NEW SCHEME

New Zealand Herald, Volume LXXI, Issue 21921, 3 October 1934, Page 11

NEW SCHEME

' TRUST CONCERNS , MR. McARTHUR'S GROUP ABOLITION OP SOME MERGER OF OTHERS DETAILS EXPLAINED By Telegraph—Press Association—Copyright (Received October 2, 9.35 p.m.) / SYDNEY. Oct;. 2 The Royal Commission which is inquiring into the activities of 31 companies continned its investigations to-day. Mr. Justice Hake Rogers presided as Commissioner, Mr. W. W. Monahan, K.C., and Mr. J. B. Collier appeared as counsel assisting the Commission, Mr. R. Windeyer, K.C., and Mr. B. Fuller for the Investment Executive Trust of New Zealand, Limited, and the Southern British National Trust, Limited, and Dr. P. Louat for three other companies. Mr. J. W S. McArthur submitted liis scheme for the reconstruction of the companies. He proposed: 0) The elimination of certain companies. (2) The reorganisation oif the control of the Investment Executive Trust of New Zealand., Limited, and the Southern British National Trust, Limited. (3) A new scheme of control for the British National Trust, Limited. Elimination o:t Some Concerns Mr. McArthur suggested the elimination of- the following companies: The Sterling Investments Company (N.Z.), Limited, the assets of which would be transferred to the British National Trust, Limited, and the former company would be struck off the register. The Pacific Exploration Company, Limited, to be struck off the register and its assets transferred to the British National Trust, Limited. With regard to Farms and Farmlets, Limited, the /shares in it to be transferred to the Southern British National Trust, Limited, and held in trust for the debenture-holders pending the completion of the proposed ariialgamation of B debenture issues of (he Investment Executive Trust and the Southern British National Trust; after which such shares would be transferred to such amalgamated debenture issue free of cost to the debenture-holders. The other aswts to be sold anil the company (Farms ancl Farmlets) to cease operations. 'further Details of the Scheme With regard to the British National Investment Trust, Limited (Nesv Zealand), Mr. McArthur proposed that the Trust Building in Sydney be conveyed to the British National Trust, Limited, and that the former company be struck off the register. Mr. McArthur added that the steps proposed to. be taken with regard to the British National Investment Trust's preference shares could be dealt, with more'appropriately among proposals relating to the British National Trust. Further Mr. McArthur proposed that Wynwood Investments, Limited, and< /• the Investment Securities Association, Limited, be struck off the register, as these are not at present connected with the trust companies. With regard to the New Zealand Shareholders' Trust, Limited, Mr. McArthur suggested the immediate conversion of its first A and first B debentures into second B. Upon completion, the assets of the first A and first B to ]>e transferred to the second B, and the first A and first B debentures to be The company then to be struck off the register. Carrying on Insurance Business With regard to Financial Publications, Limited, Mr. McArthur suggested that its assets be sold yand that the debt owing to the Sterling Investments Company, Limited, be paid to the British National Trust. With certain exceptions the remainder of the companies mentioned before the Commission were not in any way linked with the Investment Trust companies. Mr. McArthur pointed out that tha elimination of the Transport Mutual and General Insurance Company was riot proposed, as the right owned by this company to carry on insurance business was not transferable and wan of great value. The remainder of the companies on the Commission's 1 l . Mr. McArthur explained, are eiti. . already out of existence or entirely separate from the main group. Abandonment of £63,000 Mr. McArthur then propounded a scheme for the reorganisation of the control of the Investment Executive Trust of Neiv Zealand, Limited, and the Southern British National Trust. Limited. He also outlined a scheme of control for the British National Trust, Limited. K Further Mr. McArthur explained how the general financial position in regard to "the Trust Building might be strengthened. Mr. Monahan asked Mr. McArthur:, Under thiu scheme of reconstruction what would be done with the £63,000 standing for the 63 debentures as formation expenses? What do you and Mr. C. G. Alcorn propose? „ " Mr. McArthur: I see no reason why that amount should not be abandoned. I suggest that.