New Plymouth Harbour Loan.

South Canterbury Times, Issue 6264, 10 July 1890, Page 2

New Plymouth Harbour Loan.

LETTERS OF COMPLAINT. (By TBißaEArn.) NEW PLYMOUTH, July 9. At a meeting of the harbour board this morning two letters were read from bondholders in England. Both express surprise at receiving only a portion of the interest. One says that in withholding information the board must have had some object to serve, to afford those behind the scenes an opportunity of disposing of the bonds they held before the public at large became aware of the deficiency to be made. Ho goes into the matter of the land endowment and quotes the prospectus issued previous to the loan being raised, adding “ the Government are undoubtedly responsible to your board in the outlay of the money. Why do you not apply to the Government to make good the deficiency of coupons, and ask them to manage the sale and settlement of the land on a system that would ensure bondholders being properly treated ?” To conclude he alludes to the indirect: loss I ho colony must and has already suffered by the default, as anyone with knowledge of investments in this colony must be aware that confidence is of vast importance to every pountry. Another bondholder says, “I in-

vested money eight years ago believing I had good security in so far that the New Zealand Government had passed an Act for the New Plymouth Harbour, and that all interests were well guarded. I was induced by the late Mr Westgarth to place money in what was then held to bo one of the best and safest harbour loans, from the valuable land grants set a-.ide for the payment cf interest and capit d. No doubt the colony of New Zealand is improved by the making of the Now Plymouth harbour, and as the Govcrnmert has broken the terras of land grant they had better take over the harbour and return the money which was borrowed to the debenture holders."

The Harbour Board are now considering the letters. The writer of the first letter also states he only purchased debentures on April 18th last, when they were at 103, and complains bitterly that the Harbour Board, knowing the position, had delayed in announcing the fact. Twelve months eince intimation was sent Home to the debenture holders, but was withdrawn at the request of the Government who pa : cl tho interest on the loan. The chairman of tho board stated that if an inquiry was hold ho was certain the board would come out all right, and the Government would be held responsible for the board’s position.