The Evening Star THURSDAY, OCTOBER 23, 1873.

Evening Star, Issue 3331, 23 October 1873, Page 2

The Evening Star THURSDAY, OCTOBER 23, 1873.

Tiik negotiations between the Carporation ami the Dunedin 'Waterworks Company have been so frequently brought before the public, that it is quite unnecessary again to go minutely into the details of the matter. We beieve that the state of public feeling is not only unaltered, but that there is an increasing conviction that the supply of water for the City should Do in the hands of the Corporation. This is becoming the more needful on account of the rapidly increasing population, and the consequent demand for water upon the Waterworks Company’s works—a demand which renders probable the necessity for additional means of supply in a very short time. It was unfortunate that, when the arrangement was arrived at nearly twelve ; months ago, the Corporation were not aware of the error in the Act limiting their power to give debentures tor a period of thirty years; and that the

purchase was made subject to fifty years’ credit. This was, however, remedied as soon as it was possible, and the Waterworks Company have been informed that the Corporation is now empowered and willing to ratify the contract. The shareholders of the Waterworks Company meet to-morrow to take this renewed offer into consideration, and we trust no further difficulty will bo experienced in arriving at a fair and equitable conclusion. On the face of it, there should not be. Stretching the point to one of law, there can be no doubt that the Waterworks Company can take a stand ; but there is a higher standard than the legal one the standard of moral obligation. Morally the bargain was complete : the terms were settled, and had any adverse circumstance happened to reduce the value of the shares, we think the Corporation would have been bound by their offer ns soon as they were in a position to fulfil it. If this be a correct view of the matter, what is true of the obligation of the Corporation must be equally true of the Waterworks Company. Nor does it alter the position that shares are held by individuals. The Waterworks Company cannot be regarded as a purely private investment. From its very commencement it was a quasi public undertaking—a remunerative rate of interest having been guaranteed and paid by the Provincial Government. Had the Government borrowed the money, it could have been had readily, at the rate of interest guaranteed ; and the Works would have been handed over to the Corporation at prime cost. This, though an element in the consideration, does not detract from the credit due to those who came forward and advanced the money. The City acknowledges that obligation, and is willing to recoup it by adding fifty per cent, to the capital advanced. In view, therefore, of the equity of the case, we think the shareholders will feel and acknowledge that the sale agreed to a year ago should be ratified ; for they have been rather gainers than losers by the delay. We are glad to know that many who are interested hold this honorable view.