£l0,000 RECOVERED

Grey River Argus, 24 August 1934, Page 5

£l0,000 RECOVERED

FOR N.Z. WOMAN From Investment Trust DISCLOSURES AT SYDNEY INQUIRY. (Aus. and N.Z. Cable Assn.) (Received August 23 at 7 35 pm.) SYD XYfY. August 23. (’hr Royab <'uiiiiib.-sion If-diiy resumed 'till' inquiry regarding flic affairs of 17 companies. Air Monahan. K.C., further questioned Glasson. saying- “ Yun have told us that of the 15 ) debentures held by the Southern Bn- ■ ish Trust C< y. in the British National '1 i u t C’oy., 124 represent in vest inentj o| the Southern British Coy’s, deben lure holders.” Glasson; “| cannot reconcile that statement with my .subsequent in quiries. ’ ■ Mr Monahan: ‘‘Well, what is the figure now?” Glasson; ‘‘lt is £90.206 worth.’’ Air Monahan: “Is this an attempt to explain somv’tliing that j our books > aim t explain ?’' (I lasso n: “ No. ’ ’ The Commissioner (Judge Rodgers); ‘‘lf you cannot answer quo. tioiis it lating to the business of your company. 1 shall be forced to infer that the coi.difc: of business matters does not reach a very high standard.” Mr Monahan asked Glasson to explain how his books showed that the Investment Executive Trust held 232

debentures belonging to the Southern British Uoy when Hewitt's bookshowed oi.ly 196 debentures. (Ha son said his figure now coin vided with Hewitt’s. Mr Monahan: ‘‘Well, what became 1 t the other thirtv-six ■>' ’ Glasson: “They were transferred t» pay debenture holders' costs in tho Investment Executive Trust.’’ Air Al nahan: “Why should the Soirhern British Coy. provide that?” The Commi-sioner: ‘‘That jvould bo at the direction of Messrs M Arthur and Alcorn in connection with the mat ter discussed yesterday.’’ Glasson said in his statement that the money Mibseribed b v the deben'uro ho dors was £13'4.0(H) was incorrect It was onlv £120.000. Mr Alonahan: ‘‘lhit that is a differDr. Louat (.for various companies). “That only illustrate.' the dilliculties under which our clients are working They ur.- refused adequate access to The ( inmissioner: “It also illus tra“es : e a-pe- t into whikh I have > i:.qu.r< —that i> the easiness metho Is employed by the <■<■::.panics. ’’ Dr L'-uat: “These companies arc rather 1 rhind in their books.’’ The ('ummissioner: “I should say Lope essly confused. ’ ’ Dr Louat; ‘‘These companies say y have a comple’e answer to all u'.her aspects of the inquiry.’’ Glasson estimated that it would take h.m a wt-ek to clarify the position of Lis company's books to June 30, 1934 He said: “Entries have to be posted mi the Auckland cash books.” Air Al'iuahai : “You seem to have • atirely changed your ideas in the last few days. When the police first t > k chaige of the debentures you he! I, you signed a statement. Was it t:u«*?“ G’u.-son: “Yes.’’ Mr Alonahan: “You still say that it was true ? ” G'asson: “1 probably took one of our people’s word for it.’’ Glasson was then questioned about the investments of Ali.-s •Smith, oi ( hrisfChnrch. Mr Monahan asked the witness to explain what happened. Glassoi : “The Guardian Company of New Zealand were handling her estates. and the Company agreed to biiv ‘hem.’’ Mr Alonhan: “How did the Southern British Coy. come into the pict ui e ? ’ ’ Glasson: “Sterling’s had not sufficient cash. It had only a few hundred pounds. ’ ’ Air Alonahan: “Is this not the posi to n; The lady wanted her money back from th ( . Investment Executive Trust, and someone told her that Sterling’s would buy her debentures for ten thousand pounds. Your company was instructed that they would have to find the money, and they passed it over to a firm in Sydney? They took up the debentures from the British National Trust?’’ (Hasson: “The transaction nity sti’l bo pending.” Mr Monahan: ‘‘The Guardian Trust ar ( > insisting on pu'tting that lady back where she was. Did the investment Executive Trust find a.y cash in connection with this woman’s total investment ? ’ ’ (rl-asson: ”About fifteen thousand.” Mr Alonahan: “And having found the cash, they bought fifteen thousam of British National Trust debentures. This goes through Sterling’s, who give it to the woman 2” Glasson: “Yes.’’ Air Monahan: “It still remains to be seen how Sterling’s discharg e its liability ? ’ ’ Glasson: “Yes, at a later stage.” Air Alonahan told the Commissioner that it appeared that Sterlings had bought eighty thousand pounds worth of dissatisfied people’s debentures. The Commissioner asked Glasson what did the British. National Trust get. Gltisson: “They got credit in the Sterling Cov’s. books.“ Air Alonahan: “Is this the position; when anybody is dissatisfied, lie or sh e is bought out by Sterling’s?” Glasson: “They’ve bought out quite a lot.'” Air Alonahan: “How much?” Gia-son: “About eighty thousand pounds. ’ ’ Air Monahan: “They are dissatisfiej shareholders?” G asson; ‘ ‘ Yes. ’ ’ Air Monahan: “'['here is one item of thirty-nine thousand. What’t that?” Gias on: “That would be Miss Smith’s I suppose.” Replying to further questions, Glassou said that Alias Smith was eighty year' old. and the Guardian Trust Cov. threatened to take action on hep behalf. To the ten thousand pounds '*l- - mentioned was part of the thirty-nine thousand pounds involved in her case. Her transactions were not yet completed. The Commissioner suggested that, in order to reach an under, landing, a balance should be taken out, showing at a given date, the position of the various 'companies. Air Monahan quoted from a letter ! from a certain in New Zealand,

in which mention w’as made of an appropriation of £lOOO “if tho parties succeed in preventing the report, of the Commission being tabled, and alternatively. £5OO if the report, having been tabled, is discredited.” Th e Commission adjourned.