McINNES COMPANIES

Hawke's Bay Tribune, Volume XXIV, Issue 246, 29 September 1934, Page 7

McINNES COMPANIES

Balance-Sheet Presented

SECRETARY’S EXPLANATION

“Untatitfactory Evidence” By Telegraph—Press Assn.—Copyright SYDNEY, September 28. “As a matter of fact you do not know anything about the books or the money. I have never seen a professional man give such unsatisfactory evidence as you have given in this case,” commented Mr Justice Haise Rogers upon evidence tendered to the Company Commission to-day by Mr A. H. Hill, secretary of the Mclnnes Companies. Mr Justice Haise Rogers presided as Commissioner, Mr W. W. Monahan, K.C., and Mr J. B. Collier appeared as counsel assisting the Commissioner, Mr R. Windeyer, K.C., and Mr B. Fuller for the Investment Executive Trust of New Zealand, Limited, and the Southern British National Trust, Limited, Mr McGhie for Mclnnes and Co., and Dr. F. Louat for three other coin panies.

Mr William Stewart, retired builder, who said ho had constructed such buildings as the “Sydney Morning Herald” building, the Trust building, and the Commercial Bank building, expressed the opinion that the Trust building, apart from the land, was worth £318,879. Continuing, Mr Stewart said that, were the land vacant to-day the erection of a similar building would cost £271,576. The final balance-sheets of the Mclnnes companies were presented. Mr Monahan claimed that they showed » discrepancy of £7OO, and called on the secretary, Mr Arthur Hamilton Hill, to explain it. Mr Hill pointed out that one balance-sheet had been drawn up three months after the other, and negotiations in the meantime covered the £7OO. Replying to Mr Monahan, Mr Hill said that capital amounting to £27,278 had been subscribed in the New Canberra Company. CANBERRA COMPANY SHARES. Asked who held ordinary shares in the Canberra Company, Mr Hill produced the company’s books, showing that Mr Mclnnes held 10,000 The Commissioner observed that the next biggest holder, according to the book, was Mr S. O. Clarke, with 8000. Asked whether he had paid for 4000 shares in his own name iu tho books, Mr Hill said there had been no payment in cash. They wero taken up in connection with interests he held in a liquidated company. Mr Monahan: While the books record tho shares as being fully paid up, actually nothing has been paid? Mr Hill. I think the transaction was quite right as it stands. Mr Hill was cross-examined by Mr Monahan upon how a sum of £13,064 subscribed by debenture-holders in MeInnes and Co. (Canberra) had been spent Witness read out a list of expenditure totalling £7602.

The Commissioner remarked: "As a matter of fact you do not know anything about the books or the money. I have never seeu a professional man give such unsatisfactory evidence as you have given in this case. You have had seven weeks since the commission started, and after seven weeks you give this unsatisfactory evidence.’’ Mr Monahan (to Mr Hill): Will you let us have it on Tuesday? Mr Hill: Yes COMPLETION IN SIGHT. Mr Hewitt made a personal explanation regarding tho removal of the books of Farms and Farmlets from New Zealand to Sydney. He said that under New Zealand law the books of a company had to be available for inspection by the shareholders, but the only shareholders —witness and his wife-—were in Australia, and he could see no objection to the transfer of the books. The Commissioner said there was no suggestion against Mr Hewitt in the matter.

The Commissioner said the commission ought to finish its labours next week. There were a number of outstanding threads to be gathered in, and he supposed there would be addresses. “It may bo that a plan will be put forward to call a meeting of debenture holders,” he added. “It may be necessary for me to make my findings on fact before the meeting is held, in order that the situation may be truly put before the debentureholders.”

Mr Fuller: It may be necessary to hold a considerable number of meetings. My present idea is to make provision for the holding of meetings in suitable centres and to send notices to those people who are unable to attend iu order to make sure they are acquainted with tho position. Dr. Louat said that whatever plan Mr Fuller put forward would be put forward also ou behalf of the companies he represented. The commission adjourned till Tuesday.