SHARES SLUMP.

Southland Times, Issue 20886, 23 September 1929, Page 7

SHARES SLUMP.

LONJDOM SENSATION

HATRY GROUPS AFFAIRS SUSPICIOUS DEALINGS PRINCIPALS ARRESTED SERIOUS ALLEGATIONS (United Press Assn.—By Telegraph—Copyright.) London, September 20. The Marquis of Winchester, chairman of a number of companies constituting the Hatry group, has issued a statement that "on the instructions of various banks and others interested Sir Gilbert Garnsey, of the Price Waterhouse Company, is investigating the affairs of the group.” The Stock Exchange Committee has suspended permission to deal in the five Hatry companies’ shares, also those of the Drapery Trust Limited and the Wakefield Corporation 4 i per cent, stocks. The newspapers yesterday drew attention to the slump in the shares of the Hatry group with which the Corporation of General Securities Limited, an associated corporation, this week sponsored the Melbourne Harbour Trust issue.

In connection with the Stock Exchange suspension of dealings in Hatry shares and certain connected securities, the action is unusual and indicates that a serious view has been taken by the authorities. Committee's Unusual Action. The action of the committee in suspending the dealings of the Ilatry group caused a sensation on the Stock Exchange as it is the first time such a stop has been taken since the emergency regulations at the outbreak of the war. Business in many sections of the exchange has practically ceased, and groups are eagerly discussing the position. It is estimated that the total market value of the five Hatry companies has dropped £8,000,000 compared with the highest prices this year. The committee’s action is generally approved as it will prevent shareholders selling at a price which may prove unjustifiably low after a full investigation is made. The newspapers describe the suspension as one of the greatest financial sensations of recent years. It is reported that in an endeavour to prevent a slump Clarence Hatry and others interested in the companies concerned endeavoured to obtain the support of large finance groups. They also approached financiers in America, Germany and France. Born in England, Captain Bollons made Hatry and Associates Arrested. The climax to the financial sensation was reached in the evening when Hatry and three of his associates were arrested. Earlier in the day Hatry consulted his solicitors. They told him exactly how he stood from the legal point of view and advised him to place his position before the authorities. This applied also to Edmond Daniels, John G. Dixon and A. E. Tabor, directors of various Hatry companies. Therefore Hatry and his associates conferred and decided to see the Director of Public Prosecutions and made personal arrangements with their wives in case of eventualities. The four duly arrived at the office of Sir Archibald Bodkin and made a statement to detectives trained in the intricacies of company business. An interval fol lowed, and it was then explained to Hatry and his associates that in view of the statements they could not be allowed to ga free. Accordingly the four were taken in taxicabs to the police station where they were formally charged and spent the night. They will be charged at Guildhall to-day with various offences arising out of the financial operations employed. Offering bail, they were informed that that was a matter for the magistrate. No Help From Big Banks. It is learned that Hatry and his chief associates realized on Thursday night that no assistance would be forthcoming from the great banks. Contrariwise the banks were pressing the companies and insisting on investigation. Every avenue had been explored and failed. Hatry explained the situation and finally said simply: “Well, boys, this is the finish.” Daniels was once a bank clerk and is now a director of fifteen companies and managing director of the Corporation of General Securities. The Daily Express says he owns three residences and five motor cars. Hatry, Edmond Daniels, A. E. Tabor and J. G. Dixon were remandeel till Friday. Bail was refused. The Public Prosecutor said that in July the defendants obtained from George Ireland Russell, acting on behalf of the Porchester Trust Limited, £209,141 on the deposit of certain securities which, while purporting to be £150,000 of Wakefield Corporation 41 per cent, stock, were absolutely fictitious and worthless. The Wakefield stock was issued

by the Corporation of General Securities. The money advanced was used in companies known as the Hatry group. The defendants yesterday made a joint statement to the Public Prosecutor admitting the above facts. A detective stated that Hatry, Daniels and Tabor had passports on them when arrested. There was a great crowd of stockbrokers and others outside the Guildhall Court, and a wild rush took place as the defendants drove up in a taxi. Only 30 were admitted to the court, where Mrs Hatry sat tearfully with a lady friend. Other Charges Pending. The Public Prosecutor said: “The information in our hands shows undoubtedly that other charges of a serious nature will be made.” The Magistrate, Sir George Trustcott, said he appreciated the defendants’ commendable attitude, but in view of the seriousness of the issues involved he felt it was his duty to decline bail.—-Australian Press Association. £300,000 STILL OWING “TOWN OF WAKEFIELD’S LOAN.” (Rec. 11.0 p.m.) London, September 21. The Town Clerk of Wakefield says: “The Corporation of General Securities raised on our behalf £750,000, of which we obtained £425,000, so £300,000 is still owing to us. We don’t know whether we shall lose that, but whatever the loss it will have to be borne by the rates.”—Australian Press Association.