BOROUGH COUNCIL.

Marlborough Daily Times, Volume X, Issue 191, 10 August 1887, Page 3

BOROUGH COUNCIL.

An adjourned meeting of the Borough Council took place last night. Present - The Mayor (in the chair), Crs Rilev, Houldsworth, Cooke, Parker, Ching MoArtney, Jellyman, Bytholl, and Sinclair. UAS WORKS. The Mayor reported that, he had not succeeded in getting a temporary loan. He was expecting a telegram, and had very little doubt of getting tho money on the following day. The power of attorney from Air Pritchard to Sir Robert Stout had arrived. It was in due form and executed in the presence of tho Lord Mayor of London. The borough solicitor was of opinion that the power of attorney and all the title deeds were in proper order. There was an offer of a loan from Messrs Holmes and Bell, and it was for the Council to consider it. As all tho deeds were ready for signature the borough solicitor advised that there was no necessity to sigai the memorandum of agreement. If, however, the Council preferred to have it signed, it was necessary to appoint two members to do so. Cr MeArtnoy moved that Crs Parker and Riloy sign the agreement on behalf of the Council. The Mayor seconded the motion. The Town Clerk read over the agreement. Cr MeArtney’s motion was carried unanimously. The Mayor said the Council should decide for what period tho temporary loan should lw be’Towfd. If the Council wished, he thought they could get it for two years .it i per cent. Hut it might be heitor to take it. tor six months. Cr Sinclair ‘bought two years would he too long. A fixed loan was necessary, and tile ioouev the Council faced it the better. Cr Riley moved that the Mayor bo empowered to raise a temporary loan for six months. Cr Parker seconded tho motion.

Cr Jellyman moved as an amendment, That Mos rs Holmes and Bell’s offer be accepted, the amount of sinking fund to be arranged to the satisfaction of the Council on a graduated basis, and not to exceed such a sum per annum as will compel the Council to levy a portion or the whole of the rate struck as security for the said loan ; the Council not to pay any further charges than the procuration fee of f) per cent, and cost of cablegrams; Me.-Si's | Holmes and Bell to undertake to remit principal and interest to Jjiigland at a rate not exceeding H per cent, during the currency of the loan ; Messrs Holmes and Bull also in consideration of the abovo commission to undertake and arrange the' temporary loan at a rate of interest not exceeding 7 per cent. Cr Sinclair seconded the amendment. They would get no hotter terms by waiting. and no one in flic colonies or at Home would lend the money without provision being made for * sinking fund. Aiufranuement could he made with I lollies and Bell by which the sinking fund could begin at a small sum, and increase as the gasworks business got better. The Council was not likely to get better terms from the Government Insurance office or tiny other source. In all fairness a reply must be given to Messrs Holmes and Bell that night. Or Riley asked if this modified version ' of Holmes and Bell’s offer was authorised by them. Cr Sinclair could not say it was. Cr Riley then contended that the Council could otdy deal with Holmes and Bell’s original offer, and that ought to be re- ' jeeted. Ho strongly opposed the sinking fund, and thought that posterity should not be made a present of the gasworks. The intention of the ratepayers when the loan was sanctioned was that there should be no sinking fund. The Mayor could not see how Cr Jellyman could submit a fresh proposal from Holmes and Bell without their consent. Cr Jellyman, in explanation, said that he thought the Council hitliortu had been ] too fast in accepting proposals, without putting forward terms of their own. Therefore ho moved the present resolution, because he thought that if Holmes and Bell accepted the terms it would be the cheapest loan the Council could get. Cr Sinclair held that, they were quite at liberty to accept Holmes and Bell’s original offer, subject, to certain modifications. The Mayor said the money was required u» the following day, and Cr Jellyman’s motion might debar them from getting it. CrM‘Art,ney held that Holmes and Bell's

offer must come on tor consideration with the others on the oOth September, by which date applications had been called for. The only business before t he Council was to consider the temporary loan. t'r ’Parker took the same view. After adierti<iug for a loan it would not hr honorable to accept Holmes and lleii's oiler. Tin. Mayor said that il was <|lMo imI possible for the I ourieil to pay oil' the lorn m '..'i* years. The yearly sinking' loud would have to lie raised either hy increased taxation or by a higher price for gas 111Worship then submitted the following calculations : cost with rsocns.vTiojf rrr.. Cakulation made on tho basis of pay-r.j : oil t;mcinal at ths eud ol 20 years •-

