The Gisborne and other Harbors.

Gisborne Standard and Cook County Gazette, Volume III, Issue 455, 17 May 1890, Page 3

The Gisborne and other Harbors.

AN INTERVIEW WITH MR RANDALL JOHNSON, M.L.C.

HIS OPINION ON THE GISBORNE HARBOR. It is admitted by all who know Mr G. Randall Johnson, or who have noted his career as a legislator, that he is one of that coterie of members which makes the Legislative Council a body entitled to respec f , and whose presence renders the Council impregnable to those attacks 'hicb are persistently made upon it by politicians of the radical element. Mr Johnson is also gifted with an active intellect, and a sterling amount of common lense.

Yesterday a representative cf our staff availed himself cf an opportunity to have a chat with Mr Johnson concerning the general subject of New Zealand harbors. The gentleman referred to has jnst recently returned from B visit to England, and is qualified to speak out as an authority so far as a general knowledge of the subject goee. The first question put to Mr Johnson was as to whether he could give any idea as to why there had bean such a sudden fall in the New Zealand harbor debentures, and whether there had been any indication of the depression prior to his leaving London. No (replied Mr Johnson), I cannot say there was any great indication of the kind, nor can I explain the sudden drop by any knowledge which I gained when in London. I can not account for it in any other way than by the reports which have been sent concerning New Plymonth’s unpreparedness to meet its liability. What was it the debentures decreased to ? Ii was to sixty, according to the telegrams. Mr Johnson : Well, I should think they would be a very profitable speculation at that, because eventually any present f-tar is certain to be dissipated. The colony could never allow it to be otherwise. And in regard to Gisborne—do you think the decrease is just the result of the harbor debentures being generally affected ? Mr Johnson: It must be something of the kind. I was told they were down to 94, but there is really no good grounds for depression In the debentures of the Gisborne loan. This much I can tell you—that w hen I was in L ndon a gentleman who held some of the Gisborne bonds came to me and asked my opinion about them. He seemed very uaeasy in the matter, and said that from information received he feared there would shortly be a drop in the price of the stock. What that information was I did not learn, Dor do I yet know; but I told him that to my mind there was not the slightest reason for being anxious. I explained to him the points in connection with the sinking fund, and the large unexpended balance cf the loan. But, I was forced to add, there had been some nseasuro pawed through Parliament since I left New Zealand, and that may be such as to hare an effect which cannot be gauged uuleaa one it fully informed on the subject. And now that you are, I suppose, well informed on that subject, what is your opinion of it ?

Mr Johnson: I must say I think the measure passed is most unjust and also a very wrong precedent to establish. I cannot imagine why Mr Graham consented to it. When I left New Zealand such a thing had not been mentioned. Yon were present daring a good part of the session, too; were you not? Oh, yes , for about two months. Before I left, Sir George Whitmore had made com plaints that the Waiapu people were compelled to pay rates for a harbor through which they could not possibly be benefited, and alao that the northern portion cf the district bad been shamefully treated in the matter of local expenditure. To combat arguments I got a statement from Mr Warren, the County Clerk, showing 'he expenditure over a number of years, and I found that there was really wry little difference between the amount of rates received and the expenditure that had been made, but then Sir George Whitmore raid it was of a previous period he was speaking. In regard to the harbor I know that mack can be said on behalf of the Waiapu settlers, but it has also to be remembered that the original Harbor Act would never have been passed were itnotfor the advocacy of Sir George Whitmore. Many members of Parliament had set their minds against allowing these small places to enter upon large schemes necessitating the borrowing of big sums of money, but Sir George Whitmore had sue ceeded in reassuring tb,m on the point in doubt, and the large district that would share the rate induced Parliament to give petmis sion to borrow the money. Now what has been done? The district has been divided, and however such a thing came to be allowed is a matter of wonder to me. Why they might as well go and divide one portion of the Taranaki district from the other 1 Or you might, to bring an example nearer home, suppose that the Poverty Bay district were again divided. Mr Johnson : Yes, ths principle would be just the aarne; but even when it had been decided to do that, to make one district into two separate ones, I think there ought to huve been more wisdom exercised than there has been in this case—that at least the district which was to bear a special burden should have included all that area of land for the products of which the harbour is required. In the case of one gentleman |I might mention, all his wool and produce jeomea through the Gisborne harbour, and (yet bis land is beyond the rating radius. Then, Mr Johnson, as to the proposal which is now being made by the Harbor Board, so as to relieve the district from its present financial trouble. I suppose you read tbe statement of fi lanoee published in Saturday’s issue of the Ssasdabd ? Mr Johnson : Yes, I have carefully read it, end also taken the opportunity of a discussion upon it with a gentleman who is one of those

