LETTERS OF INDEMNITY

Dominion, Volume 11, Issue 6, 2 October 1917, Page 6

LETTERS OF INDEMNITY

SOME DISABILITIES. , Tile council of the Wellington Chamber of Commerce is bringing matters concerning letters of indemnity before the Overseas Shipping Committee. The council V communication runs:— "The letter of Indemnity as now drafted comprises two instruments—(l) an indemnity against loss by the importer, and (2) a guarantee by the bank of due performance. The Stamp Department insists that each form have two stamps on it. I have interviewed the Deputy Commissioner of Stamps, and he infopns me that bis Department has no option but to insist upon two duty stamps,.'as the letter of indemnity comprises two.' instruments, and the Stamp Act provides that each instrument should be duly stamped. , . . . , "During the par period, owing to tne irregularity of the mail services, overseas shipments often reach New Zealand •before the arrival of the moil with the, shipping documents, and consequently letters of indemnity ha-ve .very often to be »iven. My council thinks that-it is nuite possible that letters of indemnity ■can be drafted in a manner which will overcome the difficulty mentioned, and at the same time be satisfactory to both shipping companies: and banks, in? business community teels assured that the shipping companies will agree wit li the reasonableness of the request, and trusts that the disability existing can be overcome."" • ; - • •