COMPANY INQUIRY

Hawke's Bay Tribune, Volume XXIV, Issue 236, 18 September 1934, Page 5

COMPANY INQUIRY

DENIAL OF DISPUTE Mr. McArthur Questioned DEBENTURE TRANSFERS (By Telegraph-Press Assn.—Copyright.) (Received 18, 1.35 p.m.) SYDNEY, Sept. 18. The companies inquiry commission was continued 'to-day. Mr. McArthur outlined a series of share and debenture transfers, stating that as a result of theim he now appeared as an ordinary creditor on the British National Trust books. Mr. Monahan: That matter was the cause of the dispute between you and Mr. Hewitt. Mr. McArthur: Nonsense. We have never had a dispute. Mr. Monahan: Mr. Hewitt said that you wanted priority over the shareholders and he insisted on your coming after the debenture-holders.

Mr. McArthur: I don’t believe he said that. I had no intention of being a creditor of Sterling and told Mr. Hewitt so.

Mr. Monahan: I have no doubt it ended in the usual way —cash, and Mr McArthur’s will prevailed.

Mr. McArthur admitted that the settlement with Miss Smith had cost £39,000 involving a loss to the company of £13,000. There was no record of the transaction, as every detail was not shown. The losses were counter-balanced by profits made on other transactions, and a lump Bum was all that appeared on tho balancesheet.

Replying to further questions by Mr. Monahan, Mr. McArthur said that ho had drawn £7OOO in tho last four months from Sterling. The money was in payment for Sterling debentures he had cancelled. In the last three years Sterling had sold assets of his valued at £28,000 to Timberlands Woodpulp Company. Payment had been in cash. Mr. Monahan: So this £7OOO drawn by you did not come from the deben-ture-holders’ money but from actual cash belonging to Sterling? Mr. McArthur: Yes.

Mr. Monahan: Where are the records of these cash payments from Timberlands Woodpulp?

Mr. McArthur: In the old books, which were lost. Mr. McArthur said that as far as he knew these books were in New Zealand. He had thought ho might have left them at his homo there, but a search had failed to discover them. (Proceeding.)

(See page 7 for earlier cable)