THREE SCHEMES

Hokitika Guardian, 6 December 1934, Page 5

THREE SCHEMES

FOR THE DEBENTURE HOLDERS

AUSTRALIAN TRUST COMPANIES

(Australian Press Association,)

SYDNEY, December 5

The Commission inquiring into the Trust Companies resumed to-day. Robert Hill the financial expert attached to the commission, said that he had described Swan’s scheme as a workable one, but it was not one with which he could associate himself, or which he could recommend In his opinion, the debenture-holders would benefit most by the liquidation of nearly, all of the companies., with the possible exception of '.the Investment Executive Trust. There should he .a provision that the sale of the Trust Buildings b e postponed indefinitely.

Replying to the Commissioner (Judge Halse Rogers). Mr Hill said that in connection with the Southern British Trust, he could see. no advantage i.n ’its reconstruction. as against its liquidation. Dr Louat (for the Companies'' suggested that going into liquidation might mea n depreciating the value o p the Trust Building. An insecurity of tenure would affect its letting prospects.

The Commissioner said that a copy of bis report should be sent to the debenture-holders, together with a. scheme endorsed by Mr Pitt and T)r Louat. Three questions should lie put. namely: (1,)) Whether the votes favoured the assets remaining in the hands of the Public Trustee for one year; (2) whether lie favoured the immediate liquidation of the four companies with power to the liquidator to , postpone the realisation of the assets; or (3) whether he favoured the scheme of reconstruction put forward by Dr Louat. Mr Hill’s opinion, as the expert accountant, •assisting the •commission, and Dr Louat’s remarks, a s well as the Commissioner’s own opinion on the whole mat,ter, might be included ’in the documents sent to the debeture holders .

VI ib Conun isskmcr (directed er. Louat to produce his scheme in detail by Friday. He said that about ten days should be sufficient time to enable the de-benture-holders’ replies to be rceeivtd. He was to make his final report to the executive by January 15. Tim Commission tlmu adjourned,