The unfavourable result of the year's working emphasizes the necessity for adjusting the ratio between revenue and consumption with which object negotiations were commenced with the Municipal Council in 1918, for while the quantity of water pumped during 1921 shows an increase over 1920 of 20.5 per cent., the revenue from water supply shows an increase of only 9 per cent. A letter contain. ing the Municipal Council's proposals was received on April 14, 1921, and the company replied on June 8, 1921 stating that such pro-nasals were, generally speaking, 80 framed as to form reasonable basis for negotiation; efforts both verbal and written were made by the directors to induce the Municipal Council to discuss the details of the settlement but it was not until February 9, 1922, that a further letter was received regarding the matters outstanding; this letter contained a number of additional proposals which the directors considered were not conducive to the best. interests of either consumers or shareholders; they therefore replied on February 27, 1922, formulating definite suggestions for the modification of the agreement of July 1, 1905 which, while satisfying the demands of the Municipal Council in regard to the water the wherewithal to meet such demands.
Text read from the printed page and cleaned; old type leaves the occasional error.