BRIBERY DENIED

New Zealand Herald, Volume LXXI, Issue 21912, 22 September 1934, Page 11

BRIBERY DENIED

POLITICAL ACTIVITIES COMMISSIONER'S HINT EVIDENCE REQUIRED - PROTECTION OF INVESTORS By Telegraph—Press Association —Copyright SYDNEY, Sept. 21 At to-day's sitting of the Royal Commission which is investigating the affairs of various companies the Commissioner referred to the letter dealing with the activities of the " Po-Lab " association, and asked Mr.: J. W. S. McArthur: " You do not suggest that the methods mentioned in the letter meant anything but bribery P" Mr. McArthur: I can only say there was no intention of bribing politicians. The Commissioner suggested that if Mr. McArthur, before the conclusion of the Commission's sittings, could assist in drawing any inference other than that it was a scheme of bribery to prevent the report of the New Zealand Commission to the Dominion Government getting before Parliament he should produce evidence to that effect.

Mr. McArthur said he would do so One-Man Control Condemned

The Commissioner said he would need some help in framing the recommendations he had been asked to make. Among other things, ho had to protect investors' interests.

Dr. Louat: Suppose wo are able to put forward some voluntary plan which would eliminate what you may consider to be the evils of the present situation? The Commissioner: I say now that any such plan must not leave the control of these companies in one man's hands. It may be that in preserv ing the interests of debenture-holders I shall have to make recommendations that will cut across the interests of other people.

Bonds Sent From Sydney to Auckland Mr. H. C. Glasson, recalled, said that bonds representing £2300 of Southern British debenture capital had been taken from Sydney to Auckland by Mr. McArthur and sold there. The proceeds had been paid into Sterlings' account, but he did not know whether any money had been withdrawn almost simultaneously. Witness admitted that some of the money undoubtedly was going to Miss Smith for the purchase of her holdings. Mr. McArthur had been paid £BOO at about that time, but Mr. Glasson said he did not know whether that also was part of the Southern British Trust's money. The money had been matje secure for the Southern British, whicx* had been given British National Trust debentures.

Mr. jGlasson said that various Sums also bsici been paid at different times to Mr. C. G. Alcorn and Mr. McArthur. The former's drawings were fairly regular. Mr. Monk ban: So Mr. Alcorn was being given Southern British Irust funds for his' .personal use ? Mr. Glasson i He gave security. Trust Building Improvements

Mr. W. C. Hewitt, recalled, said that improvements to the Trust Building in Sydney dicing August cost £2OOO, which had i\ot been paid yet. There would be rnord expense for September, and at the 4 >n d of the year interest would have to be paid on £112,000 worth of Southern British debentures. , . v . , Mr. Monahan: And British National Trust has nothing!-' Mr. Hewitt: Yes. So a fresh batch of debentures will have to be issued to meet all this,— That is about all I can s«d tor it, apart from money due to "s. The Commission adjourned uiiiN Monday. SYDNEY COMMISSION SCOPE EXTENDED \ < TWELVE COMPANIES ADDED (Received September 21, 8.55 p.m.) SYDNEY. Sept. 21 The Executive Council has decided to extend the scope of Mr. Justice Halse Rogers' Commission to include the following i2 additional companies:— New Zealand Redwood Forests, Limited: the Selwyn Timber Company, Limited; the Wynsel Timber Company, Limited; the Beulah Land Company, Limited; the Edgecumbe Forests, Limited; Kotahi Lands, Limited; Overana Land Company, Limited; Modern Homes, Limited; Liberty Motors Corporation, Limited; Auckland Provincial Town Properties, Limited; New Zealand Freeholds and Buildings, Limited; and Freeholds, Limited.

The 12 companies named in the cablegram are the same as those which were added to the schedule of the Companies (Special Investigations) Act by the New Zealand Parliament on September 5.