NEED FOR URGENCY

New Zealand Herald, Volume LXXI, Issue 21874, 9 August 1934, Page 13

NEED FOR URGENCY

TRANSFER OF CONTROL ■ i ' FULLER INQUIRY ADVISED LEGISLATION RECOMMENDED [»T TBLWSB4JFH —SKSOUr. REPORTS*] WELLINGTON, "Wednesday The need for urgtmt action is emphasised by the commissioners in the concluding section of their report. "There is evidence that the financial and administrative control of Investment Trusts of New Zealand are being transferred to Sydney, NewSouth Wales," states the report. By the transfer of the s&ares of Alcorn and McArthur to the British National Trust, Limited (Canberra), the share control of British National Investment Trust, limited (N.Z.), is transferred to New South tV ales. The Canberra Company now holds 249,000 out of 250,000 ordinary shares in the New Zealand company. In May, 1934, Alcorn and McArthur transferred to the Southern British National Trust Company, Limited (Sydney, New South Wales), 194,000 shares in the Investment Executive Trust of New Zealaud, Limited. The Sydney company now holds 194,000 out of 250,000 shares in the Investment Executive Trust of New Zealand, Limited. " "In the last few months the following persons have left New Zealand for New South Wales: —J. W, S. McArthur, managing director of the Investment Executive Trust of New Zealand, Limited, British National Investment Trust, Limited (New Zealand), Southern British National Trust of Sydney, New South Wales, and of the. British National Trust (Canberra); H. C. Glasson, secretary of the Investment Executive Trust of New Zealand, Limited, and several other companies controlled, by McArthur; M. C. O'Neill, auditor of the larestment Executive Trust of New Zealand, Limited; W. C. Hewitt, solicitor to several of the companies herein referred to, and one of the two shareholders in Farms and Farmlets, Limited. :.' "The Daily Telegraph Building, Sydney, seems to be the financial kernel of the whole group of McArthur's financial companies, and the work of reconstruction is being pushed on rapidly. The financial scheme of all the companies seems to be a gamble on this speculation, the money of innocent bondholders being committed to it. "The desirability of urgency is strengthened by the possibility that certain financial arrangements and documentary adjustments are now in train or contemplated. These may take the form of financial rearrangements and the manipulation of records with a view to placing certain transactions or the general position in a more favourable light. The Investment Executive Trust and its affiliated companies are still operating actively. "It is because we believe that our conclusions will commend themselves to Your Excellency and your advisers that we are submitting this interim report. We humbly submit that a case is made for consideration of the advisability of appointing some inspector or body of inspectors, with power to inquire fully into these matters, to demand full disclosure of books and documents and to report as directed with a view to such further action as should be deemed to be necessary. This procedure would seem to require legislation. We recommend accordingly.

"We now resume our inquiries into the general matters to which our warrant of appointment has directed us, with a view to submitting our report thereon as soon as possible." The report is dated at Auckland on June 9, since which Mr. Barton, chaiiv man of the commission, has visited Australia.