A TRAMWAY LOAN.

Evening Post, Volume LXXXI, Issue 51, 2 March 1911, Page 6

A TRAMWAY LOAN.

SUPREME COURT ARGUMENT. Before the Chief Justice yesterdays afternoon, in Banco, the case Karorii' Borough Council v. the A. M.P. Society! was heard. The court was applied Un for a declaratory order, determining th« construction of the Local Bodies Loana Act, 1908, in relation to certain deben-t tures made by the plaintiffs and thef power of the plaintiffs to cancel such de-* Dentures in the circumstances set out. The facts as agreed upon were that,* on 28th July, 1909, a poll of Karorii ratepayers was taken on a proposal to raisef a special loan of £27,500 for tramway] construction, and the council issued de-* bentures which were lodged with the( Union Bank of Australia, for advance* in respect of the loan. The debentures! boro interest at _a higher rate than, thaij agreed to be paid, and the council .pro* posed that new debentures should be' created. The question was whether tho debentures could bo cancelled and fr6sbi ones issued. His Honour said he hadj not fully looked into the point, but h« thought that common-s-ense showed that it should bo done. Could not burnt do-, bentures be replaced? The points were argued by Mr. A. det B. Brandon for plaintiffs, and Mr. M«, Chapman, K.C., and Mr. S. A. Atkini son for defendants. _ Mr. Chapmao. explained that the society had not the slightest desire to hinder the loan. He regretted the fact that inconvenience was caused to the ratepayers. Decision was reserved.