THE OTAGO DAILY TIMES WEDNESDAY, JUNE 10, 1891.

Otago Daily Times, Issue 9138, 10 June 1891, Page 2

THE OTAGO DAILY TIMES WEDNESDAY, JUNE 10, 1891.

Maintaining its persistently hostile attitude towards the Otago Harbour Board, the Financial Times has again returned to the charge, and has included ourselves in the denunciation because wo assured the English bondholders that their security had in no way depreciated. We shall set forth seriatim the charges and queries of the Financial Times for the purpose of again disposing of these attacks, and would simply remark at the outset that as the most recent of them is based upon information not to be found in the published statements of the Board, and which is very markedly distorted, we still consider our former surmise correct as to the hostility of its informant. The statements made by the Financial Times are as follow: — " That the value of the plant has not been returned as an asset since 1887, when it was valued at L 203.432 ; that the dredge (222), which is valued at L 35.509, is under offer for sale at L 25,000 without finding a purchaser; that the steamer Balclutha, valued at L 1027, has been sold for LSO; that certain offices, land, &c. at Port Chalmers, valued at L 2200, realised L 5 ; that the proceeds of these portions of the assets had been carried to revenue account under no specific heading; that a valuation of the plant would show so great a depreciation compared with the last published inventory as to startle the bondholders; that many of the wharves at Dunedin are in very bad repair, the piles being almost useless from the action of the teredo navalis ; and it reiterates the suspicion that the difficulty aboat the audit of the accounts was due to some undisclosed fault in them. Finally, it concludes by repeating the caution that the interests of the bondholders are in danger, and again recommends that a competent expert should make an investigation upon the spot in order to ascertain the truth. There is also a charge made that the sinking fund is being manipulated in such a way as to blind the bondholders.

Now, we need scarcely say that aa there ia nothing to conceal there cannot be the slightest objection to the most minute examination being made into the affairs of the Board ; bub we certainly think the bondholders •will require something more substantial than the flimsy complaints of the Financial Times before they become so alarmed as to demand it. In the first place the Financial Times has found a mare's nest with regard to the hypothecation of the plant to the bondholders, which is clearly the belief under which that journal's criticisms are made. The security offered to the bondholders consists of certain lands fully set forth in the various authorising Acts, the rents derivable therefrom, and the dues chargeable or receivable. The Board did not borrow money on its plant, a fact which the Financial Times might very easily have ascertained had it cared to do so. If a man borrows money upon a farm in order to improve it he does not necessarily pledge the implements he buys for the purpose, and he deals with them as his own property, adding to or subtracting therefrom as it suits him. The fact ia conveniently ignored that the Board has specific powers by Act to borrow, by way of overdraft, a sum up to six months' revenue, and'to give security for its repayment by bill of sale over its dredges and other plant. The Board is under no obligation to furnish a statement of the plant to the bondholders; but it is accountable to the public whom it represents, and its management of the plant can be satisfactorily explained. The dredge was purchased for a specific purpose, which has been accomplished. It is a special article for •which few bodies have any use, and accordingly it would be useless for the Board to expect to sell it at its original cost. It is surely better to sell the dredge at a reasonable price than to see it rust in inactivity. The same explanation meets the case of the Balclutha. She has accomplished her special object, and was when done with so much old iron. Although it is quite apparent the value at which she stood in the schedule of the Board's assets was absurd for sale purposes, it no doubt truly represented her value to the Board when she was in use. The endowment at Port Chalmers was forcibly taken from the Board, and it is no reflection on that body that its value disappeared from its assets, aa the Board has ever since contended that it suffered from an act of spoliation. This particular endowment was not included in the securities offered to the bondholders. If it had been, and the other securities were of proportionate value to the sum alleged to have been received for it, then the Financial Times might well sound a note of alarm. The doleful picture of, the decay of "many of the wharves at Dunedin" is consistent with the other statements. The Board has inspectors who are presumably efficient, and as every part of the wharves is in constant use from time to time, proof is not needed that the alleged disrepair does not exist. But the fact of the^ matter ia that the Financial Times is here again egregiously at sea, the explanation of its statement no doubt being that it refers to the wharf at Port Chalmers, which ia the property and under the control of the Railway department. The old story of the audit is again repeated to the detriment of the Board. It has been explained over and over again, but in order to satisfy this most captious of critics we may again relate tho facts. Up till the end of 1886, the auditing was conducted under a special system then in use, and which applied to various other bodies. In 1887 the system was changed and the auditing

