A Nice Mayor.
Wellington, Wednesday. A special meeting of the City Council was held today to consider the complications which have arisen in reference to McGrath's reclamation contract. McGrath some months back went bankrupt, and the Council decided to take action against tbe sureties for the amount of their bond, £5,0C3. The sureties were Messrs Roberts and McNaughton, of Canterbury. Under the contract the Corporation are required, in the event of the - contractor's bankruptcy, to giro a written notice which of the two specified courses they elect to adopt. On. Mc» Grath's becoming insolvent, notice was duly drafted by the City Solicitor and copied by the City Treasurer. It turns out, however, that before it was transmitted to the contractor one of its para* graphs was altered so as to give it a general instead of a specific application* The consequence was that the noticefailed to comply with the requirements of the contract, and the contractor's sureties Lave set up as their defence that the notice such . contract requires was not given to McGrath, and they therefor* dispute all liability. It is : ."feared,, too, that this alleged flaw in proceeding may also ivalidate the Corporation's claims to the plant, etc. If this view is sustained, the result threatens to be a loss to the city of some £8000. The alterations ia; the notice were made in the handwriting of the Mayor, and the City Solicitor, in a letter to the Council, seated that the action, peneU ing against the sureties, and also the Coonoil's claim for cement, plant; <Se^»; are jeopardised by the alterations ia the language of the notice.. In reply to the solicitor, the Mayor wrote that the alterations were made by direction of the Coubeil at a meeting in May last, and against his advice. Councillors denied that the alteration had been made with their eonseat. and it was ultimately decided to obtain the opinion of the Attorney. General and other barristers as to whether the notice sent was sufficient, and whether the Council had a claim against the sureties. Dr Newman moved,and it was carried, "That it is the opinion of this Committee that the Mayor, did alter the notice after the passing of m. resolution on the 29th of May." Tbeqoes* tion is exciting considerable interest.
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https://paperspast.natlib.govt.nz/newspapers/THS18830910.2.15
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Thames Star, Volume XIV, Issue 4581, 10 September 1883, Page 2
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381A Nice Mayor. Thames Star, Volume XIV, Issue 4581, 10 September 1883, Page 2
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