The County’s Loans.

Kawhia Settler and Raglan Advertiser, Volume IV, Issue 277, 21 September 1906, Page 2

The County’s Loans.

DEPARTMENTAL QUIBBLE, It will come as a surprise to ratepayers to hear that tbe Kawhia loan* are hang up, the following letter read at the laet meeting of the Council explaining tbe reason : “ In reply to yonr letter of the 14th applying for a loan of 410,250 lot widening and metalling various roads (for two successive year’s expenditure), I bave to inform you that if your Council intended to borrow undor the “ Local Bodies Loans Act, 1901, M a direct application should have first bee* made to ’.he Treasury atatiar under which sub-eectiou of section 8 of the “ Local Bodies Loans Amendment Act, 19)4,*’ ii was decided to raise the loan, and also stating if any vf the roads to be metalled have ever been previously metal ed. It is noticed from the public notifications of the steps which your Council has already taken to obtain this loan, that tbe currency is quoted M being for a period of 44 years, for which period no loan esn be granted under tha ” Local Bodies Loans Act, 1901,” and as thia cannot be validated it will necessitate steps being taken afresh. I vrould. however, impress upon you the inadvisability of your Council taking any official steps to obtain the loan until the Colonial 7 reaeurar's provisional approval has been first obtained, as, in the event of the loan being declined, the whole of tbe expenses incurred must bu borne by year Council. When again osaking the direct application for tha loai, please embody the particulars asked for in the first paragraph of thia memo, in tha event of your GouncU deciding to raise a loan from tbe Government.—J. B. Huywood, Secretary to the Treasury Before the Council met Mr Greenslade was requested by wire to interview the Premier on the matter, and telegraphed the following reply <( Premier says will La pleased to assist if possible, but he is afraid mistake caanot leg* ily be validated by order-in-Council. He promised consult Crown law aflicen.” On the letter being read at the table The Cbairmac. said that ail tbe formalities had beea complied with, tha iuforniation having been supplied to tbe late Colonial Secretary. Cr Babbage remarked that clau-e 10 of the “ Loans to Local Bodie* Act, 1902,” set forth that if th* ratepayers had not been misled an orderin Council validated an error. He «h 'tight that that overcame tbe difficuHy. Cr Shaw : It looks as if tbev are trying t > hang the matter up as much as possible. A wire was sent to Mr Greenalada, drawing often (ion to the clause Or Bibbage h’ul quoted, nnd at 5 p.m« a reply as follows wa* received '■ Just left Hall-Jours who says re loan he believes poseibUity can b> legally validated. Crown law offijere will give decision in day or two.”

An indefinite telegram was received from ihe Premier on Thursday.