Loan of £3000 to Improve the Masterton-Waimata Road.

Wairarapa Daily Times, Volume IX, Issue 2874, 16 April 1888, Page 3

Loan of £3OOO to Improve the Masterton-Waimata Road.

(To the Editor,) Sir, —Meetings have been held at Carswell's and Tenui, to discuss the proposal to borrow a sum of £3OOO to improve the grades between theTaueru Uridgo and Mr Yallanee's, also to complete the metalling on the main road near Tenui, the interest to bo paid from the proceeds of a toll to be established near the Taueru Township, security to be also given to the (lovermnent by a special rate to bo levied, if necessary, over a defined area. At the meetings mentioned fear lias been expressed, Jf# that at some future time ratepayers who are mil within the special rating area but who would use tlierond and pay toll might bring pressure to bear, and elect Councillors who would abolish the toll, and make those included in the rating area solely liable -to pay the interest, ]n looking through the Local

Bodies Loans Act and the Government Loans to Lojal Bodies, 18G6,1 am of opinion that these fears are quite groundless, Sections 8 and 9 of the first named Ict bear on the subject. Section 9 providing that, " The revenues to be derived from any public work, &0., may be made a part of the security for the payment of interest- and sinking fund (if any) on a loan and such loan may be secured over such work or undertaking, and the revenues derivable therefrom in addition to a special rate; or such loan may be secured wholly on such work or under- , taking, and the revenues to be Wlorived therefrom as the primary for the same, but in this caso the local authority shall, in addition to such security make a special rate to be levied in case of need which shall represent at least om half of the annual liability of the local authority in respect of the loan," it would appear from this that the special rate to be given as security need only be one half of the annual liability and that the security for the other half by toll or endowment could not be abolished at the will of the local body, otherwise the Government would lose one half or 2| per cent interest on tin; loan, a thing quite contrary to the Act, which distinctly states 5 per cent interest shall be paid. Sec, 53 makes the loan a first char'je on public works when part of security, while Sec fl-3 (under certain circumstances) vests this security in a Receiver. If the contention that a 101 l can be abolished at the option of the local authority borrowing money; is correct, then the Act would have made the special rate in the event of such abolition, security ykfor the whole 5 per cent, not one half as distinctly stated iu clause 9. If tolls can be abolished in the manner some ratepayers contemplate, it will iu the future be the most economical to borrow on such security, and as soon as the money is procured and the work is completed to do away with the toll, and save one halt of the interest, It would be a great relief to pay 2i instead of 5 per cent, Exception is also taken by some ratepayers to the length of time, 2ii years, that the toll would be kept on the road, but this can be obviated by fixing on such a scale of tees as will more than pay the annual instalments, the surplus being placed as a sinking fund, and it is only under circumstances such as this where a local body having accumulated by sinking fund sullicicnt in five, ten, or twelve years to pay the whole of the interest due on a loan, that the Government would allow a toll to be discontinued,— I am, i\:c,> T. Mackay. We are glad tu notice that the police took such prompt action on the letter that appeared in our columns last week on the subject of larrikinism in Master • ton, and that one of our citizens in tho person of Mr S, H, Wickerson has supported them in their praiseworthy endoavor to keep order, by giving evidence m the case which came up in the Jt.M, Court this morning, when two lads were charged with conduct calculated to provoke a breach of the peace. Bad behaviour in our main thoroughfares has for some time prut proved a source ot considerable annoyance to tho passers-by, who are often subjected to insulting remarks, and sometimes to something worse. In one instance recently, a gentleman had lib buggy lamp broken with stones thrown after him by these pests of the community, and this and other similar occurrences well justified the taking-in to Court of the lirst often-

dors who could bo caught. Our estimable . cvgcant of Police is indefatigable in his to maiutuin t'Ooil ordor, but in such cases as the present he needs the assistance of those who witness the occurrences complained of, before a prosecution can bo successful, and ive consider Mr Wickeraon has dono a public service in supporting tlio case by his evidence. As will bo noticed by our police report, one lad was fined 10s (or 7 days) and the other was severely cautioned and dispiseed.