The Appellate Division denied the North German Lloyd permission to appeal in the case of a suit of one of its bondholders, Katherine Perry, in a decision banded down Friday.
Holders of millions of dollars’ worth of bonds of the North German Lloyd and the Hamburg American Line have been awaiting the decision eagerly. It establishes the principle that the so-called moratorium of the Hitler government, prohibiting the payments of debts by Germans abroad without the consent of the Reichsbank, does not apply to the securities of German corporations having property in this country.
The Appellate Division’s decision makes it possible for holders of North German Lloyd bonds to recover interest due Nov. 1, 1933, and May 1, 1934.
The firm of Cotton, Franklin, Wright & Gordon, attorneys for the steamship company, has stated that it intends to seek permission of the United States Supreme Court to review the decision. Jacob Chaitkin represented Miss Perry.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
