ASTONISHED AT PEOPLE”

Northern Advocate, 5 December 1935, Page 11

ASTONISHED AT PEOPLE”

I McArthur still | TRUSTED i ! ! COUNSEL’S CRITICISM 1 I | APPLICATION IN COURT. ! iSpecial to “Northern Advocate.”] WELLINGTON, This Day. The J. W. S. McArthur Investment Trust Company was mentioned suddenly in the Supreme Court yesterday when Mr W. Perry made an application before Mr Justice Blair. Mr Perry denied that Mr J. W. S. McArthur had any knowledge of a proposal to form a company to take over from the Public Trustee the assets of the Investment Executive Trust of New Zealand (in liquidation). Mr Perry received a cable from McArthur giving him instructions, and he was given leave to mention the matter when Mr Justice Blair was about to resume the hearing of the application by William Henry Bracey, of Auckland, for permission to convene a meeting of the trust companies’ debenture holders to consider scheme. After Mr Perry had been* heard, Mr T. P. Cleary, who appeared for Bracey, in place of Mr H. P. Richmond, intimated that a decision had been made not to proceed with the summons. His Honour accordingly dismissed the application, but no order was made as to costs. “Statement Untrue.” “This morning,” said Mr Perry, “I received a cablegram from McArthur in which appeared the following words: —‘The statement that the application to the Court was inspired by the McArthur Trust is untrue. Neither the company nor I has any knowledge of the proposal before the Court other than newspaper reports.” Mr Justice Blair said that that coincided with the position put by Mr Richmond. The position was that it was claimed that a Queensland company had been acquiring a number of debentures in the New Zealand Investment Executive Trust, and that McArthur was interested in the Queensland company. Mr Perry said it was true that the Queehsland company had acquired a substantial portion of the debentures, totalling, he thought, about £84,000, but he did not know what McArthur’s holdings in that company were. Category. His Honour; “What I said to Mr ( Richmond was that if Bracey’s appli- : cation were acceded to, then, in order to get the position clarified, it would < be necessary to have the votes repre- i sented by these Queensland shares put : in a separate category.” Mr Perry: “McArthur further complains that, according to Press reports, the statement was made in Court that • people were being ruined by him at : the time of the special legislation, ; which, he claims, is contrary to the I proved facts. He protests against this < suggestion being made in proceedings ' in which he is not a party.” Mr Justice Blair said he did not J know so much about that. It was difficult to avoid some reference to circumstances which were deemed to justify the passing of special legislation to wind up the companies, and some reference, of course, had been i made to that phase of it. 1 Mr Perry said that’ the last thing < that McArthur complained about was that counsel for the Public 1 Trustee was reported to have said that he was astonished that people still trusted him (McArthur). He complained that the statement was made at proceedings to which he , was not a party. Will Not Retract One Word. Mr E. P. Hay, who appeared for i the Public Trustee, said that as far as ’ any statements made by him at the hearing of the summons was concerned, he did not retract any one word - of what was said. While McArthur had perfect liberty to intimate his view to the Court, as he had done, it was still considered by the Public Trustee that he had a very definite , association with the scheme and a very definite interest in it. “I repeat, sir,” said Mr Hay, “that it is a matter of astonishment to any outside observer that after the disclosures about McArthur’s companies in the past all these debenture holders should be foolish enough to transfer their debentures in exchange for shares in the Queensland company, which, apparently, has not a penny of assets apart from these debentures, which it has acquired in exchange for shares. When I say a penny of assets, that is probably an exaggeration—the company has about £IOOO subscribed, but there is nothing to indicate whether that is cash or not.” Mr Perry: “Of course, other proceedings may be brought before the Court later, in which McArthur may have an opportunity of disproving, if he can, any statement that has been made against him.” Nothing Extravagant Said. Mr Justice Blair: “My recollection is that Mr Hay was very careful. He was not making any charge at that time, but he did refer to certain matters which, it was suggested, were matters that ought to be brought to the knowledge of the Court when ■ dealing with the application. My re- { collection is that he avoided anything | of an extravagant nature. He was i very, vei’y careful of the language he | used.” Mr Justice Blair then explained to Mr Cleary that when he adjourned the matter previously he wanted to satisfy himself in connection with a certain affidavit. x\s far as the scheme was concerned, said Mr Justice Blair, it seemed to him to be in embryo, and that it would j have the effect of tying up the operations of the liquidator for a period of nine months. There were other features of the scheme which were unusual and obviously required amendments. Mr Cleary said he understood that these various matters had been considered by those who had been supporting the scheme, and the result of their consideration of the matter was that they had decided not to proceed with the summons. This decision had been influenced by the limited resources those who supported the scheme had at their control. For that j reason he asked that the summons be | dismissed. Mr Justice Blair said he would have to assume that Bracey thought that the debenture holders would benefit by the scheme. The application would be dismissed and no order 'would be I made as to costs.

( nabkow escape from FIRE ARAPOHUE FAMILY BURNT OUT ALL OF CONTENTS LOST. [Special to “Northern Advocate.”! DARGAVILLE, This Day. Mr C. Lambie, his wife and two sons, had a narrow escape when their house at Arapohue, near Dargaville, was totally destroyed by Are yesterday morning. Mr Lambie was awakened about 1 o’clock by the sound of the flames and was most fortunate in escaping with the rest of his family, as the fire rapidly swept through the six-roomed house. By strenuous efforts a garage and washhouse were saved, but the contents of the house, which included football trophies won by Mr Lambie in the Waikato and Taranaki, were lost. The House was insured for £360 and the contents for £l5O. Although the glare could be seen in Dargaville, Mr Lambie’s neighbours did not know of the outbreak until some time afterwards.