of the Board's accounts placed under the control of tho Auditor-general. The audit of 1886 was declared to bo final against all persons whomsoever ; the books were finally closed, in fact. But the audit de partment claimed tho right to reopen them and to reclassify accounts. The contest which resulted in the accounts being published without certification was ono simply as to tho manner of keeping theßoard's accounts, and was really a question between the Board's treasurer and the department. No flaw was found in the accounts, and the dispute terminated entirely in favour of the method sanctioned by the Board. As to the statement about the manipulation of the sinking fund, the Financial Times, since it boasts of being well posted in the Board's affairs, would do well to recall the circumstances under which the loan was floated. It would then be fain to admit that the accounts are kept in the precise manner set forth in the proposals, and that there is absolutely no ground for the suspicion that repayment was provided for by a sinking fund which is being—as it would be if the Financial Times were correct— used covertly as ordinary revenue. That the apparent loss on the operations for the year 1888 was about L4OOO was not denied; on the contrary, it was accounted' for by LIO,OOO having been expended on works out of general revenue. But it must and will be emphatically denied that the security of the bondholders was thereby shown to be in any peril. Neither does the credit balance for last year affect their position, and the payment of interest is not, as the Financial Times would have inferred, dependent upon the existence of a credit balance. The interest on the bonds, L 36,000, is a first charge upon the revenue of the Board. The charge for maintenance comes next, and the surplus is what is available for works. The revenue of the Board is ample to meet the preferential charges, and no one who knows anything whatever about Otago and its trade would ever dream of suggesting that such a thing as the failure of the Harbour Board to meet its obligations is possible. It is no doubt quite true that the revenue of the Board is maintained by charges which press heavily against snipping and against our merchants; and it may, and probably will, be necessary to devise means to reduce those charges. But this is a matter which has no practical concern for the bondholders. As we have said, good care will be

taken that they shall in no way suffer. We trust the press here is not so " blinded by local prejudice," as the Financial Times asserts, as to be incapable of discharging its duty to the public ; and we know it would be eager to prevent the occurrence of any malfeasance or error which would bring commercial injury. The Financial Times and other persistent detractors of the colony do not need to remind any of us of the gloom from which we are only barely emerging— a gloom made more cheerless by the carping criticisms and sneering vaticinations of those who are to all appearances, although perhaps unwittingly, made the vehicle for the complaints of baffled wirepullers.

A girl named Nancy Smith, residing in George street Caveraham, was warming herself before a fire yesterday afternoon, when a portion of her clothing caught fire. Before the flames were extinguished the girl received rather severe burns, which necessitated treatment at the Hospital, to which place she was removed. She is now progressing favourably.

Mr R. Beetham, K.M., acting under a royal commission, sat in the Government buildings yesterday morning for the purpose of inquiring into the charges made by Mr James M'Donsld against the official assignee in his administration of the former's bankrupt estate. Mr Fraser represented Mr M'Oonald, and Mr Solomon appeared for the assignee. Me Fraser applied for an adjournment for a month on the score of Mr M'Donsld's bad health, and after hearing Dr Batchelor's evidence on the subject, Mr Beetham adjourned the sitting until 10 30 a.m. of the following day in order to consider the application. Mr Solomon applied that the inquiry might be open to the press, which was granted.

The monthly meeting of the Ofcago Institute was held at the Museum last niglit and was fairly well attended, among those present beiog a number of ladies. Professor Gibbons (president) occupied' the chair and reported to the meeting that Messrs David Wilkinson and T. G. Brickell had been elected members of the Institute. Dr Scott gave some particulars of a disease which hta attacked tbe American brook tront (Salmo fontinalis) in the Acclimatisation Society's ponds at Opoho, and his proved very fatal, aud which is ia the form of a tumor or growth in the throat of the fish. Professor Parker famished notes on three specimens of & fungus called Ikodictyon, which occurred in the bush. Mr L. 0. Beal read a paper on " Volcanic Appearances ia Dowliag Street," illustrating his remarks by a photograph, sketches, and samples of earth taken from the Dowling street catting; Professor Parker drew attention to some Tasmanian sponges, presented to the Museum by Mr Hamilton. Mr F. R. Chapman exhibited two oarda of Maori bone implements, comprising fishhooks, shawl-pins, neck ornaments, and oar pendants; and Mr A. Hamilton drew attention to a specimen of an extremely rare plant—the Dactylanthus taylori — found in the North Island.

