CORRESPONDENCE.

Colonist, Volume LX, Issue 14875, 25 September 1918, Page 6

CORRESPONDENCE.

/PUBCHASE! OF THE WHARVES. (To the Editor of, "Tho-Colonist.' l) i jS|s'—?Vl,l^seans^ors *° questions may bo ■ helpful to many:— . - -, , ■ - * ".Question.—Wat is the purchase price, of the wharves, - and whou does the-option cease ? ■ Answer.—Tho . purchase price under present offer U .£100,171, based on the not profit of 3.V per centum in Novemher, if) 13, of £3500. The Government valuation now "is £155,000', based on tho let profit 1916 01 £5502. The option, to Lho H»rbo W Board closes on V^. I**1** <*•«<«* month. Why lose the" aroo.OO:) by delay? Question.—is an increase likolv to accrue from wharfage? . .Answer.—Tho revenue from the vniarf charges and rent of foreshores are mlly expected to increase after the war with the development of tho apple industry, tho export of more wool and frozen meat, etc., through the openin" up of new country. It is probable that the net profit may be in tho neighbourhood of £7000 or £8000 per annum. !

In the faco of the war is it opportune, to «s kfor a sanction of the loan? The Harbour Board fully recognises it is a inopportuno time to.place -tho matter before the- ratepayer*?; but liiey f.iv fa::ed by the Government action in the matter, lab. In 1016, oa c'n> re".;, >st tbyi. the question of the r . r !.;,r o f:p O iild i-c postponed -'for a ."••ir, ti'-ov v.-ore Uiid by "the Minister M' T ,Yd niinie no i:."ivf. to get the r.mijnvvjiu.o- "Bill "throuoh the -House. A. u.ovv v/ats then made" and this was done m the J917 session. Tlie board applied this year for another twelve mouths' extension of time on account of the war. They were told as;ain that it appeared to him .they were only marking time, and no effort had been «inde by the board to raise the money. The beard were advised to-go to Welliuslon and see- the Colonial Treasurer, as the Government now valued the wharves at £150,000, and the option would dose on October Ist. A deputation went to Wellington and secured the money from the Public Trustee at 5.l f per cent, and 1 per cent, sinking fi""-l to wipe out th<* loan in 3G.V years. Tlie question may be a-sked how interest is to bo paid on the £100,171. The net income in 1916 was about £■5000, which will about provide for this, but nob for the 1 per cent, sinking fund. This will require to be raised by a tax of 1~.12d in the £. But.the Board has sufficient capital on hand to pay this 1 per cent..: tax.■until. 1920, when it is hop^d the'war will be over. By that time iV is-hoped that the net profit from wharfage will have increased I sufficiently, to -pay the 1 > per cent, as well as-interest on the larger amount. ' -

Question.—"Why was the present -harbour rate struck before this loan was placed before.the public? , Answer.—The Harbour Board borrowed £65,000 to make the cut through the Boulder Bank, enabling steamers of 10,000 gross tonnage to enter the port. Until this year sufficient money was collected from, pilotage, light .dues, a"d port ".charges, to pay interest" and allow .for some improvements. The net income from above- varied from £400 to £500 ? ; per monthv There has been a sfceady : decrease ■..•during tthe last two years j and at the end of last financial .year" the credit balance was only abbui £1200/ - -;.■•>-. :

This year tk« receipts from above have dropped to £l(p per month, owing to the_ serious shrinkage in the number and size of fvnts entering the port. Consequently t! Board" for the first time was oblige' o call upon the ratepayers for a si! I tax of l-12d in the £. When the var is aver and tV.p. shi'-v----ping is back to normal there will foe no further noed to call upon tho ratepayers. _ . vS in 36£ years the-loan will, bo repaid; 2nd the whole of the income'-of"'£5000. 1:7000,"or"•SEID.OOO, as the case may be,,-' p.-i!l'bo available by the district for harbour improvements "

I am, etc..

' COM3! GN SENSE.

