OAMARU HARBOUR BOARD

Otago Daily Times, Issue 14715, 24 December 1909, Page 14

OAMARU HARBOUR BOARD

LKAVE CHANTED TO. SFKX.D £12,800.

Yesterday morning Mr Jusiico William's g|ive- judgment on the motion by tho fen V" 1 ?""" "?*' for kw to i-li,m.-lo keep the harbour open and maintain it as « revenue-producing concern. , His Honor said: I am satisfied that it. will b in the best interests of ail concerned, including the 1679 bondholder'.! themselves, that an older should be mario ill .terms of the summons. The evidence is all the one way, and shows conclusively that if the harbour of Oamaru is to continue to carry out the purpose for which it was originally couslriuli'd the proposal expenditure is absolutely necessary. The main object of the harbour was to provide • facilities for the export, of the produce of tlie. surrounding district. The greater part of this produce is exported in vessels which go directly to Great Britain. Of late years the .size of such vessels has considerably increased, and. the evidence shows that as the harbour is at present they cannot enter without risk, and that unless' the suggested improvements are made, they will cease io ' call altogether. In that case the main object for which tho harbour was originated will be to a" great extent frustrated. ' Tho rssnlt would be that the revenues of the board, derived from harbour dues would ehrink very, considerably. ■ This would tend to prejudice the bondholders of 1876, who liavo charge on these Am?. There i« *W1 owing to these'bondholders tlie sum £78.400, which includes the amount of £34,500 due in respect of debentures drawn for payment but not paid. Tho money proposed to bo expended is to lie derived partly Irom a sum of £6356 standing to the credit of .he general account and partly from current revenue. The objectors to this expenditure arc not tlie bondholders of 1876, but the bondholders of 1879. Now, tlie bondholders of 1879 have no claim Io the sum standing to credit. If not otherwise disposed of it would go lowaids the redemption of the £54,500 drawn but unpaid debentures of 1876. The holders of these debentures, however, getting as they do a high ralo of interest for their money, ,ure noi apparently anxious to b v epaid. All that the 1879 bondholders can 'urge with respect to this sum is that if it were applied to taking up the drawn bonds of ilie 1876 loan it would to that extend diminish tho overburden of the .priur, . security and brjuir rather nearer the timo when the 1579 bondholders might expect to. get sonii'tliim;. But if this sum were so applied there would still remain £28.000 of drawn bonds of 1876 to bo paid before the 1879 bondholders would he entitled to miytiiing. Tlie position of tlie 1879 bondholders' is indeed desperate. Interest has, been paid only to the Ist November, 1892. At the end of this year interest to tho amount of £102,000 will be in arrear, and i there is no fund in existence or in p_ros : - pei-t out of which this arrear can be satis-.j /uxl. How tin's discreditable state of things |

originally came about it is unnecessary now to inquire. Anything, howovcr, which improves flic position of the 1676 bondholders necessarily improves the position of the 1879 : bondholders, and anything that weakejis the position of (lie first weakens the position of tho second. 1 am satisfied that the position of the 1876 . bondholders will 1)3 strengthened by allowing' the proposed cxiwwliliiro, inasmuch as it will tend to keep u» the rcvcnuo from dues, which, if the expenditure were not incurred, would fall olf. ]t is better for them that tho money to credit, of the general account should ho so applied than that it should be applied- to paying olf the drawn debentures. I think the proposed expenditure is necessary, ..both to maintain the harbour a 8 a. harbour lit for vessels trading to Great ISntain and to prevent a serious falling olf in the revenue derived from the harbour. Order in tonus of the etwimoiis.