PROPOSED £200,000 LOAN.

Poverty Bay Herald, Volume XLI, Issue 13306, 16 February 1914, Page 2

PROPOSED £200,000 LOAN.

HARBOR BOARD'S ARRANGEMENT!

An adjourned meeting of the Harbor Board was held to-day for the purpose of confirming certain resolutions respecting the raising of the proposed loan of £200,000.

There were present: Messrs J. Townley (Chairman), J. Clark, J. Brown, E. F. Palmer, G. W. Humphreys, C. J, Parker, T. Corson, H. White, and G. Witters

The Chairman said the meeting was an adjourned one for the purpose of receiving certain information whicli would now be laid before the Board. He suggested that a previous resolution appointing the Finance Committee to deal with the loan should be rescinded to clear the way. He moved m this direction, and the resolution was adopt' cd..

The engineer-secretary, Mr McDonald, then placed the following correspondence before the meeting : — Mr F. T. Morgan,- local manager of the Union Bank, -wrote • stating that with regard to the resolution giving the bank discretion to issue the loan at the best possible terms, with .a maximum, rate of interest of 5 per cent.,' although the resolution fixed the maximum rate at 5 per cent., the bank had no Objection whatever to cabling from London for the assent of the Board before finally arrangipg tlie terms of the loan., He added that the bank's only object was to be m a position to issue the loan at the most favorable opportunity. . Writing m reply to the Board's Tetter of January 5, applying for ah extension of the Board's overdraft limit up; to £60,000, pending the flotation of the ■ £200,000 loan, Mr Morgan said ho hadpleasure m advising that the bank; waa j prepared to grant the extended. advance | applied for upon, tbe security already arranged, and -upon the resolutions passed at the Board's nteeting of 19th (January being confirmed. . •'/ ■: This morning « further letter was received from the . local manager of the Union Bank,' quoting the following cable 'cthat had been received from his London officer "We think sale of £75.000 can> be deferred. * W_ether loan will be issued l "at 4£ per cent.:' or 5 pei* cent, and relative price' must '.depend .upon state of market at time of issue," ' •; The Chairman said the -letter, -would meet, the objection of several members of the Board,, and they now (required to ' appoint the 'Fi nance :Committee or some, other committee,; and- the negotiations would not be concluded y unt_ : approved of by the committee m question. Proceeding; the (Jhairman said that when the , Bank obtained -the best' inr formation m London, -they • would cable to New Zealand, and . the mem- ■_ bers of the Board would be called together to consult with -the Rank. He hoped that would be. satisfactory. Mr Clark : Certainly. Mr, Humphreys said it ,would_ meet his objection, but the only "point ;he wanted to know was whether the Bank would recommend deferring a portion of - the loan. *-..''. Tite Chairman Jsaid that one of the members had asked whether, if they raised the whole amount, they could invest the portion, not required im- ( mediately. He had ascertained it was quite legal to do so. ' After some further discussion, • the Chairman moved that the Bank's .ternis 'should be accepted, and that a committee of the whole Board (five to fornia 3uorum)' should be called together at a ay's notice to 'meet the Rank and consider' the terms submitted. For the information of the Board, the.' Chairman gave some particulars Of recent loans raised. The Chairman then ' moved" the confirmation of the various resolutions connected- with the loan.-^Oarried. ' Mr Corson asked' whether the committee, had power to arrange for flotation m two instalments. 'The Chairman said they had, but. he did: not' think that there was any ; occasion to - do so, seeing that if they obtained a -favorable offer -they could take it all up . and immediately invest that not featured just -then. '■•..-._ ' -' Mr Witters thought they ! shonld have the feeling of the Board to-day for." the I direction of the committee as to what they should* accept. / Several members expressed the opinion that they would not recommenctthe acceptance of anything higher than A_ per cent. ... j Mr Clark . remarked that hei thought they would :. Una? bl{s brokerjj would offer the mo^iey at about' 9B, ' but he bad no doubt the bank would, do the very . i best. ''.-.' ..'.'■.' "f- ' Tlie Chairman . sajd that he hoped to ' get the money at par. The bank proposed to, take advantage of the most , favorable opportunity. . ■ i '■.■■■ Further cross-table conversation .en» sued, m the course of which Mr- Clark ; jocularly suggested titat he was -taking a^ trip Home shortly, and he would undertake the flotation" (Laughter.) He-as-sured members, however, * that if— the Board itself was sitting m London they could; not do better thai they had, done.