INVESTIGATION OPENS

Northern Advocate, 10 August 1934, Page 7

INVESTIGATION OPENS

SEVENTEEN COMPANIES

N.S.W. ROYAL COMMISSION REMARKABLE disclosures. McARTHUR ’S VERSION. (United Press Association—By Electric Telegraph.—Copyright) (Received 9,a.m.) . SYDNEY, August 0. At the opening sitting today of the Royal Commission for the investigation of (the affairs of 17 companies mentioned; in the schedule of the special fact passed yesterday by the New (South Wales Parliament, the first witness called was William C. HoAA’itt, a New Zealand solicitor, who now: resides in Sydney, He said he Avas a director of the British National Trust, * Ltd., registered at Canberra. Witness said he AA’as also agent in Sydney forthb British National Investment Trust. These companies carried on business in the former, “Daily Telegraph ’ ’ building, Sydney, and his daughter assisted him. • Hewitt said ..ho. was the sole director of the British National Trust, the capital of which vvas £1,000,000. Farms and. Farmlets, Ltd., which was registered in New Zealand, held shares in it. .".He believed the original shares were taken by, Messrs ,T. ,W. .8. McArthur, C, T. Alcorn, and T. R. McArthur. •Cheques jwere passed for payment for shares. No books wore kept for the British National Trust, beyond a minute book. This was entirely due to witness/ own romissness. However, the records necessary to complete the boohs vvere in his room, Hewitt hoped. Witness said he was also attorney in Sydney for the South British National ‘ This company had been housed in the Trust Building, Sydney, more than two months, but had not yet paid any rent, as the lease was not completed. While, he had been acting as attorney he had received many thousands ' of pounds from applicants for debentures. Also, he had received some shares and other securities. - . Mostly In Cheques. Harold Charles Glasson, secretary of the Investment Executive Trust of New Zealand, the (Southern British National Trust and Wjnward Investments,‘said the share capital of the first-named company, which was register ced in Auckland, amounted to £IOO,000, most of which was called up. Cheques had .passed for shares, and the cheques went back to the persons paying, into the company. Mr W. Monahan, K.C., who is assisting the commissioner, asked witness how .many shares were issued and paid for otherwise than in cash. Witness-said it AA’ould run into thousHe; added that.the capital invested in this -company had been rein- . vested in about 200 different com- . panics. Replying to £lr Monahan’s further questions, Glasson said the -Southern .British National Trust, registered in Sydney, parried on the ( samc business ns the Investment Executive Trust of New Zealand. It had the same diro Urate, and the same secretary. Not many shares in this company were paid for in actual cash. There was merely an exchange of cheques. “Selling Services.” The commissioner: “What was the basis of this exchange of cheques?” Witness: “These people were selling their services to the company—it AA’as for services rendered.”

“Is there any record of these services?' ' —“Only in the formation of the company and the gathering of statistics." Mr Monahan: “Statistics of what?" Witness: “Of various companies throughput the world." “Who got the shares?" —“.T, W. S, McArthur, C. G. Alcorn and several others."

“What did you get for your services?"—“Five hundred Tj/ shares. Among others was Mr Glover-Clark, of Auckland." Charles Graham Alcorn was examined regarding the affairs of the Sterling Investment Company and Alcorn, Trower and Company, Ltd. The New Zealand Trust, .Tohn William Shaw McArthur, managing director of the Investment Executive. Trust of Now Zealand, also of the South British National Trust, said t]iat part of the debenture money of the Investment Executive Trust invested in debentures in the British National Trust. The commissioner: “Why is this debenture, money from company A in company B?" Witness: “To make money out of it for the original debenture-holders. They get income from the investments." “When did these series of companies ■ start operations?"—“About three years ago." At this stage the sitting was adjourned.