MASONIC HOTEL, NAPIER

New Zealand Herald, Volume LXIX, Issue 21329, 2 November 1932, Page 15

MASONIC HOTEL, NAPIER

Sir.—Tho statement issued by Mr. G. Ebbett, managing director of tho company owning the hotel, puts a more favourable aspect on these advances for rebuilding than could be gathered from tho statements made in Parliament. But I never heard of a law that could compel a first mortgagee to become only a second mortgagee " whether ho agreed or not." Possibly by instructions issued by the Government, or by arrangement between tho two departments, the Public Trusteo agreed to tako tho position of second mortgagee for tho balance of tho £15,000 owing on his first mortgage, but by so doing ho has definitely placed his department in that inferior position as though ho had deliberately lent tho £15,000 on second mortgage. If tho exceptional circumstances in Napier are accepted as justification for these two loans, one for £21,000 on tho recommendation of the. Rehabilitation Committee in the name of tho State Advances Superintendent; and £15,000 by tho Public Trustee, that accounts for £36,000. The question then remains, was the Unemployment Board justified—under such exceptional circumstances —in lending £BOOO from its funds with only the security a third mortgage gives? And, further, is it advisable that it should have such power, whatever the circumstances ? J. Thornes. 231 Pamell Road.