TO PRIVY COUNCIL

Wanganui Chronicle, Volume 80, Issue 65, 18 March 1937, Page 3

TO PRIVY COUNCIL

LOAN INTEREST CASE WELLINGTON, March 15. The rate of interest to be paid on certain loans raised by local bodies in New Zealand, most of which are covered by debentures for over £1,000,000 held by the Temperance and General Mutual Life Society of Victoria (Australia), was recently the subject of a test case in the Supreme Court, the

specific case referring to one debenture of £lOOO issued by the Mt. Albert Borough Council. Under the debenture these local bodies agreed to pay a certain rate of interest, but subsequent legislation in the State of Victoria reduced the rate of interest on loans, and the New Zealand local bodies were of the opinion that were entitled to the benefit of the legislation. The Victorian society was not of this opinion, and considered itself entitled to the originally fixed rate. The Supreme Court found in favour of the debenture holder, but I the local bodies concerned intend to

’carry the case to the Privy Council, and, by a decision reached at a meetting of the interested bodies at Timaru 'last week, Mr. John O’Shea, of Wellington, is to represent them, and will | leave for England by the Rangitata on April 7. i Local bodies chiefly concerned are It he Hawke’s Bay Power Board £200.(100. Mt. Albert Borough Council ! £130,000. Auckland city £99,000, Grey Power Board £83,000, and Lower Hutt Borough £59,000.