THE BOROUGH LOANS

Pukekohe & Waiuku Times, Volume 1, Issue 53, 20 December 1912, Page 3

THE BOROUGH LOANS

Mayor's Criticism. Some Alleged Illegalities .j W'.Jnesday night's meeting of the Pukikohe Borcugh Council the ex-Mayor, &r W. Dunn, wrote as follows: 'I was fomewhat pleaded to notice in the last itsue of the •'linus' that the Mayor had made an announcement in connection "with the terms on which the Council were negotiating their loans, tecauae of the apparent reticence (possibly necessary) which was using observed. I was becoming afraid that a policy of suppression was being adopted—a policy which, in my opinion, is as unwise as it is unjust, the report, however, was not quite definite as to whether the average of £9B per cent ai slated by the Mayor covered brokerage and other charges. There are rumours afloat that s:.me of the debentures have been sold at a discount of £3 per cent, plus £> psi cent trokerage and other charges. If this is so it would mean that the Council would only receive abcut £95, or a little more, for each £IOO of liability so incurred. But whether the amount be £95 or £9B I have grave doubts whether the Council can legally borrow on these terms, ar.d I know thai they cannot morally do so. "Ist.—The poll taken to authorise the loats strictly limited the interest to he paid to £5 per annum, and to pay £5 pet annum on any lesser gum than £IOO is exceeding the authority. To obviate this difficulty the poll also authorised certain amounts to be raised to meet brokerage and other charges, but, speaking from memory, the amount so authorised does not exceed £1 per cent., and I fail to see from what fund the deficiency can be legally or morally made up "2nd.—At the public meeting held to consider the loan proposals variouj ar.d pertinent questions were asked in conr.ecion with the t-rms on which the Council expected to borrow the money, and a definite and unequivocal promise was given that—except to provide for liabilities actually ucumd by the Council's predecessors—if the Ccuncil found they could not borrow at 5 per cent, and not more than 1 per cert. brokerage and other expense?, then the Council would not borrow at all.

"This promise was unanimously endorsed by every councillor present at the meeting, and I cannot pee nun it can or why it .should be broken. 1 wish to assure the Council that this letter is *ritt:n in no unfriendly or critical spirit, quit? the reverse. For the present at least I have entirely withdrawn from participation in local politics, and have no immediate desire to in even a minor degree be drawn into them again; but several ratepayers have consulted me regarding the position, two at least having threatened to t e ke legal advice in connection with the matt'r"—Trie Mayor: Lft them all come!—"and I feel that it was my duty to my late colleagues and the ratepayers also to draw your attention to the above aspects of the question, which have apparently be:n temporarily overlooked." Somebody remarked that Mr Du;.n should fctill be here. Cr Pollock: Yes; he wriggled out. The Mayor: Quite right. Why didn't he stop here instead of criticising us now. 1 am satisfied that everything in connection with the loan is in order and quite legal. Mr Dunn probably thinks he tould have done better; well, he should have stopped here and done it. Cr Comrie: We might inform Mr Ihi .11 that no debentures have been -■:!•' at ■>'- 'iht Msyor: i fct' inciincJ to move that ve ir.f' r<v Mr Uuen that tKOuii-., ia capauK »i !■ -K;>:■ af"-r f ; iw - - rinefs. l. i.i.,,Hi ■ . " - .at receive Ut'd-- k'tt v t! ecu tp • . e., ;,, r as 1 can mam. ■ ur jrra.ngeir.enii are perfectly legal, but -<;:-, th question baa been raised we might refer it to our solicitors. Cr Comrie moved, That Mr Dunn be informed that his letter had been received and had been referred to the borough solicitors for their advice. Cr Pollock seconded the motion, which was carried.