AUSTRALIAN SHIPS.

Auckland Star, Volume LII, Issue 101, 29 April 1921, Page 5

AUSTRALIAN SHIPS.

BUILT IN AMERICA. FORECLOSING ON MORTGAGES. : PAX FRANCISCO, April 28. One interesting issue has been settled in a suit brought by the Australian Commonwealth against the Pacific Motorship and Pacific Freighters' Company, in which the Commonwealth prajed the foreclosure of mortgages of approximately £400,000 on eight motorships which Australia sold to the company, and the appointment of a receiver. Defendants asked Judge Van Fleet, of the Federal District Court, who was trying the case, to declare that he had no jurisdiction, on the ground that only •! foreign Governments could, under the '■United Stite3 Cwiditution an-J t.it 1 Federal Cod;, sue American corporation? ]cr persons jr. the American Federal ' Courts, and that Australia was nfot i< foreign State. The defendants heid that ! the British Crown only was competent to I sue on behalf of the Commonwealth. . I Judge Van Fleet heard special argiii ments from Mr. Mark Sheldon, the Com- ' ' monwealth Commissioner, who claimed that Australia's self-governing power. o gare the Commonwealth the status of a ', foreign State under the American Con- . I stitution and Code. ' ! Judge Van Fleet decided on behalf of the. Commonwealth, thus creating a jjreI eedent. A similar matter has never j before been decided in the American

j Federal Courts.— (A. and X.Z. Cable.)