TRUST COMPANY

New Zealand Herald, Volume LXXI, Issue 21899, 7 September 1934, Page 14

TRUST COMPANY

STATEMENT BY MINISTER ALLEGATIONS IN CIRCULAR EMPHATIC DENIAL GIVEN NO OUTSIDE PRESSURE • J BY TELEGRAPH —PRESS ASSOCIATION 1 WELLINGTON, Thursday A question whether the Minister of Finance, Mr. Coates, hod seen a circular letter from the chairman of the investment Executive Trust of New Zealand, which suggested that the action t&ken by the Government was to prelude the payment of interest to debenture-holders i n New Zealand, and/whether he was in a position to majse an announcement on the subject, Tysiis asked by Mr. J. N. Massey (Goveri/ment —Franklin), in the House of Representatives to-day. Mr,. Coates, replying, said: — "/The statement has been made against mo personally by the chairman jof the Investment Executive Trust of New Zealand that, yielding to alleged pressure brought to bear on me by the company's opponents, I have effected a 'strangle-hold' on the trust by refusing to allow it to pay interest to debenture-holders. Public Interest at Stake "In the first place, I have to state clearly that no pressure has been brought to bear on me in connection with the investigation of the affairs of the Investment Executive Trust bv / any person or body of persons whatsoever. In introducing the legislation, T and the Government I represent were influenced solely by considerations of public interest, in the light of what was disclosed in the first report of the commission. "It is (scarcely necessary for me to gay that Neither directly nor indirectly did I influence the commissioners in' framing their report, nor, except that existing officisil Treasury files, with the files of all other departments, were made available to the commission, did I or any person on my Isehalf or at my instigation nis.ke any representations to the commission. In making its report, the commissioni acted solely on its own initiative, and I would like to say that I have every confidence in the personnel of that commission, and have lio hesitation in expressing the view that it wns actuated by considerations of public welfare when it made its recommendations. 2To Power.to Eeluse "As regards the allegations that L have refused to allow the Investment Executive Trust of New Zealand to pay interest to debenture-holders, 1 give this an emphatic denial. I have fcever refused, nor have any power to refuse to allow the company to pay interest to debenture-holders. Apparently the company is referring to ♦section 6 of. the Companies (Special Investigations) Act, which makes it an ' offence for any person "whatever, whether that person is a director or • agent of a company or not, with intent to defeat the purposes of the Act, or With intemt /to delay o:r obstruct the carrying >i>ut ; o£ any investigation under the Act, to. send or abt«npt to send out of New Zealand any book, docuinent or record or property of any description belonging to any such com-

'<l this.k members will-appreciate the necessity'for this power, seeing that without iib any companjr. could freely transmit abroad records, - funds ana other property of the company, ana thus render investigation null., There i is no gciaeral prohibition against ail { and every transfer of moneys or other property beyond New Zealand. TJib offence, whether committed by a company or its bank, consists in so transmitting siuch moneys or property with intent to defeat the purposes of the Act, or io delay or obstruct the carrying out of any investigation. 11 Transfer of Funcis Abroad

"If this circular to debentureholders is; intended to enlist the sympathy and support of debenture-holders resident in New Zealund, I should imagine it will not attain its object. What New .Zealand debenture-holders require in funds in New Zealand, ana it is difficult to see how the transfer of funds from New Zealand to some other place abroad can assist the New Zealand delißnture-holders to obtain payment of any interest due to them. Moreover, the Act plaoes no restriction or imposes any penalty on the remittance of moneys withia New Zeaiand. "Regarding the series of suggested questions; which members' constituents are invited by the chairman of the'lnvestment Executive Trust of New Zealand to request their members to ask me, I desire at this stage simply to say that it will he time enough for officials of that company to interrogate the Government when they have satisfied the Royal Commissions now sitting in Australia, and the inspectors appointed under the Act recently passed here, that any injustice has been done to''their company, and that the investigations now being made here and :m Australia, were not justified.