CROWN WINS.

Auckland Star, Volume LXVIII, Issue 248, 19 October 1937, Page 9

CROWN WINS.

CLAIM FOR £6193.

PAYMENT IN POUNDS. SUPPLY OF AMMUNITION. SUPREME COURT JUDGMENT. Judgment for the Crown was delivered to-day by Mr. Justice Reed in the action brought by the Colonial Ammunition Company, Limited, claiming £6193, alleged to be be paid short by the Crown in respect of the purchase of ammunition from the suppliant. Costs were allowed the respondent according 'to scales and disbursements to be ascertained by the registrar. In his written judgment his Honor said the case depended/ upon the true interpretation of a contract entered into between the parties on December 31, 1924. A previous contract was entered into in 1922 and was 'for 15 years. This provided for the supply of a large quantity of small arms service ammunition. In 1924 the amount was found to be. far in excess of the requirements of the Dominion and resulted in the substitution of the co'ntract now under consideration. In all the contracts between the parties the price payable by the Crown for small arms service ammunition was mainly regulated by reference to the current price being paid by the War Office to contractors for similar ammunition in England. "The question now raised in these proceedings," said his Honor, "is as to whether to such contract price should be added exchange in order to arrive at the price payable by the Crown. The suppliant has been paid and has always accepted the amount so. ascertained, but without any variation on account of exchange. Raising of Exchange. "The exchange rate fvr many years was negligible, but in 1930 the premium had risen to 5 per cent, and in 1933 the exchange stood at £125 New Zealand for £100 London, and since that date had varied between £124 10/ and £125 for £100 London." The claim before the Court was in respect of the years 1936 and 1937, the supplicant contending that on the true interpretation of the contract the current War Office price should be converted, into New Zealand currency to arrive at the price payable by the Crown. A Price "Equal." Reviewing the contract, his Honor said it was perfectly plain that in speaking of prices the measure was pounds, shillings and pence, but difficulty had arisen owing to the provisions that the Governor-General "slial} pay for ammunition supplied a price equal to current price paid by His Majesty's War Office to contractors for similar ammunition in London." His Honor held that "equal" meant equality in numbers of the common unit of account and the fixage of a price by reference to the price paid in London was merely a method of ascertaining how niany pounds, shillings and pence were to be paid in New Zealand. His Honor upheld the contention of the Crown that the number of pounds paid in London was to be the same in New Zealand. Mr. H. P. Richmond and Mr. F. L. G. West appeared for the suppliant and Mr. V. R. Meredith and Mr. Smith for the Crown.