WELLINGTON LOAN RUSHED

New Zealand Herald, Volume LIX, Issue 18072, 22 April 1922, Page 8

WELLINGTON LOAN RUSHED

TWELVEFOLD SUBSCRIPTION. LIST CLOSED IN TEX MINUTES Australian and X.Z. Cable Association. (Reed. 5 30 p.m.) LONDON", April 20. The City of Wellington loan of £693.000 at 5} per cent, at 98 was over-subscribed within 10 minutes after the opening of tho list. The applications amounted to 12 time? tho issue. A queue of some hundreds had been waiting outside the Union Bank of Australia for prospectuses, and the investors were greatly incensed when told <he lift had closed. , ,— INDIGNANT INVESTORS. CLAMOUR FOR PROSPECTI S United Service. LONDON. April -><>. A crowd waited for hours for the open iii£ of the City of "Wellington debenture issue, and attempted to force the bank doors, so that an ugly situation threat ened. A large force of police restored order. The crowd complained that only those inside were able to secure prosp*-''-tuses. A sum of £174,000 has been allocated for the Orongurongo tunnel in connection with the development of the municipal water supply and £519,000 for tramways and power plant, comprising new track Victoria and Wakefield streets, duplication Thorndon Quay, Vivian Street, Island Bay and the Lyall Bay tracks, eitensiuii of car sheds at Kilbirnie; new workshop and plant, Kilbirnie; 24 new cars; tram way extension to Kaiwarra; and ne« power station at Evans Bay. The Mayor of Wellington, Mr. R. \ Wright, M.P., has explained that at the outset, the City Council contemplated paying 6J per cent., but the flotation of the loan was postponed from time to time in view oi the improvement in the money market. Finally 6 per- cent, debentures were printed and sent to London, but when tho council was informed that'a 5J per cent, loan would be successful, arrang.-ments were made for tho flotation by means of script pending the preparation and delivery in London of debentures bearing 5£ per cent, interest. The delay in raising the money involved a '■ ;. risk that tho new power station would not be completed by the time power from Mangahao was available at the end of next year, but the postponement had been fully justified by the saving of at least 1 J?ej cent*, in interest for 20 yeais.