DRAINAGE RATES

New Zealand Herald, Volume LXXII, Issue 22211, 11 September 1935, Page 11

DRAINAGE RATES

SECURITY FOR LOANS CLASSIFICATION SYSTEM LATEST LIST TO STAND j [from ouk own correspondent! HAMILTON. Tuesday The opinion that a drainage board? could have only one classification list at the one time, and that it was bound to collect the special rates levied to secure special loans raised, upon the basis of the classification list last adopted, was expressed in a reserved decision given by Mr. Justice Callan in the Supreme Court at Hamilton today. The Lower Mangapiko Drainage Board (Mr. H. A. Swarbrick) had brought an originating summons against the Public Trustee (Mr. J. F. Strang), for the purpose of obtaining a ruling. His Honor said that when the board was constituted in 1917 it adopted si classification list, on the basis of which £3750 was borrowed from the Publio Trustee. The board's land was reclassified in 1929. When the appeals against this classification were heard Mr. Wyvern Wilson, S.M., held that hilly country should be exempt Iron* drainage rating. The district, consequently, was again re-classified in 1930. As a "result, the valuation of the C class land fell from £210,063 to £12,075 and the valuation of the D class land, which was exempt from rating, roso fiom £17,243 to £269,961. The Publio Trustee complained that considerable land, both in area and value, upon which he believed himself to have a security, were purported to have been removed from his security. 'Rates which produced £203 under the 1917 classification yielded only £SO under the 1930 classification. t His Honor held that there could be only one classification list at tho same time. According to the Act, the board, in order to secure the money borrowed, must collect the special rates upon the basis of the 1930 classification list. It was agreod between the parties that each should pay its own costs.