HARBOUR BONDS.

Lyttelton Times, Volume LXXIV, Issue 9151, 10 July 1890, Page 6

HARBOUR BONDS.

THE NEW PLYMOUTH CASE. [Per Press Association.] NEW PLYMOUTH, July 9. At a meeting of the Harbour Board this morning, two letters .wore read from the bondholders in England, both expressing surprise at receiving only a portion of their interest. One says“ Withholding information, the Board must have had some object to servo to afford those who are behind the scenes an opportunity of disposing of the bonds they held before the public at largo was aware of tho default about to be made,” Ho goes into the matter of land endowment, and quotes the prospectus issued previous to tho loan being raised, adding, “The Government is undoubtedly responsible to the bondholders, and also responsible to your Board in the outlay of 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 land on a system that would ensure the bondholders being properly treated ?” To conclude he alludes to the indirect loss the Colony must suffer and has already suffered by the default, as anyone with a knowledge of investments in this Colony must bo that confidence is of vast importance to every country. Another bondholder says: “I invested my money eight years ago, believing I had good security, in so far that the New Zealand Government had passed an Act for the New , Plymouth harbour, and all interests were well guarded. I was induced by the late Mr Westgarbh to place money 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 is improved by the making of the New Plymouth harbour, and,, as the Government has broken the terms of the land grant, they had better take over the harbour and return the money which was borrowed to the debenture-holders.” The Harbour Board is now considering the letters. The writer of the first letter also, states that he only purchased the debentures on April 28 last when they were at 103, and complains bitterly that the Harbour Board, knowing. their position, had delayed announcing the fact. Twelve months since intimation was sent Home to the debenture-holders, but withheld at the request of the Government, who paid the interest on the loan. Re the harbour loan the Chairman of the Board stated at the meeting that if an enquiry was held, he was certain the Board would come out all right, and the Government would be held responsible for the Board’s position.