LONDON INTEREST

Hokitika Guardian, 13 September 1933, Page 5

LONDON INTEREST

TO BE PAID IN N.Z. CURRENCY BOARD RESCINDS, DECISION. (Per Pre s s Association, Copyright). INVERCARGILL, September 12. By eleven votes to one, the Southland Electric Power Board at its meeting to-day, decided to rescind its forme rresolution to pay the interest on its London loans dn sterling.

The Board Oater carried a resolution to the effect that it would pay the interest in New Zealand currency ,anci also that it would facilitate a test case regarding the matter if the bondholders desired a ruling. The question of interest payments was the main topic for discusson at the meeting which was -a protracted one, and several of the issues were considered in committee ■

The majority of the members agreed that the Board was under no legal obligation to pay London interest in sterling, and that if there had .been any moral obligation to pay, this obligation bad been nullified by the ac-, ton of the •bondholders in England in their refusing to accept lower interest rate, as practically all of the other bondholders had done.

It was stated during the discussion that the Board’s decision would mean a saving of £20,(525 tq.,Uie users of electric power in Southland.

MR. ALLOT’S LEAVE OF ABSENCE

AUCKLAND,. September 12

The Transport Board.to-day granted four months’ leave to,, the- chairman, Mr J. A. 0. A Hum, to enable him to consult financial interests in London, regarding the interest payments on the Board’s overseas loans. He leaves Auckland on September 23, and is duo ill London on October 19.