HARBOUR FERRIES.

Dominion, Volume 6, Issue 1787, 27 June 1913, Page 7

HARBOUR FERRIES.

BOROUGH TO TAKE OVER TWO STEAMERS. EASTBOURNE ACTS. AN AGREEMENT EXECUTED. Considerable surprise will bo expressed at tho news that an agreement has been drawn up and executod as between the Wellington Steam Ferry Company and the Eastbourne Borough Council for the purchase by the borough of tho com- | pony's ferry steamers Duchess and Co-1 bar in return for a sum of either ,£13,250 i.i debentures, or .£12,587 in cash, subject to the approval of the ratepayers. It will be remembered that last year tho old council carried on negotiations with the Steam Ferry Company for eomo timo with respect to tho -purchase of tlieso boats, and that after getting very closo to a settlement negotiations wero broken off. As soon as that occurred tho council set to work to get all the inforinar tion possible with regard to the cost of harbour steamers and their running and by the time its'term had expired had accumulated a good deal of really valuable information. When the new council took office the Mayor (Mr. W. Organ) was given authority to negotiate personally in tho matter of tho ferry service and as tho result of those negotiations the company made the above offer to tho council, which was submitted to councillors on Wednesday, and the agreement was signed and executed by both jparties yesterday. Mr. Organ states that in tho conduot of the negotiations much valuable help was afforded him by Councillors T. W, Pilcher, S. Rose, and Button.

The proposal to raise a loan for t-lic money required for tho purohaso of tho two boats will bo submitted to a noil of ratepayers to be held about five weeks hence. If it is carried, as it is hoped by tho Mayor and council, the servico will be the first municipally-owned ferry in New Zealand, and, as far as Mr, Organ is aware, in Australasia, and is ft stop forward in tho progressive policy of tho council directly in tho interests of tho borough. Sound and Serviceable. "These two steamers," said Mr. Organ, "havo been thoroughly inspected on bohalf of the council by Mr. Archibald Walker, ship surveyor, and surveyor fotr Lloyds, and Mr. John Pafcerson, shipwright, .Tlieiv reports show both boats to no in a round and serviceable condition. Tho Cobar is (says tho report) as good as the day she was built. The hull of the Duchess is good for another 20 years, and' her machinery and boilci\wero in a very fair condition, but hoi- owners | must be prepared to replace her boiler within 5 or 0 years at an estimated cost of ,£2000." "The present value of the two steamers, according to tlio experts, very considerably exceeds tho prioe to lie paid by tho council. For tho purposes of arriving nt an agroement, the revenue and expenditure figures were obtained of tho running of tho boats to Day's Bay and Eastbourne (Rona Bay) for tho past two years, and, according: to the terms of the agreement, the council had the right to verify thoso figures by means of an inspector of the company's books by any qualified accountant. f . The Estimated Profit. "Basing our conclusions on tho figures supplied by tho company," stated Mr. Organ, "the council is of opinion that tho 6ervico, free of competition, would yield a gross profit of a year. From that amount there would havo to be deducted ,an amount for depreciation and sinking fund, but all tho evidence before tho council goes to indicate, that tho service would more than pay its way.' It will bo necessary to get authority to-strike a rate as security for tho purcliaso money, but it may not bo neccssary to collect tho same.

To l be Taken Over on September 1. "Tlie date for , tlio completion of the purchase (assuming tho ratepayers approve), has been fixed for September 1 of the current year. Amongst other matters the agreement provides: (1) That neither-the Harbour Ferries, Ltd., or tho Wellington Steam Ferry Co. shall compete iix the passenger trade to the eastern side of the harbour; (2) that ptfssengcrs by tho council's' steamers shall havo a right of access to tho company's lands (so long as they retain them) at an entrance rate of 3d. per head to bo collected by the company; (3) that the council eliall maintain a daily service to Day's Bay similar to that run to Rona Bay; (4) that the company, shall deliver the 6teainors in good condition and with a certificate issued by tho Marine Department covering a' period of twelve months, and 6hall slip tlio vessels immediately before tlioy are taken over by the council; (5) the provisions of tliu agreement not to bind tho council nnless same is sanctioned by the poll of tho ratepayers; (G) any- dispute arising out of the agreement between the company and the council shall be settled bv 'arbitration. . '"Tho usual terms, apportionments, contracts, current tickets, and business affecting the boats ore provided for. In connection with tho agreement, tho company also undertakes to initiate and facilitate the inclusion of Day's Bay in tho Borough of Eastbourne. Tins can only bo initiated on the petition of one-fourth of the electors of the district. The negotiations throughout were in a most amicable manner.