SUPREME COURT

Dominion, Volume 9, Issue 2810, 30 June 1916, Page 9

SUPREME COURT

NAPIER BOROUGH COUNCIL EXPENDITURE OF LOAN MONEYS Argument was heard before Mr. Juetico ilosking in the Supreme Court yesterday morning in an originating summons case raising a question attecting the borrowing powers and the expenditure of loan moneys by the A'apior Borough Councillors, who were cited as plaintiffs-with' the A.M.P. Society, aud the AtUrnev-Ueueral as defendants. Mv. T. F. Martin appeared for the Napier Council, Mr. P. S. K. Macassey for the Attorney-General, and Mr. C. P.. Skerrett, K.C., with him Mr. R. Kennedy, for the A.M.P. Society. . The Napior Borough Council, in. 1912, raised a special loan to pay. oft an overdraft, and on March 31, 1910, the borough of Napier and the town district of Napier South amalgamated, constituting one borough, and the question aroso as to whether it became lega My competent for the Napier Council, under the amalgamation, to overdraw itsbank account without regard to tho limit eet. by the Municipal Corporations Act, 1908, Section 97. . ' ■ .. Counsel asked the Court to state .whether the amount of the overdraft of .£5500 could bo legally raised under a poll of ratepayers taken under the Local Bodies' Loans Act, 1913; whether an item, JMOOO, from the loan so- raised, could bo expended upon motor fire engines, equipment and buildings for Same; if both or either of tho said items, .£5500 and JJtOOO, could not be legally raised, could tho sinking fund and special rate proposed to bo pledged for the whole loan, amounting to .£27,500, bo lawfully pledged? In tho light of these questions, the further point was raised as to whether the A.M.P. Society would bo legally untitled to advance the loan money.

Air. Martin supported the view that tho loan was properly ' raised, and the amalgamation gave the Napier Borough a new entitjr. Mr, Alacassey contended that tho poll was not valid, and there was no authority tor raising such a loan. Mr. Skerrctt said ivis . clients' were chiefly concerned about the validity of tho loan because on that deponded tliß power of tho Napier Council to pledgethe property and revenues of tho borough. His Honour said he would take the points raised by counsel's argument ilito avizandum and deliver judgment at a later date. A DIVORCE CASE. Yesterday morning Air. Justice Hosking heard the evidence of John Henry Larsen, a. young man of thirty years of ago, a member of tho Expeditionary Forces, and uow in camp, who'sought a dissolution of his marriage with Esther Rachel Larson on the ground of misconduct'. Mr. P. J. O'Regan appeared for petitioner, and for th? purpose of hearing evidence of an important witness the case was adjourned till July ».