TRAMWAY COMPANY.

New Zealand Times, Volume XXXIV, Issue 5822, 26 November 1879, Page 2

TRAMWAY COMPANY.

A private meeting of shareholders in the above company was held at the Panama Hotel last evening, forty shareholders being present, representing 636 shares. Captain Williams was voted to the chair. It was stated that the promoters had divided amongst themselves some £13,000 out of the capital of the company. This was never mentioned in the prospectus, nor were the shareholders aware that such a thing would be done. Further, instead of the line being handed over in complete working order for the sum of £IO,OOO, as it was understood would be done, there had been expended out of the capital of the company a further sum of nearly £4090, to put the line in complete working order; when the line should have been handed over without this extra cost. The fact was, it was stated, the line itself and all its belongings had not cost the promoters more than £27,000. After a, good deal of discussion, in which the above and other matters were stated, and after the position of the company had been explained by Mr. W. V. Jackson and other shareholders, the following resolution was put by the chairman and carried unanimously :—Moved by Mr. Paul Kingdon, and seconded by Mr. F. W. Swift, —That in the opinion of this meeting the shareholders in the Wellington City Tramway Company (Limited) were induced to take shares in the said company on the faith of certain prospectuses and other statements issued by the promoters and directors, which are now proved to be a gross misrepresentation of fact ; and that they appoint Messrs. W..V. Jackson, James Lockie, Sam Brown, and Captain Williams to be a committee to protect their interests, and to take any action they may deem necessary to restrain the directors from enforcing payment of any more calls, and to compel the said promoters and directors to place the affairs of the company on a more fair and equitable basis in respect to the outside shareholders. Two legal opinions were produced at the meeting, to the effect that the outside shareholders have a very good case if they desire to restrain the directors from making further calls, and to set aside the purchase, on behalf of the other shareholders. The meeting lasted for about two hours.