CLYDE BOROUGH COUNCIL.

Dunstan Times, Issue 800, 17 August 1877, Page 2

CLYDE BOROUGH COUNCIL.

A special meeting of the Council was held on Saturday evening last the 11th instant to consider letters from the Bank of New South Wales, Dunedin, requesting the Corporation to cover their overdraft. Present;— Mr. S. Wolsford, Mayor, and Councillors Auckland, Bock, Clark, Cox and Feraud. MrF.J. Wilson, was also present by request. The Town Clerk having read letters which were to the effect that if the overdraft was not mot, tho Bank would feel called upon to dispose of the Debentures placed in their hands as security. The Mayor stated he had conferred with Mr Pyke and Mr Fraser before they went to Dunedin, and both gentlemen had stated

that whilst in Duncdinthey would endeavor to raise the inonoy. He had received a tele-j gram from Mr Pyke, which he would i rpad, as follows—"Am negotiating for sale of Bridge. Bank will extend time. Letter by post." llin understanding with Mr Fraser was that ho would write him the terms on which the Council was willing to borrow. Now, in face of the telegram from Mr Pyko he scarce knew what to suggest, but thought it better to defer writing to Mr Fraser until tho receipt of Mr Fyke's promised letter as that might contain a definite answer. Cr Feravd said he was of opinion that the loan was illegal, and that consequently the Bank could not sell tho debentures. The Municipal Corporations' Ordinance only gave power to borrow at seven per cent, and the loan on overdraft was being paid for at the rate of ten per cent. Long discussion ensued, during which Mr Wilson wa3 understood to say that the Bridge was legally built, and was the Corporation property ; but the Corporation had no power to mortgage it, or any other of their property, they could only mortgage their revenues. They, however, could sell any or all of their property. As to the validity of the loan or the agreement that was a question that should be submitted to Counsel. Speaking off-hand, it would he the cheapest thing to sell the debentures, which power was in the hands of the Bank. He said, as there could be nothing done till receipt of letter from Mr Pyke it would be best to adjourn the meeting. The meeting was accordingly adjourned. An adjourned meeting was held on the

16th. instant at 7.30, p.m. The Mayor said lie had received no letter from Mr Pyke, he consequenrly telegraphed to that gentleman at Wellington, and had received the following reply :—" No final answer yet obtained, letter delayed in consequencesee what Mr Fraser has done." They no! being advanced one single step, he would ask the Council to act. After a long talk it was resolved—-That copy of Mr Pyke's telegram be sent to Mi Fraser, and say that as he, Mr Fraser was therein refer;ed to, the Council resolve that the whole matter be placed in his his hands, and ask him to acquaint tht Couucil what steps he is taking. The meeting then adjourned.