The Daily News MONDAY, JUNE 15. "DECEITFUL PREVARICATION."

Taranaki Daily News, Volume LI, Issue 149, 15 June 1908, Page 2

The Daily News MONDAY, JUNE 15. "DECEITFUL PREVARICATION."

The above words, quoted from the conclusion of an editorial in a recent issue of the Inglcwood Itcaird, tersely explain-, the attitude of the liecord 'in replying to Mr. .Maxwell's explanations regarding the effect of the New i lv uth Harbor Bill. The Hccord bases ils allegations against Mr. .Maxwell on the following passage, quoted from a lrttcr recently contributed by that gentleinan to the Hawera Star:— "It (the proposed Hill) reduced the legal liability of the ratepayers throughout a district, which in valuation is more than half the total, to one-third of what it is now, and their actual payments to practically nothing." Mr. Maxwell was obviously referring to the district under the third schedule of the Hill, practically the whole district south of a line drawn from about l'ungarehu to Stratford and the East road. The Hccord claims that instead of reducing the legal liability of ratepayers, the Hill will distinctly increase it, and proceeds to prove it's contention by evolving a borrowing proposal of its own, and one that does not for a moment enier into the question at all. TheKecoro proceeds:—"lf Mr. Maxwell has studied the Hill as closely as he wishes his readers to believe, lie must know that the legal liability ot ratepayers is to make up the deficiency between the proceeds from land revenue and the interest payable."

Those who have studied the proposed Hill will recognise that this assumption is wrong at the outset. The legal liability of the ratepayers under the proposed Hill is to make up the deficiency lielweoi the total proceeds from land fund, endowments, .C4S<HI from the Hoard's ordinary revenue, and the interest payable. The liecord supports its statement with the following conundrum:—"The amount of loan required will be. say. .C 1.5.0(111, the interest on which will be' JCGOUII, out of which the land revenue will provide on Mr. King's ligures t-Hi.52, leaving only C 1348 to be found by ratepayers. The total value of the harbor district is about r.10.1111,1132 las Waitara would be retained under the renewal of the old loan), which would mean a legal liability of only a fraction of a farthing, and nothing further could be asked from them, and we cannot see that the cll'oit made on every side to make the ratepayer.-, lwlieve that their liability remains at %d ill the X is either honorable or reasonably truthful." Our contemporary has got the proposals -the existing Act and the proposed Hill —so intricately mixed in the above sentence that it is dilircult to follow what lie is driving at. It would appear, however, that he has ignored altogether the vital provision of the new Hill asking authority to borrow XaUo,ot)o, aad lias assumed that the old Wan alone may be redeemed by a new loan raised under the terms of the proposed Hill, and herein he errs.

The Board is not asking for power to borrow CI.JiI.IWII. but .010,11(111, and it is to pay the interest charges on the latter amount that the mandatory clauses appropriating large sums from the Board's ordinary and permanent revenue have been inserted. It is utterly futile of our contemporary to delude the ratepayers into the belief that the Board may divert its land fund revenue to the payment of interest on the old loan if that is renewed liv itself. If the proposals under the new Hill are not accepted by the ratepayers, the expiring loan will K' reborrowed under the present Act, by which, although the principal is secured on the whole of the Hoard's revenue, the payment of interest and charges (which will amount to tliliUII) is secured on the rate only. The Board is under no obligation to utilise any of its revenue lor interest payments at present, or in renewing Hit; old loan under the present Act. Our contemporary's assumption, therelore, that ,tU(i52 land revenue would lie utilised for that purpose if only the CI 50,0110 were borrowed is contrary to fad, amf his deductions regarding the late consequently untenable.

As objectors ami opponents of the Bill persist in misunderstanding anil misstating tin' position to the ratepayers, we need oiler no apology for again brielly reviewing the proposals. Assuming that the Hoard proceeds merely to renew the £150,000 or thg original C2im,o(lo loan, the ratepayers will he saddled with a perpetual interest, chargo of CUiiOO annually, of. whieh roughly CWOO must lie found by the ratepayers, of the southern district, the valuation of which is about half of the. whole harbor district. This is an irrefutable fact. There is no legal provision for a sinking fund under the present Act, under which the money would he raised. Neither is there any provision Tor the interest being paid other than by rate. As the valuation of the. land increases, the, rate struck may decrease, but the amount to l-e raised will remain the same as long as the Hoard chooses. And the Hoard, as a huge commerchil contprn, is not likely to hamper the work of developing the port by diverting any of ils revenue or profits—and it should not be forgotten that the Hoard is now spending CIo.OOO a year on harbor works out of its revenue —to paying interest charges.

Now. what would he the position of the southern district under the proposed Hill f Assuming that the whole of the amount for which authority is asked, 000,000, were raised at 4 per cent.. the annual interest charge would lie 1 [2.000: but it is in the maimer of raising the interest that the new proposals' dili'cr radicallv from the present Act. While the loan, as in the present case, would lie secured on all the revenue- of Hi" Hoard, the interest isecured not. a- at present, by a rate up to three farthings, but by (1) the land fund, (1) till' endowment. (.11 t-1.100 from the Hoard's ordinary revenue, and lastly (and then only to provide any dcliciency should these three sources ot revenue not meet the whole of the interest).- a differential rate. Now, the income from land fund cannot decrease; on the contrary, it must increase. Likewise, the revenue from endowments must increase as lca-es in the town of New I'lyinoutli cNpirc and arc renewed on present valuations. The C 1.100 that the Hoard must contribute out of tl arnings of the purl is mandatorily fixed under the proposed Hill.

Kwn allowing, however, that the above sources of revenue remained stationary, I In- total amnuiit would still lie sulii-i-ii-nl to meet the whole of the interest charges aiiimallv without calling on the r.ilepavcrs. particularly of the southern district, fur anv rate. Beyond mentiuiiiii-' thai practically all surplus revi-mii-s are earmarked under the Hill for sinkiii" fund, we will nut at this stage deal further with the latter pro virions. In a sentence, the position is that while southern district ratepayers are perpetually liable for CttW a year interest on Ihe old loan, under the new proposals lliat liability is assumed by I lie Hoard itself. This is a fact that all Ihe chicanery of the opponents of the liill cannot,' gel over, and should lie pasted in Ihe hat of every ratepayer in the harbor district, especially the ratepayer in I lie southern portion, who is being deluded as to Hie real purport of the proposals.