TRUST MONEYS.

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

TRUST MONEYS.

COMPANY INQUIRY. Commissioner's Task to Report On Winding Up. DISPOSAL OP PROFITS MADE. (United P.A.—Electric Telegraph—Copyright)' SYDNEY, September 17. At yesterday afternoon's sitting of the commission, Mr. AY. A. Pilkington, chairman of directors of Investment Executive Trust and Southern British National Trust, Ltd., Avas further questioned concerning the purchase of the Trust Building. The commissioner directed Dr. Louat's attention to the dates of the purchase transactions. He said one of his duties was to recommend whether any of the companies should be wound up. ' If it appeared that Messrs. McArthur and C. G. Alcorn had in law no right to these moneys, that would he a very strong reason that all the profits should be diverted to the debenture-holders. If the deposit money was paid out without any security at the time it was paid, it should be a matter for serious consideration what the ultimate effects were. Mr. Pilkington tvas then questioned regarding the principles of the Investment Executive Trust. The Commissioner: As T understand the scheme there are very few shareholders in your companies. Most of the share capital is held by two men? Mr. Pilkington: Yes. So the debenture-holders have no say whatever in the control of the company ?—No. Control.of One Man. Practically these investments of your companies and the share holdings are entirely in the control of one man? — Yes. You have debenture capital amounting to £400,000, and as far as we know the real capital subscribed by shareholders is practically negligible? —Yes. So that it is practically one man who is inviting the public to place capital unreservedly at his disposal ?—-No. He is subject to the directors. Let us face the facts. If you opposed Mr. McArthur to-morrow on a matter of principle I suppose you would go out?—Of course, if he wanted me to. Replying to Mr. Monahan Mr. Pilkington said his co-directors in the Investment Executive Trust had been Messrs. H. H. Pollard and McArthur. He had heard a rumour that Mr. Pollard had resigned. At the last meeting of directors at which Mr. Pollard was present a proposal had been put forward to give Mr. McArthur a power of attorney, but Mr. Pollard had taken the view that since the commission had begun its sittings it would be dangerous to transact business of that nature. Wide Powers for Mr. McArthur. Further questioned witness admitted that a power of attorney was prepared so that Mr. McArthur could perform in New South Wales any acts of a director. Mr. Monahan: Mr. Pollard was not prepared to sign it so you came over to New South Wales? Mr. Pilkington: I had arranged to come over before that. Did Mr. Hope, a former director, retire because the operations of the company were not to his liking?—No, because they were too big for him. It had nothing to do with a balance-sheet. He retired at the same time as the auditor, Mr. Anderson, got out. Mr. Pilkington was further questioned regarding the Investment Executive Trust's balance-sheet to which Mr. Anderson had taken exception. He said there had been a division of opinion as to the line of demarcation between brokerage charges and commission charges. Only 5 per cent had been stipulated but V. B. Mclnnes and Company had received considerably more. „ Mr. Monahan: Did you show Mr. Pollard the report which was sent by Mr. Anderson to the board? Mr. Pilkington: Yes. I put it to you that Mr. Pollard was never told of the dispute with Mr. Anderson?—l do not know. Mr. was invited to meet the directors, yet Mr. Pollard was not present?—l do not remember. A Doctor's Explanation. Dr. A. E. Colvin appeared to explain his connection with the British Medical Investment Trust, Ltd. He said that Major M. L. F. Jarvic, of the New South Wales Legislative Assembly, had told him the trust wanted a medical man on the board. Major Jarvie had said the company was the same as the British Medical Investment Trust in England, that that company worked in conjunction with the British Medical Association in England, and that the new company would work with the British Medical Association. Witness said that Major Jarvie also had informed him that Dr. Hunter, secretary of the Sydney branch of the British Medical Association, had told him that it was a .uood thing such a company was being formed to safeguard the interests of medical men. Witness, in consequence of certain things lie had read, had subsequently suggested that on account of his own ill-health the matter of his association with the company should be left open for about 12 months, after which he would see whether the company was working properly and with the approval of the British Medical Association. Later ho had withdrawn from being a director on the ground of ill-health. At this stage the commission adjourned until to-morrow.