The disease which has attacked the American brook trout, or salmo fontinalis, in the Acclimatisation Society's ponds at Opoho and Clinton, and upon which the society propose to obtain the opinion of the Fisheries Commissioners of the United States, formed the subject, at the meeting of the Otago Institute last evening of an interesting discussion, initiated by a description by Dr Scott of the symptoms in some fish that had been submitted to him. Dr Bcott stated that he found a structure which corresponded closely with what ia mammals was called cancer. It was a fatal and malignant spreading tumour in the throat of the fish, and it seemed to be confined to the American brook tront, though Mr Deans, the Acclimatisation Society's curator, informed him that a similar disease had attacked the Rhine trout in tbe ponds at Mssterton, Wairarapa. Dr Hocken inquired whether Dr Bcott considered tbe disease was the same as affected the trout in Lake Wakatipu some years ago—a disease which compelled the trout to come to the surface of the water and which was not confined to a spot under the lower jaw but extended forward and enveloped both jaws in a large mass. Professor Parker said that if he was not mistaken, the disease in the case mentioned by Dr Hocken was caused by fungus and was similar to the sand disease, which was well known ia Europe, and Mr F. E. Chapman remarked that about two years ago the native fish, the inanga, in Lake Wakatipu, were found in the condition referred to by Dr Hocken, presenting a fluffy, feathery appearance on the nnder side. Mr A. Hamilton desired to know if the disease in the American brook trout was likely to be induced or accelerated by the artificial food supplied to the fisb, and also whether it was likely to detrimentally affect the eating properties of the fish. In reply to this Dr Scott said that the causation of cancer was a thing about which there was still a great deal to be learned, and while ho thought there was no doubt that the fish were injured from an eating point of view, he did not consider there was the least danger of caucer being obtaiued from them, because he did not think uancer was iuoculable at all.

Before Messrs W. Hutchison and J. Hazlett, J.P'p., nt the Police Court yesterday, one first offender for drunkenness was convicted and discharged. Walter Newbury, for allowing his chimney to take fire, was fined Is without costs.

A new condition is to be inserted in Government contracts providing that each tender must be accompanied by a declaration that tho contractor will pay the current rate of wages to that paid for similar work in the looality, and recognise eight hours as an ordinary day's labour. It is expected that tho new polioa barraoks will bo ready for occupation by the beginning of next month. At] the monthly meeting oE the City Fire Brigade held at tho station last evening! the proposed Fire Brigades Bill, submitted by the secretary of the Fire Brigades' Association, was considered, and it was eventually decided to leave it over until the conference at Wellington, the members preferring the bill drawn up by by the Wellington City Council. Several members of the brigade decided to join the ambulance classes to ba held in the station this winter, Mr James Cotton, sen., especially well-known in sporting circles, died yesterday morning. Arriving in Dunedin in 1861 from Melbourne, he conducted for some time the European (now Carroll's) Hotel, and afterwards the Peacock Hotel. Ho took a keen interest in all sporting matters, and at one time generally had an interest in one or two racehorses. His two sons, James and Thomas, aro well known throughout the colony as trainers and jockeys. Our Roxburgh correspondent reports the death on Saturday last of Mr John Crosßan, farmer, in his 79th year, after a lingering illness. He was a native of Dumbartonshire, Scotland, and arrived in the colony sometime in the sixties, and settled in the Roxburgh district, where he remained till his decease. He was of a kind and generous disposition, and the large concourse of friends—many of whom came long distances—that attended his funeral showed the great respect in which he was held in the district. He leaves a widow and six sons, and three daughters, all of whom are comfortably settled in Otago. A well attended meeting was held at the Trinity Church Schoolroom, Fort Chalmers, on Monday evening to inaugurate a parochial association. The Rev. F. .C. Platts, who occupied the chair, explained that the object of the association was primarily to supply proper amusement, so necessary to youDg people, during the long winter evenings, the want of which was much felt. The attractions of music and popular indoor social pastimes and amusements would be an important factor. This was not to be at the expense of higher objects and pursuits. The cementing bond of union would be mutual improvement and mutual entertainment. Some 40 members had been enrolled, but a much larger number was required to give stability to the association, and ho appealed to the young people to cast in their lot with them, and asked the older members of the church to assist. A very enjoyable programme was then carried through successfully, instrumental and vocal selections and trios being given by the following:—Misses Reid, Sharp, Dench, Macdonnell, Qabrielle, and Amy de L. Graham, Messrs Marr, Buckley, Pateman, Casbman, and M'Kinnon.

