PURCHASE OF THE WATERWORKS.

Evening Star, Issue 3518, 2 June 1874, Page 2

PURCHASE OF THE WATERWORKS.

There was a full meeting of the City Council dast evening, when the following communication from the directory of the W ater Company was read : Office of the Dunedin Waterworks Company t A/r nr -n Pri “ ces steeet, May 30, 1874. J. M. Massey, IJsq., Town Clerk. Sib,—l have the honor, by instruction of my directors, to transmit you herewith copy of resolutions passed by them yesterday, with regard to a sale of the works and plant to the Corporation ; also copy of an agreement signed by a large proportion of the shareholders to the same effect.—l am, &c., Thomas Dick, Secretary. Dunedin, May 29,1874, We, the undersigned shareholders in the Dunedin Waterworks Company, hereby agree to accept of Ll7 IQs par share for each of our shares in said Company issued under the original Act, and on which dividends can be paid over 10 per cent per annum; Ll6 per share for each of our shares isfeued under Act 1871 on which dividends can be paid not exceeding 10 per cent., and which have been fully paid up; and Ll 10s premium per share on each of our shares under the Act, 1871, but which have not been paid up, in addition to the calls paid up ; and we bind ourselves, in the event of the Corpoiation agreeing to give said sums in cash, or fifty years debentures bearing interest at 6 OU K° ptio ?’ to vote for any reSolution to sell as above that may be proposed at f shareholders called for the pur&PE°T iaed a ,Provisional contract of safe is signed between the Company and the Oorporafaon within three months, and that the purohasewoaey or debentures are handed over to us oq

or before the Ist January, 1875, the Corporation receiving all the capital and undertaking all the liabilities of the Company. [Here fofiow the signatures.] The chairman of the Company having intimated to the Board the purport of certain conversations, he, as a private shareholder, had had with the Corporation on the oubjuct of selling the works and plant of the Company to the Lorporatioa, it was resolved as follows : 1. Inat, whilst reminding the Corporation that any legal and binding offer of sale can only proceed on a resolution passed by the requisita majority of the shareholders in general meeting assembled, still the members of the Board, for themselves individually, and as a Board, subject to the confirmation of the shareholders in general meeting, hereby offer the whole works and plant of the Company to the Corporation at the following price, and on the following conditions:— ° 1 * h -^L the . shareholders shall receive the sum of Ll7 10s for each of their shares issued under the original Act, and on which dividends can be paid over 10 per cent, per annum : Ll6 tor each of their Bhares issued under Act, 1871, on which dividends can be paid not exceeding TO per cent, per annum, and which have been fully paid up; and LI 10s premium per share on each of their shares issued under Act 1871 but which have not been paid up, in addition to the calls paid up ; these sums to be j aid either in cash or in fifty years' debentures, bearing interest at 6 per cent, per annum, at the option of each individual shareholder. 2. That an intimation of the acceptance of this otter is made within seven days from this date ,• that a provisional agreement between the Corporation and the Company is signed within ' three months from this date ; and that the purchase money or debentures are handed over on or before the Ist January, 1875. * 3 lu Tllat tne om P an y receive all the rates up to the date of taking over the property, and that the Corporation receive all the capital assets and undertake all the liabilities of the Company, and generally that the terms of the former agreement proposed between the Company and the Corporation be carried out so far as they are not altered by the terms of this offer and the changes which have taken place in the Company's affairs. 4. That anytime after the signing of the provisional agreement, and the Corporation obtaining the necessary powers to enable them to borrow, the Corporation will, if requested by any shareholder, advance the amount of money coming to him under the sale, so as to enable mm to enter into any other investment he may desire, under proper restrictions for the protection of the Corporation, even should the final handing over of the property be delayed as long as the Ist January, 1875. Should the Corporation agree to the terms here offered, the directors bind themselves as follows: 1 To meeting of shareholders at as early a date as possible to confirm this offer, and to strongly recommand the shareholders to pass a resolution to that effect • and, as evidence of the probability of the shareholders agreeing thereto, they herewith enclose a copy of an undertaking to the above effect, signed by a sufficient number of shareholders in the ('ompany to ensure the passing of such a resolution. * I i.i:"i.T? iv^r any ob J ection on their part to the iaofc that the Corporation, at present, have not power to borrow over LIOO.OOO sterling, or to enter into this agreement, provided tho neccswry power be obtained at the ensuing meeting 3. That in the event of any unforseen difficulty or dispute arising, the same shall not be madeUe ground of breaking off the bargain ; but that any such, as they may arise, will be referred to the decision of arbitrators mutually enosen in the usual way. The matter was considered in committee, and on the Council resuming a motion was agreed to, approving generally of the proposal in the matter of prices, and subject to certain ramor details being satisfactorily arranged. The only diversity of opinion was on the main quest on of price, on which Councillors Frosaer and Woodland voted against giving Ll7 10a. The Council decided to bave a conference with the directors of the Company to settle nutters of detail.