The Council considered that their tender of £360, with a share of the profits, was not so good as 'that of £100 per year, and proceeded to I 'open the last, in which they named £500 I 'a year, with gradual increase during the 1 "term of the contract. It was this latter I bne which the Council decided to accept. [When the excitement of tendering had 'somewhat subsided, the Company found that they had tendered much too high. They demurred at the Council opening their second tender, saying that £360 a year, with a share of the profits, was better than £400 a year, and we had no right to use that second tender. We thought differently. We had seen no J [profits coming to the shareholders pre-.j jviously, and we could not expect any.sl : Consequently we put their profits down asl of little value. We then found ourselves-: in this position—that there was some difficulty in getting the lease completed. > The Council endeavored to do so, and I believe the Company was given to under stand that if the lease were completed, and the rent proved to be too neavy, the Council would meet them in a fair way in the matter of reduction. The Com pany agreed to complete the lease. Then there arose the difficulty of sureties. No one would become surety because it was the opinion that the lease was too high. Eventually two of their Directors agreed; to become sureties —to become liable to the extent of £500, on the under-; standing that in the event of the rent; proving more than they could pay, the. Council would meet them fairly and* arrange a reduction. On these terms th&i lease was completed, and the two in question became sureties. The Comg I pany found that the rent was really? I crushing; that it was I for them to carry on the contract,; land they made application to the Council; Bfor a reduction, and that application came-' (fbefore the Council. For my own part, I* [{thought at the time that the reduction* I proposed to the Council were rather too» Jneavy ; that the reduction should be £501 ---*o commence with, and if the rent was then found to be still too high a further j eduction could be made. 