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. As he
was leaving, Mr. W. Jackson said: Look here, Tremearne, don't pay that
Rs. 300 a month.

A case was then sent to the Advocate-General, and he held that the
Municipality were exceeding their powers in levying such a charge.

Sir Henry Harrison, the Chairman of the Municipality, was very angry
when the opinion was sent him, and a case was sent to the Standing
Counsel, Mr. A. Phillips, asking him, amongst other things, if the
hotel could not be compelled to pull down the verandah, the latter
agreed with the Advocate-General and held, moreover, that the
Municipality could only order the verandah to be removed if it was