HATRY GROUP CRASH

Otago Witness, Issue 3942, 1 October 1929, Page 29

HATRY GROUP CRASH

TOTAL SUM INVOLVED. ESTIMATE OF DEFICIT. LONDON, September 25. The deficiency in the Hatry group crash is not likely to exceed £20,000,000, and it has not involved the investing public to any great extent. The more likely to fall are those with large resources, who are therefore best able to bear it. The Governor of the Bank of England presided at a meeting of bankers, after which a statement was issued indicating that a committee had been appointed to co-operate with the Stock Exchange. It is understood that the banks will extend leniency to clients who are involved in the ciash as small investors.

STOCK EXCHANGE BRIGHTER. LONDON, September 24. A more confident feeling is apparent on the Stock Exchange. Business is small but investors are taking the opportunity to buy better-class industrials at the low level to which they have fallen. Dullness prevails in gilt-edged securities. It is now reported that in addition to the Wakefield Corporation, Gloucester and Swindon are making inquiries regarding their recent issues, which were made through the Corporation of General Securities. A MEETING OF BANKERS. LONDON, September 27. The Daily Telegraph learns that plain speaking was heard at a meeting of bankers, at which, it is understood, the governor of the Bank of England laid the onus of the Hatry trouble upon banking and money circles, and intimated that the financial authorities would need to realise their responsibilities. He reminded bankers of the well-known views held by many members of the Labour Government regarding the nationalisation of banks.

DEFENDANTS IN COURT. LONDON, September 27. Hatry, Daniels, Tabor, and Dixon were remanded to October 4. Sir George Truscott was on the Bench, and the defendants were seated immediately in front of the dock, which was not used. Mrs Hatry was not present, and a friend stated that she was resting in the country. Hatry looked composed, almost cheerful, and the defendants chatted animatedly with their counsel, the whole scene resembling an informal company meeting rather than a drama to which this was a prelude. “A SHOCKING FRAUD.” LONDON, September 27. Mr H. Roome, representing the Public Prosecutor, said that six months after the Wakefield loan had been issued the defendants committed a shocking fraud. On July 15 Daniels ordered Blades, East, and Blades, who had printed the Wakefield loan scrip certificates, to print a further 80 Wakefield certificates for £5OOO each, and to deliver them to Dixon, not to Page, the chief clerk of the issue department of the Corporation and General Securities, who had ordered the previous printing for the Wakefield loan. The defendants desired to conceal what they were doing from Page. Thus certificates amounting to £400,000 were fabricated. The defendants were hard pressed for ready money. These four gentlemen, directors of the Issuing House of the City of London, stooped so low as to issue worthless scrip. Russell was completely deceived. The printers had no reason for knowing that these supplementary issues were in anv way spurious. Accordingly, they printed and delivered them to Page, and Dixon told him that they would "be exchanged for the original scrip, which would be cancelled. As the exchange was not made Page asked Daniels if he realised that they had issued more scrip than the amount of the loans. Daniels said: “Technically we have. I am seeing to it.” Mr Roome continued that these suprious issues would be the subject of further charges. “ There are men,” he said, “ being ruined by the action of these defendants, whose uttering of spurious securities has rendered them liable to 14 years’ penal servitude.” The hearing was adjourned.