LOANS TO LOCAL BODIES.

Stratford Evening Post, Volume XXXIV, Issue 45, 16 October 1912, Page 6

LOANS TO LOCAL BODIES.

(Per Press Association.) Wellington, October 18. At to-day's enquiry into the allo(ation of loans to local bodies, Mr. Poynton said he had looked into the [uestion of the legality of granting bans to be paid beyond the year in yhich they were granted, and he dip. ered from the opinion of the SolieitorJeneral. As the Board, however, yould he reluctant to grant further bans in view of the opinion given by ihe Solicitor-General until the Act was amended,, it would mean a cessation of 'ending altogether; He therefore urgid that the Act be amended. In tfarch last a circular had been sent Wb to local bodies stating that loans !onld not bo granted at a lower rate ban 32 per cent. ; In reply to Dr. Newman, witness laid the money was lent at 3} per cent intil tho Post Office informed the [Joard that it required per cent., §H then the rate wars raised. : Dr. Newman: How much of the loa'Ti jttohey was approved in the month bolore the election ? I Witness: I don't know, : Dr. Newman: £164,000? Witness: 1 wish it to be put again >n record' that the election had nothing whatever to do with the proceedings of the Board. Witness then stood down to allow iiir John Findlay to givo evidence. In inswer to Sir Joseph Ward, he stated that at no time did ho make representations to' the Department on behalf P a loan for the Remuera Road Board. He telegraphed to Sir Joseph Ward stating that, a deputation had interviewed him regarding a loan of £84,000 that had been applied for, and that £IO,OOO was wanted by the Board to enable it to employ men who had been out on strike. The strike had been settled on condition that tho men should be taken back, but the Board advanced some red-tape objections to the securities advanced, so tho chairjnan of the Road Board, told him, and tjbe men.became suspicions of the bona fides of the Road Board. That was the only connection he had with the loan; He used no influence of any kind. The last thing he dreamt of was that it Would be used for the purpose of promoting his candidature. His telegram may not have been sufficiently guarded in its terms, and he felt no resentment against Mr. Allen for having put that construction upon it. I Mr. Myers: Under the same circumstances you would do the sarrfo thing again ?—Sir John Findlay: Yes; and I venture to say there is not one man sitting round this table who would not have done the same thing.