TRUST INQUIRY

Southland Times, Issue 22497, 6 December 1934, Page 6

TRUST INQUIRY

SYDNEY COMMISSION. FUTURE COMPANIES. (United Press Assn. —Telegraph Copyright.) (Rec. 5.5 p.m.) Sydney, December 5. Robert Hill, financial expert attached to the Royal Commission investigating the affairs of trust companies, said he had described Mr L. W. Swan’s scheme as workable, but it was not one with which he could associate himself or which he could recommend. In his opinion the debenture-holders would benefit most by the liquidation of nearly all the companies with the possible exception of the Investment Executive Trust. There should be a proviso that the sale of the Trust building be postponed indefinitely. Replying to the Commissioner (Mr Justice Haise Rogers), Mr Hill said in connection with the Southern British Trust that he could see no advantage in reconstruction as against liquidation. Dr Louat, who is representing some of the companies, suggested that-going into liquidation might mean depreciating the value of the building. Insecurity of tenure would affect the letting prospects. The Commissioner said that a copy of his report should be sent to the deben-ture-holders together with a copy of the scheme endorsed by- Mr Pitt and Dr Louat. Three questions should be put, namely, whether the. voter favoured the assets remaining in the hands of the Public Trustee for one year; whether he favoured the immediate liquidation of four companies with power to the liquidator to postpone realization of the assets; or whether he favoured the scheme of reconstruction put forward by Dr Louat. Mr Hill’s opinion as an expert accountant assisting the commission and Dr Louat’s remarks, as well as the Commission’s own opinion on the whole matter, might be included in the documents sent to the debenture-holders. The Commissioner directed Dr Louat to produce a scheme in detail by Friday. About ten days should be sufficient time to enable the debenture-holders’ replies to be received. He was to make his.final report to the Executive by January 15. The . Commission was adjourned.