CITY LOAN CONVERSION

New Zealand Herald, Volume LXXI, Issue 21983, 14 December 1934, Page 14

CITY LOAN CONVERSION

SCHEME ALMOST COMFLETE

LARGE SAVINGS MADE TRIBUTE TO WORK OF STAFF The task of converting 153 City Council loan issues, aggregating £1,910.451, from debentures bearing interest rates from per cent to 8 per cent to a uniform rate of 4 J per cent has been practically completed by the town clerk, Mr. J. S. Brigham, and his staff. The saving in annual interest and sinking fund for the first year amounts to over £3BOO, which will increase as annual redemptions occur, and the total cost of carrying out the conversion and consolidation was £1519. In reporting to the council last night Mr. Brigham said the gross aggregate liability converted included debentures to the value of £1,810,175 in respect of 131 loans issued by the City Council and seven local bodies now amalgamated with the city, securities valued at £94,185 in respect of advances from the State Advances Office and a liability of £6091 for portion of a loan issued by tho Waiatarua Drainage Board. No dissents from conversion had been lodged and only £BBOO was outstanding, this being represented mainly by debentures owned by holders abroad, and these would be dealt with in due course. The conversion scheme was handled in three sections, deferring to the main section, which involved £1,810,175, Mr. Brigham said the annual charge for interest and sinking fund would be reduced each* year by an amount equal to 1 per cont of the aggregate redemptions to date, so that in the final year of the loan, 1966-1967, by which date annual redemptions would have amounted to £1,568,225, tho annual charge for interest and sinking fund would bo reduced to £81,418. On January 1, 1967, with tho redemption of debentures amounting to £235,850, the loan would be paid.

It was pointed out by Mr. Brigham that all the work had been done by his department. The Mayor, Mr. G. W. Hutchison, said it was a stupendous task and the thanks of tho council were duo to Mr. Brigham and his staff for their work. He mentioned that in the number of debentures -involved the conversion was second only to that of the State scheme. He moved that the thanks of the council be extended to Mr Brigham for his valuable work and that n bonus of £SO be voted to Mr. D. L. Robinson, tho council's checking officer, for the extra time ho had devoted to this work, in addition carrying out his ordinary duties. This was carried.