OAMARU HARBOR.

Gisborne Times, Volume XXVII, Issue 2693, 24 December 1909, Page 5

OAMARU HARBOR.

A SUPREME COURT JUDGMENT

■ Per Press Association.! DUNEDIN, Dec. 23. Judgment was given to-day by Mr. Justice Williams on a motion by the Oamaru Harbor Board for leave to spend £12,800 to keep the harbor open and maintain it as a revenue-produc-ing concern. Objection was raised on behalf of the bondholders of 1879. His Honor said that the evidence showed that if the harbor was to continue to carry out the, purpose'for which it was originally constructed, the expenditure was absolutely necessary. Otherwise the Board’s revenue would decrease very considerably, and tend to prejudice the bondholders of 1876, to whom the Board still owed £/8,400, including £34,500 due in respect of debentures drawn for payment but not paid. All that the 1879 bondholders could urge wag that if the bonds drawn for payment were lifted it would diminish the overburden of the prior security. The position of the 18<9 bondholders was desperate. Interest had been paid only to November .1, 1892, and at the end of this year the arrears' of interest would be £102,000, to satisfy which there was no fund m existence or in prospect but anything which would improve the interest of the 1876 bondholders would alsov improve the position of the 1879-holders. He thought the proposed expenditure necessary, and made an order in terms of the summons.