HAWERA HOSPITAL LOAN

Taranaki Daily News, 18 July 1933, Page 8

HAWERA HOSPITAL LOAN

RE-FINANCING DEVELOPMENTS.

PROPOSAL SUBMITTED TO BANK.

Developments in the Hawera Hospital Board’s attempt to re-finance its big building loan were .reported to the board meeting yesterday. The board decided to hold other courses of action over until the attitude of the Bank of New Zealand, which advanced the money for the building, has been ascertained.

The secretary, Mr. C. Harrison, reported that the following letter had been sent to the bank. “My board is desirous of extending its building account loan and I am instructed to inquire if you would consider the liquidation of the present debentures and grant another loan for £50,000 repayable by instalments of £2OOO per annum. It is desired that the loan be raised at a fixed rale of interest.” The Local Government Loans Board secretary wrote expressing regret that the Hospital Board had anticipated a letter which had not been received but stating that the Loans Board had not understood that one was expected until a report had been noticed in the Daily News. The Loans Board had given all the information to Mr. B. McCarthy. In the first place, the letter continued, the debentures were not disposed of in the ordiriary way of business but were hypothecated to the bank, and. while this position obtained there was little to be gained by conversion under the Act, even if that were possible. The rate of interest at present on the deed was 5 per cent., but the Act did not the board to obtain any reduction in this rate. It might be possible, however, for the board to arrange for raising a loan from outside lenders with a view’to repaying the amount borrowed from the bank under the deed of hypothecation and there would appear to be no reason why a transaction of this nature should not be commenced. The sanction of the Loans Board and an Order-in-Council would be necessary, and the transaction would in all respects be treated as a renewal loan. Some local body loans had recently been arranged at 4£ per cent. If the debentures were negotiated it would be competent for the board to proceed with a conversion scheme. However, as the rate of interest on the debentures was 6J per cent, any conversion would be on the basis of a yield to the investor for the term of the securities at the existing rate reduced by 20 per cent. only. In other words, conversion to a 4| per cent, rate would involve a premium. Actually the interest payable to the bank was less than the rate specified in the debentures after allowing for the 20 per cent, reduction which could be obtained if the debentures were sold by the bank. In view of the facts it would appear that the raising of a renewal loan to repay the bank would be in the best interests of- the board, particularly as this would provide the opportunity for a revision of the repayment provisions of the loan.

The Department of Health advised of the receipt from the Loans Board of a similar communication, the text of which was forwarded. The discussion with Mr. B. McCarthy was mentioned and it was stated that the Loans Board. could see no reason why raising a loan from outside lenders to repay the bank should not be commenced. It would be possible for the Hospital Board to obtain a certain amount of relief from the present oppressive capital repayments by a suitable extension of the term of the renewal loan. Mr. McCarthy had undertaken to go further into the possibilities of proceeding further in this, direction, it being understood that he had already discussed with a lending institution a proposal that a loan be obtained from the institution at 4J per cent, interest. GENERAL ITEMS. Examination in Singing. Miss Sylvia Davy, a pupil of the Hawera Convent, gained honourable mention in singing, Grade 11., at the examinations held at Hawera under the auspices of the Associated Board, London. Building at Hawera. Three building permits to the value of £75 were issued by the Hawera Borov< i Council last month. Two Eggs in One. The extraordinary egg laid by a hen in the Hawera district was sent to the Livestock Division of the Department of Agriculture. A report from the department states that the egg on arrival weighed sioz, and when onened was found to contain a normal yolk and a normal egg with shell intact. Meremere Euchre and Dance. There was a larger attendance than usual at the Meremere fortnightly euchre and dance, 14 tables being occupied for euchre. The prizes were won by Mrs. W. Murray and Mr. A. Williams. Consolation prizes were awarded to Miss A. Lane and Mr. Meuli. A Monte Carlo waltz was won by Mrs. J. Bloor and Mr. W. Hardwick. Music for the dancing was- supplied by Messrs. W. Murray and J. Bloor. Mr. J. Bloor was master cf ceremonies. Children’s Trollies Cause Trouble. The inspector (Mr. L. Hunt) reported to the Hawera Borough Council last night that a number of complaints naa reached him recently in reference to children’s trolleys on the footpaths in the main streets; in one case a woman was knocked down. He thought the council should consider the idea of prohibiting them in some areas. ADVERTISERS’ NOTICES. A fancy dress ball for children will be held at the Kaponga Town Hall next Friday. There will be novelties and gilts for every child. Tlie proceeds are to aid the Plunket Society. Mr. C. Davis, boot repairer, Hawera, announces his removal from i inces Street to up-to-date premises m Kegem Street, opposite George and Doughty s. The first game of the Elgar Cup of Rugby matches will be played a - wera to-mdrrow at 2.30 between City and Meremere. The re-play of the co petition match between No T r J nanb Y v Ohangai will take place at NSrmanby. The annual meeting of the Auroa Highland Pipe Band will take place in e Auroa hall on Tuesday next at 8 P- m - Mr. C. D. Dickie will speak on Bobby Calves,” and Mr. Len Taylor, Mangatokij on “Milk Cooling and Types of Cooler at a meeting of the Matapu branch of the Farmers’ Union to-morrow night. I A euchre and long-night dance wi held in the Pihama hall to-night.