LEGAL EXPENSES.

Auckland Star, Volume LX, Issue 172, 23 July 1929, Page 10

LEGAL EXPENSES.

POWER BOARD'S PROTEST. CHARGES ON LOAN MONEY. "EASIER THAN PICKING UP SOVEREIGNS." Strong comment concerning the legal expenses charged in connection with the raising of a debenture loan for £250,000 with the Australian Mutual Provident Society—representing portion of the loan for £670,000 sanctioned by the ratepayers recently for extensions to its services—was made at yesterday afternoon's meeting of the Auckland Electric Power Board. After considerable discussion, it was decided to pay solicitors' fees .of £308 under protest. Details of the charges were contained in a letter from the society's solicitors, Chapman, Tripp, Cooke and Watson, of Wellington, which was forwarded to the board. Had the loan been an ordinary one on mortgage, it was explained, the fees would have totalled £072 if the title had been under' the land transfer system, and £696 if under the deed system. The skill and responsibility involved in connection with a debenture loan more nearly approximated that required for a mortgage of land under the land transfer system. Inquiries showed that the Public Trust regulations provided for a charge of i per cent on the amount of the loan. The fee payable on a loan of a similar amount would, therefore, be £625. The solicitors of the National Mutual Insurance Association adopted a scale for land transfer mort- ! gages, and their charges would be The solicitor of the T. and G. office stated that in connection with a loan of £200,000 his charges were taxed, and allowed at £347. He added that a fee of £500 would be made in respect to a loan of £250,000. "It will be seen that our charges are considerably lower than those charged by the Public Trust Orlice or by other solicitors acting in " circumstances," the letter J added 'Our charges are more than a 1 third less than those fixed by the scale m regard to mortgages of land under

the land transfer system. We are of the opinion that the charge made by us is fair and reasonable." The acting-manager of the A.M.P. Society pointed out that it was still open for the board, if it desired, to have the account submitted to the registrar of the Supreme Court at Wellington for his taxation. " We will have the letter read, just to let the public realise what legal gentlemen get for doing very little," commented the chairman of the board (Mr. W. J. Holdsworth), in introducing the discussion. "Under Union Rates." Mr. T. Bloodworth (jocularly): The charge is below the union rate. Mr. Holdsworth: The letter goes to prove at length that under union rates the charges to the board would have been £672. The solicitors go to much trouble to talk about the land transfer system, but that is all eye-wash. The Bank of New Zealand wanted to charge £450 for £250,000, but we came to an understanding with them whereby their legal people would only charge 1-8 per cent in future. These people have of that and doubled it. They talk about the trouble involved, but the trouble is on our officials and our solicitors. All they have to do is to peruse the documents and approve of them. Picking up sovereigns is hard work compared with it. The solicitors also want to be paid' before we get the £250,000. I Mr. T. Bloodworth: The letter shows the wisdom of Shakespeare's saying, " Neither a lender nor a borrower be." Mr. Holdsworth: I don't know of any easier made money, not even on the "tote." (Laughter.) A Member: There is only one person better for charges than a lawyer and I that is a plumber. Mr. M. J. Bennett:' He charges for i every conceivable thing, and then makes a charge for spirits. What spirits, I would like to know. Mr. Holdsworth: The only thing to do is to pay under protest. Without further discussion this course was adopted.