THE ABATTOIRS LOAN.

Dominion, Volume 2, Issue 540, 22 June 1909, Page 2

THE ABATTOIRS LOAN.

MR. HISLOP RETURNS TO THE CHARGE. A DETAILED! EXPLANTAION. Tho Hon. T. W. Hislop, ex-Mayor of the city, . has addressed the following memorandum regarding tho abattoirs loan to the Mayor (Dr. Newman) and each of the members of th» member of the City. Council:—. . , .. When the loan of JJ51.000 . was about to . ' mature it was known'teat tho sum of .£2700 was avaUablo towards repayment, and -it was suggested and agreed to that £48,000 .only ' sliould. bo raised, leaving .£3OO to bo made up : . out or revenue, The loan had to bo praotionlly nt 1 per ceiit., ns tho law did not per- : . mit a;higher anuual charge than, before being nut upon the city, which was 4 per cent, on , the .£51,000. The holders were circularised and the two societies refused to renew. Their holdings were .£15,000,. and,, I think, ,£25,000" ■ respectively.-. .-.The.'.Citizens Life stated that they' required their money, bnt.the A.M.P: Society said -they would lend, at ih por .cent. ~ . As wo wanted .fifl.OOO for the abattoirs it'wae , arranged that. we should ask: tho A.M.P. to , tnke this loan,-, and they agreed. -What was,-; therefore, wanted ■• was:—For : tho'. old ' loan, \;. ; -£51,000; abattoirs, .£15,000; ; making- in . all, :. ~ .CCG.000.. , It iras proposed to/make this up:— ' New loan, .£48,000; in hand, J52700 i distnet : fund, £300; A.M.P., £15,000; total, .£BB,OOO. When 'negotiations were- about finished.'tr» found that we could not got qnit of. all the...--,. ■ bonds. We floated 416 £100: bonds at,a diecount, of X 734, this being considered as it wae - good-Work, the net amount being £40,806, and .- we had wish in hand, £2700; making, in a 11,... .£43,500,. being, less than the ,£51;000 by -.£7401, but £7506 in excess of tho sum required to .■_..' .' piiy tho holders other: than tho A.M.P. -" ;-..'■:■ , The difference was hi ado up of .throe, parts, .-naiiVEly, the £300 to be.: provided ■ out , , of distriot fund; 'tho discount £794, ■■;.. also intended to como ont of thoeame fund, ';-, and to be afterwards charged to' income, as ~. ; ' might bo determined during one or two or more years, and .the debentures not got off, JC6400, ..;. making, as 1 ha.ve said, £7494, which is all clearly chargeable to the loan■;conversion, and -, ' which-was chargeable, to district aceonnt.'Had thisbeen carried; out,' as was contempletod :being done, the -district account) overdraft -would . ;• ' have been: increased by this suhvof £749± over .- ... what it stood before the transaction, bnt reduo- T iblc by : dC4SOO previously•,advanced out of, dietrict fund to abattoirs, which would have to-.-:■ be repaid.- •-Please,"■■•therefore,,- note carefully that tliero was receivedin'excess of tho amount necessary, to discharge tho debt of-'£51,000,- the•.:-;. sum of £750 G. - -'. . V •:.■', ■ '- : :.-..: ■• ■■■■ . ■■" '.-. Deducting the' amount - previously expended ■■...->■ on £4800, a net ■ sum of £2700 was;.'■:•. the amount by which tho district; fund., gained ■:..-"■■■ in cash through the operations as earned out;,'■,: by.'the treasurer. . . ,:'.,: ,:.,■ ■?■',' > May 11 ".ask ,why, such .a, snm v should be al- ■■ ■ - 'lowed''to remain permanently in the - district .... fund?. How is it proposed to enter it? Clearly: it has no tight to remain ' : there. It is no: , answer'to eay that Mho district fund. iS joverdrawn. : It ought-..to:have been overdrawn by this siun arid moro a year earlier, and: there ' is an easy-and proper way-of adjusting; the. • .•• amount.' Distriot fund is, as;able;-to .bear, the . , :■; withdrawal now «a9-it was: to- do without it ;■.-;■,. before it was paid in. Besides, i(; must 1» •! apparent to any novice that;if the ;£2708 is al-. , ,- owed to remain where.it is.the account:;must. v ~ io out of order. District -fund, however,' if.,., ~, able to bear tho'Withdrawal b.f;the whole sum.-.-;-.,; required. Then take the , other sumst ot, £300 --. : . and £794; by what process'.of rtasomng can ,- ■■ they he said to be chargeable against abattoirs?. 'ho '£734 was a necessary .discount, and. is clearly chargeable'against'-the;£sl,ooo. conver- , ■ , sion, and tlio £300 was a-'eum paid in part re- ■ , payment, andUs,.thorefore,';also so ohorgcable.:..' ;■ f the council adopts, as it socras to be doing, ~. he use of tho £270 C (" as if itv w«re revenne,- .. or if- it charges these other;sums to abattoirs ...... money,-: it ! is" adopting' an 'illegal. • courro. , :; ;v To assert: that ' because' cheques » poised •:. between- the 'council and the- .A.M.P., ..the ;-•. . matter was'.really ncoossarily ailccted-..'is . at>--. : ;, surd. - ■ Before the" exchange, took ; place there ;, . was provided towards payment to-tho. A.M.J?.