THE HARBOR BILL.

Taranaki Daily News, Volume LI, Issue 156, 23 June 1908, Page 3

THE HARBOR BILL.

MR. MARX IN REPLY. Mr. Marx writer to the Editor r.s follows :-Sir,— Kindly allow me space '" briefly refer to Saturday's leading atide. You therein quote eert.uii extracts from the '-financial Arrangenicii: , Act, ISTCi," iimler which certain land r venues are set aside towards inter.- I I

and sinking fund on the present loan, mto be correct, "on any loan.'' You inther inform your readers thai the Nci'-, Plymouth Harbor Board may, ii the pi' sent Bill is defeated, redeem the old loa:, interest on same being paid out of hai l«>r rate only, diverting all other rev'e, uue, viz., land revenue, towards paying interest oil second loan raised to curry out the present harbor proposals. Yon entirely lose sight of the tact that lII I ' Hoard cannot specially penalise Noutheri Taranaki. The whole of the present rat - ing area, Waitara included, will com'?

within the scope of such a proposal. What •banco do you think tliere would J be of Securing a majority on the Board jto support such a scheme? Jielore suen a condition could obtain, a Bill giving the necessary powers would have to be passed. J think, Mr. Editor, the ord'T would be a large one. Now, as to my I misleading Haweru ward ratepayers iii the face of confidential information in my possession. The actual position i.= | as follows:—Mr. Maxwell some time agomentioned the peculiar condition attach ed tn the direction for disbursements »1

! bind revenues as set out in the "Finan- I j cial Arrangements Act" already referr-v | to. Together we got tl„. Act and discussed the matter. We differed in our opmions. I could ~nt see how the Harhor Hoard could possibly strip one lonn of all subsidy for the benefit of a second J loan, seeing that boll! were used for '■],„ same purpose. However, at Mr Maxwell.s urgent request, J considered the discussion confidential, and if was only

through Mr,. Maxwells subsequent acr in that he took several ge,«|,., n(111 nnl side he Hoard into his confide,*.,, (|, a( I took a sunilar step in self-defence, and at the commitf,,,. , nooli a( K 'm* sth T explained the positio, fully The por,on of l?1P Ao( \ nM , -■ vas iv.ad and diseusse,!, and. after due " liberation a committee of P j„ nt( . „ ,'. O Fcsentat.ves appoint,,! at Prions , ~ we,a ward meetings, unanimously ~o so '.

•TACOII MARX. ; I« an editorial niiiclTon the New that it won hi .r,.i ,-i;l ~c ~ , •• whhh 1„ .1 " ' contmgene,V , ' , "'" 1 s *'e''ied dangerous „i. long,i unthoug Ilt ,„ ~y .£ ''■«!> <1 Ratepayers. That contingency ''" <x l"ained on Saturday, is that as ll'i. revenue „-,„„ IiII1(| f|m ,, oin uston the current loan, that loan '» the unpaid portion of it ,„j„l, t , tic land fund free as a securi y f„ r S »esh loan. 1„,1,, d , , Vl . uwlmuLd ° ; contended that payment of interest on

"<■ iwcnt loan ,s secured Illari , v l» rate and not l,y land fund. The dan- ""' !'"'''?, hy Mr - II,IXW *» i* that an «■ Wition.l loan Ilu v llt ~, rais ,. d ifc . I .illy on the land inn,! and tl„. j I l ' llr ! k '" r f , tllß '^'l«yer 5 under the present liability to a three farthing rate , might become a very much more serious j natter than it has been for some years Holding this view, he considered that iu lively hound him t „ ; ,c,cpt f,-,..,], 1,-ds-latum in winch anion,. o t| l(T things i M . |t eouiiiigeiicy would he for ever removed. Ihe danger to hi,,, a, ~,| so r ,. a | lIl;lt lie feared to disclose it until the terms of the measure were definitely settled «»'} -would still have refrained from doing so until it became law had not the exigencies of the light now goiii" on forced Ins hand. Whether Mr. .Maxwell's explanation will modify opposition remains to be seen. Naturally opinions will differ as to how far the'danger he sees is a real danger. Obviously, no further loan run | l( , raised without the consent of Parliament. Would I'arliaiiient pa»s a Hill knowing that- the effect would he to divert the land revenue from the use it has been put to for many years and so apply it that the ratepayers would have to meet the interest on the existing loan without assistance from land fund? We should say on first thought that Parliament would not do anything of the kind, but its decisions cannot be forecast .with confidence. A great deal would depend on its view of the reasonableness or unreasonableness of the attitude of the ratepayers. if there is any danger it appears to ,„ { n arise fioiii the following considerations: The Dominion has favored the Sew Plymouth harbor with an endowment which is mic<|iinllcd in extent, we believe, by that of any'similar harbor in New Zealand. The permanent value of tlie endowment is not commonly realised, nn.l certainly its present value was never anticipated when it was made. No doubt the object was to secure in the national interest a pood harbor between Ancleland and Wellington, and. the Dominion having given this endowment, Parliament might hold that it is its duty to see that the revenue is used for further development and not to save ratepayers from a liability which they accepted when they I might their hind. That would appear to he a probable source of danger. It is not for us to advise, much Ic-s urge ratepayers in the .southern district to undertake a liability which

naturally they would prefer to lie free of, but the position must lie looked at j as it exists, rather than as what it I might be wished to be. Mr. Maxwell's ] figures seem to us as conclusive as cal- j dilations ean Tie that under the new Bill the distriet would be free, of a rate for some ten years, and in all probability permanently. It is, however, too tni" ] that on a previous occasion similar calculations proved sadly illusory (owing, it is specially pertinent now to remark, to Parliament passing iin unexpected law which prejudiced the ratepayers); and the present forecast may prove to tie wrong, but such risks ean never lie altogether avoided. We need not refer to the differential rate and the throoliftlis nitop.iying majority necessary for carrying a loan, but they are. elements which are well worthy of consideration. In condition, we may say that whatever may lie the view of the ratepayers generally in relation to "the. Hill, it seems to us that in view of the fact of all the. concessions he asked for when lighting the old Uill having been conceded in the new one. Mr. Maxwell could not honorably have assumed any oilier position than that which lie has taken up in the present liiiiil. As (.., Mr McLean, who has large |iersonal inter ests nt stake, we know from his declnra tioils liefore he left for England that hi considered Ihe country members ha< made an arrangement under which tin southern district would be put in a good a position as it could reasonabl;