had been issued, in January 1865, accompanied by an announcement that the share list was closed. The shares rose in value at an unprecedented rate, till they attained a premium of £1200 a-piece in Bombay and £1000 in Calcutta. It was soon found, however, that the sanguine expectations of projectors and speculators were not likely to be realized, and the shares fell as rapidly as they had risen. Subsequently, dissensions arose between the directors and the shareholders, resulting in the management of the Company being transferred to other hands.
A dispute also took place between the Company and the Municipality. The former, through Mr. Schiller, made an application to commute the £25,000 of municipal debentures which it held, into land. But the deeds were not executed, although the lots were assigned; and at Mr. Schiller’s request, commutation was deferred till maturity of the debentures, and payment of a quit-rent, equivalent to the interest, was agreed on. In 1868, when affairs definitely assumed an unprosperous aspect, the Company endeavoured to repudiate the transaction, and brought an action against the Municipality for payment of £2700 interest on the debentures. The latter resisted the claim, on the ground that the Company had agreed to commute the debentures for certain lands in the town of Canning. The Company gained the suit in the first instance, but on appeal the order was reversed, and the commutation was declared to be valid. The Company, however, have not entered into possession of their lands, and an appeal is said to have been preferred to the Privy Council in England. In 1870, the Secretary of the Company addressed the Government, urging upon it the duty of redeeming the debentures which the Municipality had failed to meet. The Government of India, in reply, declined to admit any obligation, and refused to provide the Municipal Commissioners with funds to pay their debts. The first of the Government debenture bonds for £10,000 having arrived at maturity in April 1871, steps were taken to obtain a decree, and the whole of the municipal property, moveable and immoveable, was placed under attachment. Government having thus obtained priority, notice was sent to the private debenture-holders, inviting them to co-operate in obtaining a fair division of the assets.
The following is a statement of the receipts and disbursements of the Municipality from the beginning of 1864-65 to the 3ist March 1871:—
