THAMES BOROUGH.

Waikato Times, Volume 112, Issue 18703, 1 August 1932, Page 4

THAMES BOROUGH.

HEAVY INDEBTEDNESS. JUDGE & INVESTORS’ PETITIONS. “RECEIVEKSHIP FUTILE.” (By TelegrapH.—Press Association.) WELLINGTON, Saturday. In his written judgment in the Thames debenture holders' petitions for the appointment of a receiver, the oral judgment in which he had already pronounced, His Honour, Mr Justice Ostler says- 1 • ll 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 unimproved value. To-day the rateable value of unimproved land has sunk to about £107,000, but the total amount of loans raised by the borough and secured on rates payable in respect of unimproved value is no less a sum than £250,000, and in addition the Thames Harbour Board has raised £60,000, secured by the borough rate, so that there is a total debt of £2OO for £IOO worth of unimproved value.” Referring to the steadily increasing amount of loans and steadily decreasing value of security offered for them, His Honour points out that since 1924 .there have been no issues of loans taken up by the public except a small loan of £515 by the Australian Mutual Provident Society and one of £12,000 by Messrs, A. and G. Prloe, Ltd., Thames, both in 1925. “With- these exceptions all the money borrowed by the borough since 1924 had been lent by Government departments, ohieily by the Public Trustee, Who has invested no less than £130,000 out of the Common Fund in Thames securities. It seems inevitable that the Common Fund will suffer a heavy loss in this investment.

The opinion, held by His Honour 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. The Thames Borough Commissioner Act provides for the appointment of a commissioner to ■ administer the borough until the postponed elections in May, 1935, and ratifies an agreement reached between a committee representing the debenture-holders and the borough council. Government departments comprise 75 per cent, of the debenture-holders'. An advisory committee of four council members, with the Mayor (Mr S. Ensor) as chairman, is also appointed, to tender advice relating to the management, of the borough. ■ Great Peppermint Cure For Ghlldren’.j Hacking Cough