A potential tramway project in Limerick faces uncertainty as Mr J.H. Murn, a solicitor, lodges an appeal to the Privy Council. In a letter addressed to the editor of the Limerick Echo, Mr Murn seeks to clarify the liability issue concerning the city’s Corporation guaranteeing the payment of dividends on the share capital of the proposed tramway company.
Mr Murn highlights the legal framework that governs such guarantees. He explains that while the original Tramways and Public Companies (Ireland) Act of 1858 imposed a serious liability on the guaranteeing body, subsequent amendments, such as the Tramways (Ireland) Act of 1900, have limited this liability significantly.
According to Mr Murn, the guarantee would only apply during the authorized period for constructing and operating the tramways, and it would be contingent on the tramway generating sufficient income to cover its working expenses. In the proposed tramway project, the Corporation would be compensated for the use of electricity, rent for the way leave, and taxes, among other contributions.
Mr Murn argues that if the tramways fail to cover their operating expenses, there would be no liability on the Corporation. In a scenario where the tramways cover their expenses but nothing more, the Corporation would still profit from the venture. However, if the tramways manage to achieve a 4% dividend, the Corporation’s liability on the guarantee would be completely waived, leading to substantial gains for the city.
Promoters of the tramway project believe it has the potential to earn more than the 4% dividend, citing data from similar projects in other places. Mr Murn expresses disappointment that a majority of the Corporation has refused to consider the proposal, potentially denying the city significant investment and financial benefits.
While the promoters would prefer direct cooperation with the Corporation, the appeal to the Privy Council seems likely due to the lack of willingness from the majority of the Corporation to engage with the matter. The appeal will challenge the refusal to even consider the proposed tramway project, and the outcome will determine the fate of this significant venture in Limerick.
Limerick Echo – Tuesday 15 August 1905
