THE BOROUGH OVERDRAFT.

Thames Advertiser, Volume XXVI, Issue 7794, 13 April 1894, Page 2

THE BOROUGH OVERDRAFT.

A LIVELY MEETING. At the Borough Council meeting last night the Finance Committee reported that as a result of an interview with the acting manager of the Bank of New Zealand, ifchad been agreed that for the half-year, ending June 30th next, the vale would be 8 per cent. He also thought it desirable that fresh arrangements should be made after that date. Mr Lawry aiso stated that the rate of interest charged for overdrafts had never been lesg than 9 per cent The following letter was also received from the acting manager of the Bank of New Zealand:—" In acknowledgement lof your intention of the 6th inst., and referring io to-day's interview with re- ' prcsentatives of your Finance Commitae in regard to the rate of interest the BaEk would charge in future on overdrawn Borough accounts, I have to state that having understood from your committee - they expected the present overdraft would be cleared by the end of June, or - early in July, from loan and revenue, the (.. Bank is willing to make the rate 8 per * cone per aunum as from 31st March, for say current six months, It was further understood that whether a loan for £2000 be obtained, or not, your Council would about the end of June Bgain interview the Bank, and make such iresh arrangements as might be needed regarding the future. In view of the long standing relationship which has existed between yourselves and the Bank, I have every confidence, that, as heretofore, any negotiations that may arise batweenus will be'settled satisfactorily to all received."

•Cr Koofoed in speaking to the rate of interest the Bank had been charging, he maintained that the Town Clerk was to blame more than anyone else in not placing the matter before the Council. The Mayor said that as far as he wag concerned he did not know that the " Bank had been charging 9 per cent until they had interviewed the Eon. Mr Ward, a couple of weeks ago. Ho then spoke before the hon. gentleman about 8 por cent, when the Town Clerk corrected him, and said that it was 9 per cent. However a to place the true state of before the Council, the Mayor made ' a lengthy statement ' showing that the water rate loan on July Ist, 1886, was £6,500; and the general rate loan, October Jst, 1887,13,500. At this time the Borough was free of overdraft, as at the time of Mr Dean's arrest there was a debib ballanco of £5 9s 2d, bat it was from this time, on Mr Carpenter-being appointed Town Clerk, that an overdraft was Opened at the Bank for- the purpose of paying some outstanding accounts. Thisi went on for a few months, but again, in March Bth, 1890, during Mr McAndrew's term, tha overdraft was reduced to £19 13s on the general account. The credit balance, however, then stood to water accont of £17 13s, reducing, the overdraft to the small sum of £18s sd, However, on Mr McAndrew leaving the chair, the overdraft stood at the Bank at £891143 sd, and outstand* Ji ing accounts, £359, with the sum from' Guarantee Society, £650 expended, making a total of £1,900 lti 8d {so that the . Counoil would seo by this that there was spent during that temi of office about £1000, more than t&8 income of the Borough.' When Mr Eenshaw left the chair the overdraft at the Bank

was £681 Is lOd, but with a large liability and outstanding accounts. On °. Mr BfcGowan leaving.' the chair, the overdraft at the Bank was £2,30 P, and lon the 9th of April, 1894, the overdraft "■" at the Bank stood at £255719s Bd, Although about £1100 has been expended with the flood, the overdraft has only increased to £257 19s 8d "during the time he (the Mayor) had been in the chair. Hβ would, however, like to point out that this overdraft'was noli caused

by ordinary work, but somebyunforseen circumstances. £300 was paid to Mr Price for land; Mayor's salary,£2so; . renovatiug Council Chambers, £300; ', reservoir, £1,500; deficiency in rate of 9d instead Is, £300; making a total of £2650, ' Did he bring this matter forward with a view to upbraiding his predecessors? Not at all! He did not blame them at all, for ho contended that the Mayor was' ruled by the gentlemen sitting round the table, and the Councillors were the ones

to blame. He had made the above state* ment because at the special meeting of the Cosncil he wa9 told plainly that he had spoken falsely, and as he knew exactly tho state of finances, etc, he felt considerably hurt over the matter. Hβ would again say that if they wished to reduce the expenditure they must ourfcail the works, and speaking personally, ha wished to leave the chair with honour to

the ratepayers for having placed there, and also with credit to him&& The Mayor then referred to the words used by Cr Wood, and asked him to withdraw them. He did so, not because

it was himself that was concerned in tke matter, but because he felt that if the Mayor's word could not be trusted he had no right to sit in the chair. Cr Trembath endorsed the Mayor's remarks, and he also pointed out that he could not flatter either the officers of the Council or the Finance Committee for

not having placed the rate of interest the Dank was charging before the Council. He thought that it showed a consider* ablo amount of negligence on thepart of the Town Clerk, Asisgardsexpendifcnre, he impressed upon the Council that they must all use their most strenuous efforts to utilise the public funds as judiciously as possible, especially where there.were loans concerned, as the borrower bricame the slave of the lender. v\ Cr Davy thought that 7$ per quite enough to pay the Bank. Or Wood contended that aa matters

had now been settled till June, the ques« tion could stand' in abeyance, till then. As regards the Minor's request that he should withdraw the words nsed by him, lid thought that alter a man coming up A

to a gentleman, slap him iu the face, and say all kinds of things about him, it was absurd to think that the offended party should bo asked to apologise for anything he might do in return. This was the position he took up, aud for him to apologise, well it was as romote and as far distant as he was from the moon. Tho Mayor was the aggressor, and had he (the Mayor) not first charged bira with v falsehood ho would have been glad to apologise. The Muyor: I appeal to tho Council. Cr Wood: Yes, who was the agressor ? Speak out, gentlemen? . The Mayor:' (jorao on, gentlemen, speak out fearlessly. lam not afraid to do what is right, and if you say I was in tho wrong, I will eivo in. .•■ Cr Menzios: It seems to me that one is afaid and the other is not game. Mr Mayor,-you made a statement, did you not? . ; • The Mayor; Yes, Cr Menzies: And Cr Wood said the statement was not correct. ■ Tho Mayor i He said it was false. Or Wood: I did not use those words. The Mayor J Well, they are all the same. Cr Wood then said ho was quite prepared to drop the matter, and on tho motion of Cr Brown it was docided that the question be settled, and thatthoy go on in tho usual amicable way.