DUNEDIN WATER WORKS COMPANY.

Evening Star, Volume VIII, Issue 2368, 3 November 1870, Page 2

DUNEDIN WATER WORKS COMPANY.

An extraordinary general meeting of the company was held in Murray’s Room yesterday afternoon, to consider what course should be adojffed to obtain payment of the guarantee dividend, and for the transaction of other business. There was a large attendance of shareholders, and Mr W. H. Gotten presided. 'The Chairman gave explanations of the difficulty between the Government and the company. He said it was an understanding, when the company was formed, that the Government would guarantee S per cent, upon the capital subscribed, but the exact nature of the guarantee was not settled; for his own part, he had always considered that the guarantee went to the extent of paying 8 per cent, upon the capital as it was paid up, not from the period when the works came into operation. The Government, however, refused to take that view of the matter, and (lie company was beaten upon it; consequently, during the last three years, interest had been paid upon the capital as it was paid up. In January, 1860, the company sett'ed accounts with Mr Vogel, and paid a dividend. Th-.-y had paid a dividend in the preceding June, by means of an advance from the Government, but accounts were not settled at that time. On the accounts being settled in January, Mr Vogel took upon himself to criticise the proceedings of company in a way which he was not justified in doing ; but the directors, wishing to avoid trouble with the Government, consented to his arrangements, and to a certain extent this was the cause of the present difficulty. The replacing of pipes that had bnrsted, law charges, and other items in the accounts, Mr Vogel insisted, in the first instance, should be charged against capita 1 , when in fact the replacing of pipes, and work of a similar character, should really be charged to maintenance and repairs. Mr Vogel gave way on the subject of law charges to the extent that be allowed the company to pay them out of rates due at the time of settlement; and upon that understanding the directors acted, and thought the question was settled. In August, 1869. they settled accounts with Mr M'Lean, then Treasurer ; and law charges were still allowed to stand against rates. In March, 1870, Mr Duncan paid the directors the balance of their claim, but raised the whole question of law charges again, and withheld a sum of money on account of them ; the directors had consequently to pay their dividend out of rates they had in hand on the last settlement day. In the beginning of July of the present year, when the accounts should have been squared up, the Government took up the same position , and would not allow the rates to be paid over. In addition they made a variety of absurd objections to the working of the company, which effectually prevented the directors from carrying on the business. The Government now made the following stipulations “That in future, so long as the company has recourse to the Government for payment of the guaranteed interest, no directors’ fees will be allowed.” “That the ra‘es levied each half year should be brought to account within that period, whether collected or not.” “That LOGO of the uncollected rates should remain unaccounted for from year to year so long as the guarantee remained in force.” As to the first condition, he contended it was impracticable and nonsensical, and denied the right cf the Government to interfere in tire inatter of payment of salary by the company to its servants. It was impossible to comply with the second condition, which in itself was acondradiction of the third one. After the setting forth the advantages and benefits the introduction of water into the City bad conferred, and complaining of the manner in which the company had been treated by the Government and the Corporation, Mr Cutteu stated the action of the Government had prevented the shares of the company from becoming the marketable security they were at one time, had reduced their vab e, and led to a financial difficulty. T lie question the meeting had to consider was—Were they to fight ithe Government —to sue them for the money ? or should they endeavor to obtain it by quiet means—by petitioning _flm Provincial Council ? Any further application to the present Government was hopeless. They (the Government) avere in a state of impecuniosity, and he believed their letters were mere shuffling. If the Government would only say honestly thpy had not got the money, the directors could arrange ifiaC ters with them. Mr Duncan was a decided enemy to the company, and so far as lie (Alt' Cutten) was personally concerned, he felt it quite impossible to argue the question with Mr Duncan again; and the other members of the Government seemed to, leave the matter almost entirely to the Treasurer. The directors, with a view to this meeting, had obtained an opinion from the solicitor to the company, Mr Maoassey, as to the beat course to pursue. They consulted that gentleman as to whether the shareholders had a light to sue the Government individually. His ojiinion seemed to be that even if the shareholders had such a right, they would experience so much difficulty in enforcing it that, if legal proceedings must be taken, the directors had better sue the Government for a breach of the Bth article of the age cm cut. It was for the meeting to s ay what course should be pursued. The directors were weary of endeavoring to arrange matters with the Government, aqd despaired of a settlement ; while they were unable to pay a dividend for want, of the money they were entitled to receive. In proof of the assertion that the Government were shuffling Mr Cutten read a letter from the Uuder-Secretary iu which it was

stated that so soon as it was ascertained what amount was due the money would be paid When the director \ asked what the Government considered duo to the Company they were met by the answer that when the directors signified their willingness to consent to the proposals of the Government, the accounts would be gone into. After some remarks by Messrs Cargill and Reynolds, Mr Elliott moved and Mr Mercer seconded —“That a petition be prepared and presented to the Provincial Council at next session, setting forth fully the facts connected with the disputed points between the Government and the Water Company, and praying for relief,” Mr Hardy moved as an amendment that, prior to the petition being drawn up, a deputation from the meeting should wait upon |the Government, with a view of arranging matters amicably, but his proposition fell to the ground, the original motion being carried unanimously.