McArthur again

Wanganui Chronicle, Volume 80, Issue 190, 13 August 1938, Page 9

McArthur again

AUSTRALIAN BIIL ASSURANCE COMPANIES SAIEGI ATIDIXG POLICY HOLDERS (By Telegraph—Press Association—Copyright) Received Aug. 12, 5.5 p.m. SYDNEY, Aug. 11. In (he Legislative Assembly to-night a Bill was introduced aiming to safeguard policy-holders’ deposits in two assurance companies, amounting to £2,000,000. The Bill gives the Public Trustee power to veto any transactions of the two companies, namely, the Commonwealth Genera! Assurance Corporation and the Producers an* Citizens’ Assurance Company. The Minister of Justice, Mr. L. O. Martin, explained that both companies were in diflicuities and that the policy-holders had no share in their management. The Government was convinced that the canvassers representing the National Stock Exchange, Ltd., had, by insidious means, been persuading the shareholdeis or both companies to part with their holdings. The Minister declared that the National Stock Exchange was an absolute instrument of Mr. J. W. S. McArthur and his group, which had acquired a controlling interest in one of these companies. The Premier, Mr. B. S. B. Stevens, said that (he reason for haste was that experience had shown that the McArthur group had learnt the- art of moving swiftly and cunningly while keeping within (he law’. The McArthur company, with assets which were said to be worth £9OOO, had sought to conquer companies that had assets exceeding £1,000,000. The Leader of the Opposition, Mr. J. T. Lang, objected (•> the motion for urgency. He said it was now not unusual for a BiH to be lushed through the House dealing with trie name “McArthur.” and yet this man had never been found guilty of any crime. The Bill passed through all its stages. I

EMERGENCY SITTING COMPANIES HANDED TO PUBLIC TRUSTEE Received Aug. 12, 11.30 p.m. SYDNEY, Aug. 12. The Legislative Council to-day, at an emergency sitting passed a Bill giving the two assurance companies to the Public Trustee, Mr. Geddes. The Minister of Justice, Mr. Martin, stated subsequently: “The interests of the policyholders are now completely safeguarded.” During the debate, Mr. J. Concannon declared: “This McArthur must be a gentleman of outstanding ability. This is the second time in our Parliamentary history when emergency legislation has been required to deal with him.” The majority cf the Labour members claimed that legislation should be passed to deal with insurance companies generally. The Minister in charge of the Bill, Mr. Hawkins, said the Government was now considering a general overhaul of the company laws.