COAL CONTRACT

Southland Times, Issue 20615, 13 October 1928, Page 8

COAL CONTRACT

RECENT CHRISTCHURCH TROUBLE. AN INQUIRY HELD. (Per United Press Association.) Christchurch, October 12. An inquiry into the circumstances of the resignation from the City Council of Mr C. R. Hunter was conducted by the Works Committee of the City Council to-day. Mr Hunter resigned following complaints by the Audit Office about two groups of transactions, one the purchase of coal by the council from Mayo Brothers, and another the hire of a truck for council work, which truck being purchased from Hunter’s firm under the hire-purchase agreement. Mayo had no bank account and the transactions went through Hunter and Webb’s account. The truck was the property of Hunter and Webb, but was in the possession of one Andrews who used it to do certain carting for the council. At the last council meeting a minority of anti-Labour councillors demanded an inquiry. All facts suggest that it was open to construction that Mayo was to dummy for Hunter and Webb and that Andrews was in a like position. The Works Committee to-day examined officers of the council, all of whom declared that they had no knowledge of any connection between Mayo and Hunter’s firm. The transactions had been with Mayo only and Hunter never tried to influence business. There was similar evidence regarding Andrews and his truck. An independent witness offering evidence said that he had seen coal being supplied direct to the city road roller from Hunter and Webb’s lopry. Mayo gave evidence that he was a parttime employee of Hunter and Webb, but that for the rest of the time he bought coal. Hunter and Webb sold it on his own account at his own price. In the case of the council transactions this was the arrangement, and he charged a profit of two shillings a ton. He emphatically denied that in these transactions he was acting as a dummy for Hunter and Webb. The committee is now deliberating on the evidence.