McARTHUR CASE

Northern Advocate, 26 October 1935, Page 12

McARTHUR CASE

A SYDNEY CHARGE HEARING ADJOURNED. PAPERS FROM N.Z. WANTED. , (Received 10.30 a.m.) SYDNEY, This Day. The allegation that he induced people to advance money to the Investment Executive Trust Co., of New Zealand by means of a false prospectus which had been issued in New Zealand in 1933 was made against J. W. McArthur in the Police Court at Sydney yesterday. Mr Windeyer, K.C., for McArthur said it may be necessary to ask for an adjournment for the purpose of obtaining certain documents from New Zealand. Detective Robinson, of New Zealand, said he had been recently instructed to arrest McArthur, and a warrant was immediately taken out. He had executed this warrant yesterday. ‘ It was alleged that the prospectus had stated that the Investment Executive Trust .Company adopted a policy of diversification, or spreading capital over a large number of sound investments, and that this statement had concealed the true nature of the company’s investments. McArthur, knowing the .prospectus to be false, had indicated intent thereby to induce persons to advance money to the Investment Executive Trust.

A long argument followed as to the magistrate’s power to sign the warrant. Mr Windeyer contended that the prosecution was vindictive. The magistrate finally admitted the warrant, and Detective RObinson asked that McArthur be handed over to his custody for trial in New Zealand. Mr Windeyer again objected, contending that the papers should be examined, in order to test the bona fides or otherwise of the prosecution. The magistrate said that as no replies had been received from New Zealand to the letters asking, for the documents he-would adjourn the case .until Tuesday. It was not for the defence but for the Crown to establish the bona fides of the prosecution. Bail of £250 was allowed to defendant.