TRUST INQUIRY

New Zealand Herald, Volume LXXI, Issue 21911, 21 September 1934, Page 11

TRUST INQUIRY

POLITICAL MOVE AMBITIOUS PROJECT J SECRET ASSOCIATION AIM TO HOLD POWER SUPPRESSING REPORT / Jsy Teletrraph—Press Association—Copyright (.Received September 20, 9.15 p.m.l SYDNEY. Sept. 20 The Royal Commission w':ich is inquiring into tho activities of 31 companies continued its investigations today. Mr. Justice Halse Rogers presided as Commissioner, Mr. W. W. Monahan, K.C., and Mr. J. B. Collier appenred as counsel assisting the commission, Mr. J?. Windever, K.C., and Mr. B. Fuller, for the Investment Executive Trust of New Zealand, Limited, and the Southfern British National Trust, Limited, and J)r. F. Louat for three other companies.

Mr. J. W, S. McArthur, w'ho was further questioned, explained tho meaning of the "Po. Lab." association which Jias been frequently mentioned before the Commission. He said it was headed by Mr. R. Glover Clark, of Auckland, whose plan had been to approach electors and ask them to induce their Parliamentary representatives to prevent a hostile report on the companies being forwarded to the New Zealand Parliament. 1 Denial of Attempts at Bribery Mr. McArthur denied that there had l»een any attempts at bribery. He said the sum of £IOOO which had been mentioned had been for travelling expenses for Mr. Glover Clark.

"Nine months ago," continued Mr. McArthur, "I told Mr. Glover Clark we would have to organise a movement to resist the hostile attacks being made on us. Nothing was done until July, when Mr. Glover Clark came to Sydney on urgent business.

"Mr. Glover jClark told, us a biassed *nd hostile report was being forwarded to Parliament by the New Zealand

Royal Commission and it would be very detrimental to the trusts' interests. He then said he would form an association to interview electors in the various con-

etituencies throughout New Zealand." - Mr. Monahan asked why, if the sum of £IOOO was for travelling expenses, mention was made in a letter of £SOO to be paid if the report of the New Zealand commission was discredited. Mr. McArthur,, again asserted that there had been no bribery. An Agreement With Po. Lab. Mr. Monahan: What about this [(reading from a letter): "Regarding the Po. Lab. plan, as personally discussed with you,- a mutual agreement has been reached." Mr. McArthur: It is not intelligible to me. Mr. Monahan (continuing to read): ''The case is being prepared by me. Po. Lab. requires my presence in Wellington." Now, who is Po. Lab? Mr. McArthur: I do not know. Do you seriously say Po. Lab. is some association of voters, and not a political party in the/ New Zealand Parliament. - ' —I understand so. I do not think it is

• political party. Mr. Monahan (continuing to read): " I spoke of the report and asked them to ; discredit it, when it does arrive. I am working on the case and they say they should be able to put up a /good barrage when necessary. 1 ' Would "they" not be in Parliament?— No. It Would be done through voters. Two Code Names Disclosed

Who is "Anchor?"— One of two persons. They are not politicians and I do not want to mention their names. I will write them down for the commissioner. The commissioner, after seeing the names, said they need not be disclosed. Replying to further questions Mr. McArthur said that Mr. Clark was managing director of Financial Publications, Limited. That company ,was known in the code as "guidance. Mr. Monahan said the letter Mr. McArthur had received from Mr. Glover Clark had stated: " 'Polecat ' has received instructions immediately start organising a plan of attack which will culminate in three years—-a long term which I anticipated and. did not particularly relish. The first step is to put 'Po'. Lab:' on the Treasury benches and keep them there by a group w inch holds the balance of power." Seeking Identity of Association Mr. Monahan asked: Do you still say "Po. Lab." is not a political party? Who is going to be put on the treasury benches? „ , ~ Mr. AlcArthur: The "Po. La.b. association. y The Commissioner: Come, Mr. McArthur. Mr. Monahan: Do you realise that you are on oath? Mr. McArthur: I do. Then what was meant? —1 think it was partly the Labour Party anci partly the Country Party. That was what V understood, but 1 do not know anv individuals. , ~ What is the group that holds tho balance of power?—l cannot remember - ' , • if Mr. Monahan: But this was last

month—August. , Continuing Mr. McArthur told Mr. Monahan that in the code "Virens was iied>vood Forests, Limited, and "Wiseman" a solicitor.

At the sitting of the Sydney Commission on September 5 Mr. Monahan asked Mr./C. G. Alcorn the meaning of certain code names. He said: Wlio or what is "Po Lab?" Air. Alcorn: ] do not know, except it be an antipropaganda association. Mr. Then who is "Polecat," who received tho instructions? —1 think that is a joke. You will find it is no'b a joke. t>VJao is "Anchor"?—! do not know,