MUNICIPAL CONTRACTS.

Poverty Bay Herald, Volume XXXVII, Issue 12377, 10 February 1911, Page 2

MUNICIPAL CONTRACTS.

AUCKLAND MAYOR'S POSITIONS (Special to Herald.) AUCKLAND, this day. At the last City meeting, it will be remembered that there was a rather warm debate in respect to whatwas the most desirable course of action to follow, since the law made it impossible for Mr L. J. Bagnall to occupy the position of Mayor of Auckland and at the same time hold a seat on the directorate of the New Zealand Insurance Company, so long as business contracts existed between the Council and the company. Interviewed, Mr Bagnall said that all difficulties had been surmounted, as the New Zealand Insurance Com-, pany had already cancelled its contract with the City Council. This relieved him of all liability so far as the amending legislation of last session was concerned, and the question of possible qualification no longer existed. In order that no risk might be rim by the city in . connection -with the insurance of Council property, it has been arranged that the South British Insurance Company shall hold all risks covered until one month from the date of cancellation by the New Zealand Insurance Company, so that the Council now has ample time for the making- of new arrangements. The Mayor points out that it might be well to state that at the time when tenders were first called' for the insurance of the Council's property two companies tendered, the New Zealand Insurance Company and the South British. It was explained at the time that the tenders were submitted under tariff regulations, and that which ever company secured the underwriting of the Council's risk would divide the business proportionately with the companies. That was the position which obtained while the New Zealand Insurance Company held the risks in its name. Now the South British and other companies with it in a similar compact would do the underwriting in I the same way. In other parts of the Dominion, Mr Bagnall pointed out that a similar course of action has been followed, and there' had been several instances in which local bodies have severed contracts at a distinct loss to themselves, rather than lose the services of those doing public' work on the bqdics concerned. The question as it applies to the insurance companies' came up for consideration at last night's City Council meeting. * (Per Trcsa Association.) , There was an acrimonious debatu at the Auckland City Council last night in regard to the dual position occupied iv Mr Bagnall as Mayor of the borough and j director of the New Zealand Insura ice Co. The latter wrote cancelling the Council's policy, and enclosing a cheque representing the premiums unexpired balance of the policy. Cr Neherriey regarded this as an insult to the ratepayers. He regretted that the Mayor had so far forgotten what was due to his position as to allow the policy to be cancelled. Rather than give up the position as director, or resign the Mayoralty, he was clinging to the position like a mustard , plaster, which was not in accord with the dignity of the Mayoral office. The Mayor said that the insurance company'** previous reasonable proposal to transfer the policy to the South British Company had not been entertained. Consequently if had taken the present reasonable -course. Cr. Entrioan said that a set was being made to put a certain gentleman in the Mayoral chair, and give him a certain prominence at next election. A motion that the letter be received was carried by 8 to 7, on the Mayor's casting vote, after an amendment moved by Cr Neherncy was ruled out of order by the Mayor.