SAVING EXCHANGE

Southland Times, Issue 22041, 14 June 1933, Page 6

SAVING EXCHANGE

POWER BOARD’S ACTION. TEST CASE IN LONDON. On a decision of yesterday’s meeting of the board, the Southland Electric Power Board will shortly undertake a test case in the King’s Bench Division in London to ascertain whether it can make interest payments on its London loans in New Zealand currency. In the case of the board succeeding, it will be freed from the expense of the present exchange rate of 25 per cent., a relief that will benefit the board’s finances. The legality of such an action had been considered by the board previously and it was at the request of the Minister of Finance that the decision to undertake the case was -reached. The statement of the board's case has been prepared by the secretary and it is understood that Sir Gerald Hurst, K.C., M.P., who previously appeared before the Appeal Court in London in a similar case, will represent the board. In reaching its decision the board carried the following resolutions: — (1) That the Southland Electric Power Board hereby resolves to seek directions from the Court in London by originating summons whether the payments of interest and redemption moneys falling to be made in London are to be made in sterling without allowance for differences in exchange or (alternatively) in New Zealand currency converted into sterling at the rate of exchange for transfers to London on the due dates for payment. (2) That the power to instruct an agent in London to institute proceedings in London be and is hereby given to the chairman and secretary. (3) That the power given under seal authorizing the board’s London agent to engage counsel on behalf of the board, such power- having been executed on May 26, 1933, be and is hereby confirmed and ratified and the affixing of the seal thereto approved. (4) That the statement given under seal setting forth the facts and details regarding the board’s London loans, debentures, etc. and dated May 26, 1933, tand is hereby approved and adopted and the affixing of the seal thereto confirmed. (5) That the London agent and/or counsel be and are hereby authorized to endeavour to arrange with Mr Rodda, Assistant-Secretary to the Treasury, and/or Professor Tocker, while in London, to give such expert evidence as may be deemed by counsel to be necessary (in regard to expert history of New Zealand currency). (6) That the requisite instructions and supplementary information required there in connection with the matter be cabled to London with the request that the hearing of the case be expedited if ’'ossible to ensure judgment being given before the next interest payment falls due in September. It was also decided to request the Government to pay half the costs incurred in undertaking the case.