in 1883, and
there is a curious story regarding it, related by my friend, Shirley
Tremearne.
Before it could be erected the sanction of the Municipality was
necessary, and under the Act they were entitled to charge a fee of Rs.
100 per month for such sanction.
The Municipality, however, refused to sanction it unless the Hotel
Co. agreed to pay a monthly fee of Rs. 300. The Hotel Co. were in a
fix, they had placed the order for the verandah as the Municipal
Engineer, Mr. Jas. Kimber, had approved the plans, and willy-nilly
they had to consent.
[Illustration: _Photo by J. & H._ The Exchange--Mackenzie Lyall's old
premises in Dalhousie Square.]
[Illustration: _Photo by J. & H._ The Exchange--Mackenzie Lyall's
premises from 1888 to 1918.]
However, one of the directors had been studying Bryce on _ultra
vires_, and he went round to the Bar library to take advice from his
friends there. Sir Charles Paul and Mr. Hill said offhand: But you
agreed to pay, how can you get out of it? To this Mr. Tremearne (the
director in question) replied: Yes, but it was an extortion, the
Municipality is the creature of a statute, they have only statutory
powers, and are not entitled to charge what is not sanctioned.
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