PERSONAL PROFITS

Evening Post, Volume CXVIII, Issue 56, 4 September 1934, Page 10

PERSONAL PROFITS

M CARTHUR AND ALCORN

COMPANY OPERATIONS

EVIDENCE AT INQUIRY

United Press Association—By Electric Tele-

craph—Copyright.

(Received September 4, 2 p.m.)

SYDNEY, This Day

, At the resumption of proceedings at the Royal Commission, inquiring into company matters, Mr. Justice Halse Rogers presiding as Commissioner, assisted by Mr. Monahan, tho witness C. G. Alcorn gave further evidence. Mr. Monahan asked Alcorn whether the former "Daily Telegraph" building was bought on McArthur's own capital. Alcorn said that the capital was borrowed from the Investment Executive Trust, Mr. Monahan: Is there any record in the books of the Investment Executive Trust that MeArthur could purchase a building for his own personal profit? Alcorn: He used the company as an instrument of purchase. Mr. Monahan: So that ho could put £287,000 in his and your pockets. The Commissioner: The outcome of the transaction seems to bo that, without putting in a penny-piece, Alcorn and McArthur have, on paper, at least, made £287,000 profit. Alcorn was questioned regarding the list of personal drawings he had compiled at the Commissioner's request. Mr. Monahan: These book entries detailing your drawings have been entered since the Commissifj. started. Was there no book record until then? Alcorn: No. Referring to £15,000 he had made in' June Alcorn said that ho and McArthur had sold Investment Executive Trust shares to the Southern British National Trust in order to give the latter control of the former. There had been money owing to McArthur and. himself for establishment charges in the Southern British. Mr. Monahan: So actually you made £15,000 personal profit. Alcorn said that though he was a personal friend of McArthur he did not know tho particulars of the bankruptcy proceedings in which McArthur had been involved in New Zealand. Mr. Monahan: Don't you know that such proceedings resulted from his nonpayment of a debt to the Government? Alcorn: Yes. McArthur took up a timber contract, and wlien he began operations he found there was no timber there. It was all part of a campaign which was being directed against the Investment Executive Trust. .Alcorn said that at the. formation of the Investment Executive Trust in 1931 he and McArthur and McArthur's son had been the original directors, and each received 250 shares, which Imcl never been paid for. Mr. Monahan: Have you ever put one shilling of your own money into any of these companies? Alcorn: No, but I have put back into them all the money I received for my services. The Commissioner: As far as I can hce you find it hard to detail just what your services were.

Alcorn: McArthur and I put in many months of hard work in drafting ideas for- these companies.

Alcorn said that he later was allotted a further 4750 shares for which he had paid with money received for hia two years' service. He had subsequently resigned from the board in order that the names of better-known men might appear on the prospectus about to be issued. He had introduced McArthur to Mclnnes and it was arranged that Mclnnes and Bridgewater were to sell Investment Executive Trust debentures in the South Island of New Zealand. Another firm had charge of the sales campaign in the North Island, but Sterling Investments was allotted the Auckland district.

The inquiry is proceeding,