TRANSFER TO SYDNEY

Evening Post, Volume CXVIII, Issue 34, 9 August 1934, Page 8

TRANSFER TO SYDNEY

CONTROL OF TRUSTS

"SCHEMES A GAMBLE"

"There is evidenco that the financial and administrative] control of the investment .trusts of New Zealand arc being transferred to Sydney, New South Wales," tho report states.

"1. Financial Control. —By the trans-, for of shares, Alcorn and McArthur to British National Trust, Ltd. (Canberra), the share control of tho British National Inr vestment Trust, Ltd. (N.Z.), is transferred to New South Wales. The Canberra company now holds 249,000 out of 250,000 ordinary shares in tho New Zealand company. "In May, 1934, Alcorn and HeArthur transferred to the Southern British National Trust Co., Ltd. (Sydney, New South Wales), 194,000 shares in tho Investment • Executive Trust of New Zealand, Ltd. The Sydney company now holds 194,000 out of 250,000 shares in the Investment Executive Trust of "New Zealand, Ltd. "2. Personal Control. —Jn the last few. months the following persons have loft New Zeajand' for New South Wales:— J. W. S. McArthur, managing director of the Investment Executive Trust of New Zealand, Ltd., British National Investment Trust, Ltd. (New Zealand), ■ Southern British National Trust of Sydney, N.S.W., and of British National Trust (Canberra). H. C. Glasson, secretary of tho In- • vestment Executive Trust of New Zealand, Ltd., and several other companies controlled by McArthur. M. C. O'Neill, tho auditor of the Investment Executive Trust of New Zealand, Ltd. W. C. Hewitt, solicitor to several of tho companies herein referred to, and one of tho two shareholders in Farms' and Farmlets, Ltd. "3. 'Daily Telegraph' Building, Sydney.—This building seems to bo the financial kernel of the whole group of McArthur's financial companies, and the work of reconstruction is being pushed on rapidly. Tho financial scheme of all the companies seems to bo a gamble on this speculation, the money of innocent bondholders .being committed to it.

"4. Possible Financial Keadjußtinen.ts' and 'Doctoring' of Records.—-The- desir?, ability of urgency is strengthened, by. the possibility that certain financial arrangements and documentary adjustments are liot in train or contemplated. These may tako the'form'.of financial rearrangements and .manipulation of records, with a view to placing ,certain transactions or tho general position in a moro favourable light. The Investment Executive Trust and its affiliated companies;arc still, operating ia^tiye^jV'