HARBOUR BOARD DEBENTURES.

Otago Witness, Issue 1892, 15 May 1890, Page 24

HARBOUR BOARD DEBENTURES.

(Per Peess Association.)

London, May 12,

Holders of New Plymouth Harbour Board stock condemn the bank and the Government for the non-fulfilment of the obligations, and are calling a meeting to consider the matter.

New Plymouth, May 14. A letter which was sent by the chairman of the Harbour Board in March last to the bondholders in London has been handed to the press for publication. It gives a statement of the position of the board, and explains the failure to meet the May coupons, which has caused the sudden decline in the board's debentures. The reasons assigned for the inability of the board to meet its engagements are that the revenue from land sales has decreased of recent years owing to most of the available land having been sold, and also in consequence of material alterations in the mode of disposing of Crown lands. This fund has dwindled down to £3000 per annum, the receipts for 11 months of the past year being only £2803 11s lOd. When the loan was raised it was not anticipated that a, rate upon property in the harbour rating district would ever be required, and in fact it was not levied until the year 1887. Since and including that year it has been imposed to the maximum amount of -fd in the pound, and has realised about £5000 per annum. The gross proceeds accruing to the board as harbour fund, comprising rents of endowments, wharfage and other harbour dues, &c, not appropriated specifically for the payment of interest, amounted in the past year to £2657 8s Bd, but after paying the general current expenses this fund is not only swallowed up for the purpose for which it is applicable, but is wholly inadequate for that purpose. No income can therefore be expected from this source to supplement the payment of interest. The writer continues that looking forward to future he cannot see any possibility of the board being able to pay more than 4 per cent., and probably not being able to pay this, for the land revenue is steadily decreasing and must continue to decrease as the lands are disposed of. The area over which the rate extends is increasing yearly, and yet the amount of rate leviable last year has fallen short of each of the two preceding years in consequence of the fall in the value of teal estate. The letter aoncludes by stating that a pro rata distribution of the amount remitted Home would be made on the coupons, and inviting the bondholders to send out a representative for the colony to look after their interests.

The Chairman stated at the meeting of the board to-day that the amount remitted would enable a pro rata distribution of about 1$ per cent, on the half-year's coupons, or at the rate of 3J per cent, for the year, instead of 6 per cent.