ASSETS SAVED

Nelson Evening Mail, Volume LXVI, 28 September 1934, Page 5

ASSETS SAVED

ADMITTED BY McARTHUR A GOOD INVESTMENT COMPANIES INQUHIY (United Press Association—By Electric Telegraph—Copyright) SYDNEY, 27th September. Before the Royal Commission, under Mr Justice liaise Rogers, Robert Hill, accountant of Sydney, was again examined by Mr Monahan. “I understand from the balance sheet that there was an establishment charge of £120,000 for tlie British National Trust, the Investment Executive Trust and the Southern British. Could that be regarded as so much money gone?” Hill: “Yes.”

Mr Monahan: ‘ ‘And if we assume, as Alcorn and McArthur have said,. that they take out £115,000 apart from shares coming back, that makes £235,000 gone out of the debenture capital!” Hill: “Yes.” McArthur, recalled, said the total cost to Sterling’s for the purchase of the Wynwood assets was £17,408. He produced figures supporting the statement that Sterling’s assets taken over by him in exchange for the sixty debentures he cancelled were worth £58,000 which was approximately £22,000 less than the estimate prepared by Elliffe. The Commissioner: “Assuming your assets were in jeopardy, did you use Investment Executive Trust money to save these assets?”

McArthur: “That is not quite correct. I considered it' a good investment for the Investment Executive Trust.” The Commissioner: “You.used it for the salvation of your assets?” McArthur. “Yes.”

The Commissioner: “Do you think anyone in New Zealand would have subscribed’ if they had known that?”

McArthur: “I think they would have had they known the ,security that was being offered.” McArthur told Mr Monahan that he had been negotiating with the chairman of a large investment company in Melbourne with a view to its purchase. Payment was to be made in Southern British debentures, and an attempt was also to be made to acquire the assets of the Primary Producers’ Bank. Tlie two concern’s were to be amalgamated. A pamphlet had been issued suggesting that debenture-holders would be returned 30 per cent, on their money if the negotiations were successful. The Commissioner said that if some scheme could *be advanced by which the companies could be put oil a sound basis and public interests protected, it might save him making certain recommendations. If ' nothing satisfactory could be suggested it might be as well if some “one-man companies were .Interred.”

The Commission adjourned until to morrow.

VALUE OF TRUST BUILDING (Received 28th September, 1.30 p.m.) SYDNEY, This Day. Before the Royal Commission further evidence was given concerning the value of the Trust building. William Stewart, a retired builder who said he had constructed such a building as the “Sydney Morning Herald” building, the Trust Building, and the Commercial Bank building, expressed the opinion that the Trust building apart from the land was worth £318,879. .