Another part of the battle to force German companies to meet defaulted bond obligations in the United States was won today when it was learned the German-American Cable Co. has assigned its income in the United States to pay interest to American holders of its bonds. The German company instructed Western Union Telegraph Co., with which it has a working agreement, to turn over to the Irving Trust Co., trustee for the holders of the defaulted bonds, the approximately $50,000 annually until 1945 which ordinarily would be sent to Germany.
The action followed a decision against the German company won in Brooklyn Supreme Court on Jan. 18 by Jacob Chaitkin, counsel for one of the bondholders. The court ruled that, despite the Reich’s moratorium on bonded indebtedness, the company was obliged to redeem its bonds. The defendant was believed to have been considering an appeal from the decision, which it now evidently has abandoned.
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