NAPIER BREAKWATER.

Dominion, Volume 3, Issue 630, 6 October 1909, Page 11

NAPIER BREAKWATER.

...i - :\.-'.-■''■'■■' S—— : '"' :.''•'"■"/'' ; THE PROPOSED LOAN. ; j.'.-." ..HATING CLAUSE DISCUSSED. ,; . /flßKTsleirnph.-Spcclal Correspondent.! ; '■':'•■ ■-.] 'v ; '_.. -'• Napier, October 4. Tho rating clause has always been a bono of. contention in ■ connection with tho proposed loans for tho completion of the Napier Breakwater, :and, the :l question .was : again threshed out at a special meeting of tho Harbour Board to-day called for : . tho purpose, of considering the draft of a. Bill for floating a loan ul -'■■:;' " '..'".' ■..'"■ •When tho-last poll was defeated, Mr. Jull used tho rating clause as'an activo lever of opposition,-and to-day ho moved: "That under this Act tho board is to havo.no authority to levy, a rate upon the Napier.-Harbour' rating district,, but" in case of. default by the board to : pay. principal or interest hereunder a receiver bo: appointed, and such 'receiver, shall have'full power and authority to levy a rate upon the district, all-the necessary ; machinery clauses .to give effect: to the foregoing to bo.insorted in'tho Bill."."In speaking to tho-mo-tion, Mr. Jull said he wished to.give effect to the desire of, a . large,. number of people who were.: anxious to prevent', further rating pow-' ers being created by' the . board. .It. was .objected" that 1 for financial .reasons "it would be impossible'.toTraiso' tho.-'loan without, rating powers.' .At -any . rate that- such good terms; could not'be 6eciired. Ho wished to meet "this objection' by incorporating rating .clauses for, the:protection of the.bondholders, but ;if :it-n ; as necessary.that a rato should be struck it would be by the' receiver. and not by. the-board. ; He hoped . that if this policy were adopted rating by the board would ultimately:, bo abolished. '■'. .•', I .'■■ Mr.jlunro, speaking as the representative of a icountry; district, said that he ielt if tho rat-ing.'clauses.-were removed the poll-would ''bo. carried'unanimously. ' • ."•''■ '. Mr. MTay raised the. question of whether a p6ll;.w6uldbo, necessary if tho proposed Bill contained'no rating clauses.''-..;■-- : Aliv- Campbell, (of. the .firm of Sainsbury, Xogan,-;and AVilliauis,, legal: advisers .to.tho board),; said he was not. prepared to offer an opinion on this point, but a clause could- bo "inserted in the Bill providing for a poll. Mr. Campbell further pointed out that,a-receiver exercising, his authority would bo a direct confession, ou: tho' part of the board that it was unable'.to pay its debts, involving an act of -bankruptcy, .-.•v.---/-' • - •■.'■.-.-."'■.' . ''■■■ ;.Against;. this: 'it,',. was ; contended ' by,- several members that tho board hadomplo security to offer, and tho appointment of a receiver was a -very rpniote contingency. .:.■.'■. Mr. ."W. A. Chambers;said that for his part ho did-aot think) the [board could afford to borrow. this ; money' at'all. Tho. engineers esti-rhated-.the oxpendituro to complete the breakwater :.'n't ..£OII,OOO a year, - ' and'.- this •< Howie's.Bay, could .not.afford. It seemed to hiin.that -it .would.pay the board much better, to do all the lighterage .free than pay: this money, for the. completion of. the breakwater, -as the reTonuo!did not justify it.' ',':.' ■'~.'■■; . :. .Messrs. ' and Knsseli-wore deputed to confer with, the board's : banker, and he stated that, ho thought; the bondholders would be satisfied with the"security offered by-Mr. Jull's motion., ..i:-,-..".'. ..■.'.'.."■ ■:'[■<• _. ,: Mr. Shrimptoh said.he was one,of thoso.who looked.;forward to;.the. breakwater being: completed at an early date, but if this was to be accomplished he thought the rating- clauses B,hou.ld.,be;'eliminated from. the Bill. He "did 'not want to jeopardise a :poll. by. the inclusion of rating clauses; arid ho felt that'the board had ample security .without them. He .pointed out that, tho country settlors' defeated the last poll/and thoy*did not then know tho eitent of thoir. power. :.' :.' :' :< -.„- . .-:'!■■■■'■.■-'■:.' ■;...' "The: chairman '(Mr.": J. ■ Vigor; Brown,, M.E.j said ."the 'peoplo -in the' :town ■ wore no moio anxious for a.rating, clause;than tho peoplo in •the; country, because .-they had'td -pay[double rates,'.,':: ■--:,:.-.;. .■...•.-••■-: ■:•.-.*,.■■ .-v

■; Mr.;iJt.Wlnyvßaidho did not-think anything :wa3.to:bo (rained from discussing:tho question ■further. \Tlie banker::had given them tho'in--•formation that-the security.vwo'uld probably be as. favourably ,'received under -this "Bill as otherwise, and it was apparent that 'members or the board' wero.prepared .to' adopt: this view; He.had always been a stickler for the.:board taking, advantago of'cheap money, and if this were done it did -not mattervvery--much-to• him • hoir; tho 'loan was raised. : , : .-.^B, .chairman ~said„hi,^Erecd_ r mHv'£sir. 31 Vay, as the board only wanted tho loan put on-the ranrkot on the very best terms; If Mr. Julia clause.would; effect this,:'there-was nothe Ward" to* do but'.toasreeV .•'■: ' .The 1 motion ■.;• was '-then ; put,, and' carried unanimously./ 1 ' ',f ''"''''". ,; ; .. . •V-The'draft, p^f:the : proposed Bill', ma 1 then considered and; on, the, motion: of. Mr. Jull, the amount to be increased from .£270,000,' as; recommended -by the en-gineers,-to' .£300,000.'.-"'lt was also decided to add a clause dispensing with tho > necessity of taking -a-poll,^•■•,:-/v-/. ; ..;;';: : ::.-;-;': i; / ■■»■■■, ; -%^ ,i ;.' u^m ?7**''»>- m <>Hon- : prbvidiiiffVfor.'/an alteration'm'tho constitution of the board by .placing -it ;6n an Election ;basis.i - : /After some'discussion 'the. vote'on the motion resulted .in. a. tic; seven members being for and ,seven,against.; ;.- ; V. .-:•;.: ..'.'■..*..* ,- .7 ,\ .';THe cha'irm'a^said-that.as:a i 'tiehad:resiilted hevmust : pe jiis; casting :.yote; f in favour .of the present condition'.of things Beinir continued.] He'thorefore:declared the motion lost. '.:•-■■ - .Mr. .Tull-said'that'as-two'country: members irero, absent ■•it would .-have; been, more fitting if.,*ho chairman had hot-defeated the motion with his casting:.vote. ■•■..- !; ' Mr i $ tovbejtaken for granted that the missmc members would have' voted for. the motion.-- They-had had notice to (Ottena/>.■?•'.";;' ■!■'■-.■_ ■ • ■-. . i-..:\ .' V- -'-■' ■ : : <. -;■:'■ The-'chairman .said he had followed the'•asniil conrso.in such matters., ',:> ;■ . t I .r™^ u f tter '!^ ide^'on t fi e motion of. Jfe: JulU- that .provision bo inserted in tho Bill empowering tho .board to authorise the board's sinking, fund commissioners to invest tho sinking funds, in the board's debentures ".■■-,■■■-.:■