The New Plymouth Harbour Default.

Evening Post, Volume XL, Issue 8, 9 July 1890, Page 2

The New Plymouth Harbour Default.

[Bt Teleobaph.J | united fbjssß association. i Nkw Pltmouth, Thib Dat. At a meeting of the Harbour Board Ibis morning, two letters were read from bondholders in England. Both express surprise at receiving only a portion of their interest. One says that in withholding information the Board mußt have had some object to serve to afford thoßO behind the ecanesan opportunity of disposing of their bonds before ths pnblio at large were aware that any defanlt would be made. He goes into the matter of land endowment, and quotes the prospeotua issued previous to the loan being raised, adding the Government is undoubtedly responsible to the bondholders, and also responsible to your Board in the outlay of the money. Why do you not apply to 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 oonolude, he alludes to the indirect loss the colony must, and has already, suffered by the defanlt, as anyone with a knowlodge of the investors in this country must be aware that confidence is of vast importance to every country. Another bondholder says :— I invested my money eight years ago, believing I had good seourity in so far that the New Zealand Government hod passed an Act for this New Plymouth harbour, and that all interests were well guarded. I was induoed by the late Mr. Westgarth to plaoe money 1 in what was then held to be one of the best and safest harbour loans, from ; the valuable land grants set aside for the payment of interest and capital. No doubt ' the colony of New Zealand has been improved by the making of New Plymouth 1 harbour, and as the Government has broken 1 the terms of the land grant, they had better 1 take over the harbour and return the money 1 whioh was borrowed to the debentureholders. The Harbour Board is now considering the letters. The writer of tho first letter also ' states that be only purchased his debentures 1 on 28th April last, wtoen they were at 103, and complains bitterly that the Harbour ' Board, knowing their position, had delayed in announcing the f aot. Twelve months since an intimation was : sent Home to the debenture-holders, bnt ' withheld at the request of the Government, 1 who paid the interest on the loan.