The Wairarapa Daily. THURSDAY, AUGUST 1, 1885. AN UNEXPECTED COLLAPSE.

Wairarapa Daily Times, Volume VII, Issue 2067, 13 August 1885, Page 2

The Wairarapa Daily. THURSDAY, AUGUST 1, 1885. AN UNEXPECTED COLLAPSE.

The burgesses of MastwtoiV'were, no doubt, not a little astonished when it leaked out yesterday morning that the negotiations betjvten the, Borough Council and the Government. Life Insurance Association, uniler which the former was to the latter the sum of £IO,OOO for the construction of gasworks, had been discontinued. The Mayor made!: a plain, business-like statement 011 the subject at the meeting of the Borough Council on Tuesday evening, front-.which it appeared that the Council had proposed to borrow the amount i.ained, and agreed to strike a special rate to cover interest. This proposal waVaccepted. Afterwards, however, it wastfound that the Association could not;'lend the money unlrss the - Council- a further special rate to created sinkingfund, The Mayor and other'members of the Gas Committee are of opinion .that the works which it is proposed to erect will prove of such a remunerative nature that a sinking fund out of rates is quite unnecessary, The ; igasworks would begin to pay as sooii as they were in proper working order, and it would be an easy matter to'' provide, a sinking fund out of profits. Hviien Mr Luckie, the Manager of,,the Life Insurance Association, found' that he could not advance the moneyf without provision being made for a sinking fund, he wrote to the Mayor,Und asked that the negotiations migh'f be continued, in the hope that provisions for it would lie made, Tlie Committee, was, however, of opinion that,' with the prospect of the work proving remunerative, the .money required, .could be raised elsewhere, without goiiig back to tlio ratepayers, and the negotiations wore therefore discontinued,., 4,swas proposed by the Mayor, and .agreed to by the Council, it is now intended to float the debentures through the Bank of Australasia, the rate of interest and minimum price remaining vat six per cent and 98 respectively. It is believed thitt there will be no difficulty in placing the debentni-es, as the security is undoubtedly tjood. The Manager of the Life Insurance Association evidently thought so, otherwise he would have shown less reluctance in abandoning the proposal. Had the' rules of the Association permitted, tlie! money would undoubtedly have been advanced 011 the terms proposed, because it was actually promised under them. Masterton will, under the circumstances, suffer a delay of a month, or two in getting gas introduced, and this will no doubt be vexatious to some business people; but the difference will be in reality only a very trifling one.