BOROUGH COUNCIL.

Globe, Volume IV, Issue 375, 25 August 1875, Page 3

BOROUGH COUNCIL.

LYTTBLTON. The usual weekly meeting took place on Monday night. Present—His Worship the Mayor, Crs Hawkins, Buist, Graham, Murray, and Allwright. The clerk stated he had received £l3 5s since last meeting. Accounts were passed amounting to £l6 12s 2d. In reference to the proposed loan for drainage, the Mayor said, that he had an offer in his hand from the Bank of New Zealand to lend £ISOO at 8 per cent interest, payable half yearly, the security to be the freehold property of the borough, at present yielding £390 per annum. Cr Allwright asked if the Council had committed themselves to borrowing this moneyHis Worship—They have passed a resolution to the effect that I should be empowered to open negotiations with the Bank.

Cr Allwrigbt—May I ask what amount has been expanded this year on drainage purposes. Ilia Worship replied about £3OO. Cr Allwright could not understand where their money had gone to this year. In former years, with a much smaller income, they spent an equally large sum on drainage, and had yet managed to make both ends meet. The money had been squandered away. His Worship—Or Allwright, T must call you to order for using the word squandered, it is an imputation on the Council. Cr Allwright contended that he had a perfect right to bring such a charge against the Council. If his tongue were tied, he could be of little service to the ratepayers. He would, however, of course bow to the decision of the Mayor. Cr Graham said Cr Allwright knew as well as any one how to find out in what manner the money had been spent. It was true, want of judgment might have been shown in spending the money, but he thought it was shameful Cr Allwright should come there and impute motives, and say tie money had been pquandered. The Council knew how the money had been exjeided; £3OO had gone for drainage, £2OO towards the purchase of land, antf the rest in various ways. The reason they had got such a large overdraft was that they had been relying on getting another Government grant, instead of which the Government had determined to spend the £2500 voted in a special manner. No doubt Cr Allwright thought he would gain popularity by making these statements. Cr Allwright said the only way he knew of finding out what money had been spent on that road leading to nowhere, called the " Heavenly road," would be to move for a return. He would move for a return for all monies spent in the Heavenly road from Exeter street upwards, and also what the wages of the sixty or seventy prisoners employed would have come to in the same time. He did not expect co get this last information from the Council, but would try and ascertain it himself. Cr Buist said they had a book that contained the necessary particulars. Cr Allwright stated he should also like to have added to the return any amounts that bad been paid by the Council as compensation. The Mayor said none had been paid. Cr Graham seconded Cr Allwright's motion, which was carried unanimously, the return to be prepared before next Council meeting. The Mayor regretted Cr Chalmer's absence, as he had been the originator of the loan. He would ask the Council to give their opinion on the matter. Cr Hawkins moved—" That the matter be referred to the solicitor of the Council to see if the sum could be legally borrowed." They had drifted into debt through anticipating a Government grant; no doubt they could easily find means to pay off the debt. The Mayor said that if the Abolition Act were passed they would have increased powers, which would enable them to clear off the debt sooner.

Cr Buist said it was absolutely necessary the Council should have the money, as when the Government made the main sewers the Council must construct the branch drains leading into them. He would second Cr Hawkins' motion.

Cr Allwright would oppose the motion to the utmost extent of his power. The word the Mayor had refused to allow him to saywas tingling in his ears. Eight per cent was enormous interest to pay, and how they could afford to pay it with their narrow income he was unable to see. If they borrowed at all let them borrow something worth having—something that would do some good. He asked Councillors to pause before they rushed into such a mad scheme. They could get £SOOO or £IO,OOO at a less rate of interest, say 6 per cent. To borrow £ISOO was simply pettifogging. Cr Graham must rise to call Cr Allwright to order. He could not sit and listen to such language. To call the Council pettifoggers was offensive and was bad grammar. Cr Allwright said that Cr Graham did not always use good grammar. He appealed to the chair if he were not in order. Hereiterated that it would be ridiculous pettifogging to borrow such a sum as £ISOO, and he did hope they would stop till the new Council were elected in order that public feeling might be tested on the matter. Cr Buist said the Council were all in favor of borrowing a larger amount had it been possible. Cr Hawkins said the object of borrowing on the rental was to keep the rates clear. When the Government spent £2500 or £3OOO in main drains, the Council was obliged to find means to lay down branch sewers, &c, leading into them, and the mouey wa3 raised in a special way, so as not to interfere with the general borrowing powers of the Council. Cr Allwright said the cost of the overdraft was only 9 per cent, and it was a question if it would not be better to keep that on than borrow at 8 per cent, as the expenses might be equal to the 1 per cent difference. The Mayor said Cr Allwright seemed, to have lost sight of their assets ; there was the property in Oxford street, and £670 in rates not yet collected.. Cr Buist said it was usual if rates were not paid within a certain time to take some steps in the matter. Cr Allwright moved, and Cr Buist seconded—" That an advertisement be issued to the effect that all rates due to the Council must be paid before October Ist, or they would be sued for." Carried. The resolution—" That the matter of the loan be referred to the borough solicitor for his opinion as to its legality"—was then put and carried.

The Mayor said that Mr Coster was desirous of putting up a new building on the section belonging to the bank ; but of course it was necessary to have the culvert put in first. The bank was prepared to pay one third of the expense, provided the whole cost was not more than £3OO. Now he (the Mayor) was of opinion that arrangements could be made with the Government, by which they would sanction the putting in of the culvert, as a part of the drainage scheme. The work could be undertaken by th e Council, and the Government could refuud them the money expended on it. If it were placed in his hands he would endeavor to negotiate the matter. It was evidently to their interest to close with the offer made by the bank. Cr Allwright moved, and Cr Buist seconded—" That the Mayor confer with the Government, and ascertain if they are willing to repay the Council any sums expended on the culvert in the section belonging to the Bank of New Zealand." Carried. The Council then adjourned.