SUPREME COURT

Dominion, Volume 9, Issue 2701, 22 February 1916, Page 9

SUPREME COURT

WADESTOWN TRAM EXTENSION

THE SPECIAL RATE

A friendly suit to ascertain the relation of tho Wellington City Tramways to the Wadestown Extension was decided by a reserved judgment delivered in the Supreme Court yesterday by His Honour Mr. Justice Chapman. Tho action was brought against tho Wellington City Corporation by His Majesty's Attorney-General, per medium of (jeorge Canvell Cooke, settler, of Wadestown. tho latter acting in the interest of Wadestown ratepayers.

At the hearing Mr. T. V'oung appeared for the plaintiff (Cooke), whiio tho'City Solicitor (Jlr. .1. p'Shea) appeared for the defendant corporation. Plaintiff sought a declaration from tho Court as to tho liability of • tho Wadestown ratepayers in regard to a special rato for tramway extension, and as to the policy on which tho City accounts should bo kept. Tho Court was asked to say that the Wadestown Tramway Extension was not a separate undertaking, but an intogral part of tlie Wellington City Tramway system; but that, if it were a separato undertaking, then tho Sinking Fund and interest in connection with tho special loan of £33,000 were first charges upon takings; and in any case a special rate could not be collected to pay sums charged for working expenses aud depreciation ; and that there was no authority to establish a depreciation fund of 2J p-er cent. In the statement of defence, the City Corporation pleaded justification for its system of keeping accounts and asked that the Court should say it had acted lawfully in connection therewith. In tho 'course of his judgment, His Honour pointed out' that since the Wadestown tramway had been running tho corporation had kept an account purporting to show the profit and loss on it treated as a separate venture, and His Honour was satisfied that the amount debited for depreciation, if chargeable, was a proper amount. Then it was contended that there was no power to treat part of the City or part of the tramway system as a separate entity, but it seemed to His Honour that the whole scheme of legislation was designed to enable a separate account of a separate work or undertaking to bo kept, and that it was mainly for the benefit of such local areas that this had been devised. 111 His Honour's opinion, also, the proceeding of the City Council in collecting tho special rate on the tramway extension could not bo impeached. His Honour added that ho had not gone into the question of; costs. It must at any rate stand over lintil the City Solicitor (Jlr. O'Shoa) could attend. It was quite possible that the City Corporation might not mako any 'application.