-.-.... . the sum, 'as I have shown,. nmde_up ■-. as I havo already shown'. ■ Thissum -, ~ was held by the Treasury, and. whether cheques. (> passed between, the .-A.M.P. or not,".this,sum,,.-, . is', well as the balance: required .for,, adjust- ~, ■. menti hod to he dealt' with.;. There: was -no: other possible way of .getting the .balance ex-.,.;i ~. cept from district fund; and;it hod to be paid ~,, out from: this-course, if ..we. were, to. avoid.de-:, .;. :; Now, 'let' me direct I'attentibtt v to'-, the. pro- --A. . ; .posed Receipts' and for: this; year. ..--.. ?irSti"£6ooo''expecfed-proceeds of:£6loo.is,put ;. down as an,item»of. revenue, and;no charge .. is made against tho conversion transaction for the £400 differenoe. .: Seeond.L no provMon IS.-,. madeto d«al with the £2706,, by. which: disrtrct , ■ urid was actually, bencSted.by the transaction, as carried out at the time! this nohritnstandine, that the greater part has sinoe been actn- • ally drawn out for aijattoira. The ftUegstion ; that no money was available, in tha,face of .-, the,fait that money has aotnally I, : understand,-is.still being, drawand used, a. , not' a candid.'.statemont, -.Third, a eum iof > £10,200 is put down as'required for abttttoirs. Where is tlio fairness of thissuggeshonP, The council, commenced the year,,as I;have sad. aiidl repeat, :with £2705 in cash .in district ~. aocount,and to show; that' this' was ■recognised, , . cheques have been drawn and, charged against , iHnd some, if not all.of them, 1 smeo the new council came into offioo. If this sum of £10,200 posid,'-. to -charge:-the discount upon, the con-, : ~ verted loan . Is. the snm.: of, ;*»Je •■ - ,- come out of fho abattoirs, and, : if so, upon v Xt. P rinciplef By what rule, is- the discount, : allowed npo P n tho:'o64oo of debentare* , paid'by , abattoirs, and why: shonld abattoirs. , ■ %^^olh?^ffi^ad;^^ ine S all, £68,700; leaving.district fund-bet- ; er B :off in cash/ £2706 than, it ought to . ■ But I repeat the obvious truth that it: is not, .... the aUte fund which ought.to be - out' tho converted loan 'which is< legitimately, , : suiuw-hichas-reaUy required:,to fix up.. ,th» .; , account, v . '-~" .■".'.,- ■■'■-. .'.' . The, position .can be put .thus:— -.; -. ..:, Abattoirs 1 account' should;bo: put>to ■ -■.■■- funds,iand .there are available for this , ~ S™t ;■ ir (listriqt i z^ : ; : ' Tncn^ro"wili : &*y 6m ;:.; ;lj< S)o S^-sufficUnt''to"'^iow" fo7dis-;. '' '~'' - count-under the: :directon ™«\by,:;. :;..,.-.:- .-the' Finance.' Committee, and, ■- , ; .. only requires the Mayor 8 eanction.)-,.. , Charce against:conversion: ; of loan to ,w> r ■■-. „ . 'provided out of either savings , ~ ; triot fund. amounting to ab0ut.£12,000,,,;,. ,■- nr • fnhiro ' revenue for -discount on ....■,,,■,.■ ■ta! (inchidW the-£6WO), £894,, and ■>£..; , £300 part, payment;, of. ioan : i,an ~ . Which mates.: together tho sum of ... v ....10,2M'.., But: there-has:. already, been paid,.,thls-- ,:;> . Vear out of district fund about ■■■■■........ 2.° M , 0 0 ; 'that the'overdraft will be increased 8,204 ■'?. Lessi tho proceeds, of ,04, -:. i -,■ .'. whiohi understand:can bo mad*.avail-, v. ■. ■.■ '/able'shortly ;..:...".:.". ; ..;""":"""'';V"':-_^-':-; Thus the increase'would bo only■•Mμ...'*;.: 2. 00 ?;.; !} £1294 of which.can'be-mct.by instalments, ex- v Sndiiiff over'a few years,'as it is not. right , •The rest, being tho balance- of. the v £2/0B by... ■whtoraßtri β tylldsM.■Jmt t i.ncwH^^. i; . of-course, , to.bo an immediate. charge ; on the . , duty'of the council, now tliat theV: ': : S^.s^ris.sKS :^; v : Mko to that -thie officer;had excsptienal •-;-: "ho firft instalment was therefore required to .., bo paid muchlator than ÜBua , and the second, : '"ehadVbe adjusted.accordingly,andconsidr- ,', orTngtliose. facts, and the -unfortunate oondi. ; tioii of matters anioiig many; ratepayers,, the..:;. rX collector acted, .with :great, act- and' snO- :;• ceo in getting in so much as lip did, nnd-with, ;;; 1 believe, the minimum of. friction. I , think..'i ; it'riitht' to,sny this of one:who. has proved; -~ himself to.bo capable and encrgctiav, •--.,■ . P S i-I- nofice that it has been .said, that the ; 'limit'of ■■overdraft is £75,000.' You, 'of coureo,-, ;;, nil, "know : that .'.this euiii can. Iw. largely in... creased.■ ■ :'■■■ ■ '.:■':■.-' '-■■•' -- ;'.'-.'•■.-■ ,'-.'.:' ■''.'^■'.i