THE GREY LYNN LOAN.

Auckland Star, Volume XL, Issue 43, 19 February 1909, Page 6

THE GREY LYNN LOAN.

A RATEPAYERS' MEETING. A meeting of ratepayers of Grey Lynn held last night in the Church of Chnat, Ponsonby-road, for the purpose of discussing the loan proposals. About 70 ladies and gentlemen Avere present. Mr George Sayers (Mayor of Grey Lynn) occupied the chair. There were also on the platform, Mr. J. R. Reed (Borough Solicitor), Mr. Irwin (Town Clerk), and Councillors Holdsworth, Murray, and Mifidoon. The Mayor explained the position to the ratepayers on the lines traversed at the two previous meetings. He explained that the reserve to be given by the Bank of New Zealand comprised practically the whole of the gully land, and the condition was that the Borough should, within a specified time, form the roads on the portion of the Surrey Hills Estate which is still held by the bank. The Mayor referred to the fact that the bank agreed to finance the proposed loan of £45,000 at four and a-half per cent, and what was very important was that, the Council would only have to pay interest as it required the money. There was also a sinking fund of one per cent which would liquidate the loan in 33 years. Of that one per cent, half would be paid by the Government if the loan was guaranteed under the Loans to Local Bodies Act. Mr. Sayers explained that there would be two issues to vote upon, and ratepayers and their wives were entitled to vote. He then explained the details of the proposed expenditure of the loan. He stated that the Council did not want to make a road right through the reserve, but it was proposed to make Murdoch-road footpath right across to Richmond. The first effect of the loan would be to raise the rates a little over one penny halfpenny. That rate would require to be struck as a guarantee for the loan, but the Council could only collect what rate was required to pay interest on the actual amount of loan raised. He estimated it would take eight years to expend the -whole £45,000, and in that time the buildings in Grey Lynn should have so increased as to lessen the burden on the loan. The Bank of New Zealand had paid for 1908-9 £535 18/3 rates to the Borough of Grey Lynn. That included interest on loans raised for road making in other parts of the Borough. H they estimated' the reserve at 26/ per foot, its value was £10,000, but it was worth a good deal more to tbe Council not to have to make the roads right across. Once that ground was built upon it would be impossible to have an open channel for storm water in the gullies. For those reasons, it was imperative the Council should secure that reserve for the people for all time. Surely £18,500 for making the roads was not too much to spend to secure that reserve. This was the last opportunity they would ever have of securing a reserve from the Bank of New Zealand. They wanted Grey Lynn to progress, but it was being held back because the estate was not roaded. The rates of the Borough would not maintain the roads as at present made. If the loan was not carried, the Council must raise the rates to maintain the Borough affairs. There would' also have to be retrenchment, and men would have to be put off, which meant works being stopped. The Council had done all It could to make the bank construct the roads on its property, and failed at the Court. It was for the ratepayers to decide, but he asked ratepayers on the 27th to cast their vote for the loan of £45,000. Mr. J. R. Reed explained tiic legal position which compelled the Council to make the roads on the Bank of New Zealand's property. He pointed out that as sections were sold it was impossible for the Council to refuse to make the ■ road's owing to the pressure of those who purchased the allotments. He had been informed that'it would cost £70,000 ' to make the roads if the Council did not secure the reserve. The bank had made a fair offer, he would not call it generous, but it was fair, namely, to give an area valued at £10,000 provided the Borough made the road on the rest of the estate. Of course, that was good business for the bank, as the balance the land would fetch much better prices if the roads were all to be made within five years. Still he contended that the offer was one the ratepayers should accept, not merely to secure the reserve, but to escape the enormous expenditure involved in making the roads across the gullies. He considered the ratepayers would make a fatal mistake if they refused to accept the terms offered by the bank. (Applause.) Mr. Holdsworth spoke in support of the loan being. agreed to. He said he opposed the last loan proposal, but he had not changed front, it was the conditions that had altered. When the previous loan was before the people, the Courts had not decided'that the Council was responsible for .making the roads on the Estate. Now the Court of Appeal had settled that point, and unfortunately the decision was against the Borough. Therefore he advocated agreeing to the. present loan -proposal, because it was better to make the road to the permanent . level before building was undertaken. Another point was that since the previous loan was before the ratepayers, the Bank had sold £10,000 worth of property. If they waited much longer the Bank would-be rid of its holding in Grey Lynn, and the ratepayers would still have to make the roads. In conclusion, he appealed to ratepayers to give these proposals their serious consideration. He considered the scheme was in the interest of the whole Borough. Mr. W. Murray also supported the propsals. With regard to the £1,500 for a stone crusher, Mr. Murray said that within the last few years £3,000 had been paid- for metal for the roads in the Borough. If the people missed this loan he was sure they would pay very dearly for it in the future. He sincerely trusted the ratepayers- would not veto this loan as they did tbe former one. Mr. A. Donald said they all knew he was thoroughly opposed to the loan in its pjesent form. He argued that the | whole of the proposed allocation for street formation was after all only doing work piecemeal. His idea -would be to ; spend the whole money, if the loan was ! agreed to, in making a couple of leading roads thoroughly. He contended the al- i location of small sums for a number of ' streets was merely offering. a bait to get ratepayers to put through what he considered to be a very unsatisfactory : scheme. In answering Mr. Donald, the Mayor went on to; say that gentleman had been in the Council nearly 18 years, and it was due to the bad administration' of past Councils that the duty of making these roads was now cast upon the Borough. In conclusion the Mayor said that Councillor Donald was ' not against the loan at all, but against George Sayers. - In answer to Mr. Richardson, the •Mayor said the Bank would be quite willing to only give a loan of £18,500 lust to get the roads made. It was the

Counoil who wanl-ed it increased to ' £45,000 to try and do some work in other parts of the iorough. Mr. Richardson said he could see the rates..would go up anyhow, and if they did not- take the Bank's offer now, they would get, no reserve at all. There did •not seem any alterna+ive but to carry the loan. He considered it would be true business to agree to tne Bank's terms. In answer to a ratepayer, the Mayor said that 48 hours ago he had seen the plans of the tram extension to Richmond, and could assure ratepayers that the tram terminus was to be in front of Short's buildings, at the corner of War-nock-street, Francis-street, and Rich-mond-avenue. He mentioned that, because some* thought the terminus was to be at Billington's corner. Mr. J. H. Muldoon moved: "That this meeting resolves, to support the loan of £45,000." He strongly urged ratepayers to vote for the loan. Mr. Richardson seconded the motion, statins the proposea reserve would t>e of great value in years to come. Mr. W. Martin also strongly advocated the carrying of this loan. The motion was- then carried unanimously.