McARTHUR'S YACHT

Evening Post, Volume CXVIII, Issue 57, 5 September 1934, Page 10

McARTHUR'S YACHT

HOW IT WAS ACQUIRED

TfiANSFER OF DEBENTURES

ALCORN AND COMMISSION

United Tress Association—By Electric Tele-

graph—Copyright. (Received September 5, 2.30 p.m.) SYDNEY, This Day.

Further questioned today before the Royal Commission into Trust Companies, C. G. Alcorn said that £125 had been paid out of the accounts of the Southern British National Trust to Major Jarvie, M.L.A., on McArthur's instructions. Jarvie was to have gone on the staff of this trust and had helped in connection with the opening of the Trust Building in Sydney, when he had supplied a list of guests to be invited to the function. Alcorn also said that the yacht purchased by the Pacific Exploration Company had been sold to McArthur in consideration of a transfer of debentures through some of the associated companies. It had been Pacific Exploration's idea to go in for exploration in the Pacific, but the company had been unable to do that. Replying to Mr. Monahan, who is assisting the Commissioner, Mr. Justice Halse Rogers, Alcorn said that a cheque for £60,000 had been drawn on Sterling Investment Company in February, 1934, in favour of McArthur. It had been in payment for debentures McArthur had held in the Sterling Company. McArthur had transferred his interests in the various companies to the Sterling Company to counteract attacks being made on him by outside companies. Mr. Monahan: So you were redeeming your own debentures? Alcorn: Yes. Mr. Monahan asked Alcorn to explain what became of the £50,000 that was paid by tho Investment Executive Trust of New Zealand for debentures in the Sterling Company. He also asked whether any of it went to reconditioning the Pacific Exploration Company's yacht. Alcorn said that the Sterling Company took up ten thousand shares in Pacific Exploration, but when the Investment Executive Trust's business grew so rapidly McArthur recognised the impossibility of conducting exploration work. He therefore took over the yacht for his private use. The Commissioner: What did ho pay for it? Alcorn: I don't know. I know he bought it at cost price. Some of our friends the enemy insinuated that McArthur got the yacht for a song, but that was not true. Mr. Monahan: Considering that you do not know what was the price you cannot. dispute the insinuation.

The inquiry is proceeding.