OVERSEAS LOANS

Southland Times, Issue 21996, 21 April 1933, Page 6

OVERSEAS LOANS

REDUCTION OF INTEREST.

DEPUTATION TO PRIME MINISTER.

Advice has been received by the secretary of the Southland Power Board that the Mayor of Wellington (Mr T. C. A. Hislop) has arranged for a deputation to wait on the Prime Minister on Wednesday, April 26, in Wellington, and make representations to him on the subject of the reduction of interest on overseas loans. The Southland Board will be represented by the chairman (Mr William Hinchcy). It will be recalled that early action was taken by the Southland Electric Power Board to investigate the position arising from the raising of the exchange rate as affecting the payment of interest due on London debentures. Inquiries were made and authoritative opinions, including the finding of the Court of Appeal in a recent case, were consulted to ascertain whether a substantial saving may be effected by the payment of interest due,in September on London debentures in New Zealand currency. The attention of northern local bodies was also attracted to the possibilities of the position by the action of the Southland Board and their interest is indicated by letters received recently by the Southland Power Board secretary (Mr Charles Campbell). On April 11 the secretary of the Auckland Electric Power Board (Mr N. M. Speer) wrote: “The judgment of the Court of Appeal as set out by you is a most interesting one and our solicitors have given us the full text of the case. This raised a very interesting point, and we are at present checking up our position in certain cases where an option has been given and exercised, to see if this finding is applicable at all to any of our debenture issues. I have to thank you for sending this to us, and if we have anything of interest at any time, I shall certainly be only too glad to reciprocate.” The secretary of the Auckland Transport Board (Mr W. St. J. Clarke) on April 13 wrote to Mr Campbell stating: “I understand there is a matter at the present time engaging your attention which has reference to liability for payment of exchange upon debentures carrying the option of payment either in England or New Zealand when for the time being the interest is payable in London. I understand the matter arises from a decision given by the Court of Appeal in England, and as it is a matter of considerable moment to my board, I should be obliged if you would give me what information you can.”