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THE GAS AND WATER /.;..QUESTION.;

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THE GAS AND WATER QUESTION. c THE SHAREHOLDERS OF THE COM- PANY AGREE TO SELL. Now that the Barry and Cadoxton Local Board "have agreed to purchase the gas and water under- takings of the Barry and Cadoxton Gas and Water Company, subject to the consent of Parliament, it was necessary that the shareholders of that Company should also approve of the Bill now pending in Parliament. A meeting was accordingly held on Thhnday at the Park Hotel, Cardiff, for the purpose of considering, and (if jeo thought fit) of approving the following Bill:— A Bill for authorising the Local Board for the district of Barry and Cadoxton in the county of Glamorgan to acquire the Gas and Water undertakings of the Barry and Cadoxton Gas and Water Company, and to supply their district and other places with gas and water, and for other purposes. The chair was occupied by Mr. Thomas Webb (Chairman of the Company), and there were also present Mr. Edward Hancock (deputy-chairman), Mr. J. B. Ferrier, Mr. Lewis Williams, Mr. H. B. Lynton, Mr. F. L. Davies, and Mr. J. R. Thompson (directors), Mr. Harris (secretary), Mr. Downing (solicitor), and Rev. L. A. Rees, Rev. T. Lewis (Penarth), Messrs. D. Davies. Mr. George Clarry, D. Lewis (Merthyr), E. Owen, and W. Bradley (shareholders). After the notice convening the meeting had been read, Mr. Dowhing was called upon to read the clauses of the Bill affecting the Company. That gentle- man said the Act set forth in the preamble that the population and development of the district had increased since the incorporation of the Com- pany in an exceptional manner, and it is expe- dient that the supply of gas and water to and within the district should be under the control of the Local Board. The Local Board had held the necessary meetings, and the consent of the rate- payers had been obtained. By Clause 1 the Act was called the Barry and Cadoxton Local Board (Gas and Water) Act, 1893. Mr. Downing then proceeded to read the following clauses 5. The agreement as set forth in the Second Schedule of the Act is hereby confirmed and made binding upon both parties and full effect should be given thereto as if the terms thereto had been expressly enacted in this Act and the Company shall sell and transfer to the Local Board and the Local Board shall purchase the undertaking of the Company for the considera- tion and on the terms and conditions set forth in the said agreement. Clause 7 enacted that the transfer should be i Clause 7 enacted that the transfer should be 1 by deed and 8.-The Debenture Stock of the Company amounting to seventeen thousand pounds and the interest thereon shall after the transfer be a first charge on the gas undertaking and the gas revenue and on the water undertaking and the water revenue and shall further be a charge on the District Fund and the General District Rate and the Local Board may by agreement with any holder of such Debenture Stock at any time sub- stitute for the stock so held by him any Deben- ture Stock or other security of the Local Board. By clause 10 all debts and liabilities other than the debenture debt of the Company which remain unpaid or unsatisfied at the time of the transfer should be paid by the Company. 11. The Company should bear and pay all ^outgoings of every kind and shall receive all sates and other debts due to them and shall be -entitled to all receipts from the undertaking up to the time of the transfer. 12. Subject to the last preceding sections of the Act all agreements conveyances contracts deeds and other instruments entered into or made with or by the Company and in force at the time of the transfer shall be as binding and of as full force and effect in every respect against or in favour of the Local Board and may be enforced as fully and effectually as if instead of the Company the Local Board had been a party thereto. Clause 13 enacted that the receipt in writing of three of the directors of the Company for the pur- chase money, and by Clause 14 the Company's books were to be evidence as to the share- holders, &c. 16.—The consideration moneys of one hundred and forty-nine thousand pounds and any other moneys to be paid by the Local Board to the •Company on the completion of the purchase in irespect of stock meters coals and gas to be then walued and in respect of any interest payable to the Company by the Local Board and all -other money belonging to the Company shall be .applied by the directors in the manner follow- ing :—(Details set forth in Act.) The other clauses in the Bill, said Mr. Downing, referred to THE FINANCIAL POWERS OF THE LOCAL BOARD, sand did not affect the interests of the shareholders of the Company. The next point to which he referred was the agreement contained in the second schedule of the Act. It was the agree- ment'entered into on the 15th day of March, 1893, '"between the Barry and Cadoxton Gas and Water ^Company and the Local Board for the district of Barry and Cadoxton. Clause 1 of that agreement was to the effect that the Company would sell to the Local Board from the iilst December, 1893, the whole of the undertaking of the Company, including all the gas and water works, engines, mains, pipes and machinery, and also all leads, &c. It would also include the gas in the mains, -except that in the holders. The Local Board would also take over all then existing contracts r of the Company. By clause 2 possession was to be delivered up on the 31st December, who was .called the transfer day. Clause 4 was as follows The consideration to be paid or given by the ,Local Board to the Company shall be the sum -of one hundred and forty-nine thousand pounds togther with the sum of three thousand pounds ,to be divided among the directors and solicitors of the Company by way of compensation to be paid on the transfer day on which day the purchase shall be completed. The Local Board ;shall on completion of the purchase take over ,and pay for according to a valuation to make in the usual manner the gas in holders the stock of the Company and the coals meters and stores and there shall be included in all such stock euch items and articles of such description as ,have been included in the valuations or stock- takings who have been made from time to time by the company and have beer included in their half-yearly balance sheets under the heading of stores and meters and coals in stock. By clause 4 the permanent irredeemable De- benture Stock of the Company was to be taken over by the Local Board, and continue to be a first -charge of the undertaking. The following clauses stipulated that the Company should carry on the works at their own expense until the transfer day according to the usual custom; the Local Board to take over all plans of the Company, and pro- mote