PORT REVENUES OI

Payment for the services of divers and divers’ gear
requisitioned by shipowners and others for the purpose of
inspecting the under water portions of ships’ hulls.

Charges for lighterage and towage.

Rates paid for the use of dock lines of railway.

Charges for testing ships’ chronometers, etc.

LOANS

As a considerable portion of the receipts of a port
authority has to be devoted to the payment of interest
charges on capital outlay, it may be appropriate in this
connection to allude to the subject of loans.

For the purpose of creating and providing accommoda-
tion at ports, whether in the form of quays, basins or docks,
it is generally necessary for the authority in question to
obtain funds in the form of a loan or series of loans. A port
authority is at liberty to borrow money on the market to
the extent of its statutory borrowing powers, as laid down
in the particular Act of Parliament under which the works
are carried out. Choosing as favourable an opportunity
as presents itself within the period available, the authority
issues stock or bonds, which are taken up by the public,
generally through underwriters and brokers, at stated
rates of interest. For smaller undertakings, an advance or
overdraft may be obtained from the bank, or bills may be
issued redeemable at short notice.

Having obtained its capital in this way, the authority
must take steps to meet its obligations as they arise in
regard to the interest payable on the stock or bonds, and
at the same time must provide a Sinking Fund to pay off
bonds and other commitments as they mature! These
are financial matters which must be dealt with by the
accountancy branch of the service.

1 A Sinking Fund is the accumulation of amounts set apart
annually for the purpose of paying off a loan at the end of a period
of years. In addition toa sinking fund, a reserve fund is frequently
maintained to meet contingencies which may arise.