CITY COUNCIL.

Evening Star, Issue 3032, 7 November 1872, Page 2

CITY COUNCIL.

At the usual fortnightly Renting, held last evening, there were present the ’M&yov and all tho Councillors except Mr Thoneinan. The following business was transacted REPORTS. The reports of the Reserves, Finance and Public Works Committees were read. The Finance Cpmruittce reported, with reference to Air G . Gun can’s application to be relieved from the payment of half-a-year’s pates in respect of his house, now occupied by Bishop Moran, that Mr Duncan had no valid claim for re ief, and recommended the Corporation’s claim be adhered to, W ifh reference to Councillor Ramsay’s correspondence re banking account, the Committee reported that they had requested that councillor to name the Bank referred to by him, as being willing to take over the Corporation account at six p.c ; and that, on being informed thereof, they addressed a letter to Mr Lavnach, and subsequently waited upon that gentleman. Further correspondence took place, and the Committee referred the wholo matter to the Council for its decision. The Public Works Committee reported that permission had been granted to Messrs

Driver, Stewart, and Co., during the Council's pleasure, to lay a tramway across Castle street, in order to connect their new stores at the corner of Castle and Eattray streets with the Port railway. The Waterworks Committee reported having had an interview with the City solicitors relative to the “ Municipal Corporations Waterworks Act, 1872,” and the “ Dunedin Gas and Waterworks Loan Act, 1872.” The recent legislation rendered it necessary that the Council should have the time for the completion of the purchase of Company’s works extended for two months, and with this view the Committee proposed waiting on the Company’s directors shortly. On the advice of the Council’s solicitors, the Committee recommended that immediate action be taken, in order to have the “Municipal Corporations Act, 1872, proclaimed to bo in force in Dunedin. A telegram from the Hon. the Colonial Secretary to the H on. J, Bathgate was subsequently read, as follows;—“If Mayor, with sanction of Council, will send either official letter or telegram, asking for Act to be proclaimed, it shall be done at once. lam having proclamation got ready in anticipation.” It was agreed to act on Mr Hall’s suggestion. The Reserves Committee, in reference to the North Dunedin Athletic Club’s application for Hie Northern Recreation Ground ou Boxiug Day, recommended that in future no permissions be granted for their use, the reserves being at all times free and open to the public; that Mr H. Scott be allowed to depasture his horses at the new Cattle Market Reserve during the Council’s pleasure for a fee of LI a month ; that in view of the probable early extension of Cumberland street south of Stuart street, as far as High street, section 18, block 15, be not released for any long term ; that the upset rentals for the undermentioned Municipal properties be refixed as follows North half of section 40, block 9, L 6 per foot a year; portion of section 83, block 17, in Mr Carroll’s occupation, 35s per foot; remaining portion of section 33, block 17, 30a; section 49, block 17, Moray place, north-west, to remain at 15s. In reference to Mr Core’s valuations, the Committee recommended their adoption, and reported that the present lessees bad been apprised of the amounts of the valuation, and had been informed that, subject to their assenting to the valuations, the sections would be let by auction for a term of twenty-one years, any incoming tenants to pay the outgoing tenants the value for the buildings ; that the lessees had been further informed that failing their electing forthwith to accept the Council’s valuation, the leases would be allowed to run out in the ordinary way, in which case the only course remaining open to the present tenants would be to remove their buildings within thirty days from expiration of the lease. The valuations referred to were as follow Shops occupied by Messrs Beaver and VHslop, L 350 *, Fvdier’s Hotel, Stuart street, L 336 j Old England Hotel, same, L 220 ; six-roomed cottage adjoining, L4O ; Hibernian Hotel, L 321 •, Gilchrist’s shop, L 95 I6s ; part section 33, block 17, Llsl 14s ; Munro’s cottage, L2O ; part section 49, block 17, L 35 ; part section 49, block 17, L 27 Us.

