CONTROL OF TRUST COMPANIES

Timaru Herald, Volume CXXXVIII, Issue 19940, 26 October 1934, Page 9

CONTROL OF TRUST COMPANIES

COMMISSION OF INQUIRY RESUMES COUNSELS ADDRESSES FOR DEFENCE United Press Association—By Electric Telegraph—Copyright (Received October 25, 11.15 p.m.) SYDNEY, October 25. The Royal Committee inquiring into the activities of certain trust companies continued its sittihg tnis morning.

Mr Bryan Fuller, counsel for the Investment Executive Trust and the Southern British National Trust Limited, addressed the Commission, in defence of the companies. He said, that when anybody complained about unfair dealings by agents, the assignment of their deposits in the defunct Primary Producers’ Bank for debentures had been cancelled, while persons who had invested in Trust debentures were 80 per cent, of a type well able to protect their own financial interests.

Alluding to the question of winding up the companies, Mr Fuller argued that it was questionable whether, if the Commissioner recommended special legislation to meet special cases, it should be made retrospective.

The Commissioner (Mr Justice Halse Rogers) replied that he would recommend the adoption of emergency legislation, if he found the position was one of emergency. The future of the trusts was doubtful, because the amount of debenture capital they could get in was problematical. Mr Fuller suggested preserving the existing order of things until the views of debenture holders were ascertained.

The Commissioner: What guarantee can be obtained that the assets of the companies will not be wasted in the meantime?

Mr Fuller said that undertakings could be provided and accredited accountants placed in charge of the companies’ books; they could preserve the assets as well as any receiver. Legislation of an emergency character might inflict most harm on the debentureholders in New Zealand. The Commissioner: If I find the charges proved, I shall recommend the entire removal of those who have been in charge. The Commission then adjourned.