ADJUSTMENT OF ACCOUNTS.

Taranaki Daily News, 21 May 1921, Page 6

ADJUSTMENT OF ACCOUNTS.

. A COUNTIES’ MATTER LEGAL ARGUMENT CONCLUDED. The dispute between the Inglewood and Taranaki County Councils, on the motion to set aside an award made by by the Auditor-General ip an adjustment of accounts, was further argued before Mr. Justice Reed in the Supreme Court, New Plymouth, yesterday. Continuing on behalf of the AuditorGeneral, Mr. J. C. Nicholson dealt with the question of depreciation which had been raised. He said the Auditor-Gen-eral must be assumed to know if,the assets of the Taranaki County Council were written down beyond what would have been considered the correct practice in ordinary accountancy.

His Honor asked if the matter mentioned was any business of the AuditorGeneral, whose duties were merely :.o see that the moneys received and expended were accounted for in a proper manner.

Continuing, Mr. Nicholson said it was the practice of the Government departments not to take the values of assets at any one particular date, but over a period of years, and this was the more equitable way of dealing with matters of the kind in an adjustment between two counties. It would have been quite wrong in dealing with values to have regard to the conditions prevailing actually at the time the award was made. He submitted that substantial justice had been done in the adjustment. INGLEWOOD’S CASE. In reply on behalf of the Inglewood County Council Mr. C. H. Weston touched on the remarks on the facts of the case as made by the defence, and said his clients resented the suggestion that they had a fixed determination to avoid the decision of the Auditor-Gen-eral. The criticism on this point was hardly justified, as it was clear from the correspondence that the Inglewood County Council were waiting the reconsidered decision from the Minister of Internal Affairs regarding a board of inquiry. With regard to the point made that they deliberately refused to meet the Taranaki County Council, the only point he desired to make was that many of the members of the Inglewood Council were living in the back country, away from metalled roads, and it was often impossible to get in touch with them at a few hours’ notice. As a mat’ter of fact, according to the affidavit of the chairman (Mr. Corkill) the council did meet the Taranaki County Council representatives, and were prepared to accept the plant on the book values, or to receive credit for their share as at March 31.

Though the Auditor-General was appointed for such cases because of his knowledge of accounts, it was quite clear that the statute did not contemplate his deciding the values of assets or liabilities upon book values. It must be admitted that the Auditor-General had no personal knowledge of the values of specific areas of land or specific plant and chattels. The reason for appointing the Auditor-General was because he was probably the best-fitted person to exercise judicial character in making judicial decisions that came up for reference. It was these very judicial matters, however, that he had delegated to someone else in the present case. THE JUNCTION ROAD. Dealing with the question of apportionment of the reserves set aside as endowment for the upkeep of the Junction Road, Mr. Weston pointer! out that the Act provided that the lands must be used for the improvement of the Junction Road; this, counsel said, must mean all the Junction Road. His Honor said that as far as the new county was concerned, a good deal depended- on the interpretation of the Act. Mr. Weston said his argument was that the Junction Road was now situated in both counties (part in cne and part in the other), and if the reserve had to be devoted to the whole length of the road (as would seem right) it was clear that now the reserve must be apportioned between the two counties; otherwise the object of the Act would ,be. defeated. There was controversy between Bench and Bar as to whether the question of the reserve could be referred back to the Auditor-General. His Honor said the position might be that the Inglewood County Council would have to approach Parliament to have the matter rectified by statute. Equitably it seemed that the reserves should be apportioned. In support of his case Mr. Weston submitted the propositions as ’to the Auditor-General’s functions: (.1) If it is an award then the plaintiff must succeed on the defendant’s admission; (2a) if it is not an award under the Arbitration Act, was the method of inquiry adopted by the Auditor-General authorised by section 15 of the Counties Act?; (2b) if such method of inquiry was not so authorised, was such method in accordance with the principles of natural justice? DECISION RESERVED. ♦ At the conclusion of the case His Honor thanked the Bar for the exhaustive legal argument set oht. He announced that he would take time to consider his decision.