THE GASWORKS LOAN.

Marlborough Daily Times, Volume X, Issue 245, 22 December 1887, Page 3

THE GASWORKS LOAN.

ANOTHER OFFER ACCEPTED. A special meeting of the City Council was held yesterday afternoon V > consider the question once more of the gasworks’ loan. Present: The Mayor (Mr Douslin) and Crs M'Artney, Parker, Jellyman, Cooke, Houldswoi.li, Bj oh ell and Gr'sn. Tho clerk read the following letter from Mr William Boyd, manager of the Wellington Trust, Loanand Investment Company This Company did not offer money, with interest payable in Blenheim, and as debentr-es ere payable to bearer, it makes them unsaleable elsewhere. As it will not involve the Council in any expense, cannot understand objection. All debentures owned by the Company have coupons payable at any brnch bank in tho colony.” Tho following letter was read from Mr Thompson, acting managor of the Color ; al Bank, Blenheim “ With regard to our interviews on the subject of the gasworks loan, I have now to submit the following tender for the consideration of the Council at tho adjourned meeting on the 21st ; *ist:—1. This Bank to take up a 6 per cent loan for £14,000 for ten years, at the price of £96 7s Od per £IOO, and one-half per cent commission. 2. That bonds and half-yearly interest coupons be payable at Auckland, Wel’mgton, Christchurch, Dunedin or Blenheim, but that no exchange or commission be chargeable to the borough. Therefore the Bank undertakes to receive the accounts in Blenheim, and to hold the Council freo from any charge. 3. The security to the Bank to be tho Blenheim gasworks and' a special rato of Is in the £ on annual valuation.”

The fo 1 lowing letter was read from Mr Hartley MTntire, Borough Solicitor: “I have read and considered the correspondence submitted to me by you yesterday between the Council and the We”ington Trust, Loan, and Investment Company, respecting the proposed loan of £14,000. I do not think that such correspondence discloses any contract bind'ng the Council to accept such loan, inasmuch as the Trust and Loan Company has not assented to a certain stipulation ' isisted on by the Council throughout such correspondence —namely, that the interest on tho Debentures should be paid in Blenheim. It possibly might bo open to some contention as to whether the stipulation in question insisted on by tho Council was of so material a natiue as to require the assent of tho Company ; but, as I have before mentioned, I am of opinion that such stipulation is of a material nature, and, unless assented to by tho Company, tho Council is not bound in the transaction.”

Tno Mayor sc ; d although he was in favor of accepting the offer from tho Wellington Trust, Loan, and Investment Company, he wished it to be understood that hc’nno wayacted asa special pleader for tho Company. He had endeavored to place all the facts boforo the Councillors, so that they nrght judge for themselves. Ho did not thmk it u ‘se or just to refuse tho offer from We”ing .on because the one just received was a slightly better one, the discrepancy being or'y the loss of a guinea por »"'urn on the coupons. IT's Worship then moved that tho offer of the Wellington Tust, Loan and Investment bo accepted. Cr Cooke seconded tho motion and in doing so said that ho considered it was rather extraordinary that the Color‘al Bank had or’y at the eleventh hour thought it woi h their wITe to tender. He considered tho We ,i; ogton Company had acted in a straight forward manner.

Cr Green said : Inat the Council had not ”i l”'s opinion received a definite offer from tho Wellington Tiast Loan and Investment Company till yesterday. Cr JeV.yman opposed the motion, and would have done so if the Coine” had not received this new offer. The Council he said had acted on a telegram received from the Mayor, who was hi reality acting as an agent. They were first told that there would be no extra charges made if the offer was accepted, but subsequently it was ascertained there would be. The Company thought the Cot icil was in i: fix and would be bound to accept the offer.

Cr Parker took tho se ne view as Crs Green and Jellyman, but suggested that, as the matter had gone so far, they shoe ’d telegraph to the WV'ington Trust and Loan Company, stating that they had now a better offer, but that they were still wiling to accept the loan if the interest on the debenti - es and the coupons were payable in Blenheim. A’though tho olfor from tho Coloi : al Bark would mean a sav’ng of \ per centaud flOfor interest, or about £BO altogether, ho would not ”ke to see the Coi led involved in a lawsuit.

Or By ihell observed that the Counc’ was dea ' lg \\ Ith public money, and burgesses expected Coi ic' ors to get it at as cheap a rate as possible. He would vote against the W< ' igtou offer.

Cr Green said that i i regard to the Coloi : al Bark not hav' ig made an offer before it was only a business transaction, and that, according to tho Council’s solicitor, it appeared they wore not bound to accept tho offer from the We’hngton Loan Company, and ho for one objected entering into negotiations aga ; n with them. Cr Green then moved as an amendment, That tho Council accept tho offer of the Colonial Bark in the terms of the letter recoivcd.

Cr Horklsworth seconded tho amendment. Tho terms of the loan, he considered were fair and straightforward, and the Council could see at a glance what to do.

CrM'Artney could not vote for the now loan without f vst considering it. Cr Jolly man said if the amendment was put and cf'Tied 'ko Counc" wov’d have, the acceptance of two laai i recorded in thoir ir kiutc book.

The Mayor remarkc 1 that if tho amendflient was not acceptod all the telegrams and oorrespondeuoe would appear on the records of the Council just the same. The amendment was then put, v. 'tli the following resultAyos, s —Crs HouldsvWurth, By die I ', Grc, a, Parker and Je yman. Noes, o— Crs Cooke, M'Aijioy and the Mayor. Cr Green mov .I—T iat + he Well' lgton Trust and Loan Company be : iformcd that their offer has not been accepted, as it is nut in accordance with the Coi ic' ’s lotter of tho sth of December.

Cr Jellyman seconded the motion, which was cai.lcdon ' te voices.