COMPANY INQUIRY.

Manawatu Standard, Volume LIV, Issue 283, 27 October 1934, Page 7

COMPANY INQUIRY.

CONTINUATION OF EVIDENCE. SYDNEY, Oct. 26. Oscar Josephson was to-day questioned before the Commission inquiring int-o the affairs of a number of companies concerning his activities recently in Brisbane in connection with organising debenture-holders. Witness said that one man had given him £l5O and another £475. Replying to Mr Fuller, counsel for the Investment Executive Trust and the Southern British National Trust, Ltd., and Dr Louat, for the British National Trust, Ltd., the British National Investment Trust Ltd., and the Sterling Investments Company of New Zealand, he said he had spent £220 of that money in expenses. Josephson said that the matter had started early this month after a conversation with Mclnnes, who was a shareholder in British Consolidated Investments, Ltd., of which witness was a director. It had been about to go into liquidation, but it had been decided that witness should go to Brisbane to get additional capital. He had discussed with men in Brisbane a scheme whereby British Consolidated Investments, as a brokerage organisation, would endeavour to get together the debenture-holders m the Southern British National Trust with a view to holding meetings in the four capital cities of Australia. It had been decided to go on with the scheme and he had received the sums mentioned for shares in British Consolidated Investments. It had also been decided to try to obtain a list of de-benture-holders to form an association and to brief counsel to appear before the Commission. It was suggested that a company be formed consisting of de-benture-holders who would exchange debentures for shares. Mr McGhie, addressing the Commission on behalf of the Mclnnes group, said that Mclnnes had never drawn anything except by way of salary and that was less than he had been entitled to under his agreement with the companies. The Commissioner said that what he was going to report upon was the unsatisfactory business methods of the Mclnnes companies, and to say that the one now operating should be wound up. Mr McGhie: The process of liquidation is now in train.

The Commissioner: It should not be a voluntary liquidation, but a receiver should be appointed. Mr McGlhe said there was no evidence that anyone had deliberately induced people to give lists of Primary Producers’ Bank depositor's in breach rtf trust.

The Commissioner: It is common knowledge that a bank officer must not disclose the bank’s affairs.

At the conclusion of Mr McGhie’s address, the Commissioner announced that some time next week he would submit his findings on facts, but not his recommendations. He assumed that counsel would desire to address the Commission on. the findings. The Commission adjourned until next week.