HARBOUR FINANCE

Dominion, Volume 9, Issue 2725, 21 March 1916, Page 9

HARBOUR FINANCE

SOUND POSITION. Speaking at the annual meeting of the Wellington Harbour Board yesterday, the board's chairman (Mr; C. 10. Daniell) claimed that the finances of the pert were satisfactory. Mr. Daniell stated':— "On the assets side the value is set down as £1,131,412, Of this, £174,583 is accumulated sinking funds, invested iu real estate; and in various working accounts we have cosh assets totalling £185,850, Against this, we have a public debt of £850,000. The debentures are largely held by the life insurance offices, so fimi it may bo fairly asssumed that nearly the whole business is locally owned. After providing 'for our debts the unencumbered value of the estate is thus about £570,'t00. Tni.? resuh is no mean achievement, l<.r a pcpn'nrly_ elected bodv which tiiirtyfive years siuce bad little as assets except a power to mortgage its own industry.

"When the board invested £42,000 in the AVlmkarire dredge it was found that to insure this property would csot £1200 a year. It was decided to fund this amount annually and risk the loss. Tho result has been fortunate, for it will be noted that the amount to credit of that particular fundls now £17,870, while the book value of the dredge has been so written down year by year that it now stands at £13,048; that is. if t'lie dredge is lost to-day the cost is provided for. After twelve years of useful if noisy service it is still in good working order.

"The board's experience in insurance is interesting. Recognising the safe lines on which insurance companies do business, the board some ten years since decided to form a fund to insure its permanent staff by setting aside £500 yearly, in addition to the premium demands by tlio insurance company. Tho Tesult is that the fund is in credit £11,500, and it was decided this yeaj to pay only the £500 into the fund without tho amount for premium." .