HATRY FINANCIAL CRASH

Taranaki Daily News, 18 December 1929, Page 9

HATRY FINANCIAL CRASH

CHIEF RESERVES DEFENCE

LIABILITY TOTALS £29,500,000

THE DEFICIENCY £13,500,000

By Telegraph—Press Assn.—Copyright. London, Dec. 16. Sir Gilbert Garnsey, giving evidence in the Hatry case, said the total liabilities of the six associated companies in the Hatry group amounted to £29,500,000, not including the share capital. Secured claims totalled £13,750,000. There was little prospect of a dividend . for unsecured creditors, as the total deficiency was likely to exceed £13,500,000. The gross liabilities of the Austin Friars Trust were £19,000,000, of which about £6,000,000 represented inter-com-pany liabilities and claims. Its main assets were represented by investments in associated companies, of- a book value of about £11,500,090, of which the estimated value was about £3,700,000. Sir Gilbert was of opinion that the Austin Friars Trust had never been solvent.

Sir Gilbert, cross-examined, agreed that defendants loyally assisted during his. investigation. He agreed that not a single penny of the money subject to these charges could be traced to the pocket of Hatry or the other defendants; he had no reason for believing they made any profit for themselves. All the money went in the Austin Friars Investment Trust.

The committal charges were read, after which the magistrate asked the defendants if they had anything to say. Hatry replied: “I plead not guilty and reserve my defence. I adhere in every way to my original statement concerning my primary responsibility.” Four were committed for trial, bail being refused. In a voice trembling with emotion Hatry said: “I pledged every penny, my reputation, and maybe my liberty, to avert what otherwise might have been a terrible crash, whereas I could have walked off a free man, but the losses then would have fallen on thousands of shareholders throughout the country instead of comparatively few. I am irretrievably and irreparably ruined and my name has become a byword. If I am found guilty my punishment will begin again when I am released.”

Sir Gilbert gave evidence that since 1925 Hatry had received £42,526 remuneration; Daniels, £23,545; Dixon, £11,506; and Tabor, £5060. Daniels was a creditor to the companies to the extent of £128,298, but holds securities estimated at a value of £50,000.