N.P. Harbor Bondholders.

Opunake Times, Volume III, Issue 151, 13 December 1895, Page 2

N.P. Harbor Bondholders.

THE 200,000 ACRES QUESTION

Mr Felix McGuire, member for Egmont, who prior to the last Parliamentary ses i i '1 •-•isited Loudon, and interviewed ;1= ■ • I 'arbor bondholders, waited on the Harbor Board on Tuesday morning, with reference to referring the question of the 200,000 acres, given back by the Government to the Maories out of the confiscated lauds, to arbitration. Mr McGuire pointed out that the bondholders considered "that as their security for the paymentof interest on the loan was good it was not to their interest to proceed with the arbitration, providing the Government agreed to arbitrate in the matter, but more to the interest of the ratepayers, who would be benefiited if they got a fourth of the value of the laud, and they would proceed with the matter if the ratepayers would bear the expenses of arbitration, so far as they were concerned. Mr McGuire said that he waited on the Board in consequence of a letter he had received from Sir J, Lubbock, Chairman of the Council of Foreign Bondholders.

The letter, dated October 10th, was handed in to the Board and read by the secretary. The letter, after reviewing the whole matter, said, that the bondholders would like the Harbor Board’s views on the proposed arbitration. The bondholders were of opinion that it was to the interests of the ratepayers to bear the cost of the arbitration.

Mr McGuire said that before replying to Sir J. Lubbock’s letter be would like an expression of opinion from the Harbor Board as to whether they would bear the cost in case the question went to arbitration. The bondholders, he understood, had their interest paid in full, and were therefore satisfied with their security, but they were willing to interest themselves in the arbitration if the Harbor Board, for the ratepayers, would bear the expense. In his opinion the Board was justly entitled to 25 per cent of the 200,000 acres, and he, with others, were of opinion that if the matter went to arbitration the Harbor Board would win, The Government had gone to arbitration in the Midland Eailway, they had fixed up banks, and he thought it fair play that the Government should grant justice to this district by referring this matter of the 200.000 acres to arbitration. The Chairman said the question was would the Board pass a resolution in favor of paying expenses in case of arbitration. If the Board got the 25 per cent of the 200,000 acres, it would bo a great relief to the ratepayers. Mr Samuel, their solicitor, was present to advise them. Mr Samuel said that the matterhad to be viewed from several points. The main ground on which the bondholders on their part claimed that the Government were responsible to them for the interest on the loan was misleading them by the Atkinson Government paying the coupons on the harbor loan in order to get their 31- per cent loan raised in London. The Board had a claim on the Government in this respect, as the Government in paying that interest had done the Board a favor. The action of the Atkinson Government on the question of paying the coupons had been approved by the Public Accounts Committee, of which he was a member at the time, as the credit of the colony was at the time in a critical position. With regard to the other claim with respect to the 200.000 acres Mr Samuel said that there appeared to be a just claim, and the initial steps in this matter was taken by Mr McGuire, to whom the thanks of the ratepayers were due for the work he had done. On the question of the.expenses of Arbitration Mr Samuel pointed that the expenses would be very heavy, and it was, therefore, a matter for consideration, in committing the Board to a liability over the question. The claim was not a legal but a moral one, and was in a sense of a speculative matter, and it was therefore, a question whether the ratepayers would agree to the expense under the circumstances. Mr McGuire said that in his opinion the expenses would not be heavy, as'the' whole of the circumstances of the Cr)se occurred in the colony, and therefore the witnesses were all resident here. The bondholders knew nothing about the 200,000 acres tills: he had brought the matter up in Parliament. Mr Samuel said if the Harbor Board could got arbitration for, say. GIOO no one could object to it, but if arbitrators of high standing wore to be brought out from England then the expenditure would be exceedingly heavy.

Mr McGuire said the bondholders were quite willing to let the matter be decided by a Judge of the Supreme Court. The Government, however, were not satisfied to take this course. Mr McLean asked Mr McGuire if it would not be advisible to write again to Sir John Lubbock, and got something more definite on this point. The Chairman asked why the question should not be referred to a full Court of Judges.

Mr Samuel said would it bo just as well to let the arbitration be between the Government on the one part and the Harbor Board on the other part. If this course were pursued the Board would be able to keep the expenses down. They might be able to have an inexpensive arbitration, as they might be able to refer the case to the Judges when sitting in Wellington, and do without legal representation, as he understool the information was all contained in State papers and Acts. The Chairman asked the legal aspect of the case

Mr Samuel said that the Board had no legal claim, and the arbitration would have to be ou the ground of an equitable claim. If they claimed ou

law, they would get a negative answer from the Judges. Mr McGuire said it was never contended that it was a legal claim, but simply a claim for justice being done. Mr Smith said that the Colonial Treasurer, when in London, had promised the bondholders to lay the question of arbitration before his colleagues. A few days before the House rose he asked the Government when thoy intended to set up an arbitration in the New Plymouth Harbor Board question, and he received an answer that the matter was under consideration. Before leaving for England the Colonial Treasurer had promised to deliver an address in New Plymouth, and Mr Ward had informed him he intended to keep that promise, and would speak here at an early date. He would, therefore, suggest that the matter should be deferred till Mr Ward visited here, and a deputation consisting of the Chairman, Messrs McGuire, Samuel, Hon T. Kelly, and any other gentlemen could wait on the Colonial Treasurer on the question. With regard to the expense of an arbitration, he pointed out that as the cost could only come out of the ordinary revenue, the Board would have to be careful in view of the obligations that were on them to keep thß harbor in working and navigable order. Mr Samuel said .that in view of Mr Ward’s impending visit it would be perhaps as well to wait on that gentleman. Mr McGuire did nob see anything could be gained by hanging the matter up for Mr Ward’s visit. The Chairman said that the question was in the event of arbitration would the Board be willing to pay expenses ? Would the Board pass a resolution on the matter. ? Mr Bluck asked, could the Board overdraw to meet expenses ? Mr Samuel was of opinion they could. Mr McGuire said that in his opinion the Government did not want ax’bitration, and it was for the Board to go to some expense to bring the matter on. He himself had no hesitation in packing up his carpet bag and going to England at considerable expense over this matter. In answer to Mr Ward, Mr Samuel said the questiion of costs was within the discretion of the arbitrators. Mr McGuire, who was thanked for his attendance, then withdrew. Mr Smith said that the point was whether this land was given as security for the loan, and then taken away. The Chairman said the matter was an important one. He did not think the Government would consent to arbitration, but if they did he believed the Board would have a big chance to win, and if they did the ratepayers would be relieved to a great degree. The Chairman said Mr McGuire had done a great deal for the ratepayers and it would be a graceful thing for the Board to acknowledge his services. Ho moved, That Mr McGuire receive the hearty thanks of the Board for his valuable services and energetic action in interviewing the Council of Foreign Bondholders in London. Mr McLean seconded th« motion, which was carried.—Herald.