UNPAID-FOR ELECTRICITY

New Zealand Times, Volume XXXVII, Issue 8358, 19 February 1913, Page 7

UNPAID-FOR ELECTRICITY

INTERESTING TEST CASE. RATE? OR CHARGE? IS PROBLEM FOR COURT. A test case regarding rates was brougJit balore Mr justice Chapman at cue ouprome Court yesterday. The piaintuts were tiio Mayor, councillors, and citizens of "Wellington and uio defendants were .Hamilton Gilmer, .iI.L.C., of lt>6, The Terrace, Wellington; Allan Maguire, settler, of Dutxoriii street, Wellington; J. O’Kane, ciork, of Wellington; Charles Perrin Skerrett, K. 0., of Wellington; and Mary Ann McArdle, settler, of Wellington. Mr J. O’Shea appeared for the City Council, and Sir John Findlay, K.U., with him Mr T. O. A. Hislop, for defendants. Tho statement of claim showed that tho defendants wore tho owners of. the TTocadero Private Hotel, on which the sum of £3O 13s lOd was duo for electricity supplied for lighting, heat, and power. The council, on June Ist, made demands for this amount as a separate rate, but the demands were not acceded to. The question involved was, if an occupier of buildings refused to _ pay for the electricity could the council obtain tho amount from the landlord as a separate rate. Sir John Findlay contended that the amount duo for electricity was a charge, and could not be enforced as a separate rate against the property. He pointed out that if tho council could do this it would be far-reaching in its effect, as the landlord would perhaps have to sell his property to pay for electricity ho had never had tho benefit of. Further, a mortgagee would not be protected in any way, and he might find all his security gone to pay for rates incurred through tho use of electricity in the building over which he held the mortgage. He then cited authorities and statutes in support of his contention that. it was a charge, and could not be held to be a separate rate enforceable against the landlord and tho property. Mr O’Shea submitted that under tho Municipal Corporations Act and the Rating Act the council had power to enforce this as a separata rate against the landlord, and it could be recovered in the ordinary way that rates were recoverable. It was not a charge, as argued by Sir John Findlay, out a rate. His Honor reserved his decision.