The quarterly meeting of the Churoh of England Suuday School Teachers' Union was held in St. Matthew's Schoolroom on Monday evening. The Yen. Archdeacon Edwards occupied the chair, and over 50 teachers were; present. An animated discussion took place on a recommendation from the committee that a new almanac of lessons for next year should be drawn up, and it was decided that the committee should submit a draft scheme. A motion to hold all general meetings in St. Paul's was lost in favour of the present method of visiting the three City schools. The Rev. E. T. Howell then read a paper sketching the lines on which the teaching in Sunday schools should be carried out.

The Clifton School Committee, Southland, in compliance with a letter from Mr J. Kelly, M.H.R., who is secretary of the Southland Trades and Labour Union, unanimously decided to inform the teacher that they object to any of Whiteombe and Tombs' school requisites being used in tho school.

Timothy Regan was charged at Inveroargill yeßterday with sheep-3fcealing, and remanded till Friday. Bail was allowed in two sureties of £150 each.

The Salvation Army recently opened a labour bureau in Christchurcb. The Press now asserts that the Hon. W. P. Reeves appropriated from Colonel Bailey the entire conception of the Government Labour Bureau, at which the Salvation Army officers are inclined to be angry. The editor of the War Cry interviewed the Minister in April last to ascertain if the Government would give any assistance, and was asked to submit his proposals in writing. On May 19 Colonel Bailey forwarded full details to the Minister, and later on, by request, sent a statement of the relations existing between the army and the Victorian Government. A detailed account of the opening of the bureau in Christchurch appeared on June 3, and three days later the officers learned to their amazement through the medium of an inspired telegram that the Government " were considering a Bcheme for the formation of a department of industry," and "had made considerable progress with details." The Press waxes very wroth over the matter, and says the circumstances seem "to combine breach of confidence and larceny in about equal proportions."

Captain Fox has received a cablegram to the effect that the s.s, Jubilee is at present undergoing an extensive overhaul to her machinery in Sydney. She will resume running next month, leaving Dunedin for Sydney early in July.

The Union S.S. Company are announcing the second of the winter excursions to Melbourne, via Bluff and Hobart. The next boat will be the Wairarapa, which leaves Duoedin on June 18. The fares are: Saloon £6, steerage £3, and return tickets, available for return from Sydney, via Cook Strait, will be issued, as will also tickets for the round trip, available via Sydney and Auckland, at £10 and £12 respectively. The trip to Melbourne, via Hobart, is a novelty, and the opportunity now offered will, no doubt, be largely taken advantage of.

Mr Arthur Clampett will make his third appearance on the concert platform in Dunedin this evening, when he will be the principal performer in a popular concert to be held in the Choral Hall. The same vocalists and instrumentalists as were engaged in the last concert will assist upon the present occasion, and an attractive programme, and one well worthy of a considerable measure of patronage, will be presented.

Oar Wellington correspondent telegraphs that Madame Patey was a great success last night, opening to an immense house packed ia every part. She was received with the utmost enthusiasm, sang magnificently, and received a double recall in every instance. Every seat is engaged for the whole season.

The Bey. Mr HacNeH holds evangelistic services this, to-morrow, and Friday evenings at the Kalkoral Presbyterian Church, and also on Sunday morning. The B Battery, N.Z.8.A.V., parade at the Garrison Hall this evening for Government inspection, and thereafter to elect a lieutenant.

Messrs Wright, StephensoD, and Co. sell 13 draught mares and geldings, and 12 saddle and light harness borses on Saturday at their yards. Messrs Reid, Maclean, and 00. sell 35 fat and forward-conditioned cattle and 25 grain-fed pigs at Burnslde to dsy. We have to acknowledge receipt of the report of the proceedings of the Grand lodge, 1.0 0.F., which was held in Ohristchurch in March last. It is printed in pamphlet form by Messrs Mills, Dick, and 00. The Grand Seoretary' report »nd the balance sheet appears as an appendix.

Have you read Bden George's announcement in a column advertisement on another page ? Everyone who neglects to purchase deposit a ticket will ever regret it.—[Advt.] Marrißge Presents.—lntending purohasera of above are respectfully invited to inspect the new goods just opened at G. and T, Young's, 38 Princes street, Dunedin. Two shipments new goods received this month.- [Advt.]

Money can be obtained from B. Franois, Octagon (next Atbeniznm). BepaM weekly, monthly.—Advt.]

Johh HIBLOP, Watchmaker and Jeweller, 74 Princes street. The oldest established home In town. Bepatrs of all kinds. Good assortment Watches, Olocki. find Jewellery. Speotaolei to ault oil ilghti.—[AdvtJ