(To the Editor <tf s<Tue Colonist/i Sir,—-In your leader of Friday last you wero quito right in stating that' the poll to be taken on Wednesday nex£ in connection with the proposal to purchase the wharves is "an occasion which means much" for this district; but you were quite mistaken in regarding tiie meagre interest manifested by the public in the meetings recently addressfc*l by members of the Harbour Board as ;s-matter; of-regret^ It is rather-; a sign ,£hat the1 ratepayers generally are disgusted at the attempt that is being niado to thro>v j^and in-their eyes, and to decoy them into sanctioning the proposed loan of £103,000, merely for the purpose of acquiring the right to control the wharves which wo alieady practicallj- possess. I beg for space to point out how the Harbour Board is deliberately attoirptiug to mislead the ratepayer.-. ivj> vo tho real loss which will be entailed upon them if the loan is cai--ricd. In the lea/lot they have so wide- I lj Circulated they frankly admit-that -a. rat*» t,q jraise £7080 will 'have >to be struck at loiioa; anil they *iro "trying to ainke £he -ratepayers -believe -that thiß is practically all the cost that -will be entiuled. _But tho real cest in monej^ t will equal ih& *?hole .inquired |ft» '^merest -end- sinking \ fund during\36i >earb. . For the first year,~-at-6 -per ,ceuL., this would come to £6018/ or »£430 more than the net annual revenue |(\iz., £<5562) vdiich they say is at pre|;.ent- derived from the wharves and leases. Looked at another way, if we had at our disposal £103,000 as a fund free of interest, and if instead of buying the present wharves with it, we should invest the amount at 6 per cent., the jsirriple interest alone would amount in 2Q\ year» to no less than £219,657, and the compound interest to an immensely greater sum". This is the real amount of direct monetary cost to the utepayeib, and (ignoring compound interest) it would mean an actual loss of £16,644, even supposing the present amount of revenue from the wharves and fcase-b is maintained all the time.

Bayonet obviating dual control, no proof has been given that the present proposal eaa possibly become a paying proposition. Like the members of the Harbour Board, you represent the present ciianco Urbuy out the wharvos as something the ratepayers should eager ly seize upon, a& the opportunity may Jicvor recur. I . fail to see where , the advantageous chance comes -in; but it is a- moral certainty that if the ratepayers do make a grab, they will have their fingers badly bitten, oven more so than in the past, ana cney rnuy naial up ivhen it is too la.to.to rectify their mistake. It should be remembered that the wharves even r.:*w are in a vory indifferent , state of repair, and that during the next 361 years they v.ill require rebuilding at iv cost-of at loa-st ar.r.thr-r £103.000. which will mean so much additional loos; and on the top of this will coma all further costs for drodg-ing and other forms of upkeep connected with the prc-s'ont"; preonrlm 1'- harbou". l?ut. "the probability \a thai the present'annual-revenue from the v;harves v/ill not bo maintained ior ;->;'. vorirs. ayart from the completion of (.bo 35idlnnd Itailway, Railway consLrucrloris now ft a standstill, and beforo lons most of tl><? apples and other fruit will he shii>r.od directly from Mapua and Motueiia. and will not come over -the Nelson wharves at all. More-;, over, constant dredging will certainly jbe^required to "keep the present chaninel'clear of silt, outside and inside "the];!

Boulder Bank, and this alone will be so costly.as/tq", absorb all ,the- vrevenue derived from tho wbarvea- and leases. _lhus , there is no tolling what, further loans and extra rates .will bo required to say nothing of further war loan dov mauds." And jshoiild the- but, through"' thejxnilaer Bjfnk become choked «t any time' through tho "shifting of tho loose sandbank dufcsido,. then, all that is'spent" o_n dredging, and in purchasing the wharves, will prove a-total loss, and y.'ill bo coincident with the industrial rum oi; Kelsou and " district. Many ratepayers are not aware that t\votliirds of the apple-growing-, lauds and more than two-thirds of, the other laud in tho general district aro outside the Harbour Board's rating area, and will -contribute nothing towards the' extra rates. These are only a few among many roasons why local ratopayors should take- care to go to the poll on .Wednesday and vote signing I the present deceitful and dangerous proposals, which, if carried, would unnecessarily hang Nelson up for anoLh'cr 50 years. I, am, etc., JOSEPH TAYLOR.

September 23rd