“GIGANTIC FRAUD”

Greymouth Evening Star, 30 August 1934, Page 7

“GIGANTIC FRAUD”

COMPANIES INVESTIGATION VICTORIA STOPS “HAWKING" Eby cable —press assn.—copybight.] (Recd. August 30, 1 p.m.) SYDNEY, August 30. The "Herald’s” Melbourne correspondent says: Drastic powers to investigate the affairs of any company operating in Victoria were conferred upon Attorney-General by the Companies (Special Investigations) Bill, which was passed by the Legislative Assembly. Mr Macfarlane said the measure was necessary to facilitate the examination of affairs of certain companies akin to those which were the subject of investigation in New Zealand, New' South Wales and South Australia. He added: "Two of the main companies are concerned here, and an accountant has prepared a report of their activities so far as the law allows. The South. British National Trust Ltd., is one of the companies concerned, and the gist of the report shows that the scheme outlined in its prospectus is extremely ingenious, but to my mind a gigantic fraud. The position is that in places outside Victoria, these companies are operating in extensive fashion. In places where investigations are being conducted, books are being got rid of to hamper the inquiry, and it is not improbable that some of these books will find their way to Victoria.” Referring to another company, the Commonwealth House Investments Coy Ltd., Mr Macfarlane said the clients were induced to take up bonds which were in the nature of an investment, and could later be used for the purchase of a home. The Company appeared to have lost practically , the whole of its paid-up capital. His firm impression was that the company was insolvent.

In committee, an amendment providing for the prohibition of share hawking under penalties of six months’ imprisonment, or a fine of £2OO, was agreed to.