ACTION AGAINST COUNCILLORS.
A MASTERTOX CASE. B.VYING INTEREST OX OVER DRAFT. MASTERTOX. .May 20. Mention of litigation by tin* Mayor canto as a thunderbolt to the borough council to-night, and as a result vim developments of the next two days' are likely to I.a interesting.
The Mayor stated that soon alter the 1921-23 council to.-k office a loan of £7500 was plated to Fho credit, of the gasworks extension account blithe purchase’ of a gas holder from England. dust at that time transport in file old •Country was he’d up by a st i ike •"•lid the gas manager was- advised by cable that the holder f-nuhl not lie shipped. At tlml fime, the council had an overdraft ill tlie diMrirt fund act mint of £9OCO. so ii was decided to transfer the £7590 to the latter account till it was required for its original purpose, the object being to save ir.Lere.-t on the overdraft. Tt was known to the cntiii il tin t- an Order in Council was required legally fo pursue ibis object, hut. owing to ilte Govern-or-General'.; sanction taking usually about six weeks to bo obtained, the coum-il decided lo adopt this course, thin.ving that tlie balance-sheet would lie tagged and the matter there would end. lr was mentioned by the Mayor that by following tit is course for seven weeks till the money was required. 11 to rotcpayeis were saved £OO in interest on the district fund account overdraft. “I have now been informed by Hie Crown Solicitor.” said the Mayor, ‘•that there arc twelve writs issued out of the Supreme Court claiming a penalty of £IOO from onh of the councillors sitting at that time. The worst feature is that they fro bringing the action (-hrnuglt tlie Supreme Court, whereas it is only a Magistrate's Court action. If this persecution is allowed to exist, it will lie a difiieuit job to get men for public life.”
Several councillors favoured resuming in a hotly, and iliis will Ire referred further to at a special meeting to-mor-row night.
Eight members of Hie council concerned are sitting on the present cotm-
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Hokitika Guardian, 22 May 1924, Page 4
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353ACTION AGAINST COUNCILLORS. Hokitika Guardian, 22 May 1924, Page 4
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