OFFICIAL VIEW

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

OFFICIAL VIEW

ME. FOEBES' COMMENT —■ - \ INTERESTS OF INVESTORS SCHEME NOT RECOGNISED I - J [BX TELEGRAPH —PRESS ASSOCIATION] , WELLINGTON, Monday Mr. Norman Levy's statement it£ connection with the Company Commission in Sydney was brought before the 1 Prime Minister, Mr. Forbes, to-day. ' Mr. Forbes said that on November 21, when the' press message was published relative to Mr. L. W. Swan's scheme, he cabled the Premier of New South Wales as follows: "Trust companies inquiry. New Zealand Government does not recognise Mr. Swan's scheme as representing wishes of. New Zealand debenture-holders. Understand scheme to have been originated by committee set up as result of postal canvass by Messrs. Levy and Madden after former's visit to Sydney for consultation at request of McArthur. My Government is strongly of opinion that no steps should be taken based on alleged views of debenture-holders until an authoritative and disinterested statement of facts has been communicated to them and proper steps taken to ensure a well-informed and uninfluenced decision by them."

Mr. Forbes said the New Zealand Government was concerned in the matter on two points only. The first was that it was strongly of opinion that debenture-holders should not bp asked to commit themselves in any way until the whole of the relevant facts had been fairly and accurately placed before them. The second was that when they were asked to express their opinion the voting should be taken and supervised by a disinterested authority. Mr. Forbes also said he was at a loss to understand why alleged representa-

tives of New Zealand debenture-holders should approach the Royal Commission sitting in Sydney. The Investment; Executive Trust, Limited, was before the tribunal only as a foreign company transacting a very small portion of its business in New South Wales. The Investment Executive Trust was incorporated under the New Zealand Companies Act. Inspectors inquiring into its accounts and transactions and those of the 12 related companies were expected to report soon to the Supreme L Court in New Zealand. The affairs of these companies and their debenture-holders, and other creditors, would be settled according to New Zealand law, 6aid Mr. Forbes, and our Companies Act provided that the Court might give directions for calling meetings of debenture-holders or otherwise obtaining their views.