An Interesting Statement.

Gisborne Standard and Cook County Gazette, Volume II, Issue 217, 3 November 1888, Page 3

An Interesting Statement.

FACTS AND FIGURES. [TO THE EDITOR,] Sir, —I intruded, at last night’s meeting, to lay the following statement before the ratepayers, but he meeting, being short, was over before I SLicred the room, and I therefore ask you to publish the following for general inf ormation : —Owing to the interference of Parliament, the whole system of our interest on loan must be remodelled. In the first place, we must refuse to refund to Government any portion of the £lO,BOO borrowed from loan, and paid to the bondholders for interest. Also, we must refuse to pay any sinking fond out of rates, as the whole of the sinking fond is provided for by the investment of £25,000 out of loan, which said £25,000 invested at 6 per cent., with interest added for thirty years, will, at the time for repayment of the loan, be £148.527. If the interest should be more than 6 per eent., then this amount will be so mueh more than the sum I have mentioned. I have only dealt with the £25,000 for the purpose of earing the ratepayers from being imposed npon by levying any part of the sinking fund from rates. I will now for a moment show you the exact position of the loan.

EXPENDITURE. On plant and works, before stoppage ot works by the Amendment Act of 1887, which limited expenditure to £65,000 Borrowed for interest, to avoid striking any rate for two ysars .. 10,800 Payment on oement contract, and expenses daring stoppage of works, which would have to be paid whether works were continued or stopped, as the cement contract was entered into before the Act was passed ~ .. 5,000 Vote to be taken for the expenditure of a further sum out of loan on the works, and carried .. .. 40,000 Total expenditure on works .. 120 800 Sinking fund 25,000 145,800 Capital out of loan paid to Public Trustee for investment .. .. 55,000 Total of Loan .. .. 200,800 L - an raised 200 000 Now I will show how the loan will be when the bond holders are to receive their money back from the Board— Twenty-five thousand pounds invested for 30 years at say 6 per cent, with interest added, will yield, as I have already stated 143,571 Capital out ot loan paid to Public Trustee 55,000 Total at time of payment to bond holders, without any'sinking fund being levied on ratepayers ~ 198,571 The account will be as follows, on which we shall have to pay rates amounting to £145,000. Interest will be £7,250 a year. Now, I take credit for £l,OBO, the annual instalment to Govertftaent, which, I claim, must be dispensed with. This will leave to be raised by rates £6.170 ; that is, when the whole of the £40,000 will be expended; but I think that we may safely anticipate some profit on the £55,000 invested by Government. If we say 1 per cent, it will be £550. which goes to intereat; hence a reduction of rates. Then, any revenue which may be derived (and I think it is safe to say that some revenue will be derived) will go to the reduction of rates. —I am. Ac., X Towbuy.