To the Editor of the "Nomru-Cumva Darcy News"
Sim—There has been considerable uneasiness © recently regarding faction taken by the Directors of [Central Properties Lid., in evading [payment of interest in full called for Under their Debentures, which bear the Silver Clause.
"The moral side of the question only eas been touched upon, but in case the general public should be contemplating the purchase of their Deben-{ures it may be helpful to consider the, legal aspect.
"The Ruling—that was given in the House of Lords on November 10, 1033, in a case on Appeal, which involved the obligation of the borrowing Company under the Gold Clause in ts Bonds, was as follows:—
That the Gold Clause was inserted the Bond in contemplation of the contingency. of the United. Kingdom feng. (as, did 1901) "off the The result te that the Appellant {the Bondholder) is entitled to such a Sumas will purchase In sterling London gold of the nominal amount of the payment due under the bond from time to. time.
The above is taken from the judgment of Lord Russell of Killowen, concurred in by Lord Atkin, Lord Warrington of Clyffe, Lord Tomlin and. Lord Wright There were no Gissentients, If, then, we substitute the words "Silver Clause" for Clause" it would appear that tke Tegal liability of Central Properties TA. is as the result of the Decision quoted above, definitely determined.
Having now examined the mora side, and" discovered the most fernment legal opinion on the subject, the fel of controversy is narrowed down, and the action of Central Properties Ld., is seen to. possess the barest of Justifeation. Tt can also be seen how little chairman "atthe meetin employ. the argument of As to "expediency," the [Rround taken up by the Chairmar would appear that the expose: nerve of Central Properties La. aching badly and boils down to their ability to pay. There is, It appears. ho question of inability, so what Fea left for evasion of the De Denture Holders claim to be paid?
Public opinion 1 feel sure, will not endorse the action passed by a vote the Central Properties Ld, meet ing.
Cuanurs R. SHAW.
Shanghai, Dec. 16.
Text read from the printed page and cleaned; old type leaves the occasional error.