HATRY DEFICIT EXPECTED TO BE ABOUT £13,500,000.

Star (Christchurch), Issue 18946, 17 December 1929, Page 9

HATRY DEFICIT EXPECTED TO BE ABOUT £13,500,000.

ACCUSED MEN SENT UP FOR TRIAL AFTER PRELIMINARY HEARING. (United Press Assn.—By Electric Telegraph—Copyright.) (Received December 17, 11.30 a.m.) LONDON, December 16. In the Hatry case, Sir Gilbert Garnsey, giving evidence, said that the total liabilities of the six associated companies in the Hatry group amounted to £29,500,000, not including share capital, which was not secured. The claims totalled £13,750,000. There was little prospect of a dividend for the unsecured creditors. The total deficiency was likely to exceed £13,500,000. The gross liabilities of Austin Friar’s Trust were £19,000,000, of which about £6,000,000 represented inter-company liabilities and claims. Its main assets were represented by investments in its associated companies of a book value of about £11,500,000, of which it is estimated the value is about £3,700,000. He was of the opinion that the Austin Friar’s Trust never had been solvent.

Sir Gilbert Garnsey gave evidence that since 1925 Hatry received £42,526 in remuneration, Daniels £23,545, Dixon £11,560 and Tabor £5065. Daniels was a creditor to the companies to the extent of £128,298, but holds securities, the estimated value of which is £50,000. Sir Gilbert Garnsey, cross-examined, agreed that defendants loyally assisted him during his investigations. He agreed that not a single penny of the moneys subject to these charges could be traced to the pocket of Hatry or the other defendants. Personally, he had no reason for believing that they made any profit for themselves. All the money went in Austin Friar’s Investment Trust. Committal charges were read, after which the Magistrate asked 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.” In a voice trembling with emotion Mr Hatry said: ‘‘l have 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. My name has become a byword, and if found guilty my punishment will begin again when I am released.” The four accused were committed for trial. Bail was refused.