CO129-389 - Governor Sir Lugard Acting Governor Claud Severn - 1912 [3-4] — Page 161

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153

practically the same amount as kr. Osborne claims (890,000). These buildings are quite useless for Railway purposes and Er. Osborne makes it a condition that his Company should have the right of taking them down and removing the materials for their own use. I therefore consi- -der that a substantial reduction in the sum asked for should be

made. I would suggest that the sum of $60,000 be offered as full compensation for their removal, the materials remaining the property of the Wharf and Godown Company.

Condition (D.i) as to K.M.L. 9.Mr. Osborne regards this lot

as being of special value, and in this I agree with him, and the object of his condition is to prevent the Government disposing of it to some third party on lucrative terms. He considers that it should be

utilized for purposes of a public nature only, primarily in connection with the Railway. I can see no objection to the condition.

Condition (D.2) as to no ferry service using existing Star

Ferry Pier. This condition appears to me to be a reasonable one and I

presume there will be no objection to it.

Condition (D.3) as to Government laying railway siding at

their own expense to boundary of Wharf and Codown Company's property.

I understand that the arrangement proposed in the case of Holt's

godowns and other premises to which sidings are to be laid is that the

Government should defray the cost of the siding, the party benefitting

by it paying interest at a certain rate on the outlay. If this is so,

the Wharf and Godown Company's siding should be subject to the same

terms.

Condition (D. 4) as to Government filling in Folice Fasin,

&c. I consider that the best course is for the Government to hand over the basin as it stands and to pay the Company the estimated cost of filling it in and completing the sea-wall across the entrance. The Company can then utilize it in any manner they think fit. The estimat-

-ed cost of the work referred to is 86,000.

Condition (D 5) es to lease of Police Basin area being on same terms as that for K.M.L. 9. This is a reasonable proposal and I presume it will be agreed to. The lease of K.L.L. 9 is for a period of 999 years, commencing from 1881.