Out of the territory heretofore existing within the limits of the Towns of Newport and Derby is established the City of Newport, embracing all the territory included within the limits described in this charter; and the remainder of the territory of the Town of Newport is established as a new town to be the Town of Newport and the remaining territory of the Town of Derby is established as a new town to be the Town of Derby. The Villages of Newport and West Derby are hereby abolished as soon as this act shall go into operation, and all property, rights, funds, taxes, rights of action, etc., belonging to said Villages of Newport and West Derby, respectively, shall at once be transferred and belong to said City of Newport; and said City of Newport shall assume and have all the duties, rights, and obligations and debts of the said Villages of Newport and West Derby, respectively, except as herein otherwise provided.