BROKEN CONTRACT

Poverty Bay Herald, Volume LIX, Issue 17953, 3 December 1932, Page 2

BROKEN CONTRACT

RECENT LEGISLATION BISHOP SADLIER’S COMMENT In his address to the Anglican Synod in Nelson, Bishop Sadlier said:— “Up to the year .1932 we were under the impression that a contractual obligation once formed was binding on both parties thereto and could not be broken by either without the consent ol’ the other, or without a penalty in the case of violation of the contract, but the facts presented to us during this year in the compulsory reduction in interest on investments show that our impression as to the moral and legal obligations of contracting parties was unfounded. “When tho Nelson Diocesan 'trust Board invested the capital of the diocesan and parochial funds it did so in good faith, that trustee securities as provided in,the Trustees Act were the safest of all investments, but it appears that this is not so. In common with many, I deplore the abandonment of those moral standards which have been tlie, pride of the British race. “Owing to tho fact that religious, charitable and educational trusts, for the first time in our history, and quite unexpectedly, have been subjected to heavy taxation,' our plans for meeting the difficulties in the parishes and districts have been overthrown."