most competent to give an opinion, a;.d to both of ns the proposition seems favorable. Of Oouree it requires a great deal of consideration. It shows that at the end of the term the position will be better than it would be under the original arrangement. But there la one point that ought not to be overlooked, that is ths division cf the district, for the alteration is a pronounced departure from the o'igintl terms on which the money was borKQWMs Do you think it would hold good legally ? Mr Johnson : Well that is hardly for me to My, but I have my doubts on the point. Than as to the statement published in Saturday's Standard—do yon think the bond bolder. would be in anyway affected by the proposal, or that they could have any obJection to it ? Mr Johnson: Tbe thing under no circumstances could go ao far as to affect the bondholders, and the statement seems to put the matter very clearly that the proposal would be to the advantage of everyone. In London the impression has become deeply rooted that New Zealand hasjwrrowed to the utmost limits she can burdeff herself with, and in any attempt to resume borrowing I feel confident it would not be successful, except on terms very disadvantageous to the colony. Thia impression which has been formed, leads to very cartful scrutiny of anything which it is thought may concern the bondholders, and at first sight the proposal made by the Harbor Board might seem a departure from the original terms, and it would be closely looked into, white the division of the distii it could not meet with favor. If that great mistake were rectified, there would besides be the

additional value given by the large area of naw laud taken up in the district, end there is ths large portion of the loan still in band. if the Gisborne debentures receded much, don't you think it would bo a good stroke of policy for the Board to buy up a large quantity ? Hr Johnson: Il ought to be a good specula, tion for anyone. There is, however, one thing that does not seem to have been paid sufficient attention, that is trying to make use of the work that has already been done. The suddenness of ths stoppage is a thing which surprises me. Of courtr, you most remember that the members bad been under the impression that their funds wen still a couple of thousand to the good, and then they dieoovend this was not k. Mr Johneoti: Yes, I have heard that, but to mj mini it oetainly does not improvs

and to have been very clear about. I think there should be some endeavor to make use of what has already been done. For my part I was strongly opposed to the work at the outset, because I felt that the time was not ripe for it. Eventually the district must have a harbour—there can be no two opinions about that. I suppose you notice a great change in the district even in the short time you have been absent from the colony ? Mr Johnson: Yes, a wonderful change. The establishment of the freezing works is the best thing that ever happened for the place. I wonder that a butter factory is not also established, for I believe it would bo a splendid thing. As you have no doubt read, the Australian butter has been realising good puces in the Home market, while butter from New Zealand, which om;lit to be the beat, has actually had to be sold for cart grease. The cheese factories, I suppose you are aware, are doing good work : could not the butter export industry be established in connecnon with them ?

Mr Juhuson : No, the butter factory is generally a disiinct thiog. I feel assured it would be a success here. As our representative did not care to bore Mr Johnson too much he did not pre.-s the subject of butter export further than to extract from Mr Johnson a promise of a chat on the subject, at some future period. Before withdrawing, however, the temptation was too great not to ask Mr Johnson’s opinion on the Native Land Company affair, and whether he thought there was any hkeli hood of getting all that laud thrown open for occupation.

He replied that of course it would ba a good thing fur the colony and for the district if it could be done, but in any case the process would be a long one, and at present he could hardly give an opinion on the mat’er. He had not yet heard of any proposition which to his mind could be approved of by Parliament. What ho believed would be done would be to appoint a joint committee cf tbe House and Council to enquire into matters and submit some kind of report to Parliament. No Government dare take the responsibility of doing anything dtfinite in such n matter until Parliament had been consulted.