NORTHLAND FINANCE.

Dominion, Volume 3, Issue 797, 21 April 1910, Page 3

NORTHLAND FINANCE.

CITY AND EABORI. . Mr. W-..8. Haselden, S:M., sat yesterday as a Commissioner in the matter of the financial adjustment between the City Corporation and the Borough of Karori, consequent upon ,the severance of - the Northland district from the borough, and its inclusion : in the city. Mr. J. 'B. O'Shea. (City . Solicitor) appeared for the City Corporation, and tho Hon. T./W. Hislop for: the Karori Borough Council: Mr. Collins (City Solicitor), Mr. C. I. Dasent: (Mayor, of Karori), Mr. W. F. England (Karori Town Clerk), and Councillor *Wedde (Karori) were also present. Mr.- O'Shea contended that the city was entitled, to a portion of the assets as well, as of the liabilities, of the Northland district. The city should he awarded a share of the borough's surplus of general assets over liabilities, apart from loans and a share of the land purchased by the borough. This land amounted to 51 acres, of. wbi6h 20. acres had been converted into a recreation ground, and the city was entitled to at. least a share of the remaining 34. acres. Further, in so far as Northland was paying rates in proportion to the Karori people for ihs sinking.fund of the tramway loan, the- city should, receive interest on the tramway. Northland should not be sent to the city dowerless and . portionless, like an unworthy, daughter. The principles of partnership should be applied. . After further argument on'both sides, Mr; O'Shea said that when the tramway became a free''and unencumbered asset of the Karori Borough, the city should he treated as the owner of a one-third .share.'

Mr: Hislop said the point at issue was what share, if any, the city should take in the assets of the borough, but; in considering this, it was surely descending to the ridiculous to claim an interest in the wheelbarrows, spades, and other materials belonging to the borough. It would also be absurd ; to suppose that the city was entitled to a share of the value of the offices and furniture which were necessary to carry on the affairs of the borough, or of tie small balance that might be in hand for carrying on its aif airs: ! However, it would be seen, if the balance-sheet were analysed, that at the time of the absorption of Northland the ordinary assets of the. borough only exceeded the ordinary liabilities by the sum of 13s. 6d., and for the sake of peace the borough might give ,the city a share of that sum. In regard to'the tramway, Mr. Hislop argued that it was impossible for the Government to declare that the borough and_ tho city should be joint owners, and it was not within the scope of the commission to order that the tramway should be charged with a sum for the benefit of the city. The tramway was not, at present, of any financial value, and it would take 45 years to extinguish the loan by means. of the sinking fund. Was it to be supposed that the Commissioner wonld make an older which could only become effective at' the end of that ppriod. If any sum was to be ordered to be paid, it must b« based on the present valuer and that clearly would not be equal to the loan that was raised in respec.t of the undertoHng. In connection with the other loans, there was no reason for disturbing the present arrangement, under which special rates were •_ collected by the Borough Council. When an arrangement was made upon the inclusion of Wadestown within the city, there was no alteration in that respect, and it would be much more convenient to let the same arrangement continue in the present instance. . . The Commission adjourned until 10.30 a.m. to-moTrow. :