BOROUGH COUNCIL.

Manawatu Standard, Volume X, Issue 58, 7 August 1885, Page 2

BOROUGH COUNCIL.

Tht; fallowing Utter from the Mayor to Sir Julius Yogel was read on Wednesday evening : — Sib, — I have the honor to acknowledge the ■vdeoipt of your telegram of Ist inst., relative to the promised advance to this borough of i' 50,000, I need scarcely say thtit I felt bitterly disappointed arid 1 cannot help expressing my (egret, at the action taken by yourself and the Insurance Board without m my opinion shewing any just or reasonable cause whatever. The reasons given m the letter from the acting-manager of the association simply appears to be that the solicitors advise against making the advances. In your telegram you infer that I informed yon incorrectly that the Bank of Australasia had arranged to float, the Loan m question at £97. In reply I beg to inform you that this Borough Council did invite tenders from the various banks trading hers, viz., Bank of .Australasia, Union : Ba.uk of Australia, and Bank of J Now Zealand m order to ascertain on what terms they would agree to float the £50,000 Loan, the minimum being £97 and the interest 5 per cent, for 30 years. In response to this invitation the Bank of Australasia did offer the best terms and its tender was accepted, and m the meantime an advance- of . £5000. was arranged at 0 per cent, for twelve months against the" Loan droceeds. In order to complete the legal arrangements between the bank and the Etorough Council, I m. company with the .Town Clerk proceeded to Wellington duly authorised to sign documents^. &c, m order to facilitate matters connected with forwarding, full, particular throttgh;>thj3!bank to LoadoruDuring our dl^cnssionv.wifli the bank manager, Mr' Morriib;'-- the question of ■ providing/ a sinking; fund- of 1 per cent, cropped tip, when I staieVl'tKat sinking • funds wero.-rulijd: bad nuance', and quoted your opinion m cpntiectioniwith-the Pub- ; , lie Sinking- Fund ;.'. q"£; 'thoi.'Cbloiiy. Mr 1 Morrah >va3 anxious to knovvyour opinion regarding the sanie question m connection with our Lo^n'scheme^ahd requested me to seek an Jinteryievv ; with- you m order to. . obteini.- your.Taluefl opinion. You kindly, granied^a^inierview and during thov^feassipn' jd^fersd to "take the whole of the Iio1|&^^&98, and on the terms proposed^iz r j.^jiterest at 5 per: cent, for a"periiba. ofsfeliiiffey year*;. The latter yon offier^;: toiiaakV 'less if preferred. I then ilifofnVed you that prior to accepting yoiir very liberal offer -T- 1 should 'have to consult our banker a3 the matter was m hisJiancfs by resolution of the Council,; : I..did consult Mr Morrali and ho advised the acceptance of your oftety hie opinion being that it was as good as anything likely to be obtained m London after deducting expenses . con* nected with floating, &c. &c. I again had an interview ' with you- ! when I infor i ned you ; of his . advice and as far as I could at the time accepted your offer, subject to a resolution of the Borough . Cvuucjj, It was then - agreed between us that the money would be advanced by instalments as requested by the Council and thai the £10,000 would be rttaiued to cover existing Loan. You advised me to interview Mr Luckiu forth*; purroso of 'layiug the mutter before him and fixing the amount at whi«h to issue debentures. This was done arid arrangements made with Messrs Lyon and IJlnir to. furnish debentures forthwnh so as to be available from July Ist. You also say m your telegram that the Tpveu Clerk ..informed Mr Luckie that no agreement had been signed with the .Bank of Australasia this is quite correct,' but the -reason why the doctiineuts were riot signed was that your offer was considered by me. as a final, and binding orip, consequently the documents prepared by Messrs Brandon and Son for signature on behalf of the Bank wore allowed to lapse because aft<r the, distinct arrangement' with yourself they became quite useless ; they were prepared by the Bank "Inspectors instructions and we have now to pay for them. I need scarcely add that had I not visited you tor the- information above stated, the documents would have been duly signed, and our business m a fair way of 'being settled; m London. 'You inform me m your telegram you now hear our security is not good enough for tlie amount asked and that you would not look at it on that account. I feel deeply dissappointed that you should have ventured any such opinion regarding ouiv se'eurity as I feel, convinced that you lnusVhaye obtainedyour inforication from no friend to this Borongh and Avbuld esteem it a favor if yoii wilt give the name of your informant. Our calculations as to our borrowfng poAvers were : based on our revenue and rateable value, and m my humble opinion as a money-lender would be glad . to get security with a "sinvlar margin for the amount required. Sir, I cannot help thinking and saying that your opinion " regarding our security is a A r ery great injustice to us, and calculated to hamper our friture movements elsewhere m trying to obtain the Loan if ever your opinion becomes public. If you had given any other I could have overlooked it, but the one you give :s very unfair. If you had suggested that we should have made a large proA'ision of special rates or even provide a reasonable Sink--ing Fund', the Council could have modified the proposals m either or both direc tiom, but the object raised by you now is m surmountable. ■ You suggest m yonr telegram you might adA'ance a much smaller amoiint at a higher rate of interest, viz., 0 per cent. I cannot see how -we can reduce tho amount without repasting .our ■ whole' scheme and {hereby losing nmch A'aluahle tima, neither do I see how I can again ask the Burgesses to commence at the beginning of the steps- •■ necessary to obtain a Loan immediately after they, have -just completed those somewhat intricate and to them expensive proceedings. Under the circumstances I must say you, sir, and your Board hnve ' deliberately led iis ' astray, and have caused confusion' and bitter disappointment, quite.indep.endent of the corresponding loss upon this coni; munity. Ido not know what security you expect for yonr money, it is evident to me that it must be of a very unreason^ able nature when you can afford to de' ? clineto carry out the arrangements made Avith this Council. If you had even hinted to me that I should make an applicatinn to the Insurance Board, J should have declined to do so, because I knew that this Board Avas rather eccen-r trie m its dealings, and further, our ar r ran°:ements Avero so Avell and so satisfactorily made Avith our bankers, that I had no need to do so. The temptation tq step aside rose simply through your definite offer of the money, and to my mind the remoA'al of any chance of failure elsewhere. It was this feeling of certainty which prompted me to accept of your offer, and subsequently quash our arrangements Avith the Bank. Had any other Minister made the offer, I might have doubted his power to carry it out, ■'but when the Minister offeringthe money was Sir Julius Yogel, I had no doubt whatever of his being able to do' all he promJsed.or eA-en more if ho found it necessary. It doea appear to me, sir, that under the circumstances above explained it is \'ery hard to be treated m the unfeeling manner now experienced by this eomt munity to huA'o this large and important transaction coolly set aside by a brief nota from the actirig-managerof the Insurance Association 1 , and ratified by a very unsatisfactory telegram from yourself. We were entitled to more consideration and respect from yourself and yo'ir . ofiicial. I, as Mayor, haA-e to bear the brunt of the disgrace now upon us. I, as Mayor, am guilty of havinobeen led as' ray by your glittering golden promises. I, 'as Mayor, am pointed at as one who was too easily deceived by

