THE ASSETS REALISATION BOARD.

Otago Daily Times, Issue 13250, 5 April 1905, Page 5

THE ASSETS REALISATION BOARD.

A SUIT BY THE BANK OF NEW ZlO ALAND,

(Per Ukiteo Prkss Association-.)

WELLINGTON, April 4. At tlio Supremo Court to-day a case was heard by tho Chief Justice and Mr Justice Cooper in which the Bank of New Zealand proceeded against the Assets Realisation Board for performance. Tho mutters that gave rise to Ihe difference was that tho board came into possession of £127,500 Now Zealand Government 4 per cent, debentures in part payment of tho Mataniata Estate and other properties resumed by tho Crown. Tho bank asked the. board, under section 27 of "The Bank of New Zealand Act, 1903," to hand over these *1 per cent, debentures in redemption of an equivalent amount of tho board's own 3J, : pnr cent, debentures (new issue under section 2*l). The board's answer was that the section no longer operated in this way, that tho debentures were not within its' scope, and that £]?.?,500 4 per cents, were worth in actual value £130,125 l?,i Dd of its own 3i per cents.; that if it was compelled to redeem it should receive in return actual valuo in its own detail tires, not tho face value. The difference between the 'actual and the face value was £2625 12s fid. This brought tho parties i|ito court. Tito questions tor tho court were: Is plaintiff oiltilled to require, defendant to surrender the Government debentures in excliango for £127,500 of defendant's new issue,of debentures? If plaintiff is so entitled, is defendant 'entitled to receive on transfer defendant's debentures to tho actual value of the Government debentures or is it ontilled only to roeeive its own debentures to the face value of tho Government debentures? Judgment was for tlio plaintiff bank, with £30 costs of the special case.