THE WATERWORKS LOAN.

Oamaru Mail, Volume IV, Issue 1281, 15 May 1880, Page 2

THE WATERWORKS LOAN.

The following letters lelating to the floating of the L 50.000 loan was read at the meeting of the Municipal Council on Thursday evening, and speak for themselves as to the success of the loan ; 1, Great Winchester-street, London, E.G., 4th March, 1880. Messrs. Cargills, Gibbs, and Co., Dane din, New Zealand. .Dir Sirs, —Re Oamaru Waterworks Loan. We last addressed you upon this subject on the 27th ult., and our telegram of the 3rd inst. will have infromed you. that our plins for floating this loan were successful—that the bonds fetched the very satisfactory price of LlO4, and that we hoped. to pay L 50,000 to the National Bank of New Zealand on the 17th inst. We enclose a copy of the prospectus issued, which we compiled as well as we could from the information and papers furnished with the previous loan.

As the-National Bank of New Zealand were the bankers of the Oamaru Corporation, and the interest coupons would be payable by them, and their name be thereby identified with the loan, we thought it "due to them to offer to place their name (rather ; than ;that of our own London bankers) upon the prospectus. After much' deliberation and consultation with the stock-brokers, we came to the con-clusion-that it would be better to offer the loan for sale by subscription rather than by tender, as the former mode would more likely attract the notice of the general public, and a better price consequently be obtained ; and which accounts for our fixing the price at LlO4. The fact that out of 79 applications 21 (only) came through stockbrokers shows that our judgment was right, and we know of transactions in the L 60,000 at 103£. We have arranged that the balance of 90 per cent, shall be paid to the Bank on the 17th, and we hope we shall shortly , after receive'the Corporation's letter of authority, and the copies of the New Zealand Gazette, to enable us to ask the Stock Exchange Committee to quote the bonds on ; their official list. • -

Trusting our services may meet with the Corporation's approval, ; Yours faithfully, " (Signed) Cargills, Joachim, and Co.

London; 1 25th March, ISSO, Messrs. Cargills, Gjbbs, and Co., Dunedin, New Zealand. Dear Sirs, —-Re Oamaru Waterworks Loan. Since writing to you on the Bth inst., we have received the balance of the subscriptions to this Loan, amounting, with the previous deposits, to L52,0Q0, and out of this sum we have paid (on the 17th inst.) to the National Bank of New Zealand L 50,000, for the credit of the Oamaru Municipal Corporation Waterworks Account, leaving L2OOO still: in our hands with which to pay charges for advertising, brokerage, comihission, &c. We have also received copies of the New Zealand Gazette, containing the notice of the ratepayers' meeting, we how await the Corporation's letter of authority to issue the Loan, which- will, we think, complete the papers necessary to put' before the Stock Exchange Committee, in support of our application to have the Loan quoted in their official lists. The charges in connection with , the Loan will probably be between will probably be between LIOOO and LI2OO. Yours faithfully,

(Signed) Cargills, Joachim, and Co. P.S.—Nearly the whole of the bonds have been delivered tq the purchasers ; about 16 (to S applicants) are still in qur hands await? ing claimants.