an offer so bright and so full of anticipateel goorl and prosperity for tho town I represent. lam sorry sir, that bo'.h you and I are now competed to submit to such a humiliating position m ths community, you for havhv? made a promise you have not kept, and I for placing too much faif.h m any. premise made by any one, even Sir Julius Yogel, the man who above all others m this land I havo admired for his wisdom,- integrity, and ability. I am deeply sorry to say my opinion must alter when I find that a promise so honestly and freely given is so lightly broken, and so unceremoniously sot aside by yourself and the members of your Board. In my opinion, sir. tho least you could have done under the cir cumstancea was when declining to substantiate your offer, to place the Council m as good a financial aspect as we were when negotiations were entered into between us. You might safely have offered us a.f ew thousand pounds to com mence operations witn and held our debentures for that amount/pending the fioitrn"* of the Loan elsewhere. You mi^htwhon. declining the busmoss have offered some advico, some sympathy, somi assistance. You"; appear to have forgotten that our desire here,;, as one of the°mo3t important communities m this ountrVi ia to assist m alleviating the.depression m ami around us by providing employment for some of the many anlortunate men who are -at present ramblin" about; the country m idleness cursine their hard" fate m New Zealand. We wanted to expend our loan money m improving a portion of this country and one 1 of its principal towns by making roads, bridges, waterworks; and drainage. In feet,"we wanted to assist the Government of the country m improving the land, and adding to its yalue, thereby providing' homoa'and employment for a : considerable:; number of its inhabitants, and all that, we expected front you was the money offered,, on the boßt of security and aVa. higher rate, of interest than you aro likeiy to" obtain .'elsewhere wilh the same class of security. This your Board has declined simply because, I presume, wo do belong to this debt ridden land, that we are an important ; community, .but still it would appear your funds aro considered safe at home where money :is so plahtifui and where you will, accord ing to: published accoimt s, ge ( t somet hing; like three per cant- for it- .We 'on', the: other hand must go homo to the. $au»e| market where yon are lending, atj. three; per cent, and givo voHsifily five 2>cr cent.' for mpnsy purely for tho l>eneiitrof this: country, and for the members of ytmr : Assurance Society as much, as any one else. Such actions do seem unexplain-i able,.- "do seem unjust and unfair to us,: and m the end must" from sheer' force of , circumstances bring anything- hut 'increased, prosperity. Excuse this long opinion of mine and the liberty taken by ins, and allow me to say that after nearly, twenty-live years residence m thi3 colony with its raany ups and; downs, I feel, more bitterly disappointed over this, matter than 1 1 ever did m all my life be-: f ore. ' t feel that were it possible to-p-Athor up nay goods and chattels, I would say good bye to New Zealand and alhlts future hopes and fears, all its heavy ; taxes, and many draw-backs. Concluding I may say I have stated niy own opinion upon' the actionjfe gating from your BoarJ, butj believe it is the one universally held here.; Shoul i you therefore choose to consider i t add ressed to you as Chairman of the Board, and therefore its property I can offer no objection.—l have tne honor to be your humble servant, ', , -.'".,■."■;. James Linton, ; Mayor.