Singular Action Against a Bank.

Pahiatua Star and Eketahuna Advertiser, Volume 5, Issue 412, 15 July 1890, Page 4

Singular Action Against a Bank.

An action to recover penalties under (lie Victorian Ainetidii.it Hank’* Curie r\ Statute of 1 HBB was recently ! of. One of the provision! of ' t).« Act imposes a penally of £lO per , daj on all 1-anking companies that shall pupli>li misleading advertise- i menu a* t<> the amount of their capi- j tal. not stating whether the capital { • ailvi-rtiM-d i* nominal or authorised, i r hi which the amount if nominal or autl r.'<<l or subscribed capital, is st • ted and the amount of paid-tip capital i* not slated. The Foreign and < - h > .al Hank of Australasia is a bankiii ■ . "Hipeny registered in Sydney. It i : a branch office in Melbourne, wh<-n advertisements were published to the effect that the capital of the •-< :i nany aas i.Tuo.OUtl without slat.i • whether this was nominal, authorised. suh'cniivl, or paid up. Hut it a[ i« ared at the *ubsn|ucnt trial that t. . 'i r.ls d capital was only £IO,OOO and th >t the paid-uprapilal was £S.tKO and it wa- sated that actual capital was oiilv l.’t.uito. The Hank had published nii'h admg advertise me tits in Mel--1« nrr.i for over 200 days. An action wa< commenced against the company in lss'.l by F. W. Addy. an accountant in .Sidney, to recover penalties at the rate of £lO per day. This action lies 1., ard in Ileceiulier last l«efore Mr Justice Williams, who decided the ■ jin -turn of the fact that was in dispute in favour of the plaintiff, but lie n ri. d for the Full Court the cjnesu . whether the statute applied to the < luj-a.iy. It was contended for the limits that the Act iso far as the f. .. -n hank was concerned), applied • uly where such a link carried on its bu'iiii -s by receiving deposits and issuing in Victona or elsewhere notes or h.ll' jsiyahle on deinaml. It was contended for the plaintiff that there wa- no such limitation to he placed hanks trading in Victoria, and that if they established a branch busini" iu Victoria they wi re liable to the provi -ions of the statute. The full Court agreed with the view urged for the plaintiff, and decided that the defendants v re liable to the penalties. —Exchange.