IN THE BOX.

Auckland Star, Volume LXV, Issue 221, 18 September 1934, Page 7

IN THE BOX.

COMPANY CHIEF. Mr. McArthur Denies Dispute With Mr. Hewitt. DEBENTURE TRANSFERS. (United P.A.—Electric Telegraph—Copyright) (Received 1.30 p.m.) SYDNEY, this day. The Royal Commission which is inquiring into the activities of 31 companies continued its investigations today. Mr. Justice Halse Rogers presided as Commissioner. Mr. W. W. Monahan, K.C., and Mr. J. B. Collier appeared as counsel assisting the commission, Mr. R. Windeyer, K.C., and Mr. B. Guller for the Investment Executive Trust of New Zealand, Ltd., and the Southern British National Trust, Ltd., and Dr. F. Louat for three other companies. Mr. McArthur, who was recalled yesterday, produced pass books of his bank accounts. Mr. Monahan (referring to one of the pass books): What is this cheque paid in for £1000 ? Mr. McArthur: That was an advance made to me from either the Southern British National Trust or the British National Trust. I cannot remember which. iWas it not the balance of a mortgage advanced by the Australian Glass Company? —If it is I paid £500 in procurator's fees and repaid the other £500 to the British National Trust. I was under the impression I had repaid it, though I can see no record of it in any of these statements. I suggest you employed that for personal uses, but we will go into that later. Big Profits Questioned. Continuing, Mr. Monahan asked: You and Mr. Alcorn have made profits on paper of £340,000, have you not? Mr. McArthur: No. There was one for £287,000 1— Yes. And one for £77,000 in connection with sales of Southern British?— That did not affect our position at all. It does not that there were any profits made. The share capital was increased. But that was only done after this commission started. You appeared in the books of the Southern British National Trust as a creditor?— Yes. Mr. Monahan then questioned Mr. McArthur regarding the exchange of certain cheques. The Commissioner: I may take it that all this was done because you did not wish the facts to be disclosed to anyone? Mr. McArthur: Not to the banks. Is not this series of transactions a cloak over the fact that you have certain holdings obtained in this way?—We did it to keep the true facts from our opponents. "Never Had a Dispute." This morning Mr. JS'Arthur outlined a series of share and debenture transfers, stating that as a result of this he now appeared as an ordinary creditor on the British National Trust books. Mr. Monahan: That matter was the cause of a dispute between you and Mr. Hewitt ? Mr. McArthur: Nonsense. We have never had a dispute. Mr. Monahan: Mr. Hewitt said you wanted priority over the shareholders and he insisted on your coming after the debenture-holders ? Mr. McArthur: I don't believe he said that. I had no intention of being a creditor of Sterling and told Mr. Hewitt so. Mr. M6nahan: I have no doubt it ended in the usual way—Mr. McArthur's will prevailed. Mr. McArthur admitted that the settlement with Miss Smith (of Christchurch) ! had cost £39,000, involving a loss to the company of £13,000. There was no record of the transaction, as every detail was not shown. The losses were counter-balanced by profits made on other transactions, and the- lump sum was all that appeared on the balancesheet. Recent Drawing of £7000. Replying to further questions by Mr. Monahan, Mr. McArthur said he had drawn £7000 in the last four months from the Sterling Investments Company (N.Z.), Ltd. The money was in payment for Sterling debentures he had cancelled. In the last three years StcrI ling had sold assets of his valued at £28,000 to the Timberlands Woodpulp Company. Payment had been in cash. Mr. Monahan: So this £7000 drawn by you did not come from the debentureholders' money, but from actual cash belonging to Sterling? Mr. McArthur: Yes.' Mr. Monahan: Where are the records of these cash payments from Timberlands Woodpulp? Mr. McArthur: In the old books, Avhich were lost. Mr. McArthur said that as far as he knew these books were in New Zealand. He had thought he might have left them at his home there, but a search had failed to discover them. (Proceeding.)