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Wairarapa Age, 21 August 1934, Page 5

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ONLY RECORD OF £lOO,OOO CHANGING HANDS. TRUST COMPANY INQUIRY IN SYDNEY. MR W. C. HEWITT EXAMINED. SYDNEY, August 20; The Royal Commission inquiring into the activities of seventeen trust companies was resumed. W. C. B. Hewitt, director of the Brit- • ish National Trust, was recalled to explain why thq companies ’ books were not yet ready. He said that he had not had sufficient time to make the necessary entries.. Mr. Monahan.: “Is it not a fact that when the inquiry opened, the books' were in such a state that they could not assist ordinary accountants in any way?” Howitt: “No. I would" not say tjiat.” Hewitt added that he had brought some books up to date. Mr. Monahan: “Have you made any alterations in the 'books?” Hewitt: “As far as they are concerned, I can explain any alterations I made. ’ ’ “Are you not trying to alter the complexion of certain transactions?”— “Certainly not.” Mr. Monahan said that the. accountants were having difficulty in elucidating certain matters, particularly the source from which £116,000 was obtained to pay contractors for the Trust building. Hewitt: “It was the British National Trust’s own money. ’ ’ Mr Monahan: “The British National Trust never had any money.” Hewitt: “It was obtained by selling debentures to the South British National Trust, Ltd-., and the Investment Ehrecutive Turst of New Zealand, Ltd.” Mr. Monahan: “How did 'those companies get money?”—“By the sale of debentures to the public. So the building has been paid for by publicly-sub-scribed money.” Mr. Monahan: “Is it not correct to say that the British National Trust en tered into a contract for over £100,600 without even having a bank account?” Hewitt: “Yes.” Witness said: he was unable to say what proportion, of the money had been paid by the Southern British National Trust and the Investment Executive Trust An entry had not Ibsen posted in the books; ho had entered it on a sheet of paper which was in the office.” Mr. Monahan: “When was that done?”—“On Saturday morning.” ‘ So £109,000 changing hands is ™Y° r o On a scra P 01 paper?”— Replying to the Commissioner, Howitt said that if’the British National Truaf were wound up there would be very little liquid cash available Referring to Hewitt’s sole directorship of the British National Trust, Mr Monahan inquired why McArthur had! relinquished his directorship in the company. Hewitt said' that McArthur had made a profitable deal involving a turnover to himself of £200,000 and had immediately left the company. tic l ?" Monahan: “Is it not a fact that McArthur is running l all these campanics and you others are just doing his bidding without question?” Hewitt: “We all have every confidence m Mr. McArthur.”

. Mr. Monahan: “Did you ever exercise any independent judgment as the sole director of your company?” Hewitt: “In some things, yes.”