THE MANGAHAO CATERER.

Shannon News, 29 September 1922, Page 3

THE MANGAHAO CATERER.

$ DID THE GOVERNMENT GUARANTEE HIM?

Wellington, Last Night

A petition from the Shannon Cooperative Cash Trading Co. and 57 residents uj ihe district, praying for an inquiry into the Government’s alleged liability in respect of a bankrupt caterer at Mangahao was considered by the Public Petitions committee, which leferred the matter to the Government for its favourable consideration.

When the report ,vus received today it was stated that the question involved was whether the caterer held a letter from the Government which constituted a guarantee, but he had been unable to produce it, though Mr Field declared that there was strong evidence supporting tbe impression that a guarantee existed. Hon. E. P. Lee, Minister tor Justice, declared that it had not been suggested during the discussion that the Government had guaranteed the caterer, but there was strong evidence to the contrary. The Government entered into a contract wfth the caterer to supply food to the men, but was not concerned about he conducted his aiia.rs, or it he was making loss. Was it. to be assumed because the Government made a contract that it could go behind its terms and give creditors to understand that whatever was done by the caterer they would -pay? The committee’s report was adopted.