HAS HEAVY DEBT.

Star (Christchurch), Volume XLIV, Issue 519, 30 July 1932, Page 11

HAS HEAVY DEBT.

How Thames Borough has Borrowed. JUDGE'S COMMENT. Ter Press Association., WELLINGTON, July 20. In his written judgment in the petitions of TKaraes debenture-holders for the appointment of a receiver, oral judgment in which he had already pronounced, Mr Justice Ostler says:—“lt is unnecessary to give a detailed history of the loans which have been raised, but it may be stated that in 1921 the unimproved value of rateable land in the borough was over £283,000, and the total debt of the borough about £40,000, or about £l4 to every £IOO of the unimproved value. To-day the rateable value of the unimproved land"nas sunk to about £107,000, but the total amount of the loans raided by the borough and secured on rates payable in respect of the unimproved value is no less a sum than £250,000, and in addition the Thames Harbour Board has raised £60,000, secured by a borough rate, so that there is a total debt of £2OO for every £IOO worth of unimproved value.” Referring to the steadily increasing amount of the loans and the steadily decreasing value of the security offered for them, his Honor points out that since 1924 there have been no issues of loans taken up by the public except a small loan of £575 by the 1 A.M.P. Society, and one of £12,000 by A. and G. Price, Ltd., both in 1925. With these exceptions, all the money borrowed by the borough since 1924 has been lent by Government departments, chiefly by the Public Trustee, who has invested no less than £130,000 out of the common fund in Thames securities. Lqss Inevitable. “It seems inevitable,” added his Honor, “ that the common fund will suffer heavy loss in this investment.” The opinion held by his Honor was that, if a receiver were appointed and subsequently the Governor-General in Council appointed a commissioner, the latter appointment would immediately render the receiver powerless. He could take no step to enforce the payment of interest. It would be futile to appoint a receiver if his powers were liable to be destroyed immediately in that way. A message on Tuesday said: —An application to have a receiver appointed in the Thames Borough, which has been forced to default in interest payments on £250,000, has been refused by Mr Justice Ostler in the Supreme Court at Wellington, according to advice received by the borough solicitor. The application was made by an Australian debenture holder. Any other applications will stand adjourned for a month to enable the GovernorGeneral to appoint a Commissioner under the Thames Borough Commissioner Act passed at the last session.