ALLEGED CONSPIRACY.

Press, Volume LXVI, Issue 19971, 4 July 1930, Page 13

ALLEGED CONSPIRACY.

CHARGES AGAINST COMMERCIAL MEN, (UWITED PBBS3 ASSOCIATION— BT ELECTXIO TBMOEAPH—COPTRIOHT.) (Received July Srd, 9.35 p.m.) SYDNEY, July 3. The trial has begun in the Criminal Court at Sydney of well-known commercial men associated with the Australian Federal Life and General Assurance Company, Limited, on charges of conspiracy and fraud. The defendants are:—Albert Smith, aged 45, a broker; James Cochrane, aged 42, an accountant; Vivian Partridge, aged 38, managing director; Ralph Paul, aged 34, secretary; Harry Roach, aged 39, an accountant. The Crown Prosecutor described the fraud as one of the worst ever pergstrated in the history of the State. 0 said that the balance-sheet to November, 1928, showed that the assets were over-valued to the extent of £115,000. The building occupied was written up £9OOO above its true valuation. Counsel spent the whole day in an analysis of the finances of the company. He said that the balance-sheet to tne end of December last showed the cash in hand at £4OOO, but actually it was £4. It was stated that the Australian Federal Company had absorbed the People's Prndentia) Company, one director of which received at the rate of £l2 for his shares whereas private shareholders received only 325. A sum of £45,000 was borrowed in Melbourne, with which to purchase the controlling interest in the People's Prudential and the interest rate was something like 44 per cent, for three months. Eventually both companies were forced into liquidation. Claims by policy-holders in April last amounting to £IB,OOO wore unsatisfied. Since then hundreds of new policies were accepted, even though the Australian Federal Company was unable to pay its own employees. The cast* was adjourned. Another allegation is that Partridge received £9368 from the eompany while it was insolvent.