LETTERS TO THE EDITOR.

Dominion, Volume 4, Issue 949, 17 October 1910, Page 9

LETTERS TO THE EDITOR.

BANK AND CLIENT. THE MANGATORO BLOCK. Sir,—l -notico that Mr. A. E. Mills, who signs himself "General Manager," lias endeavoured to defend tho.Bank of New Zealand in connection with tho case- of Mr. G.. D. Hamilton, whoso petition was 'recently referred to a Select : Committee'. of ,the House of Representatives. Mr. Mills would have' -acted wisely had lie' awaited the print-' ing and circulation of- the rfeport of tho Committee,- together With the evidence attached to it. in that case I .think ho would/'have found that tho ■report of the Committee, together with, their recommendation, was. not based oil ex parte or one-sided evidence, ordue to any ignorance of any kind, but was' tho result of a very full, complete,', and painstaking investigation. The Committeo were aware of all the circumstances ■ connected with Captain Hamilton's -proceedings in the Supremo Court and' Court, of Appeal; they had before them a printed.- report of the case of about 200 pages; they- : had the findings of the Chief': Justice and ;Mr,. - Justice-' Edwards; and they had not only the' evidence now attached to their Teport,' b\it the .evidence' for. : and against the Bank and Assets Realisation Board, ' taken by: a Parliamentary ■Committee a number of years ago. As Mr. Mills . in his sumta'ary of facts does, not appear to challenge tho accuracy of tho Committee's .report, _ and ..as I generally , prefer to'.pour, oil ■on the troubled waters instead of. on the flames,I will . not deal, with anything that oc-curred-prior to the time when'tho :bank made a playful, spring, after tho manner of a- cat when it has a mouse at its mercy, and began to scjueeze the Captain within its merciful'(?■) clutches. , Mr. Mills refers to , the • demand; of 'the bank for. payment .'of its, overdraft in June,. 183-1, as "a wish or request," and>denies' that 'the bank subsequently -acted :ih.'%,barsh;:6r:precipi,tatd;' manner." :. Let us see, the, nature , of the 1 "wish. or request": ,

'.- .' "Juno. 17, 1884. .: " J " "Payment is hereby demanded from '" ; ybu of the: amount .'due to;this bank; . being' without ; interest £44,994 35,,. ■ : ■ at this date, under security of deeds . given by you to us. l'.S.—-Pay- ; ment must be made before , three • ' o'clock',p.m'. to-morrow, the 18th,of ; , '.•v^vme'.". ': . ' \-.;' v ';;: ' -It is-not-denied that this was personally served on Hamilton at '5: p.m.; aud as "he :.ivas .unable to. find, £45,000 in twenty-two hours, the, bank; put a man -in possession; and 'madej.th®. . Captain" its employee. Apparently, to consolidate:; its. position as owner or Mangattiro-valued by its own .assessor at £94,000; ..and\ improving, rapidly . ill' value—tho bank, subsequently brills about a sale :under the authority ,of tlio Uegistr'ar :of -the Supreme Court, and buys- the estate'• in' as: mortgagee _ for "£sooo.:''' A-few/ months later' the _Bank, of New Zealand Act,-.1861, Amendment, ■Act,- 1889—a.. private Bill—is passed. Mr. Mills says ,"the main .object .of-the,, measure was to .confer . upon the bank, the right to . hold as in .one account tlio whole of'the property assets, which liad accumulated,in .its' hands,. and to,..treat, them in glebp, etc. „" If so,; pray, ilr /Mills,' "why wiis^'..it, made- retrospective. • •LW. the' Act speak for, itself- ' ' • ; 1 ""Clause 5, Subsefction 4:' In any case Where any 'of. the said assets of mortgages of. land, freehold oi, -leasehold,, it .shall..',be lawful.' for _ the board; in the name. and Kin behalf of the, bank—(a) to'buy and bold such,,land when ' the-same rtlay be in exercise of any power ;of salo' contained or implied in any siicli mortga:ge; ■ . ? "Clauso 6.—The,powers/,sions contained, in Section o of this Act. shall liave a retrospective operation; and shall be deemed to have been, in; fora); from the eleventh-day; of October,..looo, so as': 'to ' validate : anything that - may. 'liave- been 1 done 'by;;' the' bank :or the, board; .between .tliat date andthe coming into' operation of .this Act. .... J- '" 'iln'theicourse-of his judgment this is, ■what! tlio'Chief Justice .'say's:—"lt seems I. to' be .'doubtful/whether ..wasvprnyer in :tUe . bank' to; buy-in. as mortgagee l; when-this sale was; made. ■ The Legisla-. ture, however, passed .'an Act on August 2 ISS9, three months', before the deed. I' was executed''by ■ the - Registrar, to the' bank—the - New- •, Zealand Bank Act Amendment Act, 1889. By this statute, there was power given' to the bank to purchase and hold freehold and leasehold land wlien the same were .sold in exercise of ;'any power of sale contained or implied in any mortgage, etc. (see Section 5), : and Section 6 declared. that' the. powers and provisions contairie'd, in Section 5 should have- a- retrospective operation, and lie deemed to have como into .force-on October, 11, 1888,- so as tovalidate anything .'.that may ; have been done by. the bank or board between i-that-date and: the coming, into operation of this Act. .. . ~

"•The question; therefore,, is narrow-, cd. to this:: Could- a mortgagee- buy at. a : Registrar's sale a mortgaged property; I.at -a.-gross under-value? The sum of £5000 was a gross under-value. The property in : question ' was, lib doiibt, •worth ten times as much at least.. The land and stock had . been valued twelve months before the' sale at £72,000, .and I have no doubt" that was not an unfair value."

