DUNEDIN WATER WORKS COMPANY.

Evening Star, Issue 2844, 1 April 1872, Page 3

DUNEDIN WATER WORKS COMPANY.

An extraordinary meeting of the shareholders of the above Company, “ to consider a report from the directors as to the present and probable future value of the Company’s property, and the advisability or otherwise of selling to the City Corporation,” was held this afternoon, in Murray’s Rooms; Mr Robert Gillies in the chair. The report of the financial condition of the Company was read, of which the following is the substance : The works were commenced m 1864, and since that time the demand for water has become so great, that apparently it will be necessary to extend the pipes to every available part of Dunedin. The works began to yield revenue in 1868, when the pipes only extended over 31 miles. In 1869 they were further extended 2 1-20 miles, and in 1869-70 a second main line of pipes was laid down. These were 5 11-20 miles in length ; and in 1871 an additional length of 2 14-20 miles was laid down. The total length of pipes laid downis 131 miles; and it is proposed to extend this 84 miles more, making in all 22 miles of streets to be supplied. As population increases, two or three miles more may be required. The cost of the first 3 4 miles was L 52.349, In 1868 the revenue was L 3,085, which increased in 1871 to L 3.903. The shares issued beyond this amount were unguaranteed. The 'three cxtensions were made on unguaranteed shares at a cost of L 11.918, and in 1871 the revenue from them amounted to L 2,756 ; but for the third extension only portion of a year s rates was collected in 1871. On the guaranteed outlay the revenue had paid 7 i per cent. ; on the first unguaranteed extension, 36 per cent. ; the second extension, 21 1 per cent. ; and the third extension, 301 per cent. Thus the average revenue of unguaranteed outlay was 27 per cent. As there are expenses payable out of guaranteed revenue, the nett receipts average 5 9-20ths per cent. The revenue is inertasiug at the rate of about 1% per cent, annually. The anticipated revenue on the proposed 84 miles extension is estimated at 12 per cent. The revenue from water used in driving machinery is more than L4OO annually ; and addition to this is anticipated for railway purposes. Another source of increase of revenue would be extending the works beyond Dunedin. Llo 000 worth of debentures bearing interest at 8 per cent, have been issued, which fall due in 1877, by which time in all probability the rate of interest will have been so reduced as to enable the directors to re issue them in need at a lower rate. Mr Batbgatc was moving an amendment when our reporter left.