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the full advantage of mass production.
The Company's estimate of cost to the subscribers has
been exceeded. Later in this report reference is made to the Company's accounts and to the sum claimed by the Com-
pany as being the amount required to pay the balance of cost, but it may be said here that the Company's estimate appears to have overlooked the difference between general levels of the area and the levelling or stepping up of each
building site.
On the 11th April, 1928, a letter was written by the
Director of Public Works to the Company stating that the entire area had been formed to the approved levels and
requesting payment into the Treasury of $106,149.78 being one-quarter (the second quarter) of the premium.
The date of approval of the final development plans was
the 19th September, 1925, so it will be seen that the Gov-
ernment was two years late. A contention by the Company that the entire area has not yet been formed is more partic-
ularly referred to below.
In the year 1929 the Company was well advanced with the development but calls made of and received from subscribers had already exceeded the estimated cost. Further calls were made. Many of the subscribers did not meet the calls, and the Company threatened bɔ exercise the power of sale. The threatened sale caused general alarm and consternation
among the subscribers, who begged the Government to come to
their aid.
The one-quarter premium of which payment had been requir- ed as above had not been paid by the Company. No question as to the completion of the formation of the antire area had been raised. The Government finally decided to exercise the forfeiture right. The property was reentered on 23rd August, 1929. Here it must be pointed out that before tha reentry or forfeiture the Company had stated that it had a
4,