MISSING DEBENTURES

Hawera Star, Volume LIV, 19 September 1934, Page 8

MISSING DEBENTURES

McArthur's Examination Before the Commission v NO MONEY IN INVESTMENTS USE OP PERSONAL ASSETS [United Pres* Association—Bv Electric Telegraph Copyrights Received 2.30 p.m. to-day. SYDNEY, Sept. 19. McArthur was further questioned by the Companies Commission to-day regarding the issue of British National Trust debentures. Mr Monahan said that 410 debentures for £IOOO each had been issued, but eighteen were mot accounted for in the balance sheets of the other companies. Furthermore, the Southern British's balance sheet showed its holdings as lie, while the British National Trust had the figures as 166. McArthur said he was unable to explain the discrepancy, but thought the eighteen missing debentures were probably those owned privately by Aleorn. The Commissioner said he had repeatedly, asked how much money McArthur had ever put into any companies since 1922. McArthur replied that his activities had begun long before that date, the Selwyn Timber Company, having been started in 1907. That had been his “life's work.'' Mr Monahan: How much actual cash have you .put in since the Investment Executive Trust started?! McArthur: I have put in assets. iMV Monahan: But how; much of your own personal property in cash? Mr McArthur: No cash, but many assets. McArthur added that the assets he had put into the Sterling Company had realised £28,000. He had been credited with a “ nominal consideration.'' Mr Monahan: How much? McArthur: £6OOO. Questioned regarding Redwood Forests, Wynwood Investments. Ltd., and Modern Homes Ltd., McArthur said he had been troubled financially when Modem Homes was floated in 1931. He practically controlled .Modem Homes but could not explain how 19,(W0 shares had been acquired in Redwood Forests. A sum of £<30,000 he had received from the British National Trust represented part of the profit made on the sale of the trust building. The money had come from the Investment Executive Trust, which had purchased Sterling! debentures. Mr Monahan: You used Investment Executive Trust capital to rescue your own private assets ? McArthur: They protected me, but they had a good investment. They got fourteen per cent, interest altogether.

Mr Monahan; But I suppose you admit that a considerable amount of debenture interests were paid out of capital? McArthur: Yes.

Purchase of Land by Wood Pulp Concern

(By Telegraph—Press Association.) AUCKLAND, Sept. 19. In a statement to-day, referring to the evidence given by J. W. ;S. McArthur before the Sydney Boyal Commission, the secretary of Timberlands Woodpulp, Ltd., said that in' April, 1933, his company agreed to purchase about 21,000 acres, known as the Mataklna block between Te Teko and Murupara. The price was £33,350, payable by instalments. By direction of the vendors, the balance of the purchase moneys were payable to one only of the vendor companies, viz., Edgecumbe Forests, Ltd. The other vendor company was Kotahi Land, Ltd. Several instalments were paid to Edgecumbe Forests, but in April, 1933, the company received advice that Edgecumbe Forest was being wound up and that it had sold its assets to the 'Sterling Invest-; ment Company (N.Z.), Ltd., to whom the remaining payments.,, were to be made. Accordingly, the balance of the purchase money was paid to Sterling Investments.

Timberlands Woodpulp Co., Ltd., bought the Matahina block for afforestation purposes, and had already planted about 10,000 acres.