RATE LEVY CONTESTED.

Auckland Star, Volume XLV, Issue 15, 17 January 1914, Page 8

RATE LEVY CONTESTED.

COUNTY COUNCIL'S POWERS.! DECISION BY OHIEF JUSTICE. CBy Telegraph.—Press Association.., j WELLINGTON, Friday. J The action brought by Warren and others against the Pahiatua County Council for an injunction to prevent that body from levying a rate of ljd. in the ,C on the Ivonini riding, or, in the alternative, from demanding anything in excess of Id. in the pound, and to enjoin defendants to repay an amount collected in respect of the disputed rate on the amount in excess of Id. in the pound, has been dismissed as the result of a judgment just received from his Honor the Chief -luistiee. '•'The foundation for such a procedure," said his Honor, " must be that the corporation has no authority to levy a i rate, or that it has failed to fulfil some condition precedent to the levying of the rate, or that in levying the rate it is acting in fraud of the statute. Practically it was the third ground that was relied on."' ■His Honor pointed out that a County Council could levy a rate, as this County Council had done, on a riding. It could levy a rate on a riding for two things: (a) Part for the .payment of general expenditure of the county for which the riding i* liable, and (bl part for expenditure in the riding itself. It was alleged that the Council had levied a higher rate than was required for the riding, that, taking into consideration the amount tn the credit of the riding at the 'beginning of the year, and the amount required to be expended, a larger rate was levied than was warranted, and it was suggested that this larger rate was levied for a fraudulent purpose, namely, of creating a balance in favour of the Konini riding. And, as soon as this bal- j ance 'was created, it was suggested that . the boundaries of the Konini riding would be altered, perhaps enlarged, tak- j ing in parts of other ridings, and there would then be to the credit of the new riding considerable s ums of money which would be of benefit to other parts not included in ihc Konini riding at present. "As to the mode in which the rate .has been levied."' said his Honor, "'there is clearly nothing to enable the Court to say that any requirement of the statute has not been complied .with. Since the decision of the chairman, etc., of the Hutt County v. Craw-ford, it has been established that no formal estimate is required before the levying of a ratethat is. a County Council may proceed to levy a rate, though no formal estimate of income and cxpendiutre of a riding has been prepared. •' The only limit on the County Council,"' added bis Honor, "is the limit of ratcc- fixed by the statute. if they choose to spend, instead of a Hd. rate, a 'M. Tate, or more, that is a matter entirely for them. The Court cannot act as controller of their expenditure.'' The evidence on the question whether a more moderate expenditure on the Konini riding might ha<"o been sufficient was conflicting. His Honor remarked that, according to the Engineer, who seemed an able and impartial man. the Konini roads were even now not of a first-class character, and they could absorb a groat deal of money to make them better. In his Honor's opinion, there was no ground for the Court grantins an injunction against the Council. The powers of the Court to interfere were, undoubted, but before it could interfere it must be shown that some fraud on the statute had boen committed. In lus Honors opinion, this had been proved, and he must therefore refuse the injunction.