THE BANKING ACCOUNT. The correspondence on this subject was read. Councillor Ramsay’s letters extended from September 20 to the 6th inst. On the latter date he wrote, enclosing the following lef-tpr from Mr Larnach, which was addressed to himself Referring to our several conversations and to your note of the 4tli inst, now before me regarding the conduct of the City Corporation account, I have pleasure in recording here what I am prepared to do on the part of this Bank or its' assignees. I am ready to take over the account and allow an advance to the extent of L 20.000, at the rate of six per cent, per annum on the daily balance, to be charged half-yearly in the usual way. 1 will agree tp give the above terms from the present time until the 31st December, 1873, I am very desirous that the citizens shall have the fullest benefit from the plentiful supply of money ruling in our midst at present. The following letter from the Manager of the Union Bank, the Corporation’s present bankers, addressed to the Mayor, was also read : I have the honor to refer to the interview of to-day (the 6th), upon the subject of the rate of interest chargeable upon the overdraft of the Uorpoiv'ffio'H. Allow mo respectfully to remind you that upon the occasion, pf the transfer of the Corporation account from the Bank of Otago to us, consequent upon the refusal of that Bank to reduce the rate of interest below 10 per cent., wo met the requirements of the Council in a most liberal maimer, at 8 per cent., and voluntarily promised, in the event of any change in our rates, to give the Corporation the benefit thereof. These having been reduced in September last, the interest on the overdraft of the Corporation was lowered to 7 per cent., and I felt assured that this would be very satisfactory to the Council.- These circumstances considered, together with the fact of our having conducted ijl biauchcb nf the banking business of the Corppratioji' upon pi,.re fav.qnffile terms than those formerly paid tp'theßahkffif Qtago, lead in* t° express a hope that the Council mayl'h'fter conslderatiuu of the whole matter, arriye at the conclusion that wa kayo Tc|| apd faithfully discharged oux promises to them, and satisfied that in time to come the same equitable spirit will characterise all the actions of the Bank. Should, however, the offer of the Bank of Otago, referred to by Councillor Ramsay, he submitted to the Council, 1 shall he glad to he favored with its terms, as I cannot imagine that, after so recent a refusal by that Bank to meet the reasonable demands of the Council, there can now be an honest desire to take over account at 6 per cent,” Councillor Walter moved that Mr Larnaoh’s letter be nob received, as it was Hot addressed to the Mayor, TuWn Clerk, or Council; but the proposition was negatived. He then moved that it was not desirable at present'that the Corporation thould tpmove its account from the* Upton Bank, and rpad Mr Larnaoh’s letter of 14 months’ ago, when that gentleman positively declined to reduce the rate. He pointed out that in the 12 mouths ended September lasb, being the Corporation’s financial year, a saving of L 209 had been effected by the reduction in the rate, but the reduction from 7 to 6 per cent, woujnl fiot exceed L(jt). The account should not he (ffianged just now, seeing that the Union Bank had so far dealt fairly by the Corporation. Ct-RpcUlpr Ramsay moved : “ Tl;at the manager of the Bank of Otago having offered, through Councillor Rqmsay, to conduct the Corporation account from now to the end of December, 1873, allowing an advance to the extent of L 20,000, agreeing to charge for said advance at the rate of 6 p.c. per annum thereon; the Finance Committee be instructed to ask the manager of the Union Bank if he is willing to reduce the rate charged for overdraft from 7 to 6 p.c. per annum, and failing compliance on the part of the manager of the Union Bank, arrange*

