The N.Z. Times. (PUBLISHED DAILY). MONDAY, JANUARY 22, 1906. A SERIOUS MUNICIPAL SITUATION.

New Zealand Times, Volume XXVIII, Issue 5803, 22 January 1906, Page 4

The N.Z. Times.

(PUBLISHED DAILY). MONDAY, JANUARY 22, 1906. A SERIOUS MUNICIPAL SITUATION.

mu WRICK 1» IKCOWOBATED IHt “WCLUIMTOI HiOKrZNOSXT." EE.TAZUULUI)

Tlxo sharp conflict that has arisen between tho Auditor and ComptrollerGeneral and tho Wellington City Council, concerning tho latter’s methods of keeping tho municipal accounts ami dealing with tho money of tho ratepayers, must give occasion for serious thought to everyone who desires to see efficient local government. One of the reflections that occur to tho mind is tho vast importance to which municipal undertakings have rapidly attained in this country. Sixty years ago the cities of New Zealand were in tho wilderness state; nnd never, in their wildest flights of fancy, did those venturesome people who first set foot upon our shores believe that, after tho lapse of little more than half a century, there would be .found in New Zealand towns possessing tho life, tho vigour, and the distinguishing characteristics of tho cities of tho Old World. Hut this has como to pass. Borough Councils have given place to City Councils. Council Chambers have vanished and palatial Town Halls have taken their place. The grave and reverend seigniors whose duty it is to administer tho property of our citizens onco dealt with, thousands of ’pounds; to-day they reckon with tens of thousands. It is appropriate that wo should on tho anniversary of tho foundation of Wellington, pay a tribute to those men of tho past. To the public spirit, tho prudence, and tho sagacity of those who guided municipalities through tho difficulties which besot their course at tho commencement of their careers is to bo attributed tho splendid success which has attended civic effort in the past. Grasping this truth firmly, every effort should be made by the ratepayer of to-day to make sure that the substantial work done by the publio'mcn of tho old days will not bo undone by successors who may not bo disposed to follow tho good example set them. Our City Ouncillors of the present time are, wo fees! sure, animated by public spirit nnd a genuine desire, to fulfil honourably and to tho best of their ability the high trust committed to them; but it is open to doubt whether they have tho necessary grasp to successfully discharge the:r duties—whether they have tho capacity to deal with affaire of magnitude, and have a duo appreciation of the responsibilities of their position. A consideration of tho questions of law and accountancy raised by tho dispute over tho City Council’s accounts for 1905 has lod an expert, whoso opinion wo publish in the present issue, to arrive at tho conclusion that tho City Council, has acted illegally in various methods of its financial proceedings. 'The gravest allegations of tho AuditorGeneral are (1) that a sum of £IB,BIB raised by special loan has been misapplied, and (2) that tho Council’s overdraft exceeds tho legal limit by £32,000 odd. Air Palmer, Town Clerk, in replying to these charges, labours under tho disadvantages of not being tho statutory officer responsible for tho accounts, and ho therefore may bo in tho dark as to some of the facts. His arguments arc certainly far from convincing. For example, bo contends that £12.112 of tho special loan was justifiably (aid into general account, because it was money received for land on street-widening; but tho plain terms cf tho law are dead against this argument. His statement

that ' tho Council takes its stand on | common-sense and ordinary business method-.’' is equally unfortunate. Ihe obligations laid upon the (Vtiucd hy the Wellington KnipoweriiiK Act "i ]S'.(7 u ith regard to money derived iroiu tbe sale of lam! are clear and unmistakable. Thai measure was parsed at t!r> rc'iuost of the City Councillors of

that time, whoso successors in office now seek to eve !e the conditions then accepted. There in neither business method nor common-seu.se in their attempt to repudiate what wap agreed to hy their predecessors. A serious municipal situation has undoubtedly been created. First ol all, there arises the important quest ion—■ Is the public interest, under the existing system of audit, properly sat''-guarded ? '1 he system certainly appears to be thorough and searching: and. vtere the directions of the Audit Office observed strictly by (lie Council the ratepaye'would have little to fear. As this is not done, the next question to occur is —lias the Audit Department discharged its whole duty to the public by pimply drawing attention to the alleged broaches? We hardly think the ratepayers of Wellington "ill give an affirmative answer to the latter question. They will expect the AuditorGeneral to take proceedings to compel compliance with the law. No one of course desires that the councillors should be hold personally liable for tin* payment of nearly £50,000. as they legally seem to he; but. short of that, the ratepayers are entitled to sec steps taken for the protection of their interests. The next meeting of the City Council should bo an interesting one, and citizens will no doubt watch very closely future developments in i connection with the finacial questions raised.