THE CITY COUNCIL AND THE WATERWORKS.

Evening Star, Issue 3289, 4 September 1873, Page 3

THE CITY COUNCIL AND THE WATERWORKS.

At last night’s meeting of the City Council, the following letter was read : Dunedin, September 2, 1873. J. M. Massey, Esq., Town Clerk. Sir—l have the honor, by instructions of my Directors, to acknowledge receipt of your letter of August 13. Whilst thanking the City Council for the renewal of their offer, and whilst willing to believe that they approach this subject now in a very different spirit from their predecessors, my Directors feel compelled, in the interests of the Company, to point out that statements extremely detrimental to the Company have within the last two months been made by the Corporation in a petition to the Assembly, and that though the Company denied the statements, and offered to satisfy the Council with reference to them, no steps with this view have yet been taken, nor have the statements been withdrawn. My Directors have to complain of having been very unfairly treated in the past, being compelled to negotiate, as it were, at the point of the bayonet; and they arc naturally averse to the reopening of negotiations unless some assurance is given that they will be treated in a fair manner. Their position, as you are aware, is peculiar, from the fact that, by the action of the Corporation themselves, all power of dealing with this question has been taken from the Directors and given to the shareholders alone. It is true that a small majority of the shareholders authorised a sale in February, but that having fallen to the ground, it is doubtful now whether a majority could be obtained to sell even at an enhanced price. That all such property has advanced in value since February must be patent to the Council, seeing their bonds are now selling at a premium of U per cent., as stated by you. It therefore probably has become a question worthy your consideration, whether it is worth while reopening negotiations in the form of the old offer, or rather simply in the form of a request to know if the Company will sell, and at what price.—l am, kc., Thomas Dick, Secretary.