ALLEGED CONSPIRACY.

New Zealand Herald, Volume LXVII, Issue 20619, 18 July 1930, Page 11

ALLEGED CONSPIRACY.

SYDNEY INSURANCE CASE. COMMITTAL OF DEFENDANTS. (Received July 17, 11.5 p.m.) SYDNEY, July 17. Tlie hearing was concluded to day in the Sydney Police Court of the charges of conspiracy to defraud brought against fivo well-known commercial men who were associated with the Australian Federal Life and General Assurance Company, Limited. The defendants were:—Albert Smith, aged 45, broker; James Cochrane, 42, accountant ; Vivian Partridge, 38, manag-ing-director ; Ralph Paul, 34, secretary; and Ilairy Roach, 39, accountant. All were committed for trial in August. In each case bail of £250 was allowed. In opening the proceedings in the case referred to in the cablegram the Crown Prosecutor described the alleged fraud as one of the worst ever perpetrated in tho history of New South Wales. The company's balance-sheet to November. 19?8, showed that assets were over-valued to j the extent of £115,000. The building oc- I cupied bv the company was written up £9OOO above its true valuation. The bal-ance-sheet at the end of December, 1929, showed cash in hand as £4OOO, but it was in fact only £4. It was stated that, the company bad absorbed the People's Prudential Company. one director of which was paid at the rate of £J2 for each of his shares, whereas private shareholders received only 325. Tlip company was alleged to have borrowed £45,000 in Melbourne, with which to purciia.se a controlling interest in the People's Prudential Company, and the rate of interest was about 44 per cent, for three months. Eventually both companies were forced into liquidation. Claims by poliev-holders in April, 1930, amounting to £IB,OOO, were unsatisfied Since then, it was alloged, hundreds Oi new poliries had lieen accepted, although the Australian Federal Company was not ;il>le to pay its own employees. Another allegation 'was that Partridge received £9368 from the company when it was insolvent-