their Bill in the present Parliament, and the Company should not oppose it, but assist the Local Board in passing the same through Parliament. The Local Board to pay to the Company all costs ,and expenses to be properly incurred in connec- tion with the Bill, but the Company to pay their own Parliamentary expenses up to the date of the -sale and the cost of winding-up. Clause 13 was .as follows If the beforementioned Bill shall have passed into law but from any causes the purchase shall not have been completed on the 31st day of December next the Local Board shall pay to the Company interest upon the purchase-money and upon the money expended by the Company on capital account as hereinbefore provided at the rate of five pounds per centum per annum for such date until the actual day of payment of the purchase-money and money expended on capital account as aforesaid but after that date the Company shall carry on the undertakings at the sole risk and for the benefit of the Local Board at their own expense. The remaining clauses provided for the purchase to be completed (if desired) before the 31st of -December; alljdisputes to be settled by arbitra- tion and that all the officers (except the engineer) and servants of the Company to hold and enjoy their offices and employment upon the same terms as at present until resignation or removal by the Local Board. HAD BEEN WELL CONSIDERED. The Chairman said as they were all aware an arrangement had been made by which the Barry and Cadoxton Local Board would acquire their property. They had heard how the terms and conditions had been made, and he assured them that the terms had not been settled without very anxious consideration both on the part of the directors of the Company and the Local Board. Those terms had been sanctioned by the Committee of the House of Commons before whom the Bill came. He proposed thtt the Bill be approved, subject to such conditions, alterations, and varia- tions as Parliament might think fit to impose. He had also to add that the Bill was now in a very advanced stage, and had passed through the House of Commons. It would probably be in the House of Lords by the next day. Mr. Hancock seconded, but at the same time said he was very loath to part with the works. The Chairman hoped that the directors would have the pleasure of meeting the shareholders of the Company on some future occasion. Mr. D. Davies said he did not wish to move an amendment, but desired to express himself upon the transfer. It was very desirable that the LOCAL AUTHORITIES SHOULD BE IN POSSESSION OF THE GAS AND WATER WORKS, but at the same time they, as shareholders, had gone to a very large expense. They had a set of excellent plant, and everything was of the most modern character, and modern appliances were adopted on their works. He considered that their property was in a very excellent condition. (Hear, heat.) Although he had said that he believed the Local Board ought to have possession of these things and work them for the benefit of the rate- payers, in view of the sacrifice the Company had made in providing Barry and Cadoxton with gas and water and water works, be considered the amount they would receive was not such as would be fair and legitimate. They had made sacrifices in the past, and the revenue of years that had gone was not large, and they had to consider that a new Company took years to be made a paying concern. Taking all those facts into considera- tion they had a right to expect a larger sum for their interests than they appeared to be receiving. (Hear, hear.) He had no doubt that the Board of Directors had done their very best, but, at the same time, they were there as shareholders and at liberty to express themselves. The directors had done their past exceedingly well, ani they must not forget that they had taken care of themselves. (Laughter.) They would take about £ 500 each, which, he thought, was a very excellent figure. (Laughter.) He would not mind being a director himself, when he could make £500 in a very short time. However, he thought the directors had done their best, and the better course for the share- holders to do was to approve of the Bill. It had not gone a long way, and he would be very sorry to impede its passage in any way, but he thought they had a right to expect more than they would receive. The Rev. T. Lewis agreed with the last speaker that they were making a great sacrifice. He desired to know whether the Local Board would pay them for stores in addition to the £149,000 (Mr. Downing—Yes.) He also asked whether the [ shareholders would be able to leave their capital in the hands of'the Local Board. (" Yes.") He was pleased to learn that they could do so, and he only hoped that the whole would now be brought to a satisfactory issue, and he would be the first to congratulate the Barry Local Board upon their bargain. The Rev. T. A. Rees noticed that, while £3,000 was put down as remuneration for the directors and solicitors, but he desired to know if any allowance was to be made for the secretary and auditors, who had worktd well with the directors. No answer was returned to this question. GRADUALLY WORKING AROUND. The Chairman said no doubt there was a strong feeling in favour of public bodies taking over the gas and water, and the directors felt that they could not very well resist that feeling in this district. The shareholders should also give the directors credit for having well considered the interests of the Company. They could not well pose as obstructionists, and say that they would not sell their works except at an unreasonable price. There was A GREAT DEAL OF FORCE IN WHAT THE LOCAL BOARD URGED in favour) of their acquiring the undertaking. The price agreed upon was under all the circum- stances considered to be a very fair one. With regard to the £ 3,000 allotted to the directors he scarcely knew what to say as it was rather a delicate question for him to touch upon. It was pointed out that the Company was in an excellent position, the works were laid out, and the plant excellent. Well, if they were in such an ex- cellent situation he thought perhaps that the directors might claim some credit for putting it in that position. He was told that, under all circum- stances, £3,000 was a very moderate sum for the directors to receive. It had cost them many anxious hours to get the Company into its present position, and now that they were about to have things a little more easy the whole concern was taken out of their hands. Surely they were entitled to some remuneration. In conclusion, he reminded the shareholders that the. debentures could remain with the Local Board if they chose. That was as good a security as the Company could offer. The resolution was then put to the meeting and carried riem. con. I

THE NATIONAL EISTEDDFOD, 111893.

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