Hawke's Bay Herald. THURSDAY, DECEMBER 9, 1886. THE PORT CHALMERS DOCK TRUST.

Hawke's Bay Herald, Volume XXII, Issue 7613, 9 December 1886, Page 2

Hawke's Bay Herald. THURSDAY, DECEMBER 9, 1886. THE PORT CHALMERS DOCK TRUST.

A I^unediN telegram in Tuesday's issne stated .that .tl^e Chamber of Commerce of fljat towii'jjad passed ; resoJ".t).Qns denouncjiig'tiio ac.tjorjof tli.e l?o,vt Chulmers Dook Trust in connection' with the' projected raising of a loan in London, and the Chamuer further decided that lofte^s 'b'oarlhg on the .subject should be sent for publication in the London papers. .There is a good deal of heated feeling between Dunedin and Tort Cfialmers on tliiß' question. The go-ahead people of Dunedin want to make a port there. TljO residents of Port Chalmers dcclavo' that Nature never meant' Dunedin to be a port, and that map- cannot make ono there. By way of a couutev-nipye •Mr Miieandrew got the Otago Book Trust Act passed, vesting the graving-dock at Port Ghajinexs in a Board 1 on which there are : only two "J)u r ne,dju representatives) The ' i)resei)t trouble js aboul a depfsipir o,f tho , Trust to raise a loaii of £75,000 for 'tlfc construction of a largo graving-dock. Thore is already a graving-dock there sulliciently large to take the UnJDii Com-, pany's boats, but it will not accommodate thoWge oceal > Btcamevs now visiting tho colony The Dunedin representatives on tho Trust flid their best to defeat tho proposal, ,ftn<l they certainly had tho best of the nrgnment. They obtained ollicifil flames (i|.awly proving- that oxisting graving-docks ara "white .elcjohapts" to the bodies owning them. " ftot'mi&'pays fiiteyoftt on cost, and on most there is" an niinual JI9SS $ tI(,QU- ■ snijils of pounds'. Tlio most prosperous is the dock l\t 'PorJ-Übalmers, but .that is

solely owing to its regular Use by tho Union Company's steamers, but even with that powerfnl aid the dock does not pay. If a small dock does not pay with all the Union Company's business, it is manifest that a larger dock could not possibly be anything but a disastrous failure. The coastal- fleet would still use the smaller dock, and the only vessels left for the large one would ' be the ocean-going vessels. But, except in case of accident, they do not require docking in the colony. The Union Company's boats must be periodically docked here or in Melbourne for cleaning and renovation. Rut the ocean-going ships are cleaned only in London, where they can get the work done for a third of what it would cost in the colony. Rut argument or no argument, the Port Chalmers people were determined to have that dock, and a majority of the Trust decided to raise the necessary loan. To this end they did two curious things. First they appointed one of their membeys to go to London to negotiate the loan, a substantial douceur of course being given. To avoid trouble with auditors, the arrangement was niade privately, the member in qncstion resigned his seat, and then he was publicly appointed the loan-agent of the Trust. This is one of the things which roused the Ire of the Dunedin Chamber of Commerce. The other thing was a proceeding which, to use a very mild term, must be described as questionable, and not likely to enhance the credit^f public bodies in New Zealand when it becomes known at Home. Of course it was necessary to show some sort of security for the payment of interest outside the probable clock receipts. The Trust hasconsiderable endowments which, however, are all let on long leases, and, moreover, are hypothecated as security for existing loans. But there is a stretch of foreshore covered with water in the possession of the Trust, and this was leased in a very queer fashion . It is quite valueless as it is, and it is open to question whether it would pay to reclaim it. At any rate the Trust apparently are not desirous of testing that point. So the foreshove was divided into sections and let as if reclaimed, bnt no rent is to be payable until the reclamation has been carried out. Tho tevms of sale were practically these : " Here's some land covered with water. It may be reclaimed some day, and we want you to say what you will give when that is done. There's nothing to pay, but we want to show some security to the English money-lender." At a late meeting of the Trust Mr Donald Reid, one of the Dunedin . representatives, strongly denounced this veiy peculiar proceeding. He said ; " In reference to this nominal letting that had taken place— for he was bound to call it a nominal letting— he felt the greatest humility. It was to his mind one of the most depressing things that had occurred in the province of Ot.ago. That a body entrusted as this body was with the credit of this part of the coloirv should resort (0 such a method of making the money-lenders believe that there was_ a handsome revenue accruing, as that which had been resorted to, really made ono feel the deepest humiliation. We should cover ourselves with sackcloth and ashes ; there really ought to lie a day of humiliation called throughout tho province, when we sa\y these devices resorted to, he must say deliberately, to mislead the moneylenders. Why should any public body have a sale iv advance of rents— call a sale at which people were invited to say how much they would Rive for the leases some indefinite time afterwards ? It was reckless and extravagant if the intentions were honorable and iiisfc, but when it was done for a purpose he thought the seldomer they had reporters at the meeting the better •, they should let such things he hid in oblivion, so that men who wished to carry their heads erect in the province should have such contamination hidden from their vieir. Pie felt humiliated and dishonored that such a transaction should have taken place in a part oi the colony where he resided. He scarcely thought the tactics adopted would succeed. If there was a dock to be built at Port Chalmers, let straightforward, honorable means be adopted. If the work was required, it would be carried out ; but if they were to resort to deception and to what be mtwt call chicanery, it would be far better to do without the dock even if tho dock wero necessary." This is very plain speaking, bnt it appears to be warranted by the circumstances, Practically such leasing is a farce. No doubt proper parchment document's, duly stamped, will become the property of the so-called lessors. If there arise a' demand for land at Port Chalmers the holders of the leases will agitate for the reclamation of their sections, and they may do very well out of their bargains. But supposing they do not want the sections, will they not be strong enough to prevent tho reclamation, and so put oft" paying rent for an indefinite period? In that caso where is the value of tho leases which aro represented to the English money lender as " security" for the loan J