BOROUGH COUNCIL'S DILEMMA.
BORROWING FOR COMPLETED
WORKS.
[BY TELEGRAPH. —PRESS . ASSOCIATION.]
. New Plymouth, Tuesday. The j Borough Council discussed the financial difficulty raised against the borough borrowing money for works . already done. The difficulty arose : through the electric light system exceeding the estimate of the money for ' its' completion, which 'is being paid out of the general account, the Council ' trusting to -be ' able to reimburse that account by the flotation of a new loan. A similar course ■ had > been followed in \ respect of two previous loans, to which no objection had been taken. '■<■- S v ; ; The' opinion ' was' expressed "by several legal firms that there was " a doubt as to the legality of raising money for liabilities already incurred, the borough's powers being limited to the raising of furid3 for future expenditure. - The Council's solicitors advised that the only course open was to promote a local bill to validate *J1 proceedings in the matter, and the Council adopted the suggestion. ■
";'- The Council < also decided- to borrow £15,000 from the Bank of New Zealand at a rate not exceeding; 6 per cent." ■'
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Bibliographic details
New Zealand Herald, Volume XLIV, Issue 13450, 29 May 1907, Page 7
Word Count
182BOROUGH COUNCIL'S DILEMMA. New Zealand Herald, Volume XLIV, Issue 13450, 29 May 1907, Page 7
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