TO SAVE HIS ASSETS

Grey River Argus, 28 September 1934, Page 5

TO SAVE HIS ASSETS

McARTHUR’S USE Of Trust Funds NEW SCHEME MOOTED. (Aus & N.Z. Cable Assn.) SYDNEY, September 27. At the Companies Commission to-day fht* wl’-iiess Elliffe, from Auckland, stated that as the re. ult of his inquiries. he considered the net total value of the assets taken over by AleArthur, on behalf of Wynwuod Investment Company, from 'the Sterling Investment Coy., was £90.902. Sixty British National Trust debentures had been given in payment. He hud compiled a statement detailing the various items, and AlcArthur had at firsf; agreed to sign it. but later had expressed a wish to consult his solicitors, and the statement was still unsigned. El’.iffe said two items of £3,125 and £1317 had been objected to. Otherwise AlcArthur had been satisfied. The sum of £19.000 had been wrongly charged by him to AlcArthur. but the matter had been adjusted since. The. Commissioner said it appeared that AlcArthur had been speculating with the assets of /the public for the purpose of salvaging his own private assets. “Tn fact it seems Hie Investment Executive Trust was started so that these assofs might be salvaged.” (Received September 27 at S p.m.) SYDNEY, September 27. At the Companies Commission. Robert Hill, of Sydney, accountant, who examined the books of the companies being investigated, w:as to-day again examined. Air W. W. Monahan. K.'C.: “I understand from the balance sheet that there was an establishment charge of £120.000 for the Briti’sh National Trust, the Investment Executive Trust •»rd the Southern British Coy. Could that he regarded as so much money gone!” Hill: “Yes.” Air Monahan: “And if we assume, a* Alcorn and AlcArthur have sain, that they take out £115.000 apart from shares coming hack, then that makes £235.000 gone out of the debenture capital!” Hill: “Yes.” McArthur was recalled. He said that the total cos'-t to Sterling Investments. Lfd., for the purchase of : the Wynwood Company’s assets w<as £17.408 He produced figures supporting his statement thait Sterling Investment’s assets taken over by him in exchange for sixty dol)er*”res that he cancelled, (were worth £58.000, which is approximately £22,000 less than the estimate prepared by the. witness EllifTe. The Commissioner: “Assuming fhat your assets were i’n jeopardy, did you use Investment Executive Trust money to save those assets!” Ale Arthur: “That is not quite correct. I considered it a good investment for the Investment Executive Trust. ’ ’ The Commissioner: “You psed it for the, salvation of your assets?” AlcArthur: “Yes.” The Commissioner: “Do you thi’nk that anyone in New Zealand would have subscribed if they had known that!” McArthur: “I think they would, b.ad they known the securfiy that was being offered.” AlcArthifr told Mr Alonahan that he had been neotia/ingg with the chairman of a large investment company in Alelb'Ourne with a viclw to its purchase. The payment was to be made in Southern British Company debentures., and an attempt was also to be made t° acquire ithe assets of the Primary Producers’ Bank. The two concerns would' be amalgamated. A pamphlet had been issued, suggesting that the dob'enture-ho’ders would be returned “thirty per cent, of their money if these negotiations were successful. The Commissioner said that if some scheme could be advanced by [which the companies could be put on a sound basis, and public interests protected, it. might save him making certain recommendations. If nothing satisfactory could be suggested. ii» might be as /well if some “one-man companies were interred.” The Commission adjourned until tomorrow.