HORAHORA HYDRO WORKS

Evening Star, Issue 22032, 18 May 1935, Page 13

HORAHORA HYDRO WORKS

Proas As«ociation—By Telegraph—Copyright LONDON, May 17. Commenting on the Waihi Gold Company’s sale of ftte hydro-electric undertaking to New Zealand, the city editor of ‘The Times’ emphasises the company’s contention that it should be paid at the exchange operating in 1931 namely, £193,182 on the sale price of £212,500, instead- of £170,682 at yesterday’s rate, as the payment was postponed for three years in response to the Government’s request. He adds: The Government’s decision to rely on the legal position is unfortunate, as seeking a remedy in the courts ,is a lengthy and costly process., Moreover, the company, on the grounds of equity, has a strong case which might be settled in a spirit of friendly co-operation.” [The Horahora hydro-electric works were purchased from the. Waihi > Company by the Government in, 1919. The payment of '£212,500' fell one on November, ,1931, ; but the due date was postponed for three years to November I, 1934, The Government .then notified its intention of paying the £212,500 in New Zealand currency, and the waihi Company accepted payment “as a payment on account and under protest, :regerving the company’s rights to receive payment in sterling.” The difference lies in the fact that in 1931 New Zealand currency was depreciated by 10 per cent, on sterling, while to-day it is depreciated by 25 per cent.]