OVERSEAS LOANS

Southland Times, Issue 22202, 20 December 1933, Page 7

OVERSEAS LOANS

INTEREST PAYMENTS

JUDGMENT OF PRIVY COUNCIL

POWER BOARD’S POSITION

(Per United Press Association.) Wellington, December 19. A judgment of the Privy Council of far-reaching importance to local bodies has been announced in the British House of Lords according to cabled advice received in Wellington.

The effect of the Privy Council’s ruling is to reverse the decision of the Court of Appeal in the case of the Adelaide Electric Supply Company versus the Prudential Assurance Company.

As in the Broken Hill case a dispute arose over the question of whether interest payments in London should be made in sterling or Australian currency. The Court of Appeal upheld the Adelaide Company’s decision to pay in Australian currency and the Privy Council’s judgment, it is understood, declared that the judgment of Mr Justice Maughan and Lord Hanworth in the Broken Hill case was correct and over-ruled the judgment of the majority in the Court of Appeal. The twe local bodies in New Zealand which contested the position are the Auckland Transport Board and the Southland Electric Power Board.

It is understood the Privy Council’s judgment will seriously affect the Auckland Transport Board's case, but the Southland Board, which is on the point of making an arrangement with the Government, may not be affected.

The original judgment of Mr Justice Maugham was that debenture holders requiring payment in London were entitled to receive payment in sterling. This was reversed by the Court of Appeal, but a dissenting judgement by Lord Hanworth agreed with that of Mr Justice Maugham. It is the ruling of Lord Hanworth and Mr Justice Maugham that is now confirmed by the Privy Council. “NOTHING TO SAY.” Mr William Hinchey, chairman of the Southland Power Board, and Mr Charles Campbell, secretary, returned last evening from their mission to Wellington. “I have nothing to say,” was Mr Hinchey’s reply to a query from a reporter.