SYDNEY INQUIRY

Hawke's Bay Tribune, Volume XXIV, Issue 237, 19 September 1934, Page 7

SYDNEY INQUIRY

Mr. McArthur Questioned MISSING DEBENTURES (Received 19, 1.45 p.m.) SYDNEY, Sept. 19. Tho company commission resumed this morning. Mr McArthur was further questioned regarding the issue of British National Trust debentures. Mr Monahan said that 410 debentures for £lOOO each had been issued, but 18 were not accounted for in tho balance-sheets of the other eomapnies. Furthermore, the Southern British’s balance-sheet showed its holdings as 115, while the British National Trust had the figures as 166. Mr McArthur said he was unable to explain the discrepancy, but thought the 18 missing debentures were probably those owned privately by Mr Alcorn. The Commissioner said he had repeatedly asked how much money Mr McArthur had ever put into any companies since 1922. Mr McArthur replied that his activities had begun long before that date, ‘he 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? Mr McArthur 1 have put in assets. Mi Monahan: But how much of your own persona) property in cash? Mr McArthur: Nb cash, but many assets. Mr 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? Mr McArthur: £6OOO. Questioned regarding Redwood Forests, Wynwood Investments Ltd., and Modern Homes Ltd., Mr. McArthur said ho had been troubled financially when Modern Homes was flouted in 1931. He practically controlled Modern Homer, but could not explain how 19,00(1 shares had been acquired in Redwood Forests. The £60,000 he had received from the British JJational 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 Investment Company debentures. Mr. Monahan: You used Investment Executive Trust capital to rescue your own private assets? Mr. McArthur: They protected me, but they had n good investment. They got 14 per ' “it interest altogether. ” Mr. Mon:.'mn: But 1 suppose you admit that n considerable amount of the debenture interest was paid out of capital I Mr. McArthur; Yes