Yet Mr. Mills considers the main objest of this Bill, with its retrospective clause Hhat'settled, the fate .of .Manga--toro and its owner, was simply to enable the" bank to arrange its accounts;: and •he-adds':'- "The. passage 'of ' the measure (lid. not in "the slightest degree afiect Captain Hamilton's position with the bank; or his rights and^remedies against it."' If this don't "bang ' Banagher" nothing can. l am, etc., • • A. W. HOGG. October 14. .- RE COOK ISLANDS ADMINISTRATION. Sir,—lt is somewhat surprising that a. newspaper of any standing should, upon . the uncorroborated. statement of one individual, not only allow its columns to ,bo used; as-the medium of an attack npon. tlie administration of an absent man, but by "scare headlines"' to impliedly adopt at attack which ; is plainly largely dictated by personal illfeeling towards Captain Smith, or by a factional spirit. . ; 'I do not know Mr. Hoskiiig, but it would be interesting to know inwhat way Captain- Smith lias .''trodden on his toes." The attack is grossly unfair; and there are the ordinary chan r ' nels in which any chargc could be made against the Commissioner, and duly investigated. Rarotonga is a long way from New Zealand, and it is quito easy for a' man- with a real -or fancied grievance to get interviewed by a newspaper with views antagonistic to. the. Government, well knowing that the statements made must get several weeks' start before they can bo effectually refuted It is impossible, to _ tell what truth there-is in Mr. Hosking's statements; I but' from certain, statements made by Mr. Hoskirig l venture to prophesy that his charges will; upon investigation, bo found to bo withoutiiany real foundation. His reference,to Dr. Dawson and. to the windows of the hospital shows him to be personally hostile to the Commissioner; and his statement as to the windows is, I have every reason to believe, not in accordanco with fact. Tho suggestion that the natives aro in a-state of discontent can ea-sily be made. I venture, however, to doubt its veracity.lt does not agree with statements made by Mr. Griffiths, recently published in the local papers, wherein he speaks iu the highest terms

of Captain Smith's handling of the natives, and the general satisfaction with his administration.

It. is, well known that Captain Ejmith's administration of the Old Ago Pensions Department was marked with brilliant success, and the successful- administration of such a Department is one which requires qualifications of the utmost tact.* ' .

The suggestion that Captain Smith is at fault because lie has not in the short period of thirteen months completely settled tho wholo of the- land titles throughout the Islands shows that Mr. Hosking is a man whoso opinion is of little value. This task Mr. .Hosking himself admits to bo a. colossal one; anil thcro is not thc_ slightest. reason to suppose that Captain Smith has not undertaken; the task. with _ his accustomed energy. Tho criticism on Captain. Smith's, judgments-is. paltry, and unconvincing. A cannot please both, sides, and a criticism of a judgment which does not state, and analyse tho merits of the controversy involved is' utterly, valueless. ' In - conclusion it is somewhat curious that no complaint has been made by any native chief concerning Captain Smith, nor has there been any expression of . dissatisfaction from any native source. ; It is from the "Pakelia" that the expression of dissatisfaction"comes; and those 'who'know anything of the. Islands'will regard this circumstance as strikingly, significant.—l.am, etc., . , C. P. SKERRETT.: [Our correspondent is in error. in assuming that Mr. Hosking's statements were published without corroborative..evidence: as to the dissatisfaction 'which'exists at the Islands. -It.is quite true that the Islands are a long way from New Zealand, and this is regarded as one of the reasons why tho unsatisfactory conditions complained of have been 'permitted''to grow up. What is sought in. this matter'' is *an impartial inquiry; when the allegations made could'be proved or refuted.] 'iTHE NODINE CASE. -.'■ Sir,'—While ; one can have. but small sympathy'with- the recent conduct of Mr. Nodine, still -'lie' appears .to . some extent 'to 1 have.' been goaded- on. undev' the law,- and the .question arises, whether a man should.ever be put in gaol to enforce , a civil bargain. Failing tho completion ■of : his '.legitimate engage-. men is every defaulter should be liable to the' extent of - his means, for proved damages,, but it seems monstrous that the gaol can be used as'is 'being : done in this case. No wonder tho sentencing judges were-apologetic.—l am, etc., JUSTICE: WATER POWER. Sir, —1 have -just returned to New ■ ajfber having ! spent" several ; jears; 'in NonYay,- . Sweden, and Scotland, 1 whore-I; have been engaged in the .design;: construction, and runningof large water-power . plants. In tho two countries first named, greater hydro-electric developments . have been going oil' during the last few years than in; any other country in the world, and. I have thus had good opportunities of i studying the latest practice; ;;in .. hy-. ■draulic engineering. Very-.-little information seems available in .New Zealand as to tlio cost of, .existing water-power plants,, so I .give; below, the' total- costs of a -few taken at random. Tlio costs include transmis-: , moiC lilies ;, and./.transformers, but not -distributing 'systems\

