HARBOUR BOARD DEBENTURES.

Auckland Star, Volume XXI, Issue 160, 9 July 1890, Page 8

HARBOUR BOARD DEBENTURES.

THE NEW PLYMOUTH DEFAULT.

LETTERS FROM BONDHOLDERS.

(BY TELEGRAPH.—PRESS ASSOCIATION.)

Njeav Plymouth, this day. At ameeting of the Harbour Board this morn' ingtwoletterswerereadfromthe bondholders in England, both expressing surprise at receiving only a portion of the interest. One says that in withholding information the Board must have had some object to eerve to afford those behind the scenes an opportunity of disposing of fehe bonds held, before the public at large were aware of any default to be made. He goes into the matter of land endowment, and quotes the prospectus' iasued previous to the loan being raised, adding that" the Government are undoubtedly responsible to the bondholders, and' also responsible to youß Board in the outlay of money. Why do you not apply to the Government to make good the deficiency of the coupons, and ask them to manage the sale and settlement of the land on a system that would ensure the bondholders being properly treated ?" To conclude, he alludes to the indirect loss the colony must and has already suffered by default, as anyone with a knowledge of investors in this country aware thab confidence is of vast importance to every country Another bondholder says : "I invested money eight years ago, believing I had a good security in so far that the hew Zealand Government had passed the account for this New Plymouth Harbour, and all interests were well guarded. I was indtfcedbythe late Mr Westgarth to place the money in what was then held to be one of the best and safest harbour loans from the valuable land grantos set aside for the payment of the interest and capital. No doubb the colony of New Zealand has been improved by making the .Naw rlymouth Harbour, and, as the Government have broken the terms of the land had better take over the harbour, and return the money which was borrowed to the debenture-holders." . The Harbour Board is now considering the letters. The writer of the first letter I also states thafc he only purchased the debentures on April 28th, when they were ab 103, and complains bitterly that the Harbour Board knowing the position had delayed in announcing the fact. That 12 months since an intimation w&e sent home to the debenture-holders, but was withheld j at the request of the Government, who paid the interest on the loan. Tbo Chairman of the Board stated at the meeting that, if an inquiry was held, he was - certain the Board would come out all right, r and the Government would be held respon. eible for the Board's position.