ANOTHER GROUP

Evening Post, Volume CXVIII, Issue 58, 6 September 1934, Page 6

ANOTHER GROUP

M CARTHUR'S INTEREST

LINKING OF COMPANIES

Further . reference was made Jiy the Commission to the groujnng of companies. ■ . ' . J "The description of the financial constitution of the Eedwood C 0.," the report stated, introduces tho Selwyn Timber Co., Ltd., and ' the Beulah Land. Co., Ltd., as venders of land to the New Zealand Redwood Forests, Ltd. Those three companies are thus linked by this transaction, and also by the fact that J. W. S. McArthur, pro-1 motor, director, and principal share-1 holder in the Eedwood Co., held a controlling interest as shareholder and! managing director of the Seh\r3 rn Tim-.: her Co., Ltd. In addition, the Selwyn Timber Co., Ltd., held over 97 per cent, of the shares in the Beulah Land Co. —J. AY. S. McArthur and members of his family also being shareholders. ,

"The Selwyn Timber Co., Ltd., went into liquidation in June, 1930, and its affairs were finally settled by an arrangement made with a new company incorporated under the.name of Wynsel Timber Co., Ltd. This company is the successor of the; Selwyn Co. Operations; and transactions between New Zealand Redwood Forests, Ltd., Selwyn Timber. Co., Ltd., and Wynsel Timber Co., Ltd., on tlie one hand, and the

Sterling Investments Co. (New Zealand), Ltd., and Wynwood Investments, Ltd., on the other hand, tend to link up this group with tho group of investment trust companies referred to in our first interim report. Edgecumbe Forests, Ltd., and Kotahi Lands, Ltd., were both incorporated in 1926, and • they became connected with the present group of companies by important transactions during the year 1930, particularly with Eedwood Forests, Ltd. At the'timo these1" transactions were put through the directors of Edgecumbe Forests,1 Ltd., were J. W. S. McArthur, M. 11. llampson, and W. L.: Wiseman. At ;thc same'" time ! Messrs.' McArthur and llampson were directors of New Zealand Eedwood Forests, Ltd., whilst Messrs. llainpsoh. and Wiseman were solicitors to both companies. At this time, also, tlie shareholders -in Edgecumbe Forests, Ltd., comprised three other companies in the pre'se'ut group, viz., Overana Land Co., Ltd., Modern Homes, Ltd., and Selwyn Timber Co., Ltd." The shareholders in Kotahi Lands, Ltd., in'l93o were Edgecumbe Forests, Ltd., M. H.. Hampson, and J. W. S. McArthur. . "We now refer to Modern Homes, Ltd.": This is a private company incorporated on the 19th day of July, 1923. In11932 it was a shareholder in Sterling Investments Co. (New Zealand), Ltd. In the year 1930 it was used by Mr. J. W.'S": McArthur to facilitate an important share transaction affecting New Zealand Bedwood Forests, Ltd., Selwyn Timber Co., Ltd., and Edgecumbe Forests, Ltd. At that time the principal shareholders in Modern Homes, Ltd., were Mr. J. W. S. McArthur and Mrs. E. M. McArthur. Other shareholders were Mr. H. C. Olasson, secretary of New Zealand Eedwood Forests, Ltd., and Mr. W. L.' Wiseman, one of the firm of solicitors to New Zealand Eedwood Forests, Ltd. "We refer also to Overana Land Co., Ltd.', another company of the group. This company was registered as a private company at Auckland in February, 1916 The memorandum of association was subscribed by M. H. Hampson, K. II Hampson, Arthur Overall, and S. J. Overall; the capital being £145Q m fifty-eight shares of £25 each. At the time of the transactions herein referred to the whole of the shares in .the company were held by'M. H. Hampson and Kathcrine H. Hampson. _ "The positions and relationships ot other companies affected by this report will appear in the .history of transactions set. out hereinafter.