposals for submitting the matter to an independent valuation as proposed in your letter are entirely unacceptable to the council. As a matter of definite policy the council is not prepared to grant your company any further extension of its lease. In the above circumstances your company should therefore prepare to comply with the conditions of its deed of delegation, which calls for the removal of the tramway on the expiration of such deed, and the rehabilitation of the roadway occupied by the tramway.” . Asked last evening if he had comment to offer on the council’s reply, the managing director of the company (Mr Alex. Sligo) said that a summary of the whole correspondence was to be prepared, and this would later be released for publication.

The company’s lease will expire on May 22, 1939.