COMPANY INQUIRY

Manawatu Standard, Volume LIV, Issue 251, 20 September 1934, Page 8

COMPANY INQUIRY

“POLAB” ASSOCIATION EXPLANED. THE DOMINION REPORT. (United Press Association —By Electric Telegraph—Copyright.) Received September 20, 1.15 p.m. SYDNEY, Sept, 20. In his evidence to-day to the Companies’ Commission, explaining the meaning of the “Polab” Association, which had been frequently mentioned before the Commission, J. W. S. McArthur said it was headed by Mr Glover Clarke,, of Now Zealand, whose plan had been to approach the electors and ask them to induce their Parliamentary representatives to prevent a hostile report on the companies being forwarded to the New Zealand Parliament. He denied that there had been any attempts at bribery, saying that the £IOOO which had been mentioned had been for travelling expenses for Mr Glover Clarke. “Nine months ago,” said McArthur. “I told Mr Glover Clarke we would have to organise a movement to resist hostile attacks being made on us. Nothing was done until July, when Mr Glover Clarke came to Sydney on urgent business. He told us that a biassed and hostile report was being forwarded by the Now Zealand Royal Commission, and that it would be very detrimental to the trust’s interests.” “He then said lie would form an association,” continued McArthur, “to interview the electors in various constituencies throughout New Zealand.” Mr Monahan asked _ why, if the £IOOO was ror_ travelling expenses, mention was made in the letter, of £6OO to be paid if the report was discredited. McArthur asserted that there had been no bribery. Mr Monahan: What about this (reading from a letter): “Regarding the Polab plan as personally discussed with you, a mutual agreement has been reached”? McArthur: It is not intelligible to me. Mr Monahan (continuing reading): “The case is being prepared by me. Polab requires my presence in Wellington.” Now who is Polab? McArthur: I don’t know. Mr Monahan : Do you seriously say Polab is some association of voters and not a political party in Parliament ? McArthur: I understand so. I don't think it is a political party. Mr Monahan continued reading: “I spoke of the report and asked them to discredit it when it does arrive. I am working on the case and they say they should be able to put up a good barrage when necessary.” Mr Monahan: Would “they” not be in Parliament? McArthur: No, it would be done through the voters. Mr Monahan : Who is Anchor ? McArthur : One of two persons. They are not politicians and I do not want to mention names. I will write them down for the Commissioner. The Commissioner, after seeing the names, said they need not be His-, closed. Further examined, McArthur said an arrangement had been made that V. B. Mclnues should occupy offices in the Trust Building rent free until lie was able to pay rent. The Commissioner: How much has lie made out of the Southern British Trust ? McArthur: Mein lies tells me he has not made any profit, but that he made a loss. Mr Mona.han: As a matter of fact he bad been overpaid £4OOO up to June. McArthur: Yes. Mr Monahan: He has retained £4334 that belongs to the Southern British Trust without making an attempt to pay it over? McArthur said Mclnues had made an attempt to pay it over. The debt had not been allowed to be extinguished. Mclnnes had to sell shares in V.» B. Mclnnes and Co. and pay the debt. That undertaking was given about two months ago. The Commission had then come along and he had not been able to do anything. Mr Monahan: Had Mclnnes any justification for taking that money? McArthur: I do not say he had. He disputes the amount. Mr Monahan: He held the money received on your account and kept it for his own use? McArthur: I would not say that until lie had the opportunity of explaining the position. The Commissioner: Bat he must have had tho opportunity of explaining it- , . McArthur: Well, it was not explained to our satisfaction.