།།།། །
PUBLIC RECORD OFFICE
سلئسسانس
Reference :-
C.O. 882
24
As to the title to the lands the writers assume that the Court will not go into Title to this question, but they are somewhat in doubt as to the course which should be lands. adopted should it be found (in the course of the prolonged investigation into the Company's title deeds which is now being conducted) that any prohibitory clauses or restrictive covenants prevent the use of any portion of the property in a particular way. What, too, would be the course to pursue should it be found that the Company is in possession of any land without title? Under the law in force in the Colony (Crown Suits, Ordinance XV. of 1876, Section 55), the period of limitation to suits on behalf of the Crown for the recovery of land is 60 years, and in the case of private individuals 12 years.
So much for the considerations which at this stage have presented themselves Case for for consideration as being the probable case we shall have to meet, and it is proposed the Gov- now to make a few observations by way of outline of the case for the Government.
The investigations are on no point completed, and on some are not even yet commenced, and one of the reasons for sending these notes home is with a view to obtain guidance as to such completion.
ernment.
discarded.
We have, so far, acted on the assumption that the value of the undertaking is "Break- not to be ascertained by the "break-up " method of valuation. This appears to be up" clearly inapplicable. It is the undertaking which is being acquired and which it valuation is proposed to continue, and, apart from that, it is the value to the Company and not to the Government which has to be compensated. The Company, whatever their shortcomings, had not at least evinced any intention to abandon the undertaking, and as they certainly will not claim on this basis, it may conceivably be dismissed from further consideration.
methods.
As stated when dealing with the probable case for the Company it is felt we Other must be prepared to meet either of the two alternative systems of valuation there referred to. The Company is not, of course, bound to show its hand at present, and they have rigidly refrained from any indication of policy. Moreover, there would be nothing to prevent modification or even complete alteration before the Court, and above all we are not yet in a position to say which would work out with the best result to the Government.
The two systems on which it is proposed to proceed with our preparation are:- Two pro-
spective
I. That adopted in most of the London Water Companies' cases, and such alter-
as usually followed in the acquisition of gas undertakings, viz., ascertain- natives. ment of profits in recent years: thereupon, and on evidence as to prospect of future profits, to fix a maintainable income and to multiply this income by a number which would give a capital sum considered fair in the particular case. Add thereto or deduct as the case may be for portions of the undertaking over or under standard requirements: addition for lands or investments outside the undertaking.
II. Value the lands and the whole of the works (these latter as new) as on
the 1st July: deduct therefrom for depreciation or other considerations what may be deemed fair. Add thereto a sum for what is usually termed "goodwill.”
It is not proposed to here consider the other payments which may have to be Other pay- made to the Company, viz.:---
ments to be
provided
(a) For recoupment of any loss of interest pending re-investment as well for.
as for cost of re-investment (Section 14).
For cost of liquidation (Section 15).
For costs of the Company incurred in, and incidental to, arbitration
to be taxed, if necessary, as the Court shall direct (Section 21).
(d) For compensation to servants, officers, and others whose services are not
required (Section 4).
8
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
Referring to Section 6 of the Ordinance we find:-
"The accounts and balance sheets of the Company up to the appointed ince date shall be made up and audited in like manner, and with the like fncidents notice of and consequences as nearly as may be as if this Ordinance had not been expro- passed."
priation.
Condnot of business