THOSE SINKING FUNDS.

Dominion, Volume 1, Issue 158, 28 March 1908, Page 6

THOSE SINKING FUNDS.

COUNCILLOR FISHER TAKES UP THE MAYOR'S CHALLENGE. The Mayor's, declaration that the sinking fund transactions of tho City Council were more profitable to the city under- his management than under Mr. Aitken's has led to surprising developments. \Yesterday, wo published'-tho outline "of a statement by Mr. Hislop, in reply to " anonymous comments," in which ho admitted that for a time at least a preponderance, of tho sinking funds were applied for and secured for- clients by the firm of solicitors of which he is a member. Ho addod, however, that ho himself had not profited by tho transaction, as ho had instructed tho accountant of the firm not to credit him with'any share of tho; profits on thoso transactions. : Moreover; tho city had gained appreciably from the charigo made in tho investments. Mr. Hislop challenged investigation of theso sinking fund . transactions. Councillor Fisher has taken up,tho challenge, and, as the result, somo interest-' irig facts have como to light: Councillor Fisher deals with . only one transaction, but promises to give others. • Ho states that on September 18, 1906, the Firianco Committee of the City Council granted a loan of £37,000 to the Karori Borough Council, at £4'7s. 6d. per cent, interest. On September 20—two days after the. loan had been actually granted (vide. Council - tnin-, utos)—tho Mayor moved that, power bo given to invest tho funds in-Government and local bodies' debentures, which was agreed 'to; 1 and tho first portiori of. tho, loan.was advanced, to the Karori Borough on October 6. The Karori Borough Council paid' Mr. Brandon, of tho firm of Brandon, Hislop, and Johnston, ono-half per cont. commission for raising this loan, which would'amount to £185.' ' Mr. Fisher then quotes' clause 68 of tho Municipal Corporations Act of -1900, as'follows . " (1) Amembor of tho Council or com■mittoe'.'shall' not vote or tako part in tho--discussion of any. matter before tho , Council or a committee,.in which be has, directly or indirectly, by: himself or his partner, any pecuniary interest. . . . (2)-A member who knowingly.offends 1 ■ 'against this section.is liable ,to a penalty ' not exceeding £50 for ovory sifch offence, .', and upon-conviction his-seat in tho-Coun-cil or in .any committee, shallybecome . vacant." .' '- -■ :i- • ' '• '•• - ■ The .Mayor replied tp ".this statement at some length. ,Ho contended that -tho loan was accepted unanimously by the * Finance ■ Committeo, arid was considered a very good transaction. There was no doubt that it was a good transaction.' The clients of the firni to which he belonged, were lending largo sums of money at that , time at £4'ss. per cent. Ho individually gained no personal benefit through his firm handling.the-loan. Indeed, when tho city ceased: to liave largo Junds at its disposal, ho instructed his employeoi-.to send in . no further applications for : thoso; funds, because'ho thought- it was not fair to himself that business should go past him: unless in .the interests of. tho Corporation; and tlio Corporation was not likely to rcquiro it. Ho had .pursued ~tho usual courso in telling his partners that in all .business matters appertaining to tho City. Council tho:business was to bo taken by thorn-alono, and that ho was to have no'interest in it. ;Mr. Hislop also stated that Councillor, Fisher had had tho opportunity of raising the' matters. dealt with in his letter when .a report on tho investments'was before tho'Council. ■ Councillor Fisher, it. may bo ' mentioned, stated .that he intended to deal only with investments made prior, to the time lie became a member of the Council;', His reply to tho Mayor will be awaited with interest. ,'