SENSATIONAL ALLEGATIONS

Evening Star, Issue 22515, 7 December 1936, Page 12

SENSATIONAL ALLEGATIONS

ANOTHER SEQUEL TO M'ARTHUR COMPANY AFFAIR TRANSFERS TO ANOTHER COMPANY CHALLENGED PETITION FOR RETURN OF DEBENTURES , [Pee United Press Association.] CHRISTCHURCH, December 7, Sensational allegations against the operations of the Australian Investment Corporation Limited and another company concerned with the assets of the Investment Executive Trust Company of New Zealand Limited were made in the Supreme Court this morning before Mr Justice Northcroft, when George" Ernest Argyle, of Ashburton, printer, petitioned for the return of debentures’in the Investment Executive Trust to the value of £l7O. the allegation being that he transferred them in consideration of debentures to the same nominal value in the Australian Investment Corporation, which company was defendant in the action. Plaintiff’s claim stated that he had been induced to make the transfer by the misrepresentations of Osmond Arthur Bridgewater, and of William Munro, admitted agents of the defendant company. “ This,” said Mr Young, for the plaintiff, “is one of 10 cases which will be brought against the defendant company. The'allegations are all based on similar fraud and misrepresentation. ” “Bridgewater,” Mr Young continued, “ is a super, high power salesman, and must rank in a class by himself in New Zealand. A slammed door and shout of .‘No "meant nothing to him. By glamorous representations, returning again and again, he achieved his object.” The Australian Investment Corporation, counsel continued, was founded in 1935. The ■ self-appointed ” managing director was O. A. Bridgewater, the chief salesman was O. A. Bridgewater, and the managing director of the broking firm handling the debentures was O. A. Bridgewater. In fact, the whole thing was O. A. Bridgewater. Bridgewater had been connected with M‘Arthur, as would be proved, said Mr Young. Ho was M'Arthur’s agent for Canterbury,' South /Canterbury, Marlborough, Nelson, and the West Coast. The debenture holders in the Investment Executive Trust knew that Bridgewater was hand in glove with M'Arthur, and consequently when he came to them in 1935 they were suspicious, and pressed him on the point. Bridgewater told them he had been caught in M'Arthur’s company, and had transferred all his shares to the new concern. “ Actually he had held 40 debentures,” Mr Young said, “ and to show his confidence in the new concern, he had not transferred a single debenture.” The defendant company, counsel continued, had collected debentures in the Investment Trust to the face value of £85,000. It was known then that only 12s 6d in the £ would be paid to the unfortunate investors. In April,- the Public Trustee paid-a dividend of 2s in -the fi-