INTEREST PAYMENTS

Nelson Evening Mail, Volume LXVI, 21 December 1933, Page 7

INTEREST PAYMENTS

APPEAL COURT’S DECISION UPSET AN AUSTRALIAN CASE P (United Press Association—By Electric Telegraph—Copyright; SYDNEY, 20th December. A London message on the i&tli December stated: “The House of Lords has allowed the appeal against the Appeal Court’s confirmation of Mr Justice Farewell’s decision in the Adelaide Electric Supply Company case.’’ [Mr Justice Farewell’s decision in the chancery division was to the effect that holders *on the English register cf A. and C. preference stocks in the Adelaide Electric Supply Company were entitled to he paid in sterling and not in Australian currency.] In April last the Court of Appeal, London, dismissed the appeal of the Adelaide Electric Supply Company against the above judgment, and the case was carried to the House of Lords, whose decision has now been summed up by the Adelaide legal authority as placing on stock' holders resident in England the burden of 'he exchange between Adelaide and London. Those entitled to a preference dividend of £o per cent.'will receive in London only £4 When the Court of Appeal gave its iudgment it followed a then recent picredent of its own, known as the Broken Hill proprietary debenture case. It now appears that the. Court of Appeal was wrong in its decision, hut the Bioken Hill proprietary abided by it, and possibly lias now lost the right of appeal 31 telegram in Anvil last explained that since March IJ3I the Adelaidi Electric Supply Company Ltd., acting on the advice of its counsel, had paid dividends to holders of preference stock on the London register by cheques drawn on Adelaide, the effect being that English stock holders had had to pay the exchange between Adelaide and London. The Prudential Assurance Company, of London, a holder of A. and preference stock on the London register. obtained .judgment 1 n ..V'toThn °nVx effect that it was entitled to the pay ■ meat of dividends in English currency.