TRUST COMPANIES.

Manawatu Standard, Volume LIV, Issue 293, 8 November 1934, Page 7

TRUST COMPANIES.

COMMENT ON LEGISLATION,

COMMISSIONER AND COUNSEL.

SYDNEY, Nov. 7. Dr Louat, addressing the Royal Commission this morning oil behalf of certain companies involved in the inquiry, referred to the legislation passed by the State Parliament. He said that it was based on the Commissioner’s report, yet is seemed to go considerably further. Although the Commissioner recommended certain action in the case of three companies, the legislation dealt with 23. The Act also took powers to deal with matters which had been expressly reserved for consideration after argument by couni'he Commissioner (Mr Justice Halse Rogers) said that, although the Act was wide in its powers, it was only a temporary measure. The intention was to preserve the assets of the Southern British National Trust and the Investment Executive Trust pending further recommendations by him. It did not hamper him in any w r ay as far as it concerned schemes or suggestions that might be put forward. The debentureholders must be consulted; also anyone else who could devise a method of saving the assets. Counsel for a large number of debenture-holders intimated that their clients desired to co-operate as far as possible with the New Zealand interests. In reply to counsel for one of the debenture-holders, the Commissioner said his present view was that it might be disadvantageous to debentureholders to force a sale of the Trust building, otherwise the pld Daily Telegraph building, by winding up the companies. Tins would throw the building to the highest bidder, whereas the interests of debenture-holders might be better served by some reorganisation of the companies. If rents from the building amounted to anything like what Hewett and other witnesses said the profit would go to pay interest. On the other hand, if experts came to the conclusion that this was a false hope,. probably debentureholders would think it better to get their money back as soon as possible. The Commissioner added that the parties should be prepared to put forward definite schemes by Monday week, but unless the proposals were concrete they would be useless. The Commissioner said he did not intend to propound a scheme for the future of the companies. After hearing certain schemes put forward, lie might summarise them so that debenture-holders would be able to consider them. He might also make some recommendation to debentureholders. He suggested that counsel should meet at a round-table conference and thresh out a scheme. This might be more fruitful than discussion in Court. -

Dr Louat characterised the suggestion ns most valuable, and the Commission adjourned until November 19.