CONTROL OF BOND COMPANIES

Timaru Herald, Volume CXXXVIII, Issue 19941, 27 October 1934, Page 13

CONTROL OF BOND COMPANIES

NEW EVIDENCE BEFORE COMMISSION

COUNSELS’ ADDRESSES IN DEFENCE

United Press Association—By Electric Telegraph—Copyright (Received October 26, 7.50 p.m.)

SYDNEY, October 26

The Royal Commission inquiring into the activities of certain trust companies continued its sitting to-day. Oscar Josephson was questioned concerning his activities recently in Brisbane in connection with the organising of debenture holders. Witness said one man had given him £l5O and another £475.

Replying to Mr Bryan Fuller and Dr. Louat, representing certain companies, witness said he had spent £220 of that money in expenses. Josephson said the matter started early this month, after conversation with Mclnnes, who is a shareholder in the British Consolidated Investments Ltd., of which witness was a director. It had been about to go into liquidation, but it had been decided that witness should go to Brisbane and get additional capital. He had discussed with men in Brisbane a scheme whereby the British Consolidated Investments Ltd., as a brokerage organisation, would endeavour to get together the debentureholders in the Southern British with a view to holding meetings in the four capital cities of Australia. It had been decided to go on with the scheme, and he had received the sums mentioned for shares in the Brtiish Consolidated Investments Ltd. It had also been decided to try to obtain a list of debenture-holders, to form an association, and to brief counsel to appear before the Commission. It was suggested that a company be formed, consisting of debenture-holders, who would exchange debentures for shares. Address of Counsel. Mr McGhie (for V. B. Mclnnes), addressing the Commission, said that V. B. Mclnnes had never drawn anything except by way of salary and that was less than he had been entitled to under his agreement with the companies. The Commissioner (Mr Justice Halse Rogers) said that what he was going to report upon was the unsatisfactory business methods of the Mclnnes companies and to say that the one now operating should be wound up. Mr McGhie: The process of liquidation is now in train.

The Commissioner: It should not be voluntary liquidation but a receiver should be appointed.

Mr McGhie said there was no evidence that anyone had deliberately induced people to give lists of the Primary Producers’ Bank depositors in breach of trust. The Commissioner: It is common knowledge that a bank officer must not disclose his bank’s affairs. The Commission adjourned.

Commissioner’s Findings Next Week. At the conclusion of Mr McGhie’s address on behalf of the Mclnnes group of companies, the Commissioner announced that some time next week he would submit his findings on the facts, but not his recommendations. He assumed that counsel would desire to address the Commission on the findings. The Commission adjourned until next week.