ANOTHER MARE'S NEST.

Dominion, Volume 7, Issue 1876, 9 October 1913, Page 4

ANOTHER MARE'S NEST.

OTAHUHU LOAN. AN ALLEGATION ANSWERED. It was recontly ordered by the Houso, 011 the motion, of Mr. G. W. Russell (Avon), that a return be furnislled giving particulars of a chattel security registered at Auckland, and published in the "Mercantile Gazette" of August 20, as follows:— "Mayors, councillors, and burgesses of Otalmhu to New Zealand Stato Guaranteed Advances Office. Instrument July 7; registered August 18, £16,500, 3i per cent., over, inter alia, machin-. cry." , . i: 'l'lio roturn, which was laid before the House yesterday, showed that on November 18, 1910, a loan of £15,000, at 3} per cent., on the instalment system, Witli a term of 36} years, was granted by tlio State Guaranteed Advances Office to the Otalmhu Road Board (now the Otahuhu Borough Council) for the purposo of providing a system of water supply and sewerage, including tho- : acquisition of necessary sites and land, etc. On April 1, 1912, a further loan of £1500, on similar terms, was granted. In addition to the security of the special rates, the loans were to be collaterally secured in accordance with tho Advances Act by a mortgage and charge of the said undertaking and works when completed, including such pumping stations, reservoirs, plant, buildings, machinery; and pipes, and a.U revenues to be derived therefrom, less the working' expenses, and also all tlio revenue of the Road Board. In pursuance of tjio arrangement, tho mortgage and ehargo woro registered at Auckland under the Chattels Transfer Act. Prime Mlnistsr on Critics. The PRIME MINISTER said that ho . was glad that tho honourable gentleman (Mr. Russell) had gono to the troublo of bringing this, matter up. It would call attention to the stylo of criticism that tho Government had to put up with. Ho read 1 tho following passage from a lotter printed in a Taranaki newspaper: — " Thirdly, and this is their stylo of ''Reform,' they lent on hill of sale £16,500 at 3i per cent., to tho Otahuhu Borough Council, tlio security being somo machinery (sco 'Mercantile Gazette' of August 20). This money was taken from the Advances to Settlers' Offico, and Otalmhu is, I understand, in Mr. Massey's electorate! How it must move Mr. Massey to merriment when lie informs the farmers that there is no money in the Advances to Settlors Office I", "Another maro's nest, Mr. Speaker," said tho Prime Minister. .Mr. G. W. Russell: Whoso speech is that ? . Mr. Massey: It is a communication sent to one of tho Taranaki papers. Mr. Russell: It must liave been sent in by your organiser, Mr. James. Mr. Massey: "As a matter of fact, my attention was called to the letter by* Mr. James. Ho took it upon himself to reply." The suggestion had been made, lie continued, that he had used, his interest to obtain money for his own district. As a matter of. fact the money was borrowed when he was a private member, before tlio present Ministry was formed, iind ho had had nothing to do with the transaction. Further, Otahuhu was not in his electorate or Franklin, but in the electorate represented by Mr. Lang. Mr. G." W. RUSSELL (Avon) said that he liad not- alleged'any impropriety. The return showed that the utmost care had been exercised in connection with the loan by tho AVard and Mackenzie Governments. They 'had obtained not only the ordinary security but a collateral security as well. It was in the public interest, ho considered, that tho matter should liavo been cleared up. It was not desirablo that tho State Advances Offico should lend money upon tho only securities that were mentioned in tho registration of tho bill of sale to which he had drawn attention. SIR JOSEPH WARD (Awarua) also declared his satisfaction with the return. It sliowed, he said, that during his term in office tho Advances Board had made advances irrespective of political colour. Tho Hon. Jas. Allen said .that collateral securities had been asked for in dozens of cases. Sir Joseph Ward: Thoy have been from tho first. QUESTIONS POSTPONED. <- In ordinary .course two hours of the afternoon would have been devoted to a discussion upon Ministerial replies to questions, but the I'rimo Minister stated that ho could not mako tlio time available that day. An opportunity of discussing questions, he added, would bo given next week. 'I'hero was very littlo demur. PATEA HARBOUR BILL. LOCAL BILLS. The PRIME MINISTER moved that tho Patea Harbour Bill be referred back to tho Local Bills Committee for further consideration. Ho stated that he was taking this action in accordance with tho promise that ho made on Monday evening when tho question of tho boundaries of tho rating area in connection with the Wanganui Harbour Bill was under consideration. Mr. Massey added that ho proposed to give members another opportunity of discussing Local Bills on Monday evening next. Tlio motion was agreed to. JUDICATURE BILL. The Judicature Amendment Bill waa read a second time, pro forma, and referred to the Statutes Revision Coinmitteoi