McARTHUR PROSECUTION

Greymouth Evening Star, 1 July 1936, Page 7

McARTHUR PROSECUTION

LONG HEARING EXPECTED

FIRST CHARGE OUTLINED

[PER PRESS ASSOCIATION.]

WELLINGTON, July 1.

The charges against W. S. McArthur were proceeded with to-day. The charges were as set out, when the proceedings were remanded from Wednesday last, with the exception of the three last, E. F. and G., which were not read. It is understood that the Crown proposes calling twelve witnesses, and the hearing will occupy several days. Mr Mosley, S.M., is on the Bench. The prosecution is conducted by Mr C. Evans Scott. The defence is in the hands of Mr H. F. O’Leary, K.C., with him Mr R. E. Tripe. Mr Evans Scott suggested that if the Magistrate approved, the four charges could very conveniently be taken together. Mr O’Leary at once objected to this course. Mr Evans Scott, expressed surprise, saying the charges were very closely connected, and evidence in respect of each would be identical, except in the small particulars. If the charges were not taken together, it meant the evidence that took two days to hear would have to he taken four times. The Magistrate remarked, that he was entirely in the hands of counsel in these matters. In justice to the accused, if counsel raised the slightest objection,’ he must uphold it -even if the case took a month. Mr O’Leary said that he wanted to assure Mr Evans Scott he did not raise- the objection for the purpose of obstruction, but in the interests of his client. It need not necessarily follow that the four sets of evidence- would have to be taken. To start with, at at rate, he asked that one information be taken. The Magistrate indicated that this was also his feeling, then if counse 1 consented, the other three probably could be taken together. It would be easier for him to confine attention merely to one information, and personally he would prefer counsel to take that course. All witnesses, whose evidence might be subject to the test of credibility, were ordered to remain out of Court. McArthur was allowed to leave the dock, and sit beside his counsel. It was agreed to take the second charge, that, on or about March 16, 1933, at Wellington, he published a report in writing to the debenture holders of the company for the year ending December 31, 1932, which report was false. Mr Evans Scott-did not address the Court on the facts, but said the evidence he proposed calling would prove among other things, first of all, the publication of the report; secondly, the responsibility of the accused for that publication- thirdly, that the statements in that report were false; fourthly, that the accused knew they were false; fifthly, intent to deceive or defraud the debenture holders: sixthly, that the accused had a motive to deceive them: and seventhly, the nature of the investments in the associated companies which were concealed.

DIAGRAM AND DOCUMENTS. In order to assist the Court, said Mr Evans Scott, he had prepared a diagraw showing in perspective the transactions with the associated companies up to February 28, 1934. The evidence, he said, could establish the various payments and transfers shown in the diagram, copies of which were supplied to the Magistrate and Mr O’Leary. The first witness was John Henry McKay, Assistant Registrar of Companies at Wellington, who produced documents relating to the Investment Executive Trust, showing the incorporation in 1929,' with a of £lO,OOO, a resolution of February' 2, increasing the capital to £lOO,OOO, divided into 250,000 2/- shares and 75,000 shares of £1 each, an issue of debentures dated May 9, 1931, and May 11, 1931, and the original filed copies of the prospectuses issued by the company, the first of which was dated March 12, 1931. Mr O’Leary objected to the production of the latter documents, submitting that any subsequent to March 16, 1933, were irrelevant.

Mr Evans §cott agreed, but explained he intended to put all the documents in for convenience in marking the exhibits.

Witness accordingly produced only a copy of the first prospectus .also a certificate of the incorporation of Sterling Investments New Zealand, incorporated on October 14, 1930, and a memorandum of satisfaction of the last series of debentures issued by that company, and dated February 28, 1934. He produced the certificate of incorporation of the Stock Exchange Incorporation of New Zealand, Ltd., dated November 2, 1931, with original capital of £lO,OOO. The name was changed to the British National Investment Trust Ltd., dated December 3, 1932. On October 20, 1932, the capital was increased to £lOO,OOO, at 150,000 ten shilling shares and 250,000 two shilling shares. Witness produced a certificate of incorporation of Wynwood Investments Ltd., dated August 6, 1930. The capital was originally £lOO and was increased on April 11, 1932, to £lOOO, and on October 26, 1933, to £lO,OOO. He produced a list of shareholders of that company. They 'were Stanley Grange, 100; J. W. S. McArthur, 9,900. He produced the registration of a series of a hundred' £.lOOO debentures by Wynwood Investments, dated December 11, 1933. Mr O’Leary objected to this subsequent date.

Mr Mosley said he would take the evidence and note the objection. Witness produced a certificate of incorporation of Pacific Exploration Company, Ltd., dated May 3, 1932, and said so far as the records showed no debentures had ever been registered against the assets of the company. Its capital was originally £lO,OOO. (Proceeding).