LAW REPORTS.

Dominion, Volume 3, Issue 649, 28 October 1909, Page 11

LAW REPORTS.

?; I v?f'^'iCdyßT.-6P;:;APPEA!L-. : ' : '; : '^HE ; XltY''siNKING' FUND. .." "\ :'' :■ ■'; :■'. .: LIMITS OF/INVESTMENT. ~: Ydsterdoy the Court of Appeal'heard the case ■between the City Council and tho Wellington City .Improvements Loan- Sinking Fund .Commissioners. Their Honours Justicos 'WiUiams, (Aoting : . Chief-Justice), Dcnriistpu, Edwards', Cooper.'nnd Chapman occupied tho bench. This was an application under tho Declaratory Judg;.monts Act, ,1908, f6r a declaratory order dcterr mining which had arisen as to tho construction' of tho Local Bodies' Loons Act, 1903,' and tho Trusteo Act/1908. .The questions submitted'to the; Court 'were: . ■■ ';> . (1.) Whether the; defendant commission- .; overs' were trustees'Vfithin,the meaning of, : .'and'subject, to,-thojrovisions of tho Trus- :,'■ too Act,.1908...(2.) Whether tho commission- : .'•-. srs were,' as trustees ■ under. tho Trustee . ; : Act, 1908,' entitled! to invest moneys ;in the 'securities specified -in Section 95 of tho Trus-... ; tee Act, 1908.', (3.) Whether the-; plaintiff ■council was entitled,•'.■under'.'Section 30 of ; •; thpLocalißodies' Loans Act, .1908, to direct , i'that the funds, in'the hands of • tho : com- •; : : nlissioners should be in particular 'i'Bpecinc'securities; or merely to direct in'. ;,what .'class'-'of' securities 'tho commissioners" ■ I .'■;■■ shouldinvest such funds,'and that particu-: liar specific investments'of the class specified ;>. .:'wereto .lo'-'selected'.by,itte ; -.commissioners- : \ '■■'■ .subject 1 merely ; to the provisions':of law re- ~ i. lating:to,/trustees. 1 .(J.) Whether tho com- •; :'missioncrs were entitled to invest .funds in, .'"their hands in any debentures of the coun- ■) oil. other ".than debentures issued in respect-; of the-Wellington city-improvements 10an,.; ! . ; , being . the Vloan ; in; respect of the sinking ' .'fund .of which they wero the commission-, ors:, (5.) Whether, assnming that'the com- .' ;; missioners could invest, in debentures' of ' ■. the council, other-than',the debentures of, ";. the Wellingtoii; city'.''improvements loan,. .they could invest in debentures.of the coun-: cil which wero payable after the.date when.., the- debentures of'tho Wellington city, im- .' ;'V loan wero, i'.v;;. J.' 6'Shea - (City Solicitor) .appeared on ,behalf of 'tho CityXouncii; and Mr. I'.'];'.'Mar-' tin for the commissioners.•:-.- ->. •'• '■. '■■" -:■•-:, The Court unanimously decided that tho com; misSioners'.'were. not' entitled.' to invest' in the debentures of the. council, as Mr. O'Shea.had .contended. ' It was : adinittcdi (tQ' use • the words of JlrJ Justice Cooper)'-, that, the Sinking Fund Commissioners: •were-- (.trustees ~'.within ; the "meaning-, of'•'•-■ the ; : Trustee" 'Act, ,1908,,' and : .that' •therdfdrc'".' they, 'hadtpower ; to .invest,-!ifvthey, were directed the local- body, appointing theni, .in. bonds,- debentures, or' ;ottier ..'securities : 0f any ..municipal, corporation, or county 'council,'or. water; plyboard, or river board in' New Zealand having authority.,to borrow money. -The introduction of- Sub-seotion'4,.Se'ction;3o ) of-tho.Local ■Bodies Loans. Act, 1908, was; intended to give to'tho Sinking,Tund,Commissioners a power which , they kacl not previously possessed—the power to, apply', under' certain .restrictions, a :part or'thowholoof the ? sinking fund to'-, the purchase'df dobenturosfof a. local body.: 'it would, be,,an, extremely' dangerous thing ..for. ■commissioners.closely associated With a local body to; bo entrusted ■'■•. with .tho'. piwor' to invest' in the : debentures' created..by that local, body. 'In;big oitics,-no'.-doubt, debentures ywero;,very.'. much, inV.the ;riature; of, gilt-edged' Becwities, but'the Court tad to consider every, local body within- tho;meaning: of:.tho' Local Bodies Loans •■ Act, ■"- '■■ Tho.. connection betv/een, the-coinmissioiiersiinnd- the Council .was such that they, could not. be regarded as absolutely separate:bodies.;■.-•.'■■ ;■;.'; ;■; ■:.-"■':]■:".'■ .;.■', 'i-- , 'The answers to tho questions were supplied by the; Court as follow :-r(l) ; :Yes; (2) Yes, under direction.of tho local authority; (3) Classes.of security within-;the Trustee, Act,:, but not Speciiic.itemS;,W)'No;'and;(s)'no'answer necessary. . Costs, .fifteen. : ; guinens, wei'e ', allowed' against?,tho Gity'.-Council. , ,'■■'■'■•■''/.' -.-';' ;,;';

Q\ ODDFELLOWSyASyIIORTGAGEES.:; ■'•! -Tho'.Court' Bf" Appeal also heard a case which concerned 'the ;of the .Loyal, Marlbor-; ■ oiigh VLodg'o,: 1i0.0.F., v^'as The benoh 'comprised their' Honours Justices ,Wi • liams';'(Acti'ng-Chief Justice),; -Deimistpn, 'Ld. .- 'wards,., Cooper- and, Chapman..V,;.,,,.;,, '; - ■;■'.. ' '-'She case. comCin tho'foriu' b'l'an' orieinating ' summons-sunder; rtho ..Declaratory',; Judgments' •!•■ Act, 1903,^removed by consent into tho.Court of ''Appealiffor; a^gllment:;^'■U!ho■'.4uestibll■•.'.: ; ilt. .'volv«Brwßi'r:;'WneW amount -of the J estiiriate'.of . tho value of tho land • in'n conveyance 1 from- the . •regifitrar to a mortgageo (under Section; 80 of "the: Pro'peity'.Xaw.;Aot, r -1908). could disoh'arge.'-.the;Mortgagor,'(Henry. William Rogers) :from : payment of; the ,same, so -that ■ the mortgagee should be bound thenceforth to 'aUow.'the mortga'gor'iri'account'the'amount .of. such estimato.' i Vr::v, :^-:---^- ; -^-'-^ i .-'•< ' i'Mr.' T.'F. Ifartin appeared .for the, trustees , | yfor;.;the; l morty , gag'oryfßogerS.. •,- ; ; . ''-'■■>■■■■"■■'':'' ■■'■ -V-..■'.;-''■ ~ ° After hearing counsel for the plaintiff, the Court: decided: that: the question'.must bo an"swere'd.'in. the ■;:: ■.-. -V--: •'•''■ >r?.v-v.!->'