meats be made forthwith for the transfer of the Corporation account to the Bank of Otago.” He explained the action he had taken in the matter, which, he said, was exactly similar to that taken twelve months ago by the Mayor, when he got the account removed from the Bank of Otago, yet no exception was taken to that action. He (Mr Ramsay) had been solely actuated by a desire to benefit the citizens. He desired that the citizens should have the benefit of the prevailing cheapness of money ; and the reduction was as favorable now as it was 12 months ago. The Bank of Otago was just as capable of conducting the Corporation account as the Union Bank. Messrs Barges and Neale expressed themselves as opposed to a change of Bank. The Mayor said before the discussion on this question closed, he desired to offer a few remarks to the Council, and he would premise by stating that no member of the Council could be more desirous of saving money for the citizens than he was. He thought his past actions in the Council would fully bear out that statement; but before consenting to remove the accout or bringing any pressure to bear upon the Union Bank to reduce the charge for overdraft, he thought the Council should consider whether the proposed reduction of Mr Larnach was not more apparent than real. The average of the Corporation overdraft would be about L 6,000 at the utmost. The proposed reduced rate would therefore amount to L6O. As a matter of absolute fact, the amount charged by the Union Bank for exchange, &c., on payment of debentures in London, was 25 per cent, less than that charged by tbo Bank of Otago, at least he had been in. formed so by the Town Clerk, now if this was so, the Councillors would readily observe that the proposed reduction would be no reduction at all. But apart from this view of the question altogether, he was prepared to shew that it was undesirable the Corpora* tion should again place their account at the Bank of Otago, at any rate, whilst under its present management, even though the offer was lower. He desired to inform members that some few years ago the Council negotiated through Mr Larnach about LIO,OOO worth of debentures which were sold to Mr Clark at 90. These were afterwards sold in Victoria at a considerable advance : he believed they fetched over 100. This result was perfectly well known to the Manager of the Bank of Otago, Well, after a lapse of some little time, the Council desired to float some LI 2,000 worth m ore debentures. They went to their banker for his advice and opinion as to how best to dispose of them, when, instead of advising us to float theni on thg Melbourne market, he offered to purchase for a client at 90. This offer was declined, and in the meantime the Corporation entered into negotiation with a mercantile firm here with a view of placing them on the Melbourne market without the intervention of their hankers at all. Whether these negotiations became known to Mr Larnach or not, he (the Mayor) could not aay; but as a matter of fact, within a few days after the offer of 90 had been made, he made an offer of 95. Now, did it not strike members that if they were worth 95 to-day, they were worth the same four or five days previously when .90 was offered ; and did it not follow from that, that Mr Larnach, acting in a double capacity of broker and bank manager, was unable to do that justice to the bank’s legitimate customer that under other circumstances he could have done. The debentures were ultimately sent to Melbourne, and revised over 100, and that without the assistance of the Corporation’s bankers. Then again, referring' tp '‘{h.e" time 'whop the account was takep from the Bank of Otago and placed with the Union Bank, did not Mr Larnach evince every disposition to drive as hard a bargain with the Council as he could; and thinking, no doubt, no other Bank would take it, refused in the most peremptory and curt manner to charge less than IQ per cent,, on any overdraft. When ho found he had lost, he then displayed a chilflish petulance, and appeared sorry that he had not acted with greater liberality when he had the opportunity to do so. For these and other reasons he trusted the Council would not consent to change their account; they were now dealing with a Bank which was in a position to afford them every facility in their financial operations j a Bank which was fi mly established in almost every quarter of the globe, aud whose manager in Dunedin had met the Corporation in the most fair and liberal spirit; and who had recently, according to premise,- reduced rate of interest from 8 to 7 per cent.', almost voluntarily, when money became cheaper ip the market. Under these circumstances, He submitted that it would be most unwise to remove the account, or to bring any undue pressure to bear to induce the Union Bank to reduce the present rate when we knew we were not being overcharged. It was impolitic, he thought, to make a shuttlecock and battledore of the account, and to be continually changing. Apart from all this, he could not help "thinking that the present negotiations had been conducted in a most improper pauper. . There appeared to him’ to bds gppie puderjiand ippueneg at work —else why were not these negotiations conducted between Mr Larnach and the Council itself or some pf its recognised officers, instead of between Mr Larnach and Mr Keith Ran,say. This morning himself, as Mayor, and two members of the Finance Committee had waited on Mr Larnach in re. ferenoe to this matter, and, notwithstanding this, the so-called offer now before the Council had been sent to Mr Ramsay, instead of to the Mayor, Town Clerk, or finance Committee. Such' Conduct, he thought, was a deliberate insult to the Council, and should'be resented s as Such; He trusted the Council would adopt the resolution of Councillor Walter,’ and reject the amendment of Councillor Ramsay. The amendment was then put, when there votdd—For : Councillors Kamsayaad Rossbotham. Against; 'Councilors 'Walter, Mercer, Barne?, Woodland, and Neale. The motion was therefore carried.

THE GOVERNMENT AND THE CORPORATION. The Superintendent wrote as follows Referring to the subject of your personal interview last week, I have how the Imnor to state vhap the tioveimrient, having ‘ fully' considered the various points submitted,' is of opiuior) that the payment to the Corporation of the license fees (which would otherwise have been Provincial revenue, applicable for the service pf the year ending March 111, 1873), on con* dition that the maintenance of tho main streets through the City should be undertaken by the Corporation, clearly implied that such maintenance should extend over the whole of the financial year ending 31st March next. As regards the formation of Castle street to its full width by means of prison labor, the Government regrets that the demands upon prison labor in other directions are such that there is no prospect of being able to comply with your request. With respect to Cumberland street

being carried right through to Hight street, the Government will be prepared to support whatever legislative action may be requisite to effect this object, and, if required, to initiate such action. MISCELLANEOUS. Mr Rossbotham’s motion, that saltwater baths should be erected for the accommodation of citizens living in Bell, High, and South Wards, and that the Government be requested to grant the City Council section 23, block 48, formerly offered for the above purpose, was withdrawn in favor of an amendment by Councillor Ramsay, applying to the acquisition of the ground only. Councillor Walter’s motion, for the removal of the Rattray street urinal, was referred to the Works Committee for report.