ONLY £5 PAID.

Star (Christchurch), Volume LXVI, Issue 20391, 23 August 1934, Page 1

ONLY £5 PAID.

Secretary Gives Details of Share Transactions. COMPANIES INQUIRY. United Press Assn.— By Electric Telegraph—Copyright. SYDNEY, August 22. Before the Royal Commission inquiring into the affairs of certain trust | companies, 11. C. Glasson, secretary of , ; the Investment Executive Trust, was | examined regarding entries in the comI panv's 1933 balance-sheet. 1 Mr Monahan: How much actual money -was subscribed? ! Glasson: £5. Mr Monahan: In May, 1933, 193,400 shares were allotted to M'Arthur? Glasson: Yes. Mr Monahan: Was that by resolution ! of the directors? ! Glasson: Yes. The Commissioner: Was a cheque j received for these shares? 1 Glasson: There were two deposits ■ and one withdrawal. } Mr Monahan: Why is there a differ- ! ence between the date of the share ; transaction and the cheque transacj tion? j Glasson: I cannot just remember the i circumstances. I Mr Monahan: They were paid for before they were applied for and allotted. Do you think they are true entries in the books? Glasson: I do. Mr Monahan: In April, 1934, M’Arthur transferred 135,320 shares to the Southern British Trust? Glasson:'Yes. Turning Over Pa^er. Mr Mdnahan: The consideration was £62,000, so that for what M’Arthur paid less than £26,000 —in fact, he paid nothing at all—he received £62,000. Do you say that the board of the Southern British ever considered that transaction at all. with a profit of approximately £40,000 to M’Arthur, just by turning the paper over in that way? Glasson: I really cannot say. Replying to the Commissioner at a later stage Glasson said: “M’Arthurand Alcorn transferred shares in the Investment Executive Trust to the I Southern British National Trust. They were to receive £75,000 odd between | them. That consideration was satisfied Iby the transfer of British National Trust Debentures, but these were not handed to them. I received instructions to credit them with the value of these debentures and to transfer the debentures into the debenture holders’ account in the Southern British.” Continuing, Glasson said under the transfer M’Arthur and Alcorn would still receive the same return for the shares they had paid into the company. Instead of British National Trust debentures they were to receive ordinary deferred shares in Southern British. Mr Monahan: Supposing M’Arthur, in his capacity as a creditor of Southern British, decides he will not take these deferred shares in the company j after being requested to do so by J M’Arthur in his capacity as representa--1 tive of Southern British, is not the j position then that as a creditor his claim on the company ranks before { that of preference shareholders? ! Glasson: Yes. He probably would. Mr Monahan: These preference share- ! holders are the public who put in the j real money ? I Glasson: Yes. That is the position i at present. J The hearing was adjourned.