"A MERCANTILE TRANSACTION.”

Gisborne Times, Volume XXIX, Issue 3164, 9 March 1911, Page 4

"A MERCANTILE TRANSACTION.”

WAS THE CHARGE A JUST ONE? AN INCIDENT AT THE BOROUGH COUNCIL. A transaction between the Bank or Australasia and the Borough Council was mentioned at the meeting of the latter body last night, when a letter was read from the local manager for the bank, stating that lie had on March 4th received the following advice from the general manager in London:—“l advise having paid John Duthie and Co., Ltd., £6496 Ss 2d. This amount, with £l6 4s lOd, i per cent, commission, in. all £6512 13s, has been debited to account.” The letter also stated that the customary charge for such transactions was £ per cent, commission, but in the particular instance 4 per cent, only had been charged. Cr. Barton claimed that the charge was a most unreasonable one, stating that even 1 per cent, was a very big amount for a bank to charge for ‘‘simply writing out a cheque.” He asked if this was a sample of the excellent treatment they had been told they were to get from the Bank of Australasia. The Mayor stated that the question was altogether apart from banking. “A purely mercantile transaction,” he exclaimed. Cr. Pettie pointed out that the work done for the commission charged was practically nil. He thought that perhaps, although the amount was a small one. the charge might he a recurring charge, and they should, lie held, make some protest. He pointed out the great amount of business being put in the hands of the bank by the Council, and moved that the attention of the bank authorities be drawn to the matter, and that thev he asked to forego the claim. Cr. Clayton seconded the motion, and he also commented on what lie termed to be the small amount of work the bank would have to do in connection with the payment of the cheque. to Messrs. Duthie and Co. The Mayor said he was surprised at tin? “unmanly and unbusinesslike attitude” taken up by certain Councillors on the subject. Cr. Pettie objected to the use of the word “unmanly.” “It is not unmanly to try and save money for the ratepayers.”* he contended, “although from your point of view it may he unbusinesslike.” The Mayor retorted that under the circumstances lie thought the word Cr. Pettie took exception to quite described the position. Proceeding, he said thatthe transaction was not one connected with hanking, and if it had been done through an agent the charge would have been much greater. The bank took all responsibility in the matter, and it must he remembered that Messrs Duthie and Co. had required payment to be made at the other end. . TYliy sliould they ask the hank to remit a legitimate business charge. The bank did not want the business; they had not asked for it. “It would be paltry and childish,” lie said, “to ask the hank to refund the charge. The motion on being put to the meeting was lost by 5 votes to 3.