LIST OF HOLDINGS

Auckland Star, Volume LXV, Issue 224, 21 September 1934, Page 7

LIST OF HOLDINGS

OVERSEA COMPANIES.

Small Amounts Not Disclosed To Investors. EXCHANGE DIFFICULTIES. (United P.A.-Elcctric Telegraph—Copyright) SYDNEY, September 20. In the course of his further examination of Mr. McArthur, Mr. Monahan read a letter which, he said, Mr. McArthur had sent to 22 agents in towns in New Zealand, which gave a list of holdings in oversea companies, but did not disclose the extent of the holdings. Mr. Monahan (turning to Mr. McArthur) : You refer to the Canadian Pacific Railway, with a capital of £95,000,000. I understand you had £102 in that? Mr. McArthur: Yes. You'refer to Lever Brothers, with a capital of £59,000,000. You had £140 worth of that?— Yes. Then you mention the International Nickel Company. Y'ou had £118 in that?— Yes. How much did you have in Imperial Chemical Industries? —About 100 snares. Do you think that honest? —I admit we had a small holding at that time, but we intended to increase it. Your debenture capital now is £400,000, and all that you had invested in these companies when you dangled them before investors' eyes was £1100? —That was at that time, but the exchange went against us. The Commissioner: What did you tell investors to expect from these companies ? Mr. McArthur: From 6 to 7 per cent, perhaps more. Exception to Salesmen's Methods. At a later stage Mr. McArthur said he had taken exception to some statesments made by salesmen who were selling Trust debentures, with the result that about 30 agents were brought to Sydney from other States and from New Zealand to attend a sales convention, at which he gave certain instructions. Witness said he also learned that certain salesmen were representing themselves as officials of the Primary Producers' Bank. He instructed Messrs. Hewitt and Mclnnes that if misrepresentation were proved those who wanted their money back could have it. Mr. Monahan: As the result of litigation, or voluntarily? Mr. McArthur: Voluntarily. The Commissioner: I suppose if the hawking of shares were prevented in this State it would very seriously interfere with your business, would it not? Mr. McArthur: I do not think it would. We have no objection to wiping out business methods which are not right.