COURT TO DECIDE

Wanganui Chronicle, Volume 79, Issue 306, 31 December 1935, Page 7

COURT TO DECIDE

Auckland Transport Board 'i' TRAMWAY LOAN INTERS PAYMENT IN STERWNG? \ ONE BOND IN DEFAULT [ Per Press Association. ] i AUCKLAND, Dec. 30. following a meeting of the Auckland transport Board this morning at whicj it was decided to inform the Auckland City Council that the board had agreed to an arrangement by which it would pay the January interest on the Auckland tramway Joan, 1919, i n sterling, and content a friendly action on oa® debenture of £lOO in the New Zealasl courts, the council to-nigtht agreed if this course of action. At a subsequent meeting the transport board rescinded the resolution that the inerest should be paid in New Zealand currency which it had passed on December 2. The individual payment which is to be contested is concerning the Alliance Assurance Company Limited, a large bondholder, of which Mr. A. Levine, with whom the transport board communicated, is joint general manager. When Mr. J. A. C. Allum, then chairman of the board; visited England to negotiate in the matter, Mr. Levine acted as representative of the holders of a large number of the board’s debentures. It was stated by the Mayor, Mr. Ernest IDavis, at to-night’s special meeting of the council, that the transport. board had communicated with. Mr. Levine in London and had advised him of the suggestion that the interest on January 1 should be paid in English currency with the exception of one coupon, which would be paid in NewZealand currency. Mr. Levino was requested to undertake the action, thaij would be taken in respect of this individual payment so that the matter would definitely be brought before th® courts before July 1 and ea agreement had been reached* to contest a friendiy action in the New Zealand courts oni the single debenture coupon. “Although the course which has now been decided upon places the matter in a far better position than it has been for the past two and a-half years, personally I would have preferred, had if been possible, to have h”/l ths issue amicably resolved by way of a declaratory judgment without any rf course to default in payment on even one debea« lure coupon,” said the Mayor, in moving that the transport board be in< formed that its tentative arrangement! would be accepable to he council. The motion was carried, one councillor dissenting.