THE OTAGO DOCK TRUST.

Otago Witness, Issue 1865, 19 August 1887, Page 11

THE OTAGO DOCK TRUST.

From the beginning the Dock Trust has acted with such a reckless disregard of every consideration of public decency that we ought perhaps not to be astonished at the revelations which have been made during the last few days. But we must confess that our suspicions fell considerably short of the reality. No wonder there was so much concealment when wholesale powers of attorney were being given in contravention of the law, debentures signed for three times the legitimate amount, and telegrams of the order of •• a wink is as good as a nod "to a blind horse " sent to conditionally authorise the issue of the loan at 90 upon the authority of the resolution passed last week, which proves to be as illegal as it was irregular. And the worst of it is that by hook or by crook the Trust are evidently determined to float the loan for the construction of the dock entirely regardless of the price paid for it or the prospect of meeting the interest. If the Trust issue 5 per cent, debentures at 90 and only pay 3 per cent, for charges, the annual interest will amount to £5 14s lid per cent., and at the due date of the loan they will have to repay £114 18s lOdfor every £100 borrowed. That is what the first resolution passed at Wednesday's meeting means. Mr Leary has happily managed to give the members time to think over the matter by inducing them to try the Melbourne market just before definitely committing themselves to a sale through Mr Elder at 90. But, as Sir Julius Vogel pointed out, Mr Allen's cablegram may

lead the Trust into serious difficulties, and the only proper course was to cancel the provisional authority conveyed as promptly as possible, Mr Allen on Wednesday tried to lay blame on the Harbour Board and the Colonial Bank for their efforts to protect the colonial credit, but we are sure that the feeling of every right-thinking colonist will be one of gratitude to these bodies. We do not know whether it is more deplorable than marvellous to note the shamelessness of Mr Allen and his friends. They seem •to be' quite unconscious that their proceedings have been discreditable as well as irregular, and they evidently do not understand their responsibilities in the least. The powers with which they have been entrusted are altogether beyond their capacities, and their sole idea is to get themselves into difficulties in such a manner that Parliament will be bound to help them out for the sake of the colonial credit. Although Sir Julius "Vogel could not help recognising the impropriety of the proceedings of the Trust, he seemed to think that the Harbour Board should give up their opposition to the dock on account of the recklessness 1 of the Trust— because they were prepared to float the loan at 60 if necessary, as we have no doubt they are. This appears to us to be altogether a fallacious argument. The Harbour Board have no personal or corporate animus in the matter. They have done their duty by warning the British investor of the insecure nature of the investment, and we do not see how they can recede from their position, or why they should. The responsibility for the present difficulty lies with the Trust, and at bottom with the Government, who, to please Mr Macandrew, authorised the of the Trust against all considerations of common prudence.