THE ABATTOIR LOAN.

Dominion, Volume 2, Issue 537, 18 June 1909, Page 8

THE ABATTOIR LOAN.

.HIGH-CITY OFFICER IN HOT WATER. THE MAYOR'S STATEMENT VERIFIED. Although only a few weeks in. office, his Worship tJho Mayor has already had tlho misfortune to oomo into conflict with one of his licuteaaate in tho parson of tho City Treasurer, but a statement made by his Worship at last night's meeting appears to have cleared the air. Dr. Newman said:

"I regret exceedingly that I am forced to report to the council the conduct of Uhe City Treasurer. When I took office I felt my first important duty was to study.' tbo city _ finances, and • Icairn the exact position and prepare the estimates. Last Thursday night I gave tho council tho actual position. I took great pains and verified the figures from the ledgers, with tho help of tho Treasurer. I found, and told tho council,' that the £15,000 of ■ delxsiturea' created for .tho abattoir loan fund had boon diverted to ojiothor purpose, viz., to pay off am old loan. I found that prior. to Maroh 31 over £4800. had been paidcut of district revenue, and tfiat as the works would shortly be completed, the balance. £10,184, would have, to come oat of district revenue. Accordingly, as was my duty, I placed this item in t)he expenditure fcrr the year, and the oouncil on my mot-ion voted it. On Friday morning the Treasurer asked me to pass a cheque, on the district revenue for £15,000 to put tho abattoir fund in credit, otherwise the auditor would put a tag on the accounts r i i To my amazement I tound tho City Treasurer hod published in the city press on Saturday a totally different version of tho loan account, flatly contradicting, mine. Tho position then stood thus: I tiho Mayor had deliberately stated'the exact position of the abattoir account of the council, whilst tho City Treasurer .published an extremely opposite version. I could not pass over so senous a matter. I at once decidod to report the matter to tho council this evening, and on Monday morning told tbe Treasurer my intended oourse of action, and that I would ask tho.council to let him be heard in his defence." _ In view of Mr Collims's long service in tlic council and tho humiliation tie had suft' "? Worship moved that the matter lie after th'o°future. • WOuld look

CITY TREASURER'S EXPLANATION. AN APOLOGY, Coffins" o'tv k '|. ha " dcd in - a from i ... ■ J reas-ure-r, in oxnlimfiAn/ of.the mattor. The letter ran as under:— ' His Worship tho Mayor JuQ e IT- • . Wellington. 7 ' . .Sir,-Referring to tho abattoir loan vonr thit fl? C ° Uncil ? n Tl '«rsdav lost Irero & ven -in' exchange and to n Ualloiin fo i f t,lat reason the money must be found from the District Fund, was alien, lutely correct. The expenditure on abattoirs to March 31, amountine to -CMBIG, has been drawn on the District Fund, and the- ° ft® !?? n (X1(U8S ) must also be fonnd from.the District Fund; and for that tiom? the figures contained therein read'as ■ contradicting the statement yon made at the meeting. As-there wero two loans being dealt with at the same timer-namely, hi repayment loan of and tlie abattoir loan, ,£ls.CflO—l endeavoured to ex.plain ~ tho ..operations' 'and ■> to show from °'i MWpeiirce .•.the abbatoir.money must be ,i rande.*up, ;l- ---: ■: 'I,'desire.to mako it plain thit there was . no intention on mv part to contradict the , Mayoral statement of the position. I much r f, E l e • i statem ™t was capable of such interpretation, and apologise for the indiscretion m Riving, the statement. • • I am, sir, Your obedient servant,- ■ •

/ - CJIAS. COLLINS, The matter was- thou'allowed-to drop'^ DIFFERENT versions., • .Thei subject.of the diversion of the'abattoirs loan was again brought up at the council meeting last night, by Councillor Morrah, who questioned the correctness of the view taken by the Mayor (Dr. Notraian). • , . t .. ' Councillor Morrah said,that to. rcpay : the. loan of .£51,000, which matured in June, the council had cash in the'bank, unexpended money from the loan, £2766. Debentures to the amount of■ £48,000 at 4 per cent, were floated towards the repayment of the loan of .£51,000. After paying off all tho debenture holders in wo £51,MQ 10an,., for which. purpose .£15,000 ■ belonging, to the abattoirs ..loan .was used, the •JK®,' of ■ Pi«d in to . the .District Fund. J he-council had unsold .debentures'of the face value :of - £6400,-° \vhioh' should reiiliso £6000' which amount, with this £7572 already paid in. left the sum of «£13J)72 available to reway the £ 5,000 to the abattoirs loan. Tho balance, i j l .!? ? ea "^ r the cos *. of floating the loan, had to be found out. of this year's revenue. The Mayor repeated his former explanation of the matter. *

Councillor Shirtcliffe said lie entirely supported the Mayor's view that .£15,000 of abattoirs money was 6unk in the District Fund Account, but by March 31 .£4BOO had been paid back, and that loft, i.10,200 still owing by the District Fund Account to the abattoirs loan, account. This the result of gross bungling or irregularity. The abattoirs money ought to have been put into a trust account. ■ . . Councillor Horrah said .£7572 had actually been paid into the bank. What acconnt would get credit for thAt sum? '■ v The Mayor: It helped, to rcdnce the overdraft. There is not a shilling remaining. v * In the conree of further discussion, Councillor Devine said til 6 council ought to know who it was—whether the late Mayor, Finance Committee, or anyone else—who caused the City Treasurer lp perform tho illegal act of trans-' forring money from the abattoirs loan -to .the District Fund. He puggpsted that the existence of such irregularities was accounted , for by the fact'that the old. council-so often got its meetings over by half-past nine. Councillor . Morrah said he adraittod ; that the £15,000 should not have been transferred, but his figures and contentions were correct. The matter then dropped.