In conclusion, His Worhip said that :f they had to increase the price of gas, they would find the consumers falling off. Cr Bythcll supported the amondrnunt, and stilt held that the difference between 5 and G per cent would make a difference of £OOOO to the Council Cr Clung supported the motion, and thought Holmes and Bell’s offer should stand over till after the 30th September. Cr Cooke supported the amendment, and contended that if the gas works could not pay a sinking fund of <5 per cent the Council was better without them. If Holmes and Bell’s offer was not accepted, the Council would have to pay 61 per cent. Money in the colony could not be got for less. The Mayor asked what would he the position of the Council if Holmes and Bell declined the terms proposed by Cr Jellyman. One of the objects of the purchaso of the works was to reduce the price of gn.<, but Cr Jcllyman’s proposal really meant an increase. Cr Jellyman, in reply, said that when Mr Henderson first put the matter before the burgesses he told them a sinking fund would have to ho provided. Replying to the Mayor, ho said that the amendment proposed that Holmes and Bell, if they accepted the modified terms, wore to provide the temporary loan. I f they refused, then the Council could fall hack upon the hunk. He did not think that the sinking fund would increase the price of gas, because year aftor year the interest would he •'rowing less. In conclusion he said that if the works would not pay. 10 per cent and allow of the gas being reduced as well, it was the worst speculation the Council ever went into. The Council divided on Cr Jellyman’* amendment, which was lost. Ayes (-1) Crs Jellyman, Cooke, Bytlicli, and Sinclair. Noes (6), the Mayor, Crs Ilouldsvrorth, Riley, Parker, Ching, and M'Artncy. Cr Riley’s motion in favor of the temporary loan was put and canned. Cr Riley moved that Messrs Holmes and Bell be informed that their offer of the 27th July is declined, and that they are at liberty to submit any other offer up to the 30th September. Cr Houldsworth seconded the motion. Cr Cooke said that the motion would be regarded by Holmes and Bell as an insult. As an amendment ho moved, that they be informed that the Council declines their offer.

Cr Sinelair seconded the amendment. It miabt very properly be left to Holmes and Bell to say whet her they should put in another offer or not. Cr Riley disclaimed any intention of treating them with discourtesy. The Mayor said that llulmes and Bell had been at considerable cost and trouble over the matter, and they were deserving of the thanks of the Council. Cr Riley accepted the suggestion and movedas follows : “That the thanks of this Council bo given to Holmes and Bell for their offer of a loan of £14,000, as contained in their letter of the 27th July, and that they be informed that it is declined, but that the Council will receive offers up to the 30th Sept.” Cr Cooke’s amendment was put and lost on the voices, and Cr Riley's motion was carrio 1. Cr Sinclair asked what reply had been received from the Bank of New Zealand about the temporary loan. The Mayor : The Bank_ absolutely doolinos. We could have had the money at 8 per cent on the Ist July. WIDENING THE STREET. The Mayor gave in the report of the Committee upon the project to widen Market-street by acquiring 30ft of Symon’s Quay. The Committee considered the plan to he impracticable, and that it would require a special Act of Parliament to cany it nut. Symon’s Quay being ;i ] 1 111 >1 i■ - reserve.

the Loan. Cr Parker asked if the Mayor intended to pay the money on the following day ? The Mayor said the money would only be paid on their Solicitor saying the deeds woro ready. Cr Sinclair asked what position the Council would bo in if the temporary loan could not be raised on the following day ? The Mayor said that in that case Mr Pritchard would have to wait for his money. It was ready for him on the Ist July. Replying to Cr Parker, the Mayor said that all difficulties on the title had been removed, and that the Borough Solicitor advised there was nothing in the second mortgagee’s claim. The Council then adjourned.

y per cent, on lean of Ll 1,000.. JjTOO 0 Property Tax . . .. •• 47 0 Exchange on LlOU at 1 per cent .. .. •• 10 Procuration fee on L700, and compound interest for 20 years on the above sum, LI 800, making ft total of L25G0, divided over 20 year' (one twentieth) ■. 1-8 0 In 20 years there would be exclia.ige on L14.000 (one twentieth of L240).. .. '1 0 Total cost per anuuin .. h809 10 WITHOUT 1-nOCUIUTIOX 1’KH. 5 per cent on loan of L 1-1,000.. 700 0 Property Tax .. .. • • 'I 7 0 Exchange on L700, at per cent .. .. •• ■ • 1® 10 In 20 years there would be exchanges on L14.000 (one twen.iethof L240) .. .. 14 0 Cost per annum .. .. L771 10 Monoy borrowed in the colony without procuration foe, at 0 per cent on L14,000 .. 840 0 At 5 per cent with procuration fee ,, .. .. • • 890 10 At G per cent without procuration fee .. .. • • 840 0 Diffcience in favor of 0 per cent .. .. .. • • "0 10 Or in 20 years .. .. .. 1100 0 1