TRUST COMPANIES

Evening Star, Issue 21820, 8 September 1934, Page 13

TRUST COMPANIES

THE SYDNEY INQUIRY TANGLED TRANSACTIONS Press Association—By Telegraph—Copyright SYDNEY, September 7. The Royal Commission which is inquiring into the activities of certain crust companies continued its sitting,' Questioned by Mr Monahan (Assistant Commissioner), W. C. Hewitt, director of the British National Trust, said that up till June, 1934, £72,856 had been spent on alterations and improvements to the Trust building. The Sterling Investment Company had paid the £91,000 that was owing to the British National Trust by giving the latter £50,000 worth of shares and promising to issue debentures for the balance. An undertaking had also been given that the Sterling Investment Company would not contract a debt of more than £IOO without the consent of the British National Trust. , Hewitt- said that British National Trust was carrying debentures. up to £400,000. There were four or five additional debentures signed and ready for issue. Before an officer of the commission had taken possession of them, they . had been in the . possession of, M‘Arthur.

Mr Monahan: Did you understand the process of issuing the debentures was to continue up to £1,000,000? Hewitt: The: whole, control of the operations was in M'Arthur’s hands. The Commissioner : You he 1 no power to investigate the reasons? Hewitt: No. I issued the debentures.

After Hewitt had given evidence relating to various transfers of shares and debentures, the Commissioner said he thought a statement should be prepared showing the why and wherefore of these transactions. He would like to have a kind of chart showing how the money passed from one place to another and what was the net result. Mr Monahan : Yes. Something which would disclose what amount of public money has been turned into debentures and what has become of the money. The Commissioner; Exactly. Mr Louat: That would demand ingenuity. . The Commissioner: Of course it would. Because of all-these ingenious transactions the position is tangled. I want it untangled, and I expect to get it untangled. That is one of the purposes of the commission. If anyone ohinks he can cloak it any further I hope he will be disappointed. Mi- Bryan Fuller (for the Investment Executive Trust and the Southern British National Trust): It can bo untangled. It is very easy. The Commissioner remarked that he did not know where Hewitt’s responsioility began or ended. Hewitt: I am in the same boat. The Commissioner: That is as I thought. I should think Hewitt and ulasson. in conference with M‘Arthur, could, now ever, prepare some of the statement I want. It will also bo necessary for me to have a'statement of the drawings of M'Arthur for the last two years, together with his private bank accounts and a statement of the property he has received in kind. Alcorn, who was recalled, was examined by Mr Fuller, who, addressing witness, said the latter had been asked questions by Mr Monahan relating, to a transaction in connection- with motor cars. “You were doubtful about what security was held,” added Mr Fuller “ Do you know what security was taken in regard to that transaction?” _ Alcorn said he had communicated with New Zealand and ascertained that a trust deed had been executed prior to the advancement of the money. The commission adjourned until 1 uesdav to enable counsel to confer with their expert advisers in an examination of the balance-sheets . which have already., been-produced to the commission. ■ ,