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Court Upholds Radin Plaint on Lloyd Bonds

A motion to dismiss a complaint to compel the North German Lloyd Steamship Company to pay the defaulted interest on bonds to all eligible bondholders was denied in a decision handed down yesterday by Supreme Court Justice Valente. The original complaint was filed by the law firm of Lupka and Pomerantz on behalf of Miss Ethel Radin.

The motion to dismiss the complaint, made by counsel for the steamship company, was made on the ground that the plaintiff had no capacity to represent all other bondholders similarly situated.

Justice Valente’s denial of this contention was regarded in legal circles yesterday as justifying the right of the plaintiff to bring action and to recover judgment on behalf of all American bondholders who have not made deposits pursuant to the refunding plan of the steamship company.

Interest payments on North German Lloyd bonds have been withheld since last November on the grounds that the moratorium declared by Germany forbids payment. The company’s right to withhold payment was denied by the courts last May, in an action brought by Miss Katherine Perry who brought suit for $30 and was awarded a judgment for that sum.

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