TRUST COMPANIES

Manawatu Standard, Volume LIV, Issue 288, 2 November 1934, Page 10

TRUST COMPANIES

SPECIAL LEGISLATION INTRODUCED. PROTECTION OE DEBENTUREHOLDERS. (By Telegraph—Special to Standard.) WELLINGTON, Nov. 2. Similar legislation to that passed in New South Wales in respect of the McArthur group of companies was introduced in the House of Representatives this morning by Governor-Gen-eral’s message. It provides that, pending the completion of the investigation of the affairs of these companies, the Public Trustee is appointed receiver and manager. lit. Hon. J. G. Coates (Finance Minister) explained that, following the passage of the Companies Special Investigation Act this session, inspectors were appointed under its authority and a Commission set up in Australia. He had been m cable communication with the New South Wales Premier, who had replied that the State Government appreciated the desirability of co-operation between both Governments in the matter. There were a number of debentureholders in New Zealand who had invested money in these companies and there were a number of good securities held in New Zealand.

The object of appointing the receiver and manager was to watch the interests of New Zealand debenture-holders, “for it does not take a great deal of imagination to see it is possible at very short notice to transfer many securities held in this country into another country unless some action is taken to prevent that until the position is cleared up,” the Minister added. Mr M. J. Savage: The Supreme Court will deckle what action will be taken ?

Mr Coates: Yes, ultimately, but meanwhile Australia and New Zealand will take simultaneous action in respect of these companies to protect the deben-ture-holders.

The companies covered by the Bill are the Investment Executive Trust, Sterling Investments Company, Investments Securities Association, British National Investment Trust, New Zealand Shareholders’ Trust, Wynwood Investments, Pacific Exploration Company, Farms and Farmlets, First Mortgage Freehold Security Company-, New Zealand Transport, Mutual, and General Insurance Company, V. B. McInnes and Co. (New Zealand) and Alcorn, Trower and Co.

SPECIAL LEGISLATION

NEW SOUTH WALES ASSEMBLY

Received November 2, 12.35 p.m. SYDNEY, Nov. 2.

After a brisk debate, the special companies legislation was passed by the Lower House early this morning. The Premier (Mr B. S. B. Stevens) charged Mr J. T. Lang with having conferred with the Labour members of the Upper House to prevent the passage of the Bill through that House. “The Legislative Council members concerned are Messrs Martin and Colbert,” said Mr Stevens. “Thev have been conferring with Mr Lang to object to the suspension of Standing Orders in that House so that the Bill cannot pass through to-night. A corrupt thing was being enacted.” The Premier also stated it was obvious that the opposition to the legislation had been inspired by the “very men whose nefarious practices the Bill sought to stop.” The Bill was transferred to the Legislative Council which, however, adjourned without dealing with it. The second reading is set down for Tuesday next.

An earlier message appears on page 9.