TRUST INQUIRY

New Zealand Herald, Volume LXXI, Issue 21968, 27 November 1934, Page 9

TRUST INQUIRY

SYDNEY COMMISSION AN AUCKLAND WITNESS EVIDENCE OF MR. SWAN MR. LEVY'S PROPOSITION By Telegraph—Press Association—Copyright (Received November 26, 5.5 p.m.) SYDNEY, Nov. 2G As a result of representations made by Mr. Norman Levy, of Wellington, and Mr. H. P. Richmond, of Auckland, regarding the accuracy of the report of Friday's proceedings of the Royal Commission which is inquiring into the activities of certain companies, the New Zealand Press Association has referred to the official report, and has extracted the following passages:— Mr. Pitt (to Mr. L. W. Swan, of Auckland): How long had you known Mr. Levy? Mr. Swan: I had not known him prior to this. I think Mr. Richmond mentioned my name to him. The following passage is from a later section of the report:— The Commissioner, Mr. Justice Halse Rogers: You heard that cable that Mr. Monahan handed to me, that this scheme was propounded by My. Levy after a visit to Sydney and consultation with Mr. McArthur. Is that correct, as far as you know? Mr. Swan: Mr. Levy made his position perfectly clear.

The Commissioner: Is it correct that the scheme was propounded by Mr. Levy after a visit to Sydney and a consultation with Mr. McArthur? Mr. Swan: Can I answer what he told me?

The Commissioner: As far as your knowledge goes: Mr. Swan: As far as I know, what he said was quite correct. Mr. Monahan: Is there anything further you wish to say? Mr. Swan: Mr. Levy made it perfectly clear to Mr. Richmond and myself that when the commission was appointed he came to Sydney. The first step he took was, I think, to send a cable to Mr. McArthur expressing his personal confidence. As a result of that he came to Sydney at his personal expense. He came back to New Zealand quite convinced in his own mind that as far as the Investment Executive Trust was concerned there was 20s in the pound value to them with proper handling. There has not been any doubt whatever as to his actions. RETURN OF MR. SWAN EVIDENCE IN SYDNEY CORRECTIONS OF REPORT Mr. Swan returned from Sydney last night. Having read the above report he said it is correct so far as it goes, but differed considerably from Saturday's report. "I now find," said Mr. Swan, "that my assumption that Mr. Richmond had mentioned my name to Mr. Levy was incorrect. This was due to the fact that Mr. Levy on calling at my office at once mentioned Mr. Richmond's name. "The above report also corrects the Btatemerft in the Press Association report of Saturday, which made it appear that a cable was sent to Mr. McArthur in connection with my visit, whereas, in fact, no communication passed between sny member of the debenture-holders' committee and Mr. McArthur after the committee was formed until I saw him in Sydney accompanied by various counsel." Saturday's Press Association report also reported Mr. Swan as saying he was returning to New Zaeland convinced that so far as the Investment Executive Trust, Limited, was concerned, 20 shillings in the pound were available. "This is incorrect. What is here attributed to me," said Mr. Swan, "is what I told the commission Mr. Levy had stated to debenture-holders in New Zealand after his visit to Sydney in August. "The report of the Press Association published on Saturday also said: 'The commissioner to Mr. Swan: —What in fact did you put to the debentureholders? Mr. Swan: Nothing, sir.' What actually happened," said Mr. Swan, "was that I handed copies of all circulars which had been sent out on the instructions of the committee. These dealt entirely with the formation of the committee and contained neither criticism of the work of the commission nor proposals for dealing with the debenture-holders' interests.

"To sum up the results of my visit, I am satisfied that the consideration given to the proposals in the interests of debenture-holders will have important practical results in Australia and if followed also in New Zealand will bo of even more value owing to the fact that the investments held by the Investment Executive Trust apart altogether from its interest in the Trust building, are much more diversified and valuable, and it was assumed by the commission that the New Zealand de-benture-holders were in a much better position than those in Australia. The interests' of Australian and New Zealand debenture-holders are so intermingled that it would seem unthinkable that full- consideration, could be given either by Australia or New Zealand tribunals to these interests without reference to the proposals and wishes of the whole body of debentureholders." . A MEETING AT GOLF STATEMENT BY MR. LEVY [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON. Monday Regarding the cabled report of evidence given by Mr. L. W. Swan, of Auckland, at the trust company inquiry in Sydney on Friday, Mr. Norman Levy informed the Press Association to-day that in company with Mr. Swan he met Mr. H. P. Richmond on the Middlemore golf course, which was the first occasion on which he made the latter's personal acquaintance. He was not introduced to Mr. Swan by Mr. Richmond.