TELEGRAMS

Evening Post, Volume LXXXIV, Issue 138, 7 December 1912, Page 11

TELEGRAMS

STATE GUARANTEED ADVANCES * ANOTHER INDIGNANT LOCAL BODY. (by telegraph— specul to the tost.) AUCKLAND, This Day. Some warm and emphatic remarks were passed al the Newmarket Borough Council's meeting in respect of the reply of the State-guaranteed Advances Department to the council's request for a further £3000 out of the £30,000 loan originally granted' by the Department for street improvement purposes. The council has drawn £22.000, and desired to obtain £3000 of the Teniaining £8000, to which the following response came by telegram: — "The amending Act requires, all moneys paid over after the passing' of the Act to be at the rate «t which loan was raised, plus 2s 6d per cent, per annum for administration expenses. Cannot say at present what the rate will be. The Act alflo requires a resolution by the local authority pledging it to pay the increased rate. The form of resolution is not yet gazetted. If your council will give an undertaking to pass a resolution to pay the increased rate and cancel the debentures already signed, will authorise payment of £2000." "I think it is an extraordinary thing that a bargain made by one Government can be broken by another Government. I don't think the Government are to be congratulated upon their action. It is getting money in a pretty shady way I think," remarked the Mayor. "The | Government have broken their bond, and if we had the money to fight them I am sure ws should win/ he declared. "Unfortunately," he added, "wo have spent most of the money we borrowed." It was resolved to pay the increased ; rate.