THE HARBOUR BOARD LOAN.

Evening Post, Volume LXXIII, Issue 27, 1 February 1907, Page 6

THE HARBOUR BOARD LOAN.

'No prescience was necessary to predict the success of tho Wellington Harbour Board loan. The board called for tenders for one thousand debentures of £100 eacii bearing interest at £4 5s per contum per annum, from the iitJth February, 1907, payable by coupons half-yearly on the 28th August, and 28th February in each year, interest payable and principle vapayable free of exchange, at the National Bank in New Zealand, pnd at specified banking institutions in Melbourne and Sydney. The debentures are subject to halfyearly drawings entending from 28th February,' lUIkS, to 28th August, 1946, and the average duration of the loan is thuß 28$ years. Tenders closed at noqn on Wednesday, and wero opened at tho board meeting yesterday, when it was found that the amount was oversubscribed to tho extent of £24,100, the total offered being £1i54,100. The over-subscription of the issue, and that without any of the concomitants of "puffing" and "booming* ' which seems to be necessary in some case 3, is testimony that the security offered is a good one. And so it is. The revenuo of the board for the last financial year amounted to £141,000, and the working expenses and interest amounted to £98,792; after writing £29,093 off the estimated value of tho assets, and setting aside £4760 for addition to the linking fund, there waß a clear balance on the year's working of £7728, sufficient to cover interest at 4^ per cent, per annum on £181,800. According to the prospectus, the loan is to be devoted to the repayment of debentures maturing in London, consisting of £61,000 (1861-84) at 6 per cont., and £100,000 (1886-87) at 4J per cent. The board offered to the London bondholders 4 per cent, debentures under its 1912-1946 scheme of repayment in substitution for such of the bonds as wero maturing at tho end of this month, and the offer has been accepted to the extent of £49,500. Altogether provision has been made for meeting *,350,000 of debentures maturing at the end of the month. A little saving in interest has been effected because some of tho maturing bonds were rated at' 4i, 5 and 6 per cent., furthermore a more scientific method is adopted for tho extinction Of the loans. The Wellington Harbour Board .finances are in a singularly satisfactory condition, and it can continue its policy of progress with absolute confidence.