TRUST COMPANIES.

Manawatu Standard, Volume LIV, Issue 281, 26 October 1934, Page 7

TRUST COMPANIES.

COUNSEL ADDRESSES COMMISSION. SYDNEY, Oct. 25. ' When the Royal Commission inquiring into company affairs resumed to-day Mr Bryan Fuller, counsel for the Investment Executive _ Trust and the Southern British National Trust, Ltd., addressed the Commission in defence of the companies. He said that when anybody complained about unfair dealings by agents the assignment of their deposits in the defunct Primary Producers’ Bank for debentures had been cancelled, while of the persons who had invested in trust debentures 80 per cent, were of a type well able to protect their own financial interests. Alluding to the question of winding up Mr Fuller argued that it was questionable whether, if the Commissioner recommended special legislation to meet special cases, it should be made retrospective. The Commissioner, Mr Justice Halse Rogers, replied that he would recommend the adoption of emergency legislation if he found the position was one of emergency. The future of the trusts was doubtful, because the amount of debenture capital they could get in was problematical. Mr Fuller suggested preserving the existing order of things until the views of debenture-holders were ascertained. The Commissioner: What guarantee can be obtained that the assets of the companies will not be wasted in the meantime? Mr Fuller said that undertakings could be provided and accredited accountants placed in charge of the companies’ books, preserving the assets as well as any receiver. Legislation of An emergency character might inflict most harm on debenture-holders in New Zealand. The Commissioner: If I find the charges proved I shall recommend the entire removal of those who have been in charge. The Commission adjourned.