SHARE EXCHANGE.

Ashburton Guardian, Volume 55, Issue 14, 27 October 1934, Page 6

SHARE EXCHANGE.

THE McINNES COMPANIES. DIRECTOR GIVES EVIDENCE. iDniied Press Association—Copyright) SYDNEY, October 26. Mi"' Oscar Joseph son was questioned before the Royal Commission on Company Affairs concerning his activities recently in Brisbane in connection with the organising of debenture-holders. Witness said that one man had given him £l5O and another £475.

Replying to Mr B. Puller and Dr. W. Louat, who are appearing .for the Investment Executive Trust of New Zealand, Ltd., the Southern British National Trust, Ltd., and three other companies, Josephson said that he had spent £220 of that money in expenses. ■ Josephson said that the matter had .started early this month after a conversation, with Mclnnes, who was a shareholder in British. Consolidated Investments, Ltd., of which' witness was a director. It had been about to go into liquidation, but it was decided that witness should go to Brisbane to get additional capital. He had discussed with men in Brisbane a scheme whereby British Consolidated Investments, as a brokerage organisation, would endeavour to get together the debenture-holders in Southern British with a view to holding meetings in the four capital cities of Australia. It had been decided to go on with the scheme, and he had received the sums mentioned for shares in British Consolidated Investments. It had also been decided to . try w obtain a list of debenture-holders to form ah association and to brief counsel to appear before the Commission. It was suggested that a company should be formed consisting of deben-ture-holders who would exchange their debentures for shares., ' Defence of Mclnnes. Mr McGhie, addressing the Commission, said that Mclnnes had never drawn anything except by way of salary and that was less than he had been entitled to under his agreement with the companies. The Commissioner (Mr Justice Rogers) said that what he was going to report upon was the unsatisfactory business methods of the Mclnnes companies and to say that the ono now operating should bo wound up. Mr McGhie: The process of liquidation is now in train. The Commissioner: It should not be a voluntary liquidation. A receiver should be appointed. Mr McGhie said that there was no evidence that-anyone had deliberately induced people to give lists of the Primary Producers' Hank depositors in breach of trust. The Commissions':: It is common knowledge that a bank officer must not disclose his bank's affairs. Findings to be Submitted. At the conclusion of Mr McGhie's address on behalf of the Mclnnes group of companies, the Commissioner announced that some time next week he would submit his .findings on facts, but not his recommendations. Ho assumed that counsel would desire to address the Commission on the hntl- ■ The Commission adjourned until next week.