THE LOAN PROPOSALS.

Stratford Evening Post, Volume XXV, Issue 62, 16 March 1915, Page 7

THE LOAN PROPOSALS.

MEETINC OF RATEPAYERS. About two hundred ratepayers of the Borough attended at the Town Hall last night to consider the proposed loan for new municipal buildings in Stratford. The meeting lasted under an hour, and no opposition was made by those present. His Worship the Mayor (Mr W. P. Kirkwood) presided, and on the platform were Cm. J. Masters, J. Boon, R. McK. Morison, J. H. Thompson, J, B. Richards, and T. Header. The Mayor, in opening his remarks, said there seemed to he some apprehension on the part of the ratepayers as to the Council taking them into their confidence in the matter of the proposed loan for municipal buildings. It would hove been manifestly absurd for the Council to have put the proposals before the ratepayers to borrow money without letting them know. They should be given the opportunity to vote intelligently on the matter. H > regretted that the meeting was not as full as might have been expected, more especially that, some stir had been made on the part of a section in this matter. It always had been the intention of the Council to place the particulars before the ratepayers. The only question was whether this should be done through the prere or by public meeting. As Mayor, he had placed the matter before the Council,, and it had decided on a publm meeting. With that derision he agreed. The only danger was that the meeting might not be sufficiently representative. Now they would, lie said, have to put up with the small attendance. He wished to sav that the Council was of one mind that it was in the best interests of the town that the loan should go through. On many matters the Council had been divided, and sometimes fairly evenly divided, but in this they wovo unanimous, and were satisfied that even the ratepayers considered the loan should go through without any opposition. Am to the proposals themselves, the proposition was to bor row £9OOO at 5 per cent, with 1 per cent, sinking fund. He explained that the rate was 5 per cent., at which it must lie borrowed, or not at all; even at a higher rate it could not be borrowed. Some were under the impression that on account of the war, the interest charges would be higher, but they did not anticipate any difficulty in that respect. They could not get the money from the Advances to Settlers Department, but whether they could get it from the Government or not they felt confident it would be forthcoming at the rate of interest the loan was proposed to be floated. Every local body had not been able to get it from the Government, but they had had no difficulty in getting from other sources Whatever they required from as much as £20,000 up to £70,000. The rata to be struck was another bone of eontantion, but he wished to point out it was necessary to strike the rate only for the security of the loan. The revenue would not only pay interest, but also show a handsome profit. For that reason, it jwould not be necessary to collect the rate, but it would be necessary to strike one. As to the position of the Council at present, he stated that the loss of rent up to March 31st next would be £250. They I had not only lost the rent, but also the insurance—the difference between what it- was insured for and the capital value to-day. If they were only in that position it would not be so bad, but they would lose a further sum in rents during the time the building was beinir erected, which was considered to be tho greater part of nine months, so they would see that the revenue for tho next financial year would lie short practically to the amount of the whole of those rents, namely £592. Altogether there would be a total loss to March, 1916, of £B4O. The point he wished to stress was that the louger they delayed in erecting the building, the more loss there would bo in rents. It may be that the Council was considered dilatory in bringing the proposals before them, but he assured them that the Council had not lost a single day. There had been difficulties to contend with in the way of finance and legal matters, preventing them from bringing it,to a final stage, but there had not been any remissness on the part of the, Council, and every councillor had recognised that the matter was a most important one to the public. Proceeding, the Mayor pointed out that next year the position was going to interfere with the Council's revenue, and whatever the personnel of the new Council might lie, it would have to carefully nurse the finances during the next twelve months. He anticipated the nett profit on the new building would be £SOO. This would be made up as follows: Webster, "Dobson and Co. (£3 10s per week) £182; J K. Stone (£1 12s Gd) £BS; middle shop (£2), £101; Pivac's old shop £2 10s), £130; ground floor of offices, suite of three (£2 ss), £117; first floor offices (£2 10s), £130; tea rooms (£4), £208; a total of £956". Subtracting £450 (the interest on the loan if the whole of it were required) left £SOG. The tea-rooms he mentioned would be very fine and very convenient To bo deducted from the profit there would be the insurance premium and the depreciation charges, but as the biiildino: will he wholly of ferro-con-srete those charges would be low. The rents n* sot out v ore if anvtliing, a low estimate. Those on tho ground floor, at any rate, were low. Enquiries hid already been mf>de for both simps pud offices, and he had little doubt that the whole of *he space to let in the building would bo keenly competed for. The Mayor, aflii rof.ni hip to the

nrepcsed new building as an architectural feature of Broadway, wont on to describe the building from the plans which were displayed. He pointed out that the Council Chambers would be at the hack of the building. It was impossible to embrace all the ideas of the ratepayers' *.n the building, and for this reason, he appealed to ratepayers not to oppose the proposals. one suite of oihees -and one shop would have to be built to meet the conditions of the lessees. The building would be mi ornament to the town. It was well planned, and would (five adequate accommodation for the Borough's requirements. The material used in its construction would make it practically everlasting, while also being fire-proof. In conclusion, the Mayor again affirmed that the proposition contained in the loan was an excellent one, and would show a (handsome annual profit, and he counselled ratepayers to carry the loan in their own interests.

On questions being invited, Mr E. TaCkson asked what the rate would >o and the term of the loan, to which reply was made that it would be :i-20ths of a penny in the £1 for a ;erui of 20 years, as was set out in the idvortisement in the local paper. Mr B. A. Osmond: What do you •stimnte the cost of tbe building?— •9000.

What was the old building insured or:-—£1750.

r s that earmarked?—Yes, if neces■iry, but there may be contingencies to be provided for. A big sum, is it not?—lt may not lecessarily be used. Mr W. A. Hewitt: What is the whole ground worth?—£loo per foot, —and what is the frontage?—76} feet.

Mr J. Smith: Is the rout specially mrmarked to pay for the loanH I vould like to know, as another Coun•il may spend it in another direction.— The rents will he earmarked for that purpose; no Council would attempt to spend it in any other direction. Mr Hewitt- In calculating the pro'it,s did you not make out a low capital value of the land, which would be something if you sold it?—Even if it Is low it would show a very good margin .

Mr Hewitt:* About £loo?—There may be other small contingencies, but there would be no difficulty in •n-oving that a good profit would be left. T was careful to state that the profits would be approximate. At any rate it will be in the neighbourbood of £SOO.

Mr A. Coleman: You stated £SOO nor annum : If that is earmarked it ''ollows that no rate will he levied?— The rate must be struck according to "itatute.

It will not be put in force?—No

Mr E. "Jackson: Was the matter of the Town Hall being built at the rear of the building considered, and if so, what was the objection ?—That matter was discussed by the Council, but it was their opinion that it would be better to have the Town Hall on the other site, with a frontage of its own.

Mr 1). J. Malone': ■'•! What is the lo:igth of the present leases? —From 7} to 8 years.

Xo other questions being forthcoming, the Mayor said he took it that the meeting was in favour of the proposals generally. He invited them to "aspect the plans which were on view. Many of the ratepayers availed hemselves of the opportunity, Mr Healy, the architect, explaining the plans.