CANNOT AGREE

Wanganui Chronicle, Volume LXXXIII, Issue 19992, 8 November 1927, Page 7

CANNOT AGREE

BANK AND BOARD DISPUTE OVER INTEREST CHARGES. (Per Press Association.) AUCKLAND, Nov. 7. In spite of a conference at Te Arolia between Mr H. Buckleton, general manager of the Bank of New Zealand, and a special finance committee of the Thames Valley Power Board, tho dispute between the bank and the board, caused by the latter body refusing to pay the increased rate of interest re mains unsettled. At a meeting of the board yesterday the committee reported that Mr Buckleton had submitted the following proposals: That the rate of interest to be charged by the bank from October 10 be 7 per cent, and the rate up to that date be 6J per cent; that the matter in dispute be referred to arbitration, the bank offering to pay towards the cost of the arbitrator’s fee. Interviewed after the meeting the manager of the board said that in the terms of the resolution passed at a previous meeting two other banks operating at Te Aroha had been offered tho board’s business but had declined the account for various reasons.

“The position put simply,” said Mr Sprague, “is that the board has decided to adhere to the terms of its contract with the bank which definitely fixed the rate of interest at 6J per cent, and has no intention of apply to the Minister of Finance for the necessary consent to pay 7 per cent.”