New Plymouth Harbor Question.

Opunake Times, Volume I, Issue 45, 4 December 1894, Page 2

New Plymouth Harbor Question.

An important letter was received by Mr McGuire, M.H.R., last Friday morning on the subject of the New Plymouth Harbor bonds. Mr Walter Busby, whose name will be familiar in connection with previous correspondence, and with the action of the Council of Foreign Bondholders, writes that on reviewing facts and events up to the present time, “ I deduce the following conclusions: (a) That the default of the Harbor Board is directly due to the action of New Zealand Government in interfering with the security pledged to the bondholders.

(b) That the'New Zealand Government Las persistently refused to make any restitution to the bondholders in respect of tbe 200,000 acres of land appropriated by the Government out of the endowment.

(c) That the Government would have excluded the New Plymouth harbor rating district from deriving any benefit from the recent purchase of native lands had not great pressure been brought to bear upon it.

Various side issues have been introduced into the discussions upon this matter from time to time, and I am gratified to find that at last the question has been reduced to its proper limit, i.e., the indebtedness of the Government to- the Harbor Board of 25 per cent, of the value of the land forcibly taken by the Government from the endowment. It has been my contention from the first that this constitutes the real substantial claim against the Government.”

Mr Busby then goes on to note the indications that the Government intend to float a new loan or loans, and says that as it was intimated to the late Premier, Mr Ballance, that any issue of stock on the London market would be protested against so long as the violation of the security referred to above remained unsettled, a letter has been addressed to the Agent-General reminding him of the fact. “ This ”he adds, “ is not a mere idle threat, but will be carried into effect should the occasion arise.” The letter sent to the Agent-General on the 6th September last from the Council of Foreign Bondholders refers to the fact that in the Budget “ The Government has announced its intention of asking Parliament to assent to legislation authorising the raising in London of a sum not exceeding £1,500,000 per annum, to be advanced to settlers,” and proceeds, after quoting the resolution, to say ; “ The Committee wish to reiterate their extreme regret that they should be compelled, in the defence of the interests they have been called upon to protect, to take steps in the direction of opposing the quotation and settlement of the contemplated new loan.” In short, this means that should an attempt be made to raise money in London, the bondholders will oppose it on the ground that the Harbor Board loan security was, as alleged, interfered with to the detriment of the bondholders. —Star,