THE CITY AND KARORI.

Dominion, Volume 3, Issue 849, 22 June 1910, Page 5

THE CITY AND KARORI.

FINANCE ADJUSTMENT. SUPREME COURT INVOKED. Tho question of a financial adjustment between the city of Wellington and the Karon Borough, in respect of tho inclusion in the city of part of the borough (Northland) was mentioned before tho Supreme Court yesterday. The city is applying for a declaratory judgment determining the following questions:— (1) Whether, plaintiffs (tho City Council) are entitled to a share of the real and personal property of defendants (tho Borough Council), namely, of the general surplus of assets -over liabilities amounting to £1240 15s. 3d. If so, to what share? (2) Whether the plaintiffs are en- ■ titled to any part of tho 54 acres of land purchased by tho defendants at South Karori for a recreation groupd and other purposes? (3) Whether tho -plnintiffs are entitled to any part of tho rest of the real property of tho defendants, other than the tramway. If so, to what extent? _ And if the plaintiffs are not so 'entitled, whether any other person or body is entitled to such real estate, and for what purpose? (4) Whether tho plaintiffs are entitled to any interest in the tramway belonging to tho defendants? (5) Whether the special rates under special loans now payable in respect of the whole of the original borough of.Karori can be collected by tho Karori Borough .Council, and whether • the same must be collected in part by tho Karori Borough Council, and in part by the Wellington City Council? (6) Whether tho annual _ amount due for interest and sinking fund in respect of each special loan is primarily payable by tho Karori Borough Council or by the Wellington City Council, or whether such liability must be apportioned between them. . If such liability must be apportioned, in what proportion should ,it bo apportioned? The boundaries of Karori and tho city were altered by Ordors-in-Council, dated October 3, 1907, and May 9, 1908. No agreement was arrived at between the two councils' as to tho adjustment of property, liabilities, contracts, and engagements, pursuant to the provisions of Section 127 of the Municipal Corporations Act, 1908. Tho Governor appointed Mr. W. R. Hasel<leu,_S.M., a commissioner to hold an inquiry, and to report on any matters which his Excellency might deem necessary to enable him to* make an adjustment. Numerous sittings wore held by the commissioner, who eventually made a report (published in The Dominion on Juno 3), which recommended, inter alia, that the real and personal property of tho borough should remain the property of the borough, which should also conthmo to bo paid the special rato; also, that all debts, liabilities, and engagements of the borough should remain as the,? wore. Section 127 of the Municipal Corporations Act states that tho commissioner shall make an adjustment of the assets, liabilities, etc., of tho borough, and this the stipendiary magistrate did not do. The City Council claims that Mr. Haselden misdirected himself on the law of tho matter, and now asks tho Supremo Court to rule on tho questions raised. When tho matter was mentioned yesterday by' the city solicitor, Mr. J. O'Shea, to his Honour the Chief Justice, in Chambers, Mr. O'Shea asked for directions as to service. His Honour remarked that ho did not know whether the city had any appeal from the decision of the magistrate, but tho point was one that might bo argued. Ho directed that the summons should be served on tho Karori Borough Council and on the Attorney-General. According to the summons, the parties must appear at the Supreme Court on Wednesday, July 6.