DRASTIC NEW BILL

New Zealand Herald, Volume LXXI, Issue 21874, 9 August 1934, Page 14

DRASTIC NEW BILL

NEW (SOUTH WALES ACTION MILP SENSATION CAUSED OTHER STATES TO FOLLOW (Received August 9. 32.35 a.m.) | SYDNEY, August 8 A mijld sensation was caused in the New Stiuth Wales Legislative Assembly this eviening when tho Premier, Mr. 13. S. Stevens, sought leave to introduce a bill to j amend and extend the powers contained in the Royal Commissions Act tb enable a Royal Commission which lias been already appointed to investigate the activities of a number of companies and trusts domiciled in this State jind in New Zealand. Mr. ; Stevens described tho bill as urgent, in view of disclosures contained in nn iinterim report by the New Zealand Commissioner, Mr. «J. S. Barton, S.M., jof Juno.9, upon which the New Zealand Government was now acting. That commission's report disclosed a strong; prima facie case for an investigation 'into the method under which a number; of companies and trusts were operating, not only in New Zealand, but in j New South Wales and other Australian States. The IPremier asked that the bill be allowed to pass stages that night. Ho intimated that the South Australian Government had taken tho matter up to-day. Ho understood tho Victorian Government would act next week and the Commonwealth Government was doing its part without delay.

Mr. Stevens' added that on July 27 he had received a letter from Mr. J. W. S. McArthur, managing director of the Southern British National Trust, Limited, with headquarters in Sydney, complaining of a "conspiracy to damage its reputation in New Zealand, also insidious propaganda by competitors," and inviting the Government here through its Auditor-General, to inspect and check all the company's investments, books and documents. "Under our bill," said Mr. Stevens, "tho Royal Commissioner will be empowered to investigate the affairs of 17 investment companies. A special cflicer will be detailed to examine books and records and a penalty of five years' imprisonment may bo imposed oil anyone who obstructs the commission or atempts to take books or records outsido the State. The AttorneyGeneral will hava power to wind up any company. The Royal Commissioner will bo Mr. Justice Halse Rogers." Tho bill was passed through all stages and sent to the Legislative Council.