AN IMPORTANT TRANSACTION.

Otago Daily Times, Issue 10359, 14 May 1895, Page 2

AN IMPORTANT TRANSACTION.

A GRATIFYING REPORT. : . Afc Thursday's meeting of the Otago Harbour Board the : Acting-chairman and Chairmau of the Finance Committee reported as follows on the sale of £11-,000 of the board's 5 percent, consolidated debentures locally held in London by the Bank of New Zealand against advances to cash payment conversion account and 6 per cent, sinking fund loan purchase account -.— '

We have pleasure in reporting to the board that, in accordance with the authority given them, the sale of £14,000 of the board's 5 per cent, consolidated debentures has been effected locally in two lines at.a price which yields a margin over the London prices on the Stock Exchange, and which must prove a profitable investment to the purchasers. The low prices to which these bonds have fallen in the London market is quite inexplicable, and it is gratifying to find that local capitalists are turning their attention to a class bf securities which have been too long neglected. The price in the London market: at present yields to the purchaser a rate of interest equal to 6 per cent., the bonds havinp 34 - years to ran, tho security bein-; undoubted, as practically it is the security of the whole property of the people themselves. It may be as well fco note" that the debentures sold are bonds that have been released under the conversion scheme, which has been gradually progressing, since ISSS, and doss not increase, the annual charge for interest, as the amount represents what has ,been paid off ot the 6 per cent, sinking fund bonds loan, 1574. We have to acknowledge the able assistance given us by the manager of the Bank of New Zealand (Mr -Michie) in bringing to a successful issue the eale of these debentures. Details of the transactions are given in a separate memorandum. It may be as well to state for the information of any.parties having capital to invest that the fullest particulars regarding the board's securities may be obtained from the manager of the Bank of New Zealand, or from the secretary and treasurer-of the board. .

The Chairman moved the adoption of. the report, in doing co he said that it must be gratifying to members of the board to see fche success which had attended their first efforts to sell their debentures locally. People began now to see the wisdom of speculating and investing their money in such good securities. There was no occasion to say mnch of the success which had attended fche project, as the report spoke for itself. The board bad been placed at such a disadvantage in the sale of their debentures in London, and through some cause—probably through the undeserved strictures that had been passed on the beard in some quarters—their stock became so depreciated that the members decided to offer them locally, with the result he had already mentioned. Besides the increased profit; fche board received from the local sale, it further had the advantage derived from the fact that tha interest was payable here, and the absence of cost; in the way of exchange, commission, &c. Mr Mackeeeas observed thafc the sales had been effected without; any charge to the board for commission.—(Hear, hear.) The motion was seconded by Mr Pinkeston, and adopted.