CO129-466 - Individuals - 1920 — Page 541

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To: The Under Secretary of State.

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required deposit of $50,000 On April 1st, two of the gentlemen who had agreed to provide the deposit went to their Bankers to arrange the necessary finance, but were informed that As a result of the instructions of the Chancellor of the Exchequer, no facilities could be given, although in each

As a result of case, the Bankers held excellent securities. these instructions, the deposit was not paid.

The

The Promoters are now forced to consider their position, as it is impossible to continue incurring heavy costs, and engaging in arduous labour if their effrots are not rewarded with the sympathetic support of the Colonial Govern- ment, which as they were given to understand they could depend upon, it being evident to all concerned that the co-operation and participation of the vested interests in the North of the Island could not be obtained for opening up the South. Promoters would have much preferred to have worked with these interests in developing gh the South of the Island, but on the three occasions on which they approached them, the results la ve been entirely unsatisfactory. The Promoters have given out publicly that one of their objects is to develop the South on the most up-to-date town planning lines, and open up cheap building Bites to alleviate the distress in housing which ha e long been experienced, and it is, perhaps, but natural, that

It was vested interests should not welcome their efforts. because the position in this respect was so clearly understood in the first instance, that the Promotere informed Hie Excellency, the Governor, that they did not desire to proceed It 18 unless assured of the Government's support throughout. obviously difficult, particularly in these times, to launch schemes of this kind, but it obviously in the interests of the Colony that the South of the Island should be developed, preferably by a company not tied to the existing interests in the North, that no doubt this largely influenced the Governor and Colonial authorities in proceeding with the scheme in the first instance. It will not be disputed that after eight years

and of effort, an expenditure of a considerable sum of money, the making public the schemes worked out with much thought and effort, that the Government are morally bound to do everything they can to help the Promoters to bring about their scheme, and make it a succ898. It may be stated that in financial circles the scheme is regarded as a "lock-up" of capital and a speculative one, and although the tramway will cost three to five times the amount payable in pre-war times, and the amount of capital to be found is correspondingly larger, the promoters

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