PAYMENT OF RATES

Manawatu Standard, Volume LVI, Issue 123, 24 April 1936, Page 2

PAYMENT OF RATES

MORTGAGE CORPORATION

PROTEST AGAINST ATTITUDE,

Per Press Association

WELLING! ON, April 23. A vehement protest at the attitude adopted by the Mortgage Corporation ■ was entered in tiie Magistrate’s Court by the city solicitor (Mr J. O’Shea) when asking tor judgment by ; default in the case of the City Council against William Love, charged | with, being the owner of a property on which three years rates were ! owing. Mr R. Hardie Boys, for defendant, asked that judgment be withheld pending an inquiry into the circumstances. He said defendant was the owner of a property in 1931 when, on account of the depression, he could not keep up the payments and was asked by the second mortgagee to vacate the premises, which he did in March of that year, since when he had had no contact with the property, ' and had never regarded himself an the owner. In law, however, he was srill regarded as such, and was liable for rates for five years. The second mortgagee had collected all rents, and for the first two years had paid the rates. The first mortgagee was the State 1 Advances Office, the mortgage now being with the Mortgage Corporation. The second mortgagee was ordered by the Mortgage Corporation not to pay the rates, though he was ready and willing to do so. He was told .that he must handle the rents without any reduction for rates, otherwise the Mortgage Corporation would take over, the property from him. “The Mortgage Corporation,” said Mr Boys, “is not liable for rates, and the result is that this poor man must have judgment against him personally, unless the Court is prepared to. regard the matter as so harsh and unconscionable that judgment should be withheld.” The Magistrate: But it is not the the City Council that is acting harshly. Mr Boys: No, it is the harsh and unconscionable dealings on the part of the Mortgage Corporation. The City Council is fully sympathetic with defendant’s position, but it is forced to ensure the collection of The Magistrate : There is a remedy open to you, with another tribunal by way of petition. Mr Boys (smiling): Yes, I’ve heard of that tribunal. Mr O’Shea said the Mortgage Corporation was standing behind a Tudor prerogative originally enforced by the aid of a subservient judiciary'. The prerogative was being extended to-day to the trading departments of the Crown. It would be necessary to go to the Privy Council for judgment, but under the previous administration if the judgment- of that Court was in the council’s favour legislation would promptly be introduced to revise the position. tne present Government had not yet had time on account of policy matters to go into the position,- but the matter was one they proposed to deal with. This was the furthest the Mortgage Corporation had gone so far in expressing the prerogative transferred to them. , ~ He drew the Magistrate s attention to reports by which he would see that in England drastic _ steps were being taken to prevent private citizens from evading income tax, yet here we had what was practically a State Department preventing the payment of rates. Mr Ball (for the Mortgage Corporation) : Your Worship . The Magistrate: If this argument goes much further I think you must address me as Mr Speaker 1 Mr Ball explained that, owing to the non-payment of the full instalments, an arrangement had been entered into between the second mortgagee and the Mortgage Corporation that the second mortgagee should pay all the rents to the Mortgage Corporation, which was prepared to pay such amounts to the City Council, as it was empowered to. Mr O’Shea: The position is worse even than I thought. The Magistrate: The matter ends with judgment for plaintiff.