;. , ,;., .. . .. V, . : oi "J, : V-'.:' : :; ,: .'V -~ --'i:' "g'Sw. 1- ." " g M.2 B." K ; jL9cation ! -'of'-'Plant.■. g g ■ - ■ 3 ■■ ■ a.g -S-g «os". s £ -5 gs-y '• atd d ' h£2.-S ',6B;1Low,: Falls— '/j, - , ... ... .£ i Nykvarn ......... ,1,420 ~.26 " 29(Me . IJ2O : -20 ';' 22 ■; -Sundborn K 1,110 .42 21i ~ ........\1,680 . 23 ISJ ; Tovehult ...-: ; 700 27 20 Gullspang ........ 25,000 128 it ... Trollhattan ...... 80,000 138 . . ,91 High Falls—. ' ■ • ; ; • . Elschirerk'"........, 6,000 * ' ; 24i Eabinsawerk - -... . 7f-0 .* - "8 Albulaverk. 24,000 23V Pi.get Sound ... 20,000 :46 35 ;" . Eng'elberg: ........ 9,000 17 , ■ 31 ■ Aigle 9,700' .;■■* 9 "Not known. ' I iiotico that the avorago cost of de-. vclopment of the-schemes proposed by the Government' is about £33 per b'.h.p. and I think;.that if ; they "are", able .to ! get a market for, only' three-qnarters .of the full" output of the stations they, .ought to be able to sell .power at tho prices- which they have -stated. / As; Mr. Black' points out in his letters whicdi .have, appeared in the papers the last day or two,' power could never .be : sold: at anything' like the figures mentioned if ; there were .only , a small quantity of. it to be transmitted a :great distance, as" the" cost of long-distanco transmission: lines, is out of all 'prbp<?rtion to the amount of power they- trans-i mit, the. cost 'Of construction; ' being nearly, as much' 1 for' small amounts of power as for largo. " :i .:'. ' - ' ' Instead'of . building one" ]a;rge: station, and sending a few . hundred, h.p.' oil on one line and a few oh another, ; _etc., it would be far more profitable to do. as is done on tho Continent, in Germany, Switzerland, Norway, Sweden, Italy, etc., that is, build small stations in the neighbourhood of the places where the power will be used, so 'as not to have: to transmit the currant any great distance.' As an instance of the proportion of small stations to large ones, 'I may say .fcliat' the Swiedish branch of a firm with which ■ I am connected, has, since, 1905, equipped 113 stations'of less than 1000 li.p., 25 stations between 1000 and 5000 h.p., and' ten stations over 5000 h.p. Of course; where there are large industries; such as electrd-cliemical ones which take ' a large amount of . power continuously day and night, then the long-distanco transmission question is a very different matter.

- The principal reason urged by tike Government as to why they should' control the water :power of the- country is that- by.so doing tbey. protect the. interests of the people .anil give them cheap power .and" light instead of allowing capitalists to get hold; of tbejpower, and distribute .it at a cost'which-will defy competition with coal and gas, and at the same time will mean a handsomo profit. to themselves. This- reasoning may be and probably is correct in tlio case .where power is to be sold to a lot of small consumers, but it is most certainly not so where the power is to be used for industrial purposes such as. mining, mill-driving, electro-chemical work, etc. " • ' If, for example, a manufacturing or mining company lad the right to develop water uower for its own use it would naturally see that .the work was carried out in a sound and efficient manner and that tho plant was run on the most economical lines, so that power would bo availablo at a minimum of cost and thus the cost of production of tlio material or manufactured article 'reduced. Obviously ; tho stato could not do better than this, and therefore they could not supply power any cheaper, and probably not so cheaply, as the company could generate it .themselves. As for people j wishing for small amounts of power 111 the neighbourhood of a power-plant owned by such a company, arrangements could bo mado by which the company obtained a '-license to sell power at a price to be agreed upon by the Stato and which would-al-low a fair margin of profit. Tlio question of tho control of water power has recently been a much-dis-cussed 0110 in' 'Norway, and about 18 months or two. years ago a law was passed, tlio 'substance: of which is as follows:—"All grants of powers exceeding 1000 h.p., whether to Norwegian.or

foreign companies, revert to tlio nation after BO to 80 years, when all regulating works, power-stations, ami equip-, went, beeorae tho property of tlie State without compensation, and other property not under this head may bo acquired, or tho State may demand their removal by a certain dato." At first there was great opposition to .this, as it was thought that it wovild stop- t'lio influx'of foreign,capital which has been such a great thing •for Norway, naturally a poor country; but it does not seem to have made much difference as hydro-electric development is still progressing. , A similar, Bill to the above is now before the Swedish-Parliament, but has not yet been passed;—l. am, etc., , ■W-. LANCELOT MOORE. Bank Chambers